Boyd Gaming lays out expansion plans for land-based and online casino

Boyd Gaming lays out expansion plans for land-based and online casino

Boyd Gaming is contemplating expansion investments in land-based locations as well as capitalizing on the “considerable potential” of its online company, following a fiscal year that ended with “record quarterly results across every component of our operations.” 

Boyd to roll out more projects

Within the context of an expanding FanDuel alliance that has recently expanded into Louisiana and is now targeting Ohio, the operator further elaborates on what it refers to as a “more enticing digital possibility in online casino gambling.”

Our company views igaming as a natural extension of our existing land-based operations and a means of engaging our client base through the integration of online gaming with our existing player loyalty program,” commented Keith Smith, president, and chief executive officer of Boyd.

They began pursuing this idea in April with the debut of Stardust-branded online casinos in Pennsylvania and New Jersey. In addition, they have bolstered our digital presence with the Stardust social casino, which has enabled us to build a digital presence in states that currently prohibit real money online gaming. The comments come as the business reports a 38.4 percent year-on-year increase in fourth-quarter sales to $879.8 million, up from $635.8 million in 2020, and a 5.6 percent increase over the $833.1 million reported two years ago.

Further dissecting the group’s revenue performance, the group achieved YoY increases in all of its divisional segments, with Las Vegas locals, Downtown Las Vegas, and Midwest & South achieving £236.2 million (2020: $161.1 million), $53.4 million (2020: $18.1 million), and £590.1 million (2020: $456.2 million), respectively. In comparison to 2019, Las Vegas Locals, Midwest and South experienced increases of $223.8 million and $539.7 million, respectively, while Downtown Las Vegas decreased by 23.1 percent to $69.5 million.

Construction commences in Fremont Las Vegas 

In addition, construction has begun on a $50 million makeover and update of the Fremont property in Las Vegas, with the $50 million project boosting food and beverage options and expanding and modernizing the casino floor. Adjusted EBITDA of $370.5 million in Q4 reflects a 61.5 percent and 48 percent growth over the $229.5 million and $250.3 million in 2020 and 2019, respectively.

In addition, the company said that 24 of the group’s 27 open locations increased revenue by double digits during the quarter, while 26 increased EBITDA by double digits. The single exception occurred in Shreveport, where a new smoking ban took effect. Boyd reported full-year revenue of $3.4 billion, up from $2.2 billion in 2020, with net income of $463.8 million (-$134.7 million in 2020) and adjusted EBITDA of $1.4 billion (2020: 609.9m).

“Since reopening, we have been able to regularly generate great results by reducing our cost structure, expanding our capabilities, and focusing on our core customers,” Smith stated.

“In terms of more recent trends, while we experienced some stalling in late December and January as a result of the Omicron surge and cold weather, we saw a rebound in January, with both revenue and EBITDAR exceeding the prior year for the month. While our 2021 results set a high standard for future performance, we expect our business to continue to perform well in 2022, as we have a number of organic growth prospects. One of the more major prospects is greater hotel occupancy and the corresponding gaming revenue.”

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About Lou De Aguila

Lou Ramon Aguila is a contributor for Golden Casino News. He has a degree in BSBA Legal Management with great interest in high-profile legal cases involving sports personalities. An ultimate sports junkie, he covers just about everything in the sporting world with an emphasis on the NBA, NFL, and MLB. In his past time, Lou loves to read manga, watch anime and critique pro-wrestling matches.