<PAGE>

                                                                  Exhibit 10(29)

                           HARRAH'S ENTERTAINMENT, INC



                                November 1, 1999



Ms. Janis L. Jones
c/o Harrah's Entertainment, Inc.
5100 W. Sahara Blvd.
Suite 200
Las Vegas, NV 89146


         Re:  Amended and Restated Severance Agreement


Dear Jan:

         Harrah's Entertainment, Inc. (the "Company") considers it essential to
the best interest of its stockholders to foster the continuous employment of key
management personnel. In this connection, the Board of Directors of the Company
(the "Board") recognizes that, as is the case with many publicly held
corporations, the possibility of a change in control may exist and that such
possibility, and the uncertainty and questions which it may raise among
management, may result in the departure or distraction of management personnel
to the detriment of the Company and its stockholders.

         The Board has determined that appropriate steps should be taken to
reinforce and encourage the continued attention and dedication of members of the
Company's management, including yourself, to their assigned duties without
distraction in the face of potentially disturbing circumstances arising from the
possibility of a change in control of the Company, although no such change is
now contemplated.

         In order to induce you to remain in the employ of the Company or its
subsidiaries and in consideration of your agreements set forth in Subsection
2(b) hereof, the Company agrees that you shall receive the severance benefits
set forth in

<PAGE>

Janis L. Jones
November 1, 1999
Page 2


this letter agreement ("this Agreement") in the event your employment with the
Company or its subsidiaries terminates subsequent to a "Change in Control of the
Company" (as defined in Section 2 hereof) under the circumstances described
below.

         1. TERM OF AGREEMENT. This Agreement shall commence on November 1,
1999, and shall continue in effect through December 31, 1999; provided, however,
that commencing on January 1, 2000 and each January 1 thereafter, the term of
this Agreement shall automatically be extended for one additional year unless,
not later than January 1 of the preceding year, the Company with the approval of
the Board of Directors shall have given you written notice that it does not wish
to extend this Agreement; provided, further, if a Change in Control of the
Company shall have occurred during the original or extended term of this
Agreement, this Agreement shall automatically continue in effect for a period of
twenty-four months beyond the month in which such Change in Control occurred.

         2.  CHANGE IN CONTROL.

         (a) No benefit shall be payable to you hereunder unless there shall
have been a Change in Control of the Company, as set forth below. For purposes
of this Agreement, a "Change in Control of the Company" shall be deemed to have
occurred, subject to subparagraph (iv) hereof, if any of the events in
subparagraphs (i), (ii) or (iii) occur:

                  (i) Any "person" (as such term is used in Section 13(d) and
         14(d) of the Securities Exchange Act of 1934, as amended (the "Exchange
         Act")), other than an employee benefit plan of the Company, or a
         trustee or other fiduciary holding securities under an employee benefit
         plan of the Company, is or becomes the "beneficial owner" (as defined
         in Rule 13d-3 under the Exchange Act), directly or indirectly, of 25%
         or more of the Company's then outstanding voting securities carrying
         the right to vote in elections of persons to the Board, regardless of
         comparative voting power of such voting securities, and regardless of
         whether or not

<PAGE>

Janis L. Jones
November 1, 1999
Page 3


         the Board shall have approved the acquisition of such securities by the
         acquiring person; or

                  (ii) During any period of two consecutive years, individuals
         who, at the beginning of such period, constitute the Board together
         with any new director(s) (other than a director designated by a person
         who shall have entered into an agreement with the Company to effect a
         transaction described in clauses (i) or (iii) of this Subsection) whose
         election by the Board or nomination for election by the Company's
         stockholders was approved by a vote of at least two-thirds of the
         directors then still in office who either were directors at the
         beginning of the two year period or whose election or nomination for
         election was previously so approved, cease for any reason to constitute
         a majority thereof; or

                  (iii) The holders of securities of the Company entitled to
         vote thereon approve the following:

                           (A) A merger or consolidation of the Company with any
         other corporation regardless of which entity is the surviving company,
         other than a merger or consolidation which would result in the voting
         securities of the Company carrying the right to vote in elections of
         persons to the Board outstanding immediately prior thereto continuing
         to represent (either by remaining outstanding or by being converted
         into voting securities of the surviving entity) at least 80% of (a) the
         Company's then outstanding voting securities carrying the right to vote
         in elections of persons to the Board, or (b) the voting securities of
         such surviving entity outstanding immediately after such merger or
         consolidation, or

                           (B) A plan of complete liquidation of the Company or
                  an agreement for the sale or disposition by the Company of all
                  or substantially all of the Company's assets.

