The tentative agreement calls for Pinnacle to acquire Harrah's Lake Charles, which includes two casino boats and a 263-room hotel. Extensively damaged by Hurricane Rita in September 2005, the casinos remain closed but the hotel reopened in February 2006.

In the other half of the deal, a subsidiary of Harrah's would buy from Pinnacle the Casino Magic Biloxi, which has been closed since August when Hurricane Katrina destroyed the gaming barge and extensively damaged the hotel complex. In both deals, the seller would retain its related insurance claims.

"Our L'Auberge du Lac facility in Lake Charles is close to the maximum gaming capacity permitted by the Louisiana gaming laws," said Daniel R. Lee, Pinnacle's chairman and chief executive officer. "The purchase of Harrah's Lake Charles allows us to build on our success in that market and enhance our Louisiana operations."

As for Biloxi, Lee says Pinnacle may return in the future but for now has decided to exit that market "due to our relatively small site, the evolving competitive environment and the demands elsewhere on our resources."

Pinnacle Entertainment owns and operates casinos in Nevada, Louisiana, Indiana and Argentina, owns a hotel in Missouri, receives lease income from two card club casinos in the Los Angeles metropolitan area, has been licensed to operate a small casino in the Bahamas, and owns a casino site and has significant insurance claims related to a hurricane-damaged casino previously operated in Biloxi. Pinnacle also has two casino development projects in the St. Louis area, which are dependent upon final approval by the Missouri Gaming Commission.