Approximately $175 million of the proceeds would be used to satisfy its tender offer for notes maturing in 2010 and 2011. The remainder would be used for further debt reduction and general corporate purposes, according to an SEC filing.

Harrah's last week revealed an $89-million agreement to buy the Thistledown horse-racetrack near Cleveland in Ohio, which is considering allowing up to 17,500 video lottery terminals for certain racetracks as a budget deficit reducer. The Ohio Supreme Court ruled on Monday that the state's is subject to a statewide voter referendum.

Also this month, Harrah's reportedly purchased 16% of the $860 million in defaulted debt tied to the Planet Hollywood Resort. Some analysts have speculated that the acquisition gives it a leg up on possibly acquiring the resort.