<PAGE>

Janis L. Jones
November 1, 1999
Page 4


                  (iv) Notwithstanding the definition of a "Change in Control"
         of the Company as set forth in this Section 2(a), the Human Resources
         Committee of the Board (the "Committee") shall have full and final
         authority, which shall be exercised in its discretion, to determine
         conclusively whether a Change in Control of the Company has occurred,
         and the date of the occurrence of such Change in Control and any
         incidental matters relating thereto, with respect to a transaction or
         series of transactions which have resulted or will result in a
         substantial portion of the assets or business of the Company (as
         determined, prior to the transaction or series of transactions, by the
         Committee in its sole discretion which determination as to whether a
         substantial portion is involved shall be final and conclusive) being
         held by a corporation at least 80% of whose voting securities are held,
         immediately following such transaction or series of transactions, by
         holders of the voting securities of the Company (as determined by the
         Committee in its sole discretion prior to such transaction or series of
         transactions which determination as to whether the 80% amount will be
         satisfied shall be final and conclusive). The Committee may exercise
         any such discretionary authority without regard to whether one or more
         of the transactions in such series of transactions would otherwise
         constitute a Change in Control of the Company under the definition set
         forth in this Section 2(a).

         (b) For purposes of this Agreement, a "Potential Change in Control of
the Company" shall be deemed to have occurred if the following occur:

                  (i) The Company enters into a written agreement or letter of
         intent, the consummation of which would result in the occurrence of a
         Change in Control of the Company;

                  (ii) Any person (including the Company) publicly announces an
         intention to take or to consider taking actions which if consummated
         would constitute a Change in Control of the Company;

<PAGE>

Janis L. Jones
November 1, 1999
Page 5


                  (iii) Any person (other than an employee benefit plan of the
         Company, or a trustee or other fiduciary holding securities under an
         employee benefit plan of the Company) who is or becomes the beneficial
         owner, directly or indirectly, of securities of the Company
         representing 9.5% or more of the Company's then outstanding voting
         securities carrying the right to vote in elections of persons to the
         Board increases such beneficial ownership of such securities by an
         additional five percentage points or more thereby beneficially owning
         14.5% or more of such securities; or

                  (iv) The Board adopts a resolution to the effect that, for
         purposes of this Agreement, a Potential Change in Control of the
         Company has occurred.

         You agree that, subject to the terms and conditions of this Agreement,
in the event of a Potential Change in Control of the Company, you will remain in
the employ of the Company (or the subsidiary thereof by which you are employed
at the date such Potential Change in Control occurs) until the earliest of (x) a
date which is six months from the occurrence of such Potential Change in Control
of the Company, (y) the termination by you of your employment by reasons of
Disability or Retirement (at your normal retirement age), as defined in
Subsection 3(a), or (z) the occurrence of a Change in Control of the Company.

         (c) GOOD REASON. For purposes of this Agreement, "Good Reason" shall
mean, without your express written consent, the occurrence after a Change in
Control of the Company, of any of the following circumstances unless, in the
case of paragraphs (i), (v), (vi), (vii) or (viii), such circumstances are fully
corrected prior to the Date of Termination specified in the Notice of
Termination, as such terms are defined in Subsections 3(e) and 3(d),
respectively, given in respect thereof:

                  (i) The assignment to you of any duties inconsistent with your
         status as an executive officer of the Company (or your status in the
         position held by you immediately prior to the Change in Control) or a
         substantial adverse alteration in the nature or status of your
         responsibilities from those

<PAGE>

Janis L. Jones
November 1, 1999
Page 6


         in effect immediately prior to the Change in Control of the Company;

                  (ii) A reduction by the Company in your annual base salary as
         in effect on the date hereof or as the same may be increased from time
         to time except for an across-the-board salary reduction of a specific
         percentage applied to all individuals at grade levels 26 and above and
         all individuals in similar grade levels of any person in control of the
         Company;

                  (iii) The relocation of the Company's principal executive
         offices where you are working immediately prior to the Change in
         Control of the Company to a location more than 50 miles from the
         location of such offices immediately prior to the Change in Control of
         the Company or the Company's requiring you to be based anywhere other
         than the location of the Company's principal executive offices where
         you were working immediately prior to the Change in Control of the
         Company except for required travel on the Company's business to an
         extent substantially consistent with your business travel obligations
         during the year prior to the Change in Control;

                  (iv) The failure by the Company, without your consent, to pay
         to you any portion of your current compensation except pursuant to an
         across-the-board compensation deferral of a specific percentage applied
         to all individuals in grade levels 26 or above and all individuals in
         similar grades of any person in control of the Company, or to pay to
         you any portion of an installment of deferred compensation under any
         deferred compensation program of the Company, within thirty days of the
         date such compensation is due;

                  (v) The failure by the Company to continue in effect any
         compensation plan in which you are participating immediately prior to
         the Change in Control of the Company which is material to your total
         compensation, including but not limited to, the Company's Bonus Plan,
         Executive Deferred Compensation Plan, Deferred Compensation Plan,
         Restricted

<PAGE>

Janis L. Jones
November 1, 1999
Page 7


         Stock Plan, Stock Option Plan, or any substitute plans adopted prior to
         the Change in Control, unless an equitable arrangement (embodied in an
         ongoing substitute or alternative plan) has been made with respect to
         such plan, or the failure by the Company to continue your participation
         therein (or in such substitute or alternative plan) on a basis not
         materially less favorable, both in terms of the amount of benefits
         provided and the level of your participation relative to other
         participants, as existed immediately prior to the Change in Control of
         the Company;

