Binion's is being sold by MTR Gaming Group of Chester, WV, whichacquired the property from Harrah's in March 2004 for $21.8million. A source with MTR tells GlobeSt.com the company is sellingBinion's and another asset in North Las Vegas in order to focus onits core race track properties in West Virginia andPennsylvania.

Binion's is expected to remain operational after the sale, whichis expected to close around the end of the year. The transaction issubject to approvals by the Nevada Gaming Commission and the Cityof Las Vegas, and purchase price adjustments based on changes innet working capital and certain capital expenditures betweenexecution and closing.

Harrah's continued to operate Binion's for a year after it soldthe asset to MTR. The operating agreement included an earn-outprovision. Harrah's claims that earn-out provision entitled it toan additional $5 million beyond MTR's purchase price. The potentialobligation will not affect the seal because it remain with MTR,according to the MTR source.