October 1, 2014
The private equity buyers of Harrah's Entertainment Inc. could have a colossal $2.8 billion problem on their hands.
Harrah's inherited a legal quagmire that dates back to 2000 and
dealings of its predecessor company, Park Place Entertainment.
The St. Regis Mohawk Tribe of New York state sued the casino for
interfering in its plans to open an off-reservation casino in the Catskill mountains.
It alleged that interference was meant to protect Harrah's four casinos in Atlantic City.
A tribal court awarded the tribe $1.8 billion plus $1 billion in interest.
Harrah's says it will vigorously fight the judgment, claiming the tribal court is not legitimate.
The matter is now before a federal court where the tribe has sued to enforce the judgment of their court.
(Copyright 2007 by The Associated Press. All Rights Reserved.)