                  (vi) The failure by the Company to continue to provide you
         with benefits substantially similar to those enjoyed by you under any
         of the Company's pension, savings and retirement plan, life insurance,
         medical, health and accident, or disability plans in which you were
         participating at the time of the Change in Control of the Company, the
         taking of any action by the Company which would directly or indirectly
         materially reduce any of such benefits or deprive you of any material
         fringe benefit enjoyed by you at the time of the Change in Control of
         the Company, or the failure by the Company to provide you with the
         number of paid vacation or PTO days to which you are entitled on the
         basis of years of service with the Company in accordance with the
         Company's normal vacation policy and/or PTO policy in effect at the
         time of the Change in Control of the Company;

                  (vii) The failure of the Company to obtain a satisfactory
         agreement from any successor to assume and agree to perform this
         Agreement, as contemplated in Section 5 hereof; or

                  (viii) Any purported termination of your employment by the
         Company which is not effected pursuant to a Notice of Termination
         satisfying the requirements of Subsection 3(d) hereof and the
         requirements of Subsection 3(b) below; for purposes of this Agreement,
         no such purported termination shall be effective.

<PAGE>

Janis L. Jones
November 1, 1999
Page 8


         Your right to terminate your employment pursuant to this Agreement for
Good Reason shall not be affected by your incapacity due to physical or mental
illness. Your continued employment shall not constitute consent to, or a waiver
of rights with respect to, any circumstance constituting Good Reason hereunder.

         3. TERMINATION FOLLOWING CHANGE IN CONTROL (OR PRIOR TO A CHANGE IN
CONTROL IN SPECIFIC CIRCUMSTANCES). If any of the events described in Subsection
2(a) hereof constituting a Change in Control of the Company shall have occurred,
then following such Change in Control, you shall be entitled to the benefits
provided in Subsection 4(c) hereof: (1) if your employment was terminated within
six months prior to the Change of Control under the circumstances described in
Section 4.(2) below, or (2) if your employment is terminated during the term of
this Agreement after such Change in Control if such termination is (y) by the
Company, other than for Cause or (z) by you for Good Reason as provided in
Subsection 3(c)(i) hereof or by your Voluntary Termination as provided in
Subsection 3(c)(ii) hereof.

         (a) DISABILITY; RETIREMENT. If, as a result of your incapacity due to
physical or mental illness, you shall have been absent from the full-time
performance of your duties with the Company for six consecutive months, and
within thirty days after written notice of termination is given you shall not
have returned to the full-time performance of your duties, your employment may
be terminated for "Disability". Termination by the Company or you of your
employment based on "Retirement" shall mean termination at age 65 (or later)
with ten years of service or retirement in accordance with any retirement
contract between the Company and you.

         (b) CAUSE. Termination by the Company of your employment for "Cause"
shall mean termination upon your engaging in willful and continued misconduct,
or your willful and continued failure to substantially perform your duties with
the Company (other than due to physical or mental illness), if such failure or
misconduct is materially damaging or materially detrimental to the business and
operations of the Company, provided that you shall have

<PAGE>

Janis L. Jones
November 1, 1999
Page 9


received written notice of such failure or misconduct and shall have continued
to engage in such failure or misconduct after 30 days following receipt of such
notice from the Board, which notice specifically identifies the manner in which
the Board believes that you have engaged in such failure or misconduct. For
purposes of this Subsection, no act, or failure to act, on your part shall be
deemed "willful" unless done, or omitted to be done, by you not in good faith
and without your reasonable belief that your action or omission was in the best
interest of the Company. Notwithstanding the foregoing, you shall not be deemed
to have been terminated for Cause unless and until there shall have been
delivered to you a copy of a resolution duly adopted by the affirmative vote of
not less than three-quarters of the entire membership of the Board at a meeting
of the Board called and held for such purpose (after reasonable notice to you
and an opportunity for you, together with your counsel, to be heard before the
Board), finding that in the good faith opinion of the Board you were guilty of
failure to substantially perform your duties or of misconduct in accordance with
the first sentence of this Subsection, and of continuing such failure to
substantially perform your duties or misconduct as aforesaid after notice from
the Board, and specifying the particulars thereof in detail.

         (c) VOLUNTARY RESIGNATION. After a Change in Control of the Company and
for purposes of receiving the benefits provided in Subsection 4(c) hereof, you
shall be entitled to terminate your employment by voluntary resignation given at
any time during the two years following the occurrence of a Change in Control of
the Company hereunder, provided such resignation is (i) by you for Good Reason
or (ii) by you voluntarily without the necessity of asserting or establishing
Good Reason and regardless of your age or any disability and regardless of any
grounds that may exist for the termination of your employment if such voluntary
termination occurs by written notice given by you to the Company during the
thirty days immediately following the one year anniversary of the Change in
Control (your "Voluntary Termination"), provided, however, for purposes of this
Subsection 3(c)(ii) only, the language "25% or more" in Subsection 2(a)(i)
hereof is changed to "a majority". Such resignation shall not be

<PAGE>

Janis L. Jones
November 1, 1999
Page 10


deemed a breach of any employment contract between you and the Company.

         (d) NOTICE OF TERMINATION. Any purported termination of your employment
by the Company or by you shall be communicated by written Notice of Termination
to the other party hereto in accordance with Section 6 hereof. For purposes of
this Agreement, a "Notice of Termination" shall mean a notice which shall
indicate the specific termination provision in this Agreement relied upon and
shall set forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of your employment under the provision so
indicated.

