Boyd Gaming (NYSE: BYD) owns and operates 15 casinos in Nevada, Mississippi, Illinois, Louisiana, Indiana and Florida. They are also a 50% partner in The Borgata Hotel Casino and Spa in Atlantic City. the company operates 812,500 square feet of casino space, 21,400 slot machines, 425 table games, and 7,550 hotel rooms. Unlike other Casino operators such as Wynn Resorts (WYNN) or Las Vegas Sands (LVS) who tend to focus on higher end tourists, Boyd typically caters to the middle-income customer. Their Las Vegas properties also differ in that they target local Las Vegas residents, one of the strongest and fastest-growing gaming segments, and Hawaiian tourists.[1] The company earned $1.6 billion in revenue and $4.2 million in net income in 2009.[2]

Company Overview

BYD operates properties Mississippi, Illinois, Louisiana, Indiana and Florida. They also operate The Borgata in Atlantic City through a joint venture with MGM.

BYD's revenue has grown significantly in recent years through expansion, acquisitions of properties such as the Coast Casinos, and joint ventures such as The Borgata.

BYD has properties in Nevada, Mississippi, Illinois, Louisiana, Indiana and Florida, along with a joint venture in Atlantic City. While Las Vegas is still its largest market, the properties outside of Nevada provide some diversity to BYD's revenue.

Similar to many other casinos, Boyd generates a majority of revenue (nearly 75%) from gaming and the rest (remaining 25%) from dining, rooms, and other items.[1]


  • Las Vegas Locals
    • Gold Coast Hotel and Casino
    • The Orleans Hotel and Casino
    • Sam's town Hotel and Gambling Hall
    • Suncoast Hotel and Casino
    • Eldorado Casino and Jokers Wild Casino
  • Downtown Las Vegas
    • California Hotel and Casino
    • Fremont Hotel and Casino
    • Main Street Station Casino, Brewery, and Hotel
  • Midwest and South Segment
    • Sam's Town Hotel and Gambling Hall
    • Par-A-Dice Hotel Casino
    • Blue Chip Casino, Hotel & Spa
    • Treasure Chest Casino
    • Delta Downs Racetrack Casino and Hotel
    • Sam's Town Hotel and Casino
  • Atlantic City, New Jersey
    • Borgata Hotel and Casino and Spa

Future development

The biggest project in the works is The Echelon on the Las Vegas Strip, which is being built where the Stardust Casino was tore down. The Echelon will include 5,000 rooms, 140,000 square feet of casino space, 750,000 square feet of convention space, and other features. Due to the economic environment, the company has been forced to delay construction.[4]

Business Growth

FY 2009 (ended December 31, 2009)[2]

  • Net revenue fell 8% to $1.6 billion.
  • Net income improved to $4.2 million compared to the net loss of $223 million the company incurred in the previous year.

Trends and Forces

  • Tourism in Las Vegas: BYD depends on the sustained growth of tourism in Las Vegas. With the development of the large Echelon project, BYD is betting on the growth of Las Vegas and continued growth of non-gaming revenues due to the large convention, retail, and dining space which is being constructed. Non-gaming revenue in Las Vegas is a lot bigger sector at $28.8 billion compared to $10.6 billion for gaming[5]. A disruption in this trend may lower hotel and casino occupancy, and decrease future revenues.
  • Airline Travel: while BYD has local customers who don't have to travel by air, many of its properties do rely on customers travel by air, especially from Hawaii. Therefore, BYD’ future profitability and success is contingent on the overall health of air travel. Terrorist attacks or other major events could reduce the number of customers willing to travel to the resorts.
  • Economic Conditions: The gaming industry as a whole is vulnerable to economic conditions. An economic downturn in the US would have a negative impact on BYD's revenues. In a down economy there are fewer visitors and the visitors who do come tend to spend less money. Since BYD caters to middle income customers, they may be more affected by economic conditions. This makes BYD more vulnerable to economic conditions than Wynn Resorts (WYNN), Las Vegas Sands (LVS), and other casinos which cater to higher-end customers, who may be less sensitive to changes in economic conditions.
  • Weather Conditions: some of the company's properties are located in areas that experience extreme weather conditions, including hurricanes. For example, our Treasure Chest Casino, which is located near New Orleans, Louisiana, suffered damage and was closed for 44 days in 2005 as a result of Hurricane Katrina. When properties are damaged or shut down due to weather, the company is affected adversely[6].


BYD faces a lot of competition in Las Vegas and the other locations where it operates[7]. While these companies have similar operations, BYD’s primary distinction is that it focuses on the middle income customer.

Harrah's Entertainment owns and operates 72 locations comprising nearly 3 million square feet of casino space as well as over 38,000 hotel rooms and suites across countries such as the U.S. Canada, the U.K., Egypt, and South America. In Las Vegas, the company owns 629,000 square feet of casino space and 20,300 rooms and suites at locations such as Bally’s, Caesar's Palace, Harrah’s, The Flamingo, and Paris. [8]

MGM owns and operates casino resorts in Las Vegas such as Bellagio, MGM Grand Las Vegas, Mandalay Bay, Mirage, Luxor, Treasure Island, New York-New York, Excalibur, Monte Carlo, Circus Circus Las Vegas and Slots-A-Fun. Other Nevada operations include Circus Circus Reno, Gold Strike in Jean, and Railroad Pass in Henderson. The Company has a 50% investment in Silver Legacy in Reno, which is adjacent to Circus Circus Reno. The Company also owns Shadow Creek, an exclusive world-class golf course located approximately ten miles north of its Las Vegas Strip resorts, and Primm Valley Golf Club at the California/Nevada state line. [9]

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