Harrah's Entertainment
Harrah's Entertainment (later named Caesars Entertainment Corporation, previously The Promus Companies) was an American casino and hotel company founded in Reno, Nevada, and based in Paradise, Nevada, that operated over 50 properties and seven golf courses under several brands. In 2013, it was the fourth-largest gambling company in the world,[1] with annual revenues of $8.6 billion. It was acquired in 2020 by Eldorado Resorts, which then changed its own name to Caesars Entertainment.
"Caesars Entertainment Corporation" redirects here. For the company currently known as Caesars Entertainment, see Caesars Entertainment. For other uses, see Caesars Entertainment (disambiguation).Founded
At the end of its existence, Caesars was a public company, majority-owned by a group of private equity firms led by Apollo Global Management, TPG Capital, and Paulson & Co.; and Carl Icahn. Caesars's largest operating unit filed for Chapter 11 bankruptcy protection in 2015,[2][3] which led to the foundation of Vici Properties as a result.
History[edit]
William F. Harrah era (1937–1978)[edit]
The company's background can be traced to October 29, 1937, when Bill Harrah opened a small bingo parlor in Reno, Nevada, a predecessor to Harrah's Reno.[4][5] In 1955, he expanded to Stateline, Nevada, on the south shore of Lake Tahoe, where he would eventually open Harrah's Lake Tahoe.[6]
Harrah's Inc. made its initial public offering in 1971.[7] In 1972, it was listed on the American Stock Exchange and in 1973, Harrah's became the first casino company listed on the New York Stock Exchange.
Bill Harrah died at the Mayo Clinic Hospital in Rochester, Minnesota, at the age of 66, during a cardiac surgery operation to repair an aortic aneurysm.[8]
Under Holiday Inn[edit]
In February 1980, Holiday Inn acquired Harrah's, Inc. for $300 million. Liquidation of Harrah's collection of almost 7,000 antique automobiles reportedly returned the full purchase price of the company to Holiday Inn. Holiday Inn at the time had interests in two casinos: the under-construction Holiday Inn Marina Casino in Atlantic City, and a 40 percent stake in the Holiday Casino, adjacent to the Holiday Inn hotel on the Las Vegas Strip.[5]
In July 1987, Bill's Casino Lake Tahoe opened.[5] Harrah's Laughlin opened in August 1988.[5]
The Promus Companies[edit]
The company that would become Harrah's Entertainment was formed in 1990 as The Promus Companies. To effect the sale of the Holiday Inn hotel business to Bass PLC, Promus was created as a corporate spin-off, holding Harrah's, Embassy Suites, Homewood Suites, and Hampton Inn; Bass then acquired Holiday Corp., which retained only the Holiday Inn assets.[9] The next year, the company's headquarters moved from Reno to Memphis, Tennessee.
In April 1992, the Holiday Casino was rebranded as Harrah's Las Vegas.[5]
The late 1980s and early 1990s saw a rapid increase in gambling markets with the growth of Indian gaming and legalization of riverboat casinos. In 1993 and 1994, the company opened Harrah's Joliet,[10] Harrah's Vicksburg,[11] Harrah's Tunica,[12] Harrah's Black Hawk,[13] Harrah's Central City,[13] Harrah's Shreveport,[14] Harrah's North Kansas City,[15] and Harrah's Ak-Chin.[16]
Renamed as Harrah's Entertainment[edit]
In 1995, Promus decided to spin off its non-gaming hotel businesses, in part because they had been undervalued by investors due to perception of the company as a risky gaming stock.[17] Promus Hotel Corp. was established, holding Embassy Suites, Hampton Inn, and Homewood Suites, while the parent company, holding 16 casinos, was renamed as Harrah's Entertainment.[18]
Harrah's continued its expansion over the next ten years, opening Harrah's Skagit Valley,[19] SkyCity Auckland,[20] Harrah's St. Louis-Riverport,[21] Harrah's Cherokee,[22] Harrah's Prairie Band,[23] Harrah's New Orleans,[24] and Harrah's Rincon,[25] and acquiring the Southern Belle Casino,[26] Showboat, Inc.,[27] the Rio All Suite Hotel and Casino,[28] Players International,[29] Harveys Casino Resorts,[30] Louisiana Downs,[31] Horseshoe Gaming,[32] and the World Series of Poker.[33]
On September 4, 1997, Harrah's Entertainment launched its Total Gold loyalty program (renamed as Total Rewards on April 4, 2000[34] and again as Caesars Rewards on February 1, 2019[35]), developed at a cost of $20 million.[36] It was the first gaming company to offer a systemwide comps program, allowing points earned at one casino to be redeemed for goods and services at any of the company's other casinos.[37] The system would be credited as a major driver of Harrah's growth over the coming years.[38]
Harvard Business School professor Gary Loveman joined Harrah's as chief operating officer in 1998,[39] and would go on to serve as chief executive officer from 2003 to 2015.[38][40]
In 1999, the company moved its headquarters from Memphis to Las Vegas.[41]