         (e)      DATE OF TERMINATION, ETC.  "Date of Termination" shall mean:

                  (i) If your employment is terminated for Disability, thirty
days after Notice of Termination is given (provided that you shall not have
returned to the full-time performance of your duties during such thirty day
period), and

                  (ii) If your employment is terminated pursuant to Subsection
(b) or (c) above or for any other reason (other than Disability), the date
specified in the Notice of Termination (which, in the case of a termination
pursuant to Subsection (b) above shall not be less than thirty days, and in the
case of a termination pursuant to Subsection (c) above shall not be less than
fifteen nor more than sixty days (thirty days in case of your Voluntary
Termination), respectively, from the date such Notice of Termination is given);
provided that if within fifteen days after any Notice of Termination is given,
or, if later, prior to the Date of Termination (as determined without regard to
this provision), the party receiving such Notice of Termination notifies the
other party that a dispute exists concerning the termination, the Date of
Termination shall be the date on which the dispute is finally determined, either
by mutual written agreement of the parties, by a binding arbitration award, or
by a final judgment, order or decree of a court of competent jurisdiction (which
is not appealable or with respect to which the time for appeal therefrom has
expired and no appeal has been

<PAGE>

Janis L. Jones
November 1, 1999
Page 11


perfected); provided further that the Date of Termination shall be extended by a
notice of dispute only if such notice is given in good faith and the party
giving such notice pursues the resolution of such dispute with reasonable
diligence. Notwithstanding the pendency of any such dispute, the Company will
continue to pay you your full compensation in effect when the notice giving rise
to the dispute was given (including, but not limited to, base salary) and
continue you as a participant in all compensation, bonus, benefit and insurance
plans in which you were participating when the notice giving rise to the dispute
was given, until the dispute is finally resolved in accordance with this
Subsection. Amounts paid under this Subsection are in addition to all other
amounts due under this Agreement and shall not be offset against or reduce any
other amounts due under this Agreement.

         4. COMPENSATION UPON TERMINATION FOLLOWING A CHANGE OF CONTROL (OR IF
TERMINATION OCCURS PRIOR TO A CHANGE IN CONTROL IN SPECIFIC CIRCUMSTANCES).
Following a Change in Control of the Company as defined in Subsection 2(a),
then: (1) upon termination of your employment after such Change in Control, or
(2) notwithstanding anything in this Agreement to the contrary, if termination
of your employment occurred within six months prior to the Change in Control if
such termination was by the Company without Cause by reason of the request of
the person or persons (or their representatives) who subsequently acquire
control of the Company in the Change of Control transaction, you shall be
entitled to the following benefits:

         (a)      Deleted.

         (b) If your employment shall be terminated by the Company for Cause,
the Company shall pay you your full base salary through the Date of Termination
at the rate in effect at the time Notice of Termination is given, plus the
Company shall pay all other amounts and honor all rights to which you are
entitled under any compensation plan of the Company at the time such payments
are due, and the Company shall have no other obligations to you under this
Agreement.

<PAGE>

Janis L. Jones
November 1, 1999
Page 12


         (c) If your employment shall be terminated (y) after a Change of
Control, by the Company other than for Cause or (z) after a Change of Control,
by you for Good Reason or by your Voluntary Termination as provided in
Subsection 3(c)(ii), or (yy) within six months prior to a Change of Control, by
the Company under the circumstances described in Section 4.(2) above, then you
shall be entitled to the benefits provided below:

                  (i) The Company shall pay you your full base salary through
         the Date of Termination at the rate in effect at the time Notice of
         Termination is given, plus all other amounts to which you are entitled
         under any compensation or benefit plan of the Company, at the time such
         payments are due;

                  (ii) In lieu of any further salary payments to you for periods
         subsequent to the Date of Termination, the Company shall pay as
         severance pay to you a lump sum severance payment (the "Severance
         Payment") equal to 3.0 times the average of the Annual Compensation (as
         defined below) payable to you by the Company or any corporation
         affiliated with the Company within the meaning of Section 1504 of the
         Internal Revenue Code of 1986, as amended (the "Code"). Annual
         Compensation is defined to consist of two components: (a) Your annual
         salary in effect immediately prior to the Change in Control or in
         effect as of the Date of Termination, whichever annual salary is
         higher. Your annual salary for this purpose will be determined without
         any reduction for deferrals of such salary under any deferred
         compensation plan (qualified or unqualified) and without any reduction
         for any salary reductions used for making contributions to any group
         insurance plan of the Company or its affiliates and also without
         reduction for any other deductions from salary for any reason; plus (b)
         The average of your annual bonuses under the Company's Annual
         Management Bonus Plan, or any substitute or successor plan including
         the Key Executive Officer Annual Incentive Plan, for the three highest
         calendar years, in terms of annual bonus paid to you in such years,
         during the five calendar years preceding the calendar year in which the
         Change in Control occurred. Your annual bonuses for this purpose will
         be

