In November 2022, Boyd Gaming acquired Pala Interactive, a majority-owned online gambling supplier, for $170.0m. Over the past year, Boyd has integrated Pala Interactive into its business and rebranded it as Boyd Interactive. The online division has relaunched its Stardust platform in Pennsylvania and New Jersey. Boyd’s CEO, Keith Smith, sees online gambling as a long-term strategy focused on building a customer database and effectively competing in both online and land-based markets.
In the third quarter of this year, Boyd Gaming reported a 3.0% increase in revenue, driven primarily by online activities. While gaming revenue decreased by 4.0%, revenue from food and beverage and rooms increased. Online revenue grew significantly by 72.3%, offsetting the decline in gaming revenