EXHIBIT 99(1)

       Prairie Band Potawatomi Nation Extends Harrah's Management Contract
                                     To 2008

      LAS VEGAS, August 29, 2001 - Harrah's Entertainment, Inc. (NYSE:HET)
announced today the Prairie Band Potawatomi Nation and Harrah's Kansas Casino
Corporation have executed an agreement to extend the contract to manage the
Nation's Harrah's Prairie Band Casino, 17 miles north of Topeka, Kansas, for an
additional five years beginning in January 2003.

      Harrah's has managed the Nation's casino since its opening in January
1998. This contract extension will continue Harrah's management at the facility
until January 2008, pending approval by the National Indian Gaming Commission.

      Previously, the Ak-Chin Indian Community and the Eastern Band of Cherokee
Indians granted management-contract extensions to Harrah's for the Harrah's
Phoenix Ak-Chin casino near Phoenix and the Harrah's Cherokee Smoky Mountains
Casino in Cherokee, North Carolina.

      "We are honored by the Prairie Band's decision to extend our management
contract," said Phil Satre, Harrah's Entertainment Chairman and Chief Executive
Officer.

      "The performance of this casino has been overwhelming, far surpassing our
initial expectations," Satre said. "Key drivers of this success have been the
implementation of our Total Rewards customer-loyalty program at the Nation's
facility and the strong name recognition Harrah's enjoys in this market due to
our leadership position nationwide.



      "The warm hospitality and superior customer service provided by our 960
employees, many of whom are Prairie Band Tribal members, have been major factors
in the casino's success," Satre said.

      Badger Wahwasuck, Prairie Band Potawatomi Tribal Chairman, said, "The
Tribal Council, pursuant to an affirmative vote of the Nation's General Council
in July 2001, unanimously approved the contract extension with Harrah's. We are
pleased with Harrah's management of our casino and look forward to continued
success."

      More information about Harrah's Entertainment is available on the
company's web site, www.harrahs.com.

      Founded more than 60 years ago, Harrah's Entertainment, Inc. is the most
recognized and respected name in the casino-entertainment industry, operating 25
casinos in the United States under the Harrah's, Showboat, Rio and Harveys brand
names. With a combined database of more than 24 million players, Harrah's
Entertainment is focused on building loyalty and value with its target customers
through a unique combination of great service, excellent products, unsurpassed
distribution, operational excellence and technology leadership.

      This release includes "forward-looking statements" intended to qualify for
the safe harbor from liability established by the Private Securities Litigation
Reform Act of 1995. These forward-looking statements generally can be identified
by phrases such as the company "believes," "expects," "anticipates," "plans,"
"foresees," "forecasts," "estimates" or other words or phrases of similar
import. Similarly, such statements herein that describe the company's business
strategy, outlook, objectives, plans, intentions or goals are also
forward-looking statements. All such forward-looking



statements are subject to certain risks and uncertainties that could cause
actual results to differ materially from those in forward-looking statements.
Such risks and uncertainties include, but are not limited to, economic, bank,
equity and debt-market condition, changes in laws or regulations, third-party
relations and approvals, decisions of courts, regulators and governmental
bodies, factors affecting leverage, including interest rates, abnormal gaming
holds, construction disruptions and delays, ineffective marketing, effects of
competition and other risks and uncertainties described from time to time in our
reports filed with the U.S. Securities and Exchange Commission.

      ####