Pinnacle and Harrah’s Entertainment reached an agreement to exchange hurricane-damaged casinos on the Gulf Coast. Las Vegas- based Harrah’s will take over what is left of Casino Magic Biloxi plus a payment of $25 million.

Pinnacle will receive Harrah’s Lake Charles Casino complex in Louisiana including the 263-room hotel. A spokesperson to Pinnacle informed that the company would use one of Harrah’s riverboat licenses to add a new casino to its gambling resort in Lake Charles.

Hurricane Katrina destroyed casino Magic Biloxi on August 29, 2005 and its hotel sustained severe damage. Harrah’s casino boats, on the other hand, were heavily damaged by Hurricane Rita on September 25.

Gambling regulators in Louisiana and Mississippi will have to approve the agreement.