LOS ANGELES-Harrah’s Entertainment Inc. and Caesars Entertainment Inc. confirmed in a Securities and Exchange Commission filing Aug. 31 that they have been discussing the sale of Harrah’s East Chicago, Harrah’s Tunica, the Atlantic City Hilton and Bally’s Tunica with potential purchasers, including an affiliate of Century City-based Colony Capital LLC. Although officials of the two casino companies and Colony are not commenting on the deal, Colony is believed to be the lead bidder on the four casinos owned by Harrah’s and Caesars, in a deal that could top $1 billion.

In addition to the Atlantic City property, Colony, which owns about $10 billion in assets and is headed by CEO Thomas J. Barrack, would get Harrah’s casinos in East Chicago, IN and Tunica, MS, along with a Bally’s casino in Tunica that is owned by Caesars. Colony already owns Resorts International in Atlantic City.

The possible sale of the casinos is driven by antitrust concerns of US government regulators. Selling the casinos could be a way for Harrah’s and Caesars to smooth the way for Harrah’s bid to acquire Caesars for more than $5 billion.

The acquisition would be the latest in a series of recent resort and casino industry moves for Colony, which in June bought the Las Vegas Hilton from Caesars for approximately $280 million, according to a Caesars announcement. Barrack, in that announcement, described the acquisition as a repositioning play in which Colony would upgrade the property by investing up to $67 million over a four-year period to renovate the hotel, including updates to the guest rooms, restaurants and casino area and will focus on developing convention business for the hotel.

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