Harrah’s to Build Louisiana Casino, Expected to Be World’s Largest

NEW ORLEANS —  The Louisiana gaming commission Wednesday picked Harrah’s Jazz Co. to build the state’s only land-based casino, expected to be the world’s largest, near New Orleans’ historic French Quarter on the Mississippi River.

Harrah’s Jazz--a partnership of Promus Cos.’ Harrah’s Hotel Casinos and 10 New Orleans investors--projected that the casino will eventually generate $600 million in annual gaming revenue.

The group was selected over Grand Palais Casino Inc., the company thought to be the clear front-runner. Grand Palais is a partnership of resort developer Christopher Hemmeter and Caesars World Inc.

Upon completion, the 120,000-square-foot casino will feature 200 table games and 4,800 slot machines, Promus said.

An analysis by the board’s financial consultant released Tuesday indicates Harrah’s proposal will give the state slightly more in tax revenue.

Shares of Promus Cos. soared on the news, closing up $6.375 at $64.375 a share. Caesars World lost $2.75 to close at $43.125.

Analyst Marvin Roffman of Roffman Miller Associates said gaming remains “an industry with very high growth prospects.” He rates Promus “the best-managed company in the business” and notes that it has a big diversified base.

Naomi Talish of Morgan Stanley & Co. said she estimates Promus will earn at least $2.15 a share in 1994, compared to $1.20 a share this year. Earnings should rise to $3.35 a share in 1995.