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Gaming giants swap casinos

Two major players in the casino world have exchanged properties damaged by Hurricane Rita last year, it has been revealed.

Harrah's Entertainment has purchased the remains of the Casino Magic Biloxi in Mississippi from Pinnacle Entertainment, while Pinnacle has taken control of two ruined properties in Lake Charles, Louisiana.

The deal was not a straight swap, with Harrah's also paying $25 million to take control of the Biloxi resort, by far the biggest of the three casinos involved in the deal.

Pinnacle plans to use its new riverboat locations as the venue for a $350 million complex named Sugarcane Bay, while Harrah's hailed the "flexibility" that they had gained from the Casino Magic purchase, which hands them control of land next to their existing Grand Casino property.

Hurricane Rita destroyed all six state-licensed casinos in the Lake Charles region when it hit the area in September of last year. An American Indian reservation casino was also destroyed.


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