The Nevada Gaming Control Board recently confirmed what gaming industry insiders have known for quite some time: Harrah’s Entertainment intends to buy Planet Hollywood Resort and Casino. The gaming giant filed an application with regulators on November 25.
In an internal email to employees, Harrah’s CEO Gary Loveman said he would like to add Planet Hollywood to the company’s stable of successful properties on the central Strip.
“The Planet Hollywood resort is currently in default to its lenders,” Loveman wrote. “As a result of our purchase of their debt, we are working on a plan that also would allow Harrah’s to own and manage the property. This is an attractive proposition because of Planet Hollywood’s proximity to our other resorts on the Strip. It’s a high-quality product offering and a strong brand name. This move is the latest example of our strategy to make purchases or acquisitions capitalizing on opportunities created by current economic conditions.”
Planet Hollywood defaulted on $870 million in debt obligations, after which Harrah’s purchased $140 million of the property’s debt.
The control board plans to investigate the proposal and submit a report to the Nevada Gaming Commission, which must then decide whether to approve the purchase.