Boyd Gaming has a winning strategy for growth

Boyd Gaming has used digital to enhance its land-based operations in recent years. The Las Vegas (Paradise) Nevada-based company is still owned by family members of founder Sam Boyd who opened his first casino in 1975.

The last week has revealed success in the company’s focus on local Las Vegas gamblers through properties such as the iconic Fremont Hotel & Casino located Downtown in the heart of the Fremont Street Experience and other locals-friendly venues like Gold Coast, Main Street Station, and Sam’s Town.

The company posted Q4 2022 revenues of $922.9m, beating out its $879.8m take for the same quarter last year. The Las Vegas locals market drove the earnings. Net income was up more than 57% with fourth-quarter earnings of $172.7m compared to $109.8m for the fourth quarter of 2021.

Digital Growth Supports Land-based Sector

Keith Smith focused on future earnings opportunities in a recent investor call saying that the company will continue with a strategy of increasing growth in the digital sector in order to further support the land-based casinos.

“We took an important step forward in our online growth strategy with our recent acquisition of Pala Interactive, which gives us the talent and technology to begin building our regional online casino business,” Smith said.

“While online casinos are now limited to just a few states, we believe in the long-term potential from igaming. Owning and operating our own igaming operation will allow us to leverage our nationwide portfolio and extensive customer database to create a profitable online casino business,” he added.

Total Boyd Gaming revenue for the year was up 3.8% to $3.56b, outshining the company’s previous record of $3.70b.

While gaming costs were up and revenue was down slightly, the company more than made up for it in other metrics including food and beverage revenue up 20%, rooms revenue rose 22.7%, and other revenue was up 48.2%.

Focusing on continued organic growth, Smith said: “While the opportunities from online and land-based reinvestments are compelling, we also believe there is upside from continued organic growth in our existing operations, particularly in hotel revenues, meeting, and convention business, and other non-gaming revenues,” Smith said.

Official Exclusive Sponsor of Las Vegas Raiders

Boyd Gaming’s 10 casinos in the Las Vegas Valley were named as the Official and Exclusive Local Casinos of the Las Vegas Raiders and Allegiant Stadium, according to the official website of the LV Raiders, Raider Nation. Boyd Gaming was a Founding Partner of Allegiant Stadium, and the company will get prominent signage and brand placement at Allegiant, including rebranding the west side of the stadium’s upper deck with the company’s brands.

Boyd will be the “presenting partner” of one home game each year, and the weekly radio show will be “Presented by Boyd.” Fans can also expect to see the operator’s name on regular customer promotions, communications, and advertisements.

Keith Smith, President, and Chief Executive Officer of Boyd Gaming said: “Since arriving in Las Vegas, the Raiders have greatly enhanced and strengthened our city’s reputation as the Entertainment and Sports Capital of the World, giving fans across the country another reason to visit southern Nevada. The Raiders have been equally committed to our community off the field, giving back generously to nonprofit organizations and charitable causes across the Las Vegas Valley. Boyd is proud to partner with an organization and team that share our long-standing commitment to the well-being of the southern Nevada community.”

Las Vegas Raiders President Sandra Douglass Morgan added: “We are proud to partner with Boyd Gaming, who share our values of integrity and commitment to community. We know that with this respected partner, we will be able to provide Raider Nation with even more exciting activations and experiences.”

Source: Boyd Gaming named Official and Exclusive Local Casinos of the Las Vegas Raiders and Allegiant Stadium, Raider Nation, February 3, 2023