If the deal is finalized, the JV's project would be the first on the 404-acre waterfront tract, which is owned by Diamondhead Casino's wholly owned subsidiary, Mississippi Gaming Corp. The development land, situated in Hancock County on the Bay of St. Louis, had been the center of talks with New York City-based Trump Entertainment Resorts Inc. until early 2007 when the $300-million project cratered.

Gregory Harrison, vice president of Madiera Beach, FL-based Diamondhead Casino Corp. says not only does the agreement need to be formalized, but the JV also needs to firm up the casino's size and the location. He tells GlobeSt.com that he has no doubt that a deal will be struck because both companies have long-term ties. "They loaned us the money to buy the land in 1992 and operated two of our boats in Florida, when we operated under the name Europa Cruises," he says.

The Diamondhead tract has two miles of frontage along Interstate 10 and about the same amount on the Bay of St. Louis. The site is zoned as a special use district for waterfront gaming. It also is subject to post-Katrina legislation allowing casinos to be built up to 800 feet of the mean high-water line.