UPDATE 1-Harrah registers Paulson stock with SEC, eyes Ohio

* Paulson shares to be registered, part of deal

* Harrah's plans to expand in Ohio

BANGALORE Aug 12 (Reuters) - Harrah's Entertainment [HAMLEH.UL], the world's largest casino operator by revenue, plans to register a portion of its shares with the U.S. Securities and Exchange Commission, furthering an acquisition deal struck with billionaire investor John Paulson.

The company also said on Thursday it was teaming up with Rock Gaming LLC to form a venture to develop and operate downtown casinos in the Midwestern U.S. cities of Cleveland and Cincinnati. They expect to invest at least $600 million.

Under a deal that gave the casino operator a $557 million cash infusion, Harrah's said Paulson's 9.9 percent stake, acquired in exchange for debt, will be registered so that the billionaire can receive registered, common voting stock, Harrah's said in June. [ID:nWEN5504]

Harrah's this month posted a second quarter loss of $274 million as the U.S. casino industry battles a rocky domestic economy, dwindling attendance and a surplus of hotel rooms, particularly in Las Vegas, where the company owns and operates Caesar's Palace and Paris. [ID:nN04270778]

But Harrah's, controlled by Apollo Management and private equity giant TPG, said the Paulson deal would grant it a war chest to pursue domestic and international growth opportunities.

Under their non-binding agreement, Harrah's may eventually take a minority stake in the downtown casinos in the fall of 2010, but mange them day-to-day. Ohio voters approved casino gaming in November 2009.

Harrah's was acquired by private equity firms Apollo [APOLO.UL] and TPG Capital LP [TPG.UL] in a 2008 leveraged buyout. In June, Apollo and TPG, along with Paulson's hedge fund company, exchanged $1.1 billion in Harrah's debt for an equity stake of about 15.6 percent.

Apollo and TPG own about 89.3 percent of Harrah's stock, the company said in the filing. (Reporting by A.Ananthalakshmi in Bangalore; Editing by Sofina Mirza-Reid)