HIT and Harrah's Entertainment Strike Deal
The Slovenian gaming company HIT and Harrah's Entertainment of the US have concluded a deal on a mega gaming project in Slovenia, both companies said in a joint press release on Monday.
The deal will be presented to the public in detail when its technical in operational aspects are finalised, which is expected within the next few weeks, the companies said.
Top managers of the Nova Gorica-based HIT have returned from Las Vegas, where they discussed the deal with the world's biggest casino operator last week.
The two companies were reported to be planning to build a EUR 800m worth mega gaming and tourism centre in the western town of Nova Gorica. Each would contribute half of the investment, and consequently hold a 50% stake in the joint venture.
HIT chairman Branko Tomazic believes the project would allow the Slovenian company to more than double the number of its clients (from 1.5m to 3.1m a year) and raise revenues from EUR 240m to EUR 420m by 2008.
In July, Harrah's outlined to the Slovenian government its plans for what would be the biggest greenfield investment in Slovenia. The company wanted to know whether the government would be willing to relax tax legislation and lift restrictions on gaming licenses.
Some three weeks ago, Prime Minister Janez Jansa reassured Tomazic that the government stood ready to help the project get off the ground should HIT and Harrah's Entertainment produce concrete guarantees.
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