Boyd Gaming's business model is buoyed by the US public's insatiable appetite for gaming. One of the country's leading casino operators, in 2012 Boyd had 22 gaming entertainment properties in Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, New Jersey, and Nevada, including 50% of Atlantic City's Borgata Hotel Casino & Spa. In 2011 the company owned or operated 1,042,787 square feet of casino space, containing approximately 25,973 slot machines, 655 table games and 11,418 hotel rooms. In addition to its resorts and casinos, Boyd also owns a travel agency and a travel-related insurance agency, both of which are in Hawaii.
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 four segments: Las Vegas Locals, Downtown Las Vegas, Midwest and South and Atlantic City. Its Las Vegas Locals segment 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 Casino. The company's Midwest and South properties consist of four dockside riverboat casinos, one racino and two barge-based casinos that operate in four states in the Midwest and southern US.
The company's revenues increased by 9% in 2011. The increase was due to $44.6 million in revenues stemming from Atlantic City segment growth and the IP Casino (Biloxi) acquisition, partially offset by increased promotional activities. In 2011 Boyd reported a net loss of $3.85 million compared to net income of $10.3 million in 2010, due primarily to significantly higher interest costs.
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 previously stated that it planned to resume construction in three to five years. However, in 2011 it reported that development plans are on hold indefinitely.
The Borgata property was formed as a joint venture with MGM Resorts International. In 2010 MGM's stake in Borgata was transferred to a divestiture trust designed to sell its half. Though Boyd is not interested in assuming full ownership of Borgata, the company controls the property's day-to-day operations. Borgata is contending with competition from the upcoming $2.4 billion Revel megaresort, planned for a 2012 opening in Atlantic City, as well as from casinos in the neighboring Pennsylvania market. In response, Boyd is spending about $50 million to renovate Borgata's 2,000-room hotel tower.
Mergers and Acquisitions
Boyd completed a reported $1.45 billion acquisition of Iowa-based Peninsula Gaming in 2012, a significant deal that expands Boyd's footprint into Iowa and Kansas and gives it additional presence in Louisiana.
The previous year Boyd acquired the IP Casino Resort Spa in Biloxi, Mississippi for about $278 million. The property includes 1,100 hotel rooms and suites and a 70,000-square-foot casino, as well as restaurants and bars, convention space, a salon and spa, and a theater. It made the purchase to expand in the regional destination market of Biloxi. Boyd is investing $44 million to renovate the property. These acquisitions are part of a broader effort by Boyd to expand its footprint in both the Midwest and the South.
In 2012 Chairman William S. Boyd and his family owned more than 35% of Boyd Gaming.