Boyd Gaming's business model is buoyed by the US public's
insatiable appetite for gaming. One of the country's leading casino
operators, Boyd operates more than 20 gaming entertainment
properties located in Nevada and several other US states. Besides
Nevada, the company has casinos in Illinois, Indiana, Iowa, Kansas,
Louisiana, Mississippi, and New Jersey, including 50% of Atlantic
City's Borgata Hotel Casino & Spa. Most of the company's
properties are sprawling resort hotels that feature pools, full
casinos, restaurants, shops, and on-site entertainment options for
Boyd's operations include properties in Illinois, Indiana, Iowa,
Kansas, Louisiana, Mississippi, New Jersey, and Nevada, and a
travel agency in Hawaii.
The company operates in five segments: Las Vegas Locals,
Downtown Las Vegas, Midwest and South, Peninsula, and Borgata.
Its Las Vegas Locals segment accounted for more than 20% of
revenue during fiscal 2014. It consists of six casinos which
include Gold Coast Hotel and Casino; The Orleans Hotel and Casino;
Sam's Town Hotel and Gambling Hall, and Suncoast Hotel and
The company's Midwest and South properties consist of four
dockside riverboat casinos, one racing and two barge-based casinos
that operate in four states in the Midwest and southern US. This
segment brought in more than 30% of Boyd's revenue during fiscal
Sales and Marketing
The company's advertising and marketing promotion costs totaled
about $50 million in fiscal 2014. Boyd works to build loyalty with
locals since the casinos that are not on the Las Vegas Strip are
not as popular with tourists and convention attendees.
Boyd's revenue decreased in fiscal 2014 compared to the prior
fiscal period. It reported $2.7 billion in revenue for fiscal 2014,
down from $2.89 billion it claimed in revenue for fiscal 2013. The
drop was largely due to the deconsolidation of Borgata resulting in
a $157.1 million decrease in net revenue.
Even with revenue in the billions, Boyd has suffered net losses
for several straight fiscal years. It improved its net loss to $53
million in fiscal 2014 compared to the $80 million it lost in 2013.
The improvement was due to slightly decreased operating
Many of Boyd's properties are dated and in need of upgrades or
total renovation. It will take large capital investments to bring
the company's facilities up to modern standards.
In Las Vegas, the company's $4.8 billion Echelon Place was
planned to be a megacasino, spanning more than 60 acres. The
project also included a hotel joint venture with Morgans Hotel
Group. Boyd suspended construction on the project, citing a Las
Vegas market that has been battered by unemployment, foreclosures,
and a drastic decline in tourism. Boyd eventually sold the