EXHIBIT 99(1)

        Harrah's Operating Company Announces Extension of Exchange Offer

LAS VEGAS, October 9, 2001 -- Harrah's Operating Company, Inc. (NYSE:HET)
announced today that its pending offer to exchange (the "Exchange Offer") any
and all of its outstanding 7.125% Senior Notes due 2007 (the "Old Notes") for
7.125% Senior Notes due 2007 (the "Exchange Notes") that have been registered
under the Securities Act of 1933, as amended, currently scheduled to expire at
5:00 p.m., New York City time on October 9, 2001, has been extended until 5:00
p.m., New York City time, on October 15, 2001.

         Tenders with respect to approximately $471,595,000 aggregate
principal amount of the Old Notes, out of a total of $500.0 million aggregate
principal amount eligible to participate in the exchange, have been received
to date. This announcement is not an offer to exchange or a solicitation of
an offer to exchange, with respect to the Old Notes. The Exchange Offer is
being made solely by the Prospectus dated August 31, 2001, and the Exchange
Offer, as extended hereby, remains subject to the terms and conditions stated
therein.

         Founded more than 60 years ago, Harrah's Entertainment, Inc. is the
most geographically diversified casino company in the United States, operating
25 casinos 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.



         Additional information about Harrah's Entertainment is available on the
Company's web site, WWW.HARRAHS.COM.

         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.


                                       ###