By JACQUELYNN D. POWERS PORTRAIT: FRANCIS & FRANCIS

It's rare to get a candid, inside look into gaming. But Chuck Atwood, vice chairman of Harrah's Entertainment, offered me a glimpse of the world behind the casino floors, where so few are allowed to venture. As the number three executive in the largest gaming company in the U.S., Atwood is uniquely positioned to comment on the state of gaming today. There is no double talk here, either. Atwood acknowledges the current weak economy and how that is affecting Harrah's Entertainment-and beyond.

That being said, his company is in stable shape after recently being purchased by two private equity firms. Construction is booming, and big names such as Elton John, Bette Midler and Cher are keeping the Harrah's Entertainment brand a major player in competitive Sin City. Atwood's responsibilities span development, design and construction of Harrah's Entertainment's burgeoning portfolio of holdings.

"Looking out my window right now, I'm looking at a crane that is assisting us in the building of a new hotel tower at Caesars Palace, the Octavius Tower," Atwood describes.

Overall, great change is happening at Caesars Palace, which is undergoing a billion-dollar transformation to a sleeker look. The new 23-story Octavius Tower will feature 665 accommodations, increasing the capacity of Caesars Palace to 4,000 rooms. Additionally, older towers (such as the Forum, Roman and Centurion towers) are being modernized and refurbished. Then there's the new 263,000-square-foot meeting-and-convention center, three swimming pools and three luxury villa suites.

"We spend billions of dollars each year either developing new properties or new facilities at existing properties," says Atwood. "When I look out another window, I see a crane that is helping us build an expansion of the Convention Center," Atwood continues. "We are in design for a number of projects, including a 23,000-seat arena on the east side of Las Vegas Boulevard. There's no crane yet, but I hope before long there will be."

This venue, which is scheduled to be completed in 2011, will compete with the MGM Grand Garden Arena and the Thomas & Mack Center for sporting events and concerts. It is a joint venture with AEG and will be managed by this group (which also has the Staples Center in Los Angeles and Nokia Theatre Times Square in New York City). The site is a choice location, right behind the Paris and Bally's resorts."It will be the largest arena in the market. It will have the Las Vegas touch. There will be great ways to entertain VIPs."

Much of this growth is being funded by the company's new owners, Apollo Global Management and TPG Capital. The two private-equity firms purchased Harrah's Entertainment for $17.1 billion. The mega deal was announced in December 2006 and approved in January 2008. "It's a change in ownership, not a change in strategy," Atwood emphasizes. "From a customer standpoint, everything is the same. For many of the employees nothing has changed. Harrah's began the trend toward industry consolidation back in the '80s and '90s. Our most recent transaction was in turning from a public company into a private one. That trend may not continue for other companies, as financing is not so readily available anymore. We are a private company with public debt.We still follow all of the SEC reports. We just have private owners."

Harrah's Entertainment has three main brands: Harrah's, Caesars and Horseshoe. Its portfolio boasts properties in 12 states, from Nevada and New Jersey to California and New Orleans, as well as nearly 100,000 employees around the world. The company is also beginning to expand internationally, with casinos in Uruguay and Canada . . .

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