Rock Gaming and Harrah's Entertainment Near Agreement to Manage Downtown Casinos in Cleveland and Cincinnati

Rock Gaming, LLC, and Las Vegas-based Harrah's Entertainment, Inc. announced today a non-binding agreement in principle on key terms to form a joint venture to develop and operate downtown casinos in both Cleveland and Cincinnati.  The proposed terms contemplate Harrah's making a significant minority investment in the projects and serving as the day-to-day casino manager in both cities.  Formation of the joint venture is subject to final definitive agreements which are expected to be completed during the fall of 2010.  Rock Gaming, the gaming entity of Rock Ventures LLC, will retain majority ownership in the proposed partnership.  

Casino gaming, including the development of four new casinos statewide, was approved by Ohio voters in a constitutional referendum in November 2009.

Rock Gaming principal Dan Gilbert, said: "After a thorough evaluation, our team is certain that Harrah's top notch and innovative management team is completely aligned with our unwavering commitment to create and deliver projects that embrace and interact with the downtowns they serve.  Our partnership will positively impact surrounding businesses while stimulating new growth in the urban cores of Cleveland and Cincinnati."

Gary Loveman, Chairman, CEO and President of Harrah's Entertainment added: "We look forward to the opportunity to bring our casino brands, management expertise and Total Rewards customer loyalty program to Ohio.  Harrah's shares a common vision with Rock Gaming to develop and manage first-class urban-based casinos that will be a catalyst for economic expansion and job creation in both markets."

The joint venture is expected to invest more than $600 million to develop the Cleveland casino, which will sit between the bank of the Cuyahoga River and Huron Street in the heart of the downtown entertainment district.  The gaming operation is projected to attract eight million visits to downtown Cleveland annually, while adding another high-profile attraction to Cleveland's impressive sports, entertainment, music and cultural destinations.  More than 8,000 construction and permanent jobs are expected to be created by the development and operation of the project.

Responding to the encouragement of city and regional leadership, the companies are also exploring opening a phase I casino operation in downtown Cleveland's historic Higbee building, which is in close vicinity to the new construction casino development. Should it be concluded that a phase I casino is a viable undertaking, the companies project a 2011 opening and the creation of up to 1,500 jobs in the initial phase.

The Cincinnati casino will be built on 20 acres of vacant property on the downtown's northeast side known as Broadway Commons.  The estimated $400 million new development is expected to drive six million visits to downtown Cincinnati, while creating nearly 4,900 construction and permanent jobs.

The parties have agreed that Harrah's will contribute its recently acquired Cleveland-area Thistledown Racetrack into the pending joint venture.  In the event the Ohio Lottery's efforts to implement video lottery terminals (VLTs) at Ohio's horse racing tracks are successful, the agreement calls for Harrah's to manage Thistledown.

The formation of the joint venture and the pursuit, development and completion of the contemplated casino projects are subject to various conditions, including, among others, the receipt of regulatory approvals, the parties' agreement on development plans for the projects and the cost and availability of financing for the projects.


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