<PAGE>

Janis L. Jones
November 1, 1999
Page 13


         determined without any reduction for deferrals under any deferred
         compensation plan (qualified or unqualified) and without any reduction
         for salary reductions used for making contributions to any group
         insurance plan of the Company or its affiliates and also without
         reduction for any other deductions from bonus for any reason. If you
         were not employed by the Company or its affiliates for a sufficient
         period of time to receive annual bonuses during each of the five
         calendar years before the Change in Control occurred, then the average
         bonus will be measured using the three highest calendar years, in terms
         of annual bonus paid to you, in all the consecutive calendar years
         immediately preceding the date the Change in Control occurred. If you
         were not eligible for three years of bonuses paid during the calendar
         years immediately preceding the date the Change in Control occurred,
         then the average bonus will be the average of the annual bonuses that
         were paid to you during such time under such Plan. If you were not
         eligible for any bonus during such time because of not being employed
         by the Company for a sufficient period of time to qualify for a
         previous bonus payment, then Annual Compensation will only consist of
         the salary component as provided above and will not include a bonus
         component.

                  (iii) The Company shall also pay to you a pro rata amount of
         your target bonus (the bonus amount for your grade level assuming 100
         bonus points are earned) as shown on the matrix for the Annual
         Management Bonus Plan (or any substitute or successor plan)
         attributable to the bonus plan year which contains your Date of
         Termination, regardless of whether or not any bonus is determined to be
         actually earned for such year, provided that the target bonus for
         calculating this pro rata payment will not be less than the target
         bonus under such Plan for the Plan year that contains the day
         immediately prior to the Change in Control (which target bonus will be
         the one that applies to your grade level at that time) regardless of
         whether or not any bonus was payable for such year. The pro-rata amount
         will be based on the percentage of days of your employment in the
         calendar year of the Date of Termination. For example, if

<PAGE>

Janis L. Jones
November 1, 1999
Page 14


         the Date of Termination is October 1 in a year with 365 days, with
         October 1 counted as the last day of employment for a total of 274 days
         of employment that year, then the pro-rata amount will be 75.06849% of
         target bonus (274 days divided by 365 days). In addition, the Company
         shall pay to you the amounts of any compensation or awards payable to
         you or due to you under any incentive compensation plan of the Company
         including, without limitation, the Company's Restricted Stock Plan,
         Stock Option Plan (the "Option Plan") and Annual Management Bonus Plan
         (or any substitute or successor plan including the Key Executive
         Officer Annual Incentive Plan) and under any agreements with you in
         connection therewith, and shall make any other payments and take any
         other actions and honor such rights you may have accrued under such
         plans and agreements including any rights you may have to payments
         after the Date of Termination, which will include the payment to you of
         any bonus earned during the bonus year fully completed prior to the
         Date of Termination if such Date of Termination occurs prior to the
         payment date for such bonus, it being understood, however, that the
         pro-rata payment provided for in the first sentence of this paragraph
         4(c)(iii) is in lieu of any bonus earned for the bonus plan year during
         which occurred the Date of Termination.

                  (iv) In lieu of shares of common stock of the Company or any
         securities of a successor company which shall have replaced such common
         stock ("Company Shares") issuable upon exercise of outstanding and
         unexercised options (whether or not they are fully exerciseable or
         "vested"), if any, granted to you under the Option Plan including
         options granted under the plan of any successor company that replaced
         or assumed the options under said Option Plan ("Options") (which
         Options shall be cancelled upon the making of the payment referred to
         below), you shall receive an amount in cash equal to the product of (y)
         the excess of the higher of the closing price of Company Shares as
         reported on the New York Stock Exchange on or nearest the Date of
         Termination (or, if not listed on such exchange, on a nationally
         recognized exchange or quotation system on which trading volume in
         Company Shares is highest) or the

<PAGE>

Janis L. Jones
November 1, 1999
Page 15


         highest per share price (including cash, securities and any other
         consideration) for Company Shares actually paid in connection with any
         change in control of the Company, over the per share exercise price of
         each Option held by you (whether or not then fully exercisable or
         "vested"), times (z) the number of Company Shares covered by each such
         option.

                  (v) The Company shall also pay to you all legal fees and
         expenses incurred by you as a result of such termination (including all
         such fees and expenses, if any, incurred in contesting or disputing any
         such termination or in seeking to obtain or enforce any right or
         benefit provided by this Agreement or in connection with any tax audit
         or proceeding to the extent attributable to the application of Section
         4999 of the Code to any payment or benefit provided hereunder).

