If the deal is finalized, the JV's project would be the first onthe 404-acre waterfront tract, which is owned by DiamondheadCasino's wholly owned subsidiary, Mississippi Gaming Corp. Thedevelopment land, situated in Hancock County on the Bay of St.Louis, had been the center of talks with New York City-based TrumpEntertainment Resorts Inc. until early 2007when the $300-million project cratered.

Gregory Harrison, vice president of Madiera Beach, FL-basedDiamondhead Casino Corp. says not only does the agreement need tobe formalized, but the JV also needs to firm up the casino's sizeand the location. He tells GlobeSt.com that he has no doubt that adeal will be struck because both companies have long-term ties."They loaned us the money to buy the land in 1992 and operated twoof our boats in Florida, when we operated under the name EuropaCruises," he says.

The Diamondhead tract has two miles of frontage along Interstate10 and about the same amount on the Bay of St. Louis. The site iszoned as a special use district for waterfront gaming. It also issubject to post-Katrina legislation allowing casinos to be built upto 800 feet of the mean high-water line.