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Harrah's suspends plans for Slovenia casino, cites contract snag

Harrah's suspends plans for Slovenia casino, cites contract snag

Gambling giant Harrah's Entertainment Inc. and a casino operator have suspended plans for a $1.2 billion (euro760 million) resort in Nova Gorica, Slovenia, the parties said.
Harrah's was unable to reach an agreement on a management contract with the Slovenia-based Hit Group, said Jan Jones, Harrah's senior vice president of communications and government relations.
"We were unable to reach consensus on a management structure that is consistent with Slovenian law and provides a business structure that satisfied both companies' needs," Jones said in a statement.
Jones said the company may still pursue a management agreement in Slovenia.
Hit Group released a statement saying, "it was not possible to find a management structure that would fulfill the interest of the Hit Group ... and granting (Harrah's) expected influence in the new joint company."
The resort was planned for western Slovenia, near the border with Italy. It would have contained Eastern Europe's largest casino with 1,500 rooms, 2,000 slot machines and luxury amenities.
Harrah's also recently withdrew from a proposed $2.6 billion (euro1.65 billion) resort project in the Bahamas. Harrah's had a 43 percent interest in a joint venture with Baha Mar Resorts Ltd. and Starwood Hotels & Resorts Worldwide to develop a six-hotel, mixed-use resort.
Harrah's was bought for $17.7 billion by private-equity firms TPG Capital and Apollo Management late last year.