1. Jonathan Halkyard
Chief Financial Officer and Treasurer

2. Safe Harbor Statement
This presentation includes “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private
Securities Litigation Reform Act of 1995. You can identify these statements by the fact that they do not relate strictly to historical or current
facts. These statements contain words such as “may,” “will,” “project,” “might,” “expect,” “believe,” “anticipate,” “intend,” “could,” “would,”
“estimate,” “continue” or “pursue,” or the negative or other variations thereof or comparable terminology. In particular, they include statements
relating to, among other things, future actions, new projects, strategies, future performance, the outcomes of contingencies and future
financial results of Harrah’s. These forward-looking statements are based on current expectations and projections about future events.
Investors are cautioned that forward-looking statements are not guarantees of future performance or results and involve risks and
uncertainties that cannot be predicted or quantified and, consequently, the actual performance of Harrah’s may differ materially from those
expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, the following factors, as
well as other factors described from time to time in our reports filed with the Securities and Exchange Commission (including the sections
entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” contained therein): the
effects of local and national economic, credit and capital market conditions on the economy in general, and on the gaming and hotel industries
in particular; construction factors, including delays, increased costs for labor and materials, availability of labor and materials, zoning issues,
environmental restrictions, soil and water conditions, weather and other hazards, site access matters and building permit issues; the effects of
environmental and structural building conditions relating to our properties; access to available and reasonable financing on a timely basis; the
ability to timely and cost-effectively integrate Caesars into our operations; changes in laws, including increased tax rates, regulations or
accounting standards, third-party relations and approvals, and decisions of courts, regulators and governmental bodies; litigation outcomes
and judicial actions, including gaming legislative action, referenda and taxation; the ability of our customer-tracking, customer loyalty and
yield-management programs to continue to increase customer loyalty and same store sales or hotel sales; our ability to recoup costs of capital
investments through higher revenues; acts of war or terrorist incidents or natural disasters; abnormal gaming holds; and the effects of
competition, including locations of competitors and operating and market competition.
Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the
date made. Harrah’s disclaims any obligation to update the forward-looking statements. You are cautioned not to place undue reliance on
these forward-looking statements which speak only as of the date stated, or if no date is stated, as of the date of this press release.
Harrah’s Entertainment, Inc.
Confidential and Proprietary
2006

3. Company Overview
Largest provider of branded casino entertainment
4 million square feet of casino space
40,000 hotel rooms
85,000 employees
40 million Total Rewards members
Harrah’s Entertainment, Inc.
Confidential and Proprietary
2006

4. Industry’s Broadest Footprint
Harrah’s Entertainment, Inc.
Confidential and Proprietary
2006

5. A Portfolio of Winning Brands
Harrah’s Entertainment, Inc.
Confidential and Proprietary
2006

6. Financial Strength
Only investment-grade gaming company
Borrows at industry’s most competitive rates
Nearly $1.2 billion of capacity under revolver
Revenues of nearly $9.0 billion on a pro-forma basis in
2005
Harrah’s Entertainment, Inc.
Confidential and Proprietary
2006

7. Diversity Of Cash Flow Provides Stability, Funds Growth
Region # Properties % EBITDA
Las Vegas 7 35%
Atlantic City 5 26%
LA/MS 5 9%
Illinois/Indiana 4 11%
Iowa/MO 4 9%
Managed / Intl / Other 12 10%
TOTAL 37 100%
Represents 2005 EBITDA percentage contributions.
Harrah’s Entertainment, Inc.
Confidential and Proprietary
2006

8. #1 or #2 in every market in which we compete
Atlantic City Las Vegas
Chicagoland St. Louis
Mississippi Kansas City
S. Illinois/Indiana Laughlin
Shreveport/ Bossier City
New Orleans
Reno/Tahoe
Council Bluffs
HET gained share in nearly all
of its markets in 2005
Harrah’s Entertainment, Inc.
Confidential and Proprietary
2006

9. HET Core Strategy
Drive same-store growth, cross-market play through
superior marketing and technological capabilities
Brand
Loyalty
Decision Science
Capabilities
Harrah’s Entertainment, Inc.
Confidential and Proprietary
2006

10. Evidence of HET’s organic growth engine
Same-store sales growth
Cross-market play
CAGR: 18.2%
2,500 12%
10.2%
2,008 8.9%
2,000 1,711 7.5%
6.5%
1,456 5.7% 4.9%
1,256 7%
1,500
1,063
881
749
1,000
1.5%
2%
500
0
2000 2001 2002 2003 2004 2005 Thru
2000 2001 2002 2003 2004 2005 2006* -3%
1H06*
Annualized based on 1H06 growth rate. *Includes same store results of the Caesars properties in the second quarter 2006.
Harrah’s Entertainment, Inc.
Confidential and Proprietary
2006

11. Caesars Acquisition Update
Total Rewards integration completed in early
2Q06.
Achieved $116 million in year 1 synergies 45%
ahead of $80 million target.
Expect $200 million in year 2 synergies for a two
year synergy total of more than $300 million.
Harrah’s Entertainment, Inc.
Confidential and Proprietary
2006