                  (vi) In the event that you become entitled to the payments
         (the "Severance Payments") provided under paragraphs (ii), (iii), and
         (iv), above (and Subsections (d) and (e), below), and if any of the
         Severance Payments will be subject to the tax (the "Excise Tax")
         imposed by Section 4999 of the Code, the Company shall pay to you at
         the time specified in paragraph (vii), below, an additional amount (the
         "Gross-Up Payment") such that the net amount retained by you (such net
         amount to be the amount remaining after deducting any Excise Tax on the
         Severance Payments and any federal, state and local income tax and
         Excise Tax payable on the payment provided for by this paragraph),
         shall be equal to the amount of the Severance Payments after deducting
         normal and ordinary taxes but not deducting (a) the Excise Tax and (b)
         any federal, state and local income tax and Excise tax payable on the
         payment provided for by this paragraph. For example, if the Severance
         Payments are $1,000,000 and if you are subject to the Excise Tax, then
         the Gross-Up Payment will be such that you will retain an amount of
         $1,000,000 less only any normal and ordinary taxes on such amount. (The
         Excise Tax and federal, state and local taxes and any Excise Tax on the
         payment provided by

<PAGE>

Janis L. Jones
November 1, 1999
Page 16


         this paragraph will not be deemed normal and ordinary taxes). For
         purposes of determining whether any of the Severance Payments will be
         subject to the Excise Tax and the amount of such Excise Tax, the
         following will apply:

                           (A) Any other payments or benefits received or to be
                  received by you in connection with a Change in Control of the
                  Company or your termination of employment (whether pursuant to
                  the terms of this Agreement or any other plan, arrangement or
                  agreement with the Company, any person whose actions result in
                  a Change in Control of the Company or any person affiliated
                  with the Company or such person) shall be treated as
                  "parachute payments" within the meaning of Section 280G(b)(2)
                  of the Code, and all "excess parachute payments" within the
                  meaning of Section 280G(b)(1) shall be treated as subject to
                  the Excise Tax, unless in the opinion of tax counsel selected
                  by the Company's independent auditors and acceptable to you
                  such other payments or benefits (in whole or in part) do not
                  constitute parachute payments, or such excess parachute
                  payments (in whole or in part) represent reasonable
                  compensation for services actually rendered within the meaning
                  of Section 280G(b)(4) of the Code in excess of the base amount
                  within the meaning of Section 280G(b)(3) of the Code, or are
                  otherwise not subject to the Excise Tax;

                           (B) The amount of the Severance Payments which shall
                  be treated as subject to the Excise Tax shall be equal to the
                  lesser of (y) the total amount of the Severance Payments or
                  (z) the amount of excess parachute payments within the meaning
                  of Section 280G(b)(1) (after applying clause (A), above); and

                           (C) The value of any non-cash benefits or any
                  deferred payment or benefit shall be determined by the
                  Company's independent auditors in accordance with proposed,
                  temporary or final regulations under Sections 280G(d)(3) and
                  (4) of the Code or, in the absence of

<PAGE>

Janis L. Jones
November 1, 1999
Page 17


         such regulations, in accordance with the principles of Section
         280G(d)(3) and (4) of the Code. For purposes of determining the amount
         of the Gross-Up Payment, you shall be deemed to pay Federal income
         taxes at the highest marginal rate of federal income taxation in the
         calendar year in which the Gross-Up Payment is to be made and state and
         local income taxes at the highest marginal rate of taxation in the
         state and locality of your residence on the Date of Termination, net of
         the maximum reduction in Federal income taxes which could be obtained
         from deduction of such state and local taxes. In the event that the
         amount of Excise Tax attributable to Severance Payments is subsequently
         determined to be less than the amount taken into account hereunder at
         the time of termination of your employment, you shall repay to the
         Company, at the time that the amount of such reduction in Excise Tax is
         finally determined, the portion of the Gross-Up Payment attributable to
         such reduction (plus the portion of the Gross-Up Payment attributable
         to the Excise Tax and Federal (and state and local) income tax imposed
         on the Gross-Up Payment being repaid by you if such repayment results
         in a reduction in Excise Tax and/or a Federal (and state and local)
         income tax deduction) plus interest on the amount of such repayment at
         the rate provided in Section 1274(b)(2)(B) of the Code. In the event
         that the Excise Tax attributable to Severance Payments is determined to
         exceed the amount taken into account hereunder at the time of the
         termination of your employment (including by reason of any payment the
         existence or amount of which cannot be determined at the time of the
         Gross-Up Payment), the Company shall make an additional gross-up
         payment to you in respect of such excess (plus any interest payable
         with respect to such excess) at the time that the amount of such excess
         is finally determined.

                  (vii) The payments provided for in paragraphs (ii), (iii),
         (iv) and (vi) above, shall be made not later than the fifth day
         following the Date of Termination (or following

<PAGE>

Janis L. Jones
November 1, 1999
Page 18


         the date of the Change in Control if your employment is terminated
         under the circumstances described in Section 4.(2) above), provided,
         however, that if the amounts of such payments cannot be finally
         determined on or before such day, the Company shall pay to you on such
         day an estimate, as determined in good faith by the Company, of the
         minimum amount of such payments and shall pay the remainder of such
         payments (together with interest at the rate provided in Section
         1274(b)(2)(B) of the Code) as soon as the amount thereof can be
         determined but in no event later than the thirtieth day after the Date
         of Termination (or following the date of the Change in Control if your
         employment is terminated under the circumstances described in Section
         4.(2) above). In the event that the amount of the estimated payments
         exceeds the amount subsequently determined to have been due, such
         excess shall constitute a loan by the Company to you payable on the
         fifth day after demand by the Company (together with interest at the
         rate provided in Section 1274(b)(2)(B) of the Code).

