<Page>
EXHIBIT 12
HARRAH'S ENTERTAINMENT, INC.
COMPUTATION OF RATIOS
(IN THOUSANDS, EXCEPT RATIO AMOUNTS)
<Table>
<Caption>
2001(A) 2000(B) 1999(C) 1998(D) 1997(E)
---------- ---------- ---------- ---------- ----------
RETURN ON REVENUES-CONTINUING
Income (loss) before extraordinary
losses........................... $ 208,990 $ (11,344) $ 219,503 $ 121,717 $ 107,522
Revenues(f)........................ 3,709,040 3,329,796 2,894,125 1,907,892 1,561,707
Return........................... 5.6% (0.3)% 7.6% 6.4% 6.9%
RETURN ON AVERAGE INVESTED CAPITAL
Income (loss) before extraordinary
losses........................... $ 208,990 $ (11,344) $ 219,503 $ 121,717 $ 107,522
Add: Interest expense after tax.... 159,236 141,394 121,846 72,707 48,233
---------- ---------- ---------- ---------- ----------
$ 368,226 $ 130,050 $ 341,349 $ 194,424 $ 155,755
========== ========== ========== ========== ==========
Average invested capital........... $5,035,044 $4,488,288 $4,231,789 $2,426,028 $1,815,869
========== ========== ========== ========== ==========
Return........................... 7.3% 2.9% 8.1% 8.0% 8.6%
========== ========== ========== ========== ==========
RETURN ON AVERAGE EQUITY
Income (loss) before extraordinary
losses........................... $ 208,990 $ (11,344) $ 219,503 $ 121,717 $ 107,522
Average equity..................... 1,347,257 1,431,255 1,416,591 793,492 722,298
Return........................... 15.5% (0.8)% 15.5% 15.3% 14.9%
RATIO OF EARNINGS TO FIXED
CHARGES(G)
Income (loss) before extraordinary
losses........................... $ 208,990 $ (11,344) $ 219,503 $ 121,717 $ 107,522
Add:
Provision for income taxes....... 126,737 15,415 128,914 74,600 68,746
Interest expense................. 255,801 227,139 193,407 117,270 79,071
Interest included in rental
expense........................ 21,226 15,819 10,801 9,718 7,692
Amortization of capitalized
interest....................... 1,422 1,595 1,359 1,444 606
(Income) loss from equity
investments.................... (148) 314,958 33,042 4,709 (473)
Adjustment to include 100% of
non-consolidated,
majority-owned affiliate(h).... -- -- -- 12,254 --
---------- ---------- ---------- ---------- ----------
Earnings as defined................ $ 614,028 $ 563,582 $ 587,026 $ 341,712 $ 263,164
========== ========== ========== ========== ==========
Fixed charges:
Interest expense................. $ 255,801 $ 227,139 $ 193,407 $ 117,270 $ 79,071
Capitalized interest............. 9,309 7,960 13,118 2,526 6,860
Interest included in rental
expense........................ 21,226 15,819 10,801 9,718 7,692
Adjustment to include 100% of
non-consolidated,
majority-owned affiliate(h).... -- -- -- 12,071 --
---------- ---------- ---------- ---------- ----------
Total fixed charges................ $ 286,336 $ 250,918 $ 217,326 $ 141,585 $ 93,623
========== ========== ========== ========== ==========
Ratio of earnings to fixed
charges........................ 2.1 2.2 2.7 2.4 2.8
========== ========== ========== ========== ==========
</Table>
<Page>
EXHIBIT 12 (CONTINUED)
HARRAH'S ENTERTAINMENT, INC.
