Las Vegas – Casino giant Harrah’s Entertainment Inc. announced Wednesday that it will partner with AEG, the company that brought David Beckham to the Los Angeles Galaxy, to build a 20,000-seat arena in Las Vegas capable of housing an NBA or NHL team.

The USD 500 million arena, behind the Bally’s and Paris hotel-casinos on the Las Vegas Strip, is projected to open in 2010. It’s a step toward attracting a pro sports franchise to a city that has tried to persuade reluctant league officials to look past its legalized sports betting.

The deal puts a dent in mayor Oscar Goodman’s plans to have an arena built downtown with the help of tax breaks, but he said such plans would go forward. The site for the Harrah’s-AEG arena, a block east of the Strip, is in unincorporated Clark County.

AEG, a subsidiary of Denver billionaire and Qwest Communications founder Philip Anschutz’s Anschutz Co., owns the Galaxy. It said it was in talks with professional leagues and potential team owners about bringing hockey or basketball to Las Vegas.