Harrahs Betting on Online Gambling

Revenues remain down at Las Vegas casinos, causing executives to think about a new way to do business. Gary Loveman, the chief executive officer at Harrah’s Entertainment Inc., says he doesn’t see a quick turnaround in Las Vegas, but is considering new business models in order to help his business succeed.

Loveman says that he believes the potential legalization of online poker could bring in billions to his casinos and others.

Harrah’s reported this week that its first-quarter loss in 2010 was more than $195 million. A year ago that loss was $132 million. Revenue fell by almost 3% overall.

Many Las Vegas casinos are suffering right now, Loveman said, which has caused these businesses to rethink the opening of new casinos, or expanding current casinos. It’s been rumored that Harrah’s is considering the sale of its Rio All Suite Hotel & Casino, which is behind Caesars just off the strip.

But Loveman is considering new ventures. He says the possible legalization of online poker & online casinos for usa players could bring billions of dollars to Las Vegas casinos by providing a mechanism for regulating the online end of things, and giving casinos an entirely new way to market their business and products. There are bills currently in Congress that would legalize online poker; online poker rooms are currently operated entirely by offshore businesses.

Loveman is also interested in expanding into Asian markets. China’s Macau is the world’s largest source of gambling revenue, and Loveman said Harrah’s is looking into expanding into these kinds of markets, but said there are no plans for any immediate moves into the region.