JOLIET — A $6 million mistake might bankrupt a small business. But when you're the world's largest gaming company, even a costly error can be absorbed.

Harrah's Joliet Casino and Hotel is making good on coupons worth $525 in cash that were mailed last week to some 11,000 regular customers. The total value of the coupons is about $5.8 million, and it remains unclear exactly how the promotion went awry.

The company says its direct-marketing vendor is responsible for the error, but won't say whether insurance will cover the losses or whether it will pursue legal action against the vendor.

"The error was caused by an external vendor. It's an ongoing investigation, and I can't speak any further than that," Harrah's spokesman Doug Lima said Monday.

For now, the company is focusing on rebuilding good will among its many regular customers, some of whom were peeved when Harrah's initially refused to redeem the coupons on Friday.
Then the Illinois Gaming Board ordered Harrah's to honor all of the $525 vouchers, even though far fewer should have been sent out.

The gaming board said this is likely the most costly promotional mistake in the state's 13-year-old casino industry. Casino operators must obtain approval from state regulators every time they conduct a promotion, gaming board spokesman Gene O'Shea said on Monday.

Before the gaming board's order, some customers heeded the company's request to hand over their vouchers in exchange for reward points. Not to fear: Harrah's says it knows who you are and you can still get your cash.

"They can go the total rewards counter and present a drivers license or any valid state I.D. and we'll hand over the coupon to them," Lima said. As an added bonus, "those reward points will stay in their account."

Harrah's is the younger of Joliet's two casinos. Its first floating riverboat was christened in May 1993, about a year after the Empress began operations as Illinois' first casino. Since then, its Las Vegas-based parent company has invested hundreds of millions of dollars into its downtown pavilions, hotel and parking decks.

Harrah's Joliet reported 193,750 admissions during October — an average of 6,225 per day — up 17 percent from a year ago. The local operation grossed $26.6 million last month, up 12.3 percent from October 2004.

Earlier this month, Harrah's Entertainment reported record third-quarter revenue of $2.3 billion, up 78 percent from a year ago largely because of its acquisition of Caesars Entertainment. Third-quarter net income was $169 million, up 42 percent from a year ago.

The Joliet promotional blunder had no negative effect on Harrah's stock on Monday. Shares closed at $68.58, up $1.26 in trading.