About Boyd Gaming Corporation
Boyd Gaming operates about 30 wholly owned casino properties in Nevada and some ten other US states. Most of its properties are resorts or hotels that feature pools, full casinos, restaurants, shops, and on-site entertainment options for guests. The company also has a partnership with digital gaming company FanDuel Group through which it uses FanDuel's technology for its own online and mobile gambling and sports betting services. In addition to its casinos, Boyd owns and operates a travel agency and a travel insurance company in Hawaii. The company was founded in 1975.
Boyd Gaming has three reportable segments: Midwest & South, Las Vegas Locals, and Downtown Las Vegas.
The company's largest segment, Midwest & South, accounts for more than 55% of its revenue. It comprises four land casinos, six dockside riverboat casinos, three racinos (combination race tracks and casinos), and four barge casinos that operate in nine Midwestern and southern US states. Those states generally restrict casino gambling by issuing limited numbers of gaming licenses.
The Las Vegas Locals segment has nine casinos that address Las Vegas metropolitan residents. The division's largest casinos by gaming space are The Orleans Hotel and Casino, Aliante Casino + Hotel + Spa, and Sam's Town Hotel and Gambling Hall. Las Vegas Locals provides about a third of Boyd's revenue.
The Downtown Las Vegas segment represents around 10% of the company's revenue and includes three properties: California Hotel and Casino; Fremont Hotel and Casino; and Main Street Station Casino, Brewery and Hotel. The segment primarily serves a niche demographic of Hawaiian gamblers via Boyd's Vacations Hawaii travel agency which operates up to four chartered flights from Honolulu to Las Vegas each week.
The company derives more than 70% of its revenue from gaming. Food and beverages supply about 15%; hotel room fees and other revenue each bring in about 10%. Boyd's other products and services are associated with entertainment venues, nightclubs, retail stores, and theater admissions.
Headquartered in Las Vegas, Boyd Gaming has operations in Nevada, Illinois, Indiana, Iowa, Kansas, Louisiana, Mississippi, Missouri, Ohio, and Pennsylvania. The company garners more than 40% of its revenue from its properties in the Las Vegas metropolitan area.
Sales and Marketing
Boyd Gaming loyalty rewards programs to attract and retain customers. The company's B Connected loyalty program provides customers cards that allow them to earn points that can be used to play slot, video poker, and table games. The program also includes tiered member benefits such as cruises, vacations, and gifts like jewelry and electronics. B Connected also has an associated mobile app. Five of the company's casinos offer their own loyalty programs.
Except for 2016, Boyd Gaming has grown its revenue each year since 2014; in that time, it has added more than 20% to its top line. The company's net income has fluctuated radically from a loss in 2014 (when the company recorded impairment charges on several of its gaming licenses) to a high of $420 million in 2016 (driven by a large income tax benefit). Earnings then fell by more than 70% over the next two years.
The company's revenue increased 9% to $2.6 billion in 2018 due mainly to gains in its Midwest & South segment where it acquired six properties.
Boyd's net income expanded 39% to $115 million that year primarily because of an increased income tax provision and higher interest expense. The prior year it received an income tax benefit related to US tax reform. Interest expense rose due to debt the company assumed to fund its acquisitions. Boyd had long-term debt obligations totaling $4 billion at the end of 2018.
The company added $45.9 million to its cash in 2018 to finish the year with $273.2 million. Operations provided $434.5 million. It gained $746.2 million through its financing activities—mostly senior note issuances. Acquisitions drove investment spend of $1.1 billion.
Boyd Gaming's strategy centers on expanding its property and gaming unit portfolio through acquisitions in its Midwest & South segment (which represents its largest revenue stream) and renovating its more dated casinos. The company also recently entered the online gambling market.
In 2018 Boyd acquired the Belterra Casino Resort in Indiana, the Ameristar Casino Hotel Kansas City and the Ameristar Casino Resort Spa St. Charles in Missouri, the Belterra Park casino in Ohio, and the Valley Forge Casino Resort in Pennsylvania. That year the company also acquired Lattner Entertainment Group Illinois, a distributed gaming operator in Illinois. Lattner has almost 1,000 gaming units in about 220 locations.
Boyd is making large capital investments to bring its facilities up to modern standards. In 2017 the company renovated some 300 hotel rooms at its California Hotel and Casino in Las Vegas. The improvements drove up the segment's average daily room rates and—by extension—the segment's revenue. A 2016 investment of $45 million to renovate rooms and add a new hotel tower to Boyd's Delta Downs Racetrack Casino & Hotel in Vinton, Louisiana yielded increased average daily rates and revenue the next year.
Boyd partnered with FanDuel Group in 2018 to use the online sports betting company's technology for its own Boyd-branded online and mobile gambling and sports betting services.
Mergers and Acquisitions
Boyd Gaming made a spate of acquisitions in 2018 to expand its property and gaming unit portfolio in its Midwest & South segment (which represents its largest revenue stream). The company acquired the Belterra Casino Resort in Indiana, the Ameristar Casino Hotel Kansas City and the Ameristar Casino Resort Spa St. Charles in Missouri, the Belterra Park casino in Ohio, and the Valley Forge Casino Resort in Pennsylvania. That year the company also acquired Lattner Entertainment Group Illinois, a distributed gaming operator in Illinois. Lattner has almost 1,000 gaming units in about 220 locations.
Boyd Gaming patriarch Sam Boyd may have caught the gambling bug early in life: his grandfather reportedly played poker with the outlaw Jesse James. After a stint working on gambling ships during the 1930s, Boyd arrived in Las Vegas in 1941 with less than $100 in his pockets and started running a penny roulette wheel. After years of saving half of what he made, Boyd invested $10,000 for an interest in the Sahara Hotel in 1952. He and his son William purchased the Eldorado Club in Henderson, Nevada, ten years later. Together, they founded Boyd Gaming in 1974 and opened the California Hotel in downtown Vegas the following year. In 1979 they opened Sam's Town on Las Vegas' Boulder Strip.
3883 Howard Flr 9
Las Vegas, NV 89169
Phone: 1 (702) 792-7200
Employer Type: Publicly Owned
Stock Symbol: BYD
Stock Exchange: , NYSE
Chairman: William S. Boyd
Vice Chairman, EVP, and Chief Diversity Officer: Marianne B. Johnson
President and CEO: Keith E. Smith
Employees (This Location): 307
Employees (All Locations): 23,477
Las Vegas, NV
East Peoria, IL
Morgan City, LA
Las Vegas, NV