COMPUTATION OF RATIOS
(IN THOUSANDS, EXCEPT RATIO AMOUNTS)
<Table>
<Caption>
2001(A) 2000(B) 1999(C) 1998(D) 1997(E)
---------- ---------- ---------- ---------- ----------
COMPUTATION OF PROPERTY EBITDA(I)
Income from operations............. $ 580,965 $ 282,738 $ 481,037 $ 287,846 $ 213,532
Add/(less):
Depreciation and amortization.... 285,773 236,082 193,599 142,879 110,982
Write-downs, reserves and
recoveries..................... 22,498 226,106 2,235 7,474 13,806
Project opening costs............ 13,136 8,258 2,276 8,103 17,631
Corporate expense................ 52,746 50,472 42,748 37,890 27,155
Headquarters relocation and
reorganization costs........... -- 2,983 10,274 -- --
Equity in (income) losses of non-
consolidated affiliates........ (148) 57,935 43,467 14,989 11,053
Venture restructuring costs...... 2,524 400 (322) 6,013 6,944
Amortization of intangible
assets......................... 25,288 21,540 17,617 7,450 1,839
---------- ---------- ---------- ---------- ----------
Property EBITDA.................... $ 982,782 $ 886,514 $ 792,931 $ 512,644 $ 402,942
========== ========== ========== ========== ==========
</Table>
- ------------------------
(a) 2001 includes $22.5 million on pretax charges for write-downs, reserves and
recoveries and $26.2 million of income from dispositions of nonstrategic
assets and the settlement of a contingency related to a former affiliate.
2001 also includes the financial results of Harveys Casino Resorts from its
July 31, 2001, date of acquisition.
(b) 2000 includes $220.0 million in pretax reserves for receivables not expected
to be recovered from JCC Holding Company and its subsidiary, Jazz Casino
Company, LLC, $6.1 million in pretax charges for other write-downs, reserves
and recoveries and $39.4 million in pretax write-offs and reserves for our
investment in, loans to and net estimated exposure under letters of credit
issued on behalf of National Airlines, Inc. 2000 also includes the financial
results of Players International, Inc. from its March 22, 2000, date of
acquisition.
(c) 1999 includes $2.2 million in pretax charges for write-downs, reserves and
recoveries and $59.8 million of gains from sales of our equity interests in
nonconsolidated affiliates. 1999 also includes the financial results of Rio
Hotel & Casino, Inc. from its January 1, 1999, date of acquisition.
(d) 1998 includes $7.5 million in pretax charges for write-downs and reserves
and a $13.2 million gain on the sale of equity interests in a
nonconsolidated restaurant subsidiary. 1998 also includes the financial
results of Showboat, Inc. from its June 1, 1998, date of acquisition.
(e) 1997 includes $13.8 million in pretax charges for write-downs and reserves
and a $37.4 million gain on the sale of equity in a New Zealand subsidiary.
(f) Revenues for years 1997 through 2000 have been restated to reflect the
impact of implementing new accounting guidance issued in and effective for
first quarter 2001, which requires the cost of the cash-back component of
the Company's Total Rewards program to be treated as a reduction of
revenues. Previously, these costs had been treated as a casino expense.
(g) As discussed in Note 12 to the Consolidated Financial Statements in the 2001
Harrah's Entertainment Annual Report, the Company has guaranteed certain
third-party loans in connection with its casino development activities. The
above ratio computation excludes estimated
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<Page>
EXHIBIT 12 (CONTINUED)
fixed charges associated with these guarantees as follows: 2001,
$4.4 million; 2000, $5.7 million; 1999, $6.2 million; 1998, $7.9 million;
and 1997, $7.8 million.
(h) For purposes of computing this ratio, "earnings" consist of income before
income taxes plus fixed charges (excluding capitalized interest) and
minority interests (relating to subsidiaries whose fixed charges are
included in the computation), excluding equity in undistributed earnings of
less than 50% owned investments. "Fixed charges" include interest whether
expensed or capitalized, amortization of debt expense, discount or premium
related to indebtedness and such portion of rental expense that we deem to
be representative of interest. As required by the rules which govern the
computation of this ratio, both earnings and fixed charges are adjusted
where appropriate to include the financial results for the company's
nonconsolidated majority-owned subsidiaries. Accordingly, 1998 has been
adjusted to include the financial results and fixed charges of the East
Chicago partnership from its June 1, 1998, date of acquisition.
(i) EBITDA consists of earnings before interest, taxes, depreciation and
amortization. Property EBITDA consists of operating profit before
depreciation and amortization, write-downs, reserves and recoveries and
project opening costs. Property EBITDA is a supplemental financial measure
used by management, as well as industry analysts, to evaluate our
operations. However, property EBITDA should not be construed as an
alternative to Income from operations (as an indicator of our operating
performance) or to cash flows from operating activities (as a measure of
liquidity) as determined in accordance with generally accepted accounting
principles and presented in the accompanying Consolidated Financial
Statements. All companies do not calculate EBITDA in the same manner. As a
result, property EBITDA as presented by our Company may not be comparable to
similarly titled measures presented by other companies.
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