The case between Harrah's and the Louisiana Department of Revenue has been decided. It did not go Harrah's way. Judge William Morvant ruled Harrah's will need to pay taxes dating back to 2001. That's when lawmakers revised the deal for the land-based casino, allowing Harrah's to open restaurants and a hotel.
According to the Times-Picayune/New Orleans Advocate Harrah's and the state will spar again in court in September over the amount of money Harrah's should pay Louisiana in uncollected hotel taxes. Some estimates say Harrah's could be billed as much as $30-to-$50-million.
In 2001, after Harrah's emerged from bankruptcy, Harrah's lobbied the state to allow Harrah's expansion by adding a hotel. Harrah's was also successful in having its annual lease reduced from $100-to-$60-million. Even though Harrah's hotel didn't open until 2006, the casino handed out comp rooms at third party hotels to casino gamblers. After opening its hotel in 2006 the gaming giant offered discounts and comped rooms to customers.