Stockholders will receive $90 in cash for each share they own. Harrah's shares ceased trading today.
The company recently extended the contract of its chairman, president and chief executive, Gary Loveman. The company has said Loveman is likely to stay in those roles.
Loveman is expected to receive more than $90 million in stock options and other rights under terms of the deal.
Harrah's operates 50 casinos worldwide, including Harrah's, the Showboat, Caesars Atlantic City and Bally's in Atlantic City.