         (d) If your employment shall be terminated (y) by the Company other
than for Cause, or (z) by you voluntarily for Good Reason or by your Voluntary
Termination, or by the Company within six months prior to a Change in Control
under the circumstances described in Section 4.(2) hereof, then for a
twenty-four month period after such termination, the Company shall arrange to
provide you with life, disability, accident and health insurance benefits
substantially similar to those which you are receiving immediately prior to the
Notice of Termination. Benefits otherwise receivable by you pursuant to this
Subsection 4(d) shall be reduced to the extent comparable benefits are actually
received by you during the twenty-four month period following your termination,
and any such benefits actually received by you shall be reported to the Company.

         (e) In the event a Change in Control of the Company occurs while you
are employed with the Company or its affiliates but after you and the Company
have executed an agreement that expressly provides for your subsequent
retirement including an agreement that expressly provides for your early
retirement, then

<PAGE>

Janis L. Jones
November 1, 1999
Page 19


the present value, computed using a discount rate of 8% per annum, of (i) the
total amount of all unpaid deferred payments as payable to you in accordance
with the payment schedule that you elected when the deferral was agreed to and
using the plan interest rate applicable to your situation, including, without
limitation, any unpaid deferred payments to be paid to you under the Company's
Executive Deferred Compensation Plan and the Company's other deferred
compensation plans, and (ii) the total amount of all other payments payable or
to become payable to you or your estate or beneficiary under such retirement
agreement (other than payments payable pursuant to a plan qualified under
Section 401(a) of the Internal Revenue Code) shall be accelerated and paid to
you (or your estate or beneficiary if applicable) in a lump sum cash payment
within five business days after the occurrence of the Change in Control of the
Company. In addition, if you and the Company or its affiliates have executed
such a retirement agreement and if the Change in Control of the Company occurs
before the effective date of your retirement, then you shall receive the
Severance Payment payable under Subsection 4(c)(ii) herein in addition to the
lump sum cash payment of the present value of your total unpaid deferred
payments and other payments under the retirement agreement as aforesaid. All
benefits (other than the payments accelerated and paid out to you in a lump sum
as provided above) to which you or your estate or any beneficiary are entitled
under such retirement agreement shall continue in effect notwithstanding the
Change in Control of the Company. This Subsection 4(e) shall survive your
retirement.

         (f) Notwithstanding that a Change in Control shall not have yet
occurred, if you so elect, by written notice to the Company given at any time
after the date hereof and prior to the time such amounts are otherwise payable
to you:

                  (i) The Company shall deposit with an escrow agent, pursuant
         to an escrow agreement between the Company and such escrow agent, a sum
         of money, or other property permitted by such escrow agreement, which
         are substantially sufficient in the opinion of the Company's management
         to fund payment of the following amounts to you, as such amounts become
         payable (provided such deposit will not be necessary to the extent

<PAGE>

Janis L. Jones
November 1, 1999
Page 20


         the escrow already contains funds or other assets which are
         substantially sufficient in the opinion of the Company's management to
         fund such payments):

                           (A) Amounts payable, or to become payable, to you or
                  to your beneficiaries or your estate under the Company's
                  Executive Deferred Compensation Plan and under any agreements
                  related thereto in existence at the time of your election to
                  make the deposit into escrow.

                           (B) Amounts payable, or to become payable, to you or
                  to your beneficiaries or your estate by reason of your
                  deferral of payments payable to you prior to the date of your
                  election to make the deposit into escrow under any other
                  deferred compensation agreements between you and the Company
                  in existence at the time of your election to make the deposit
                  into escrow, including but not limited to deferred
                  compensation agreements relating to the deferral of salary or
                  bonuses.

                           (C) Amounts payable, or to become payable, to you or
                  to your beneficiaries or your estate under any executed
                  agreement that expressly provides for your retirement from the
                  Company (including payments described under Subsection 4(e)
                  above) which agreement is in existence at the time of your
                  election to make the deposit into escrow, other than amounts
                  payable by a plan qualified under Section 401(a) of the Code.

                           (D) Subject to the approval of the Committee, amounts
                  then due and payable to you, but not yet paid, under any other
                  benefit plan or incentive compensation plan of the Company
                  (whether such amounts are stock or cash) other than amounts
                  payable to you under a plan qualified under Section 401(a) of
                  the Code.

                  (ii) Within 5 days after the occurrence of a Potential Change
         of Control, the Company shall deposit with an escrow

<PAGE>

Janis L. Jones
November 1, 1999
Page 21


         agent (which shall be the same escrow agent, if one exists, acting
         pursuant to clause (i) of this Subsection 4(f)), pursuant to an escrow
         agreement between the Company and such escrow agent, a sum of money, or
         other property permitted by such escrow agreement, substantially
         sufficient in the opinion of Company management to fund the payment to
         you of the amounts specified in Subsection 4(c) of this Agreement.

                  (iii) It is intended that any amounts deposited in escrow
         pursuant to the provisions of clause (i) or (ii) of this Subsection
         4(f), shall be subject to the claims of the Company's creditors, as set
         forth in the form of such escrow agreement.

