GTECH and Harrah's Enter into Strategic Alliance

11 May 2005

WEST GREENWICH, Rhode Island – (PRESS RELEASE) -- GTECH Corporation, a wholly-owned subsidiary of GTECH Holdings Corporation (NYSE: GTK), and Harrah's Operating Company, Inc., a subsidiary of Harrah's Entertainment, Inc. (NYSE: HET), said today they have entered into a strategic relationship whereby GTECH will supply Harrah's properties with gaming machines, and the two companies will work together to develop new game content.

Over the next two years, GTECH will place 200 leased video gaming machines in Harrah's properties around the country. The companies will also explore opportunities to expand the relationship with additional slot products in future years, depending upon the performance of the machines installed during the initial period.

The companies will also cooperate on potential development projects in jurisdictions that could consider legalization of casino gaming, including Suffolk Downs in Massachusetts and Kentucky's Turfway Park, which is owned by GTECH, Harrah's, and Keeneland Corporation. In addition, GTECH will support the proposed Narragansett Indian casino in Rhode Island that would be operated by the State of Rhode Island in conjunction with the Narragansett Indian Tribe and Harrah's.

GTECH President and CEO W. Bruce Turner said, "GTECH has committed to a growth plan that anticipates substantial contributions from our Gaming Solutions division. This agreement with Harrah's provides us with a tremendous platform to introduce our games and technology into the top casino markets in the world. Perhaps as valuable as the placement of these machines is the ability we will have through this relationship to develop new game content in cooperation with Harrah's slot management staff."

Harrah's Chairman, CEO, and President Gary Loveman added, "The gaming- machine segment of the commercial casino industry will benefit from a successful entry by GTECH, whose commitment to growth is evidenced by its purchase of Spielo and planned acquisition of Atronic. We look forward to working with GTECH, and sincerely appreciate its support of our development efforts with the Narragansett Indian Tribe. GTECH is a successful Rhode Island business that has demonstrated its commitment to improving the economic climate of the state."

Narragansett Chief Sachem Matthew Thomas commented that, "The Narragansetts and GTECH have had a relationship of mutual respect and admiration that began with the Company's support of our economic development activities in 1994. We're pleased that they have joined our efforts to bring financial prosperity and economic independence to our people. This is another example of the important role a world-class company like Harrah's can play in uniting respected and meaningful companies like GTECH with our efforts. It is also another endorsement of the substantial positive economic impact this project will have on all of Rhode Island."

"The Narragansett Indian Tribe earned our respect during our support of their 1994 efforts to authorize a casino project in West Greenwich. We appreciate the struggles they've had to endure and the challenges they have had to overcome to make this project a reality," said Mr. Turner. "GTECH also has a long history with Harrah's through our joint ownership of Turfway Park. We enjoy strong managerial relationships to the extent that Gary Loveman will be the keynote speaker at GTECH's biennial customer event, the World Leaders Forum, being held next week in Washington, DC. We view this new relationship as a natural extension of our business dealings with Harrah's, and look forward to future opportunities for us to continue to expand our relationship. We are pleased to lend our support and participate in the effort to make the Narragansetts' project in West Warwick a reality."

Mr. Turner added that the market can support the new project as well as existing facilities, and that the revenues the state derives from gaming activities will increase once the facility is opened. He also expressed confidence that Harrah's and the Narragansett Indians will be able to deliver on their commitment to create a world-class entertainment facility and one of the largest economic development projects in the history of the state.

Over the next two years, GTECH expects to receive approximately $5.8 million in revenue for the placement of 200 machines.