Under a general expansion plan outlined to the Casino Control Commission, Harrah's will divide the new investment equally between the two casino hotels. The bulk of the money will be used to add a total of close to 1,000 hotel rooms, again equally divided between Harrah's Atlantic City, which is located in the city's Marina District, and the Showboat, which is on the boardwalk. The last expansion round similarly added new hotel towers to the properties.

"We all agree that the Atlantic City market could use more hotel rooms," David Jonas, the company's senior vice president for its local operations, told the commission in unveiling the plans. He indicated that his company's two local hotels "turn away thousands of guests a month," because the properties are usually completely booked.

The latest expansion will also add more casino space, as well new restaurants and entertainment venues, but Harrah's officials declined to provide specifics. Officials described those plans as being "conceptual" at this point.

Work on the Harrah's Atlantic City portion of the expansion is expected to start by the end of this year, according Jonas, who noted that the whole thing still requires approval by the company's board of directors, not to mention state and local permits. The Showboat portion of the program is tentatively slated to start next year.

The two projects will be the first to get some help, in an amount yet to be determined, from a new $92-million construction fund being managed by the Casino Reinvestment Development Authority. The state recently authorized the fund to help casino-related expansion projects, specifically those of the non-gaming variety, including hotel rooms and related commercial uses.

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Harrah's Entertainment is Set to Invest Another $400M

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