In addition to the Atlantic City property, Colony, which ownsabout $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 concernsof US government regulators. Selling the casinos could be a way forHarrah's and Caesars to smooth the way for Harrah's bid to acquireCaesars for more than $5 billion.

The acquisition would be the latest in a series of recent resortand casino industry moves for Colony, which in June bought the LasVegas Hilton from Caesars for approximately $280 million, accordingto a Caesars announcement. Barrack, in that announcement, describedthe acquisition as a repositioning play in which Colony wouldupgrade the property by investing up to $67 million over afour-year period to renovate the hotel, including updates to theguest rooms, restaurants and casino area and will focus ondeveloping convention business for the hotel.