12. Total Rewards: implications for 4 Caesars LV properties
5% 11% 100%
21%
Tour & Travel 90%
80%
39%
15% 70%
FIT
60%
50%
Convention
40%
30%
60%
30%
20%
Total Rewards /
20%
Connection Card
10%
0%
HET CZR
Harrah’s Entertainment, Inc.
Confidential and Proprietary
2006

13. Loyalty strategy reflected in 2Q strength
Second-quarter rated customer trip growth
National Regional Local
(300+ miles) (70 – 300 miles) (< 70 miles)
12% 10% 19%
VIP
7% 2% 9%
AEP
9% -2% 2%
Retail
Harrah’s Entertainment, Inc.
Confidential and Proprietary
2006

14. EBITDA Growth by Region 2Q06
Region EBITDA Growth %
Las Vegas 17%
Atlantic City 7%
LA/MS* 13%
Illinois/Indiana -5%
Iowa/MO 12%
Other Nevada 16%
Includes acquired CZR property EBITDA growth from the prior comparable period.
*Excludes Grand Gulfport, Grand Biloxi and Harrah’s Lake Charles.
Harrah’s Entertainment, Inc.
Confidential and Proprietary
2006

15. LV Strip EBITDA Growth 2Q06
20%
17%
15%
10%
5%
0%
-5%
-10%
-11%
-15%
HET PEERS
Peer group includes: MGM, LVS, AZR, BYD
Harrah’s Entertainment, Inc.
Confidential and Proprietary
2006

16. Growth Opportunities
Harrah’s Entertainment, Inc.
Confidential and Proprietary
2006

17. Controllable growth pipeline
New
Organic Reinvestment
Development
LV Master Plan El Reino, Spain
Caesars
synergies AC Center Harrah’s Chester
Boardwalk
Total Baha Mar
Rewards New Orleans Eyeing select
Revenue Council Bluffs markets in Asia,
management
Europe
Hammond
Strategic
Harrah’s AC
Sourcing
Harrah’s Entertainment, Inc.
Confidential and Proprietary
2006

18. Strong Track Record of ROIC
Harrah’s committed to high ROIC projects above
current WACC of 9.00%
Las Vegas and Atlantic City will adhere to these
high-return standards.
Harrah’s has invested over $550 million of capital
in expansion projects over the last 3 years with a
cumulative EBITDA return of 17%.
Harrah’s Entertainment, Inc.
Confidential and Proprietary
2006

19. Current Harrah’s Footprint in Las Vegas
18,000 Total Guest
Rooms
Prime Center Strip
Land Bank
160 Acres from
Harrah’s to Bally’s /
Paris
80 Acres at CPLV,
90 Acres at Rio
1.25 miles of Strip
Frontage
110+ Acres of
Undevloped
Land
Harrah’s Entertainment, Inc.
Confidential and Proprietary
2006

20. Harrah’s Atlantic City
Harrah’s Entertainment, Inc.
Confidential and Proprietary
2006

21. Horseshoe Hammond
Harrah’s Entertainment, Inc.
Confidential and Proprietary
2006

22. El Reino – Ciudad Real, Spain
• 50,000 sq. ft. casino
• 850 hotel rooms
• 3,000 seat Colosseum theater
• Conference center
• 30,000 sq. ft. spa
• Multiple restaurants, bars
• Retail shops
Harrah’s Entertainment, Inc.
Confidential and Proprietary
2006

23. Harrah’s Chester Casino and Racetrack
Harrah’s Entertainment, Inc.
Confidential and Proprietary
2006

24. Baha Mar – Nassau, Bahamas
Harrah’s Entertainment, Inc.
Confidential and Proprietary
2006

25. Proposed London Clubs Acquisition
Strong business, management team and pipeline.
LCI would give Harrah’s immediate presence in
growing gaming market.
Call option on gaming liberalization – marketing,
advertising, and new casino development.
Broadens HET footprint in Europe with proven UK
business.
Harrah’s Entertainment, Inc.
Confidential and Proprietary
2006

26. Positioned for long-term growth
Stable, diversified cash flow from operations
Landmark brands
Strong financial position
Leader in each market of operation
Proven strategy to generate organic growth
Pipeline of re-investment opportunities
Opportunities for new development
Harrah’s Entertainment, Inc.
Confidential and Proprietary
2006

27. This presentation and all trademarks appearing in this presentation are the sole and exclusive
property of Harrah's License Company, LLC for use by its related companies (collectively,
quot;Harrah'squot;). This presentation and its contents is confidential and proprietary to Harrah's and may
not be used or reproduced in whole or in part without Harrah's express prior written authorization.
Trademarks not owned by Harrah's that appear in this presentation are the property of the
respective owners.
© 2006, Harrah's License Company, LLC.
Harrah’s Entertainment, Inc.
Confidential and Proprietary
2006