         (g) You shall not be required to mitigate the amount of any payment
provided for in this Section 4 by seeking other employment or otherwise, nor
shall the amount of any payment or benefit provided for in this Section 4 be
reduced by any compensation earned by you as the result of employment by another
employer, by retirement benefits, by offset against any amount claimed to be
owed by you to the Company, or otherwise (except as specifically provided in
this Section 4).

         (h) In addition to all other amounts payable to you under this Section
4, you shall be entitled to receive all benefits payable to you under any
benefit plan of the Company in which you participate to the extent such benefits
are not paid under this Agreement.

         5.       SUCCESSORS; BINDING AGREEMENT.

         (a) The Company will require any successor (whether direct or indirect,
by purchase, merger, consolidation or otherwise) to all or substantially all of
the business and/or assets of the Company to expressly assume and agree to
perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken place.
Failure of the Company to obtain such assumption and agreement prior to the
effectiveness of any such succession shall be a breach of this Agreement and
shall entitle you to compensation

<PAGE>

Janis L. Jones
November 1, 1999
Page 22


from the Company in the same amount and on the same terms as you would be
entitled to hereunder if you terminate your employment voluntarily for Good
Reason following a Change in Control of the Company, except that for purposes of
implementing the foregoing, the date on which any such succession becomes
effective shall be deemed the Date of Termination. As used in this Agreement,
"Company" shall mean the Company as hereinbefore defined and any successor to
its business and/or assets as aforesaid which assumes and agrees to perform this
Agreement by operation of law, or otherwise.

         (b) This Agreement shall inure to the benefit of and be enforceable by
your personal or legal representatives, executors, administrators, successors,
heirs, distributees, devises and legatees. If you should die while any amount
would still be payable to you hereunder if you had continued to live, all such
amounts, unless otherwise provided herein, shall be paid in accordance with the
terms of this Agreement to your devisee, legatee or other designee or, if there
is no such designee, to your estate.

         6. NOTICES. For the purpose of this Agreement, notices and all other
communications provided for in this Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by United States
registered or certified mail, return receipt requested, postage prepaid, by FAX
if available, or by overnight courier service, addressed as follows:

         To the Company:

                           Secretary
                           Harrah's Entertainment, Inc.
                           1023 Cherry Road
                           Memphis, TN  38117
                           FAX:  901-762-8735

         To you:
                           Addressed to your name at your office address (or FAX
                           number) with the Company or its affiliates (or any
                           successor thereto) at the time the notice is

<PAGE>

Janis L. Jones
November 1, 1999
Page 23


                           sent and your home address at that time; and if you
                           are not employed by the Company at the time of the
                           notice, your home address as shown on the records of
                           the Company or its affiliates (or any successor
                           thereto) on the date of the notice.

         To such other address as either party may have furnished to the other
         in writing in accordance herewith, except that notice of change of
         address shall be effective only upon receipt.

         7. MISCELLANEOUS. No provision of this Agreement may be modified,
waived or discharged unless such waiver, modification or discharge is agreed to
in writing and signed by you and such officer as may be specifically designated
by the Board. No waiver by either party hereto at any time of any breach by the
other party hereto of, or compliance with, any condition or provision of this
Agreement to be performed by such other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time. No agreement or representations, oral or otherwise, express or
implied, with respect to the subject matter hereof have been made by either
party which are not expressly set forth in this Agreement. The validity,
interpretation, construction and performance of this Agreement shall be governed
by the laws of the State of Delaware. All references to sections of the Exchange
Act or the Code shall be deemed also to refer to any successor provisions to
such sections. Any payments provided for hereunder shall be paid net of any
applicable withholding required under federal, state or local law. The
obligations of the Company under Section 4 shall survive the expiration of the
term of this Agreement.

         8. VALIDITY. The invalidity or unenforceability of any provision of
this Agreement shall not affect the validity or enforceability of any other
provision of this Agreement, which shall remain in full force and effect.

         9. COUNTERPARTS. This Agreement may be executed in several
counterparts, each of which shall be deemed to be an original but

<PAGE>

Janis L. Jones
November 1, 1999
Page 24


all of which together will constitute one and the same instrument.

         10. ARBITRATION. Any dispute or controversy arising under or in
connection with this Agreement shall be settled exclusively by arbitration in
Memphis, Tennessee in accordance with the rules of the American Arbitration
Association then in effect. Judgment may be entered on the arbitrator's award in
any court having jurisdiction; provided, however, that you shall be entitled to
seek specific performance of your right to be paid until the Date of Termination
during the pendency of any dispute or controversy arising under or in connection
with this Agreement.

         11. SIMILAR PROVISIONS IN OTHER AGREEMENT. The Severance Payment under
this Agreement supersedes and replaces any previous severance agreement and any
other severance payment to which you may be entitled under any previous
agreement between you and the Company or its affiliates.

         If this letter sets forth our agreement on the subject matter hereof,
kindly sign and return to the Company the enclosed copy of this letter which
will then constitute our binding agreement on this subject.

                                           Very truly yours,

                                           HARRAH'S ENTERTAINMENT, INC.


                                           By:      /s/STEPHEN H. BRAMMELL
                                                    ---------------------------
                                                    Stephen H. Brammell
                                                    Senior Vice President

Agreed:

/s/ JANIS L. JONES
-------------------------
Janis L. Jones