The world's largest casino operator, Harrah's Entertainment, reported its positive third-quarter earnings on Wednesday, but investors weren't too excited. Harrah's reported adjusted earnings of $191.5 million, or $1.00 per share, just slightly below analysts forecast of $1.05.

Sales for the period ending September 30 climbed 13% to $2.84 billion, beating the Street's estimated $2.63 billion.

Steven Kent of Goldman Sachs predicted that Harrah's would have an "in-line" quarter, with the company's main focus on its upcoming acquisition.

Harrah's is currently in the midst of an ugly debate that could endanger its buyout deal, which was arranged last December and approved by shareholders in April. The casino operator acquired a company called Park Place Entertainment after Park Place's CEO, Arthur Goldberg, signed a contract in 2000 with the St. Regis Mohawk Tribe to jointly develop a casino in the Catskills, an upstate New York vacation spot. Upon acquiring Park Place, Harrah's acquired the deal as well.

The St. Regis Mohawk Tribe sued Park Place in tribal court for its interference in 2000, as Goldberg wanted to build the casino at Kutsher's Coutry Club, but ultimately count not get the permits to do so. The tribe members won the $1.8 billion suit by default, as Park Place's lawyers never showed. The tribal court affirmed the ruling in July and added an additional $1 billion in interest owed.

The money hasn't been paid, and now the tribe, represented by former Attorney General of New York Dennis Vacco, is taking the case to the U.S. federal court. Vacco has accused Harrah's of trying to win government favor behind the scenes in an effort to override the tribal court's ruling.

''The risk that they run in continuing to treat it as a frivolous matter is that they lose,'' Vacco said. ''If they lose, the judgment is growing by $440,000 a day.''

Harrah's refuses to comment on pending law suits, though in its earnings release on Wednesday the company said it would "vigorously contest" the matter.

If Harrah's doesn't comply, it might lose its $17.1 billion buyout offer from private equity firms Apollo Management and Texas Pacific Group. Dennis Farrell of Wachovia Securities said of Harrah's conundrum, ''If you're paying out the lawsuit in cash in one lump sum, it makes it very difficult to get your investment returns to work.''

Harrah's stock dropped 7 cent, or .08%, to $87.31 in Wednesday trading.

The Associated Press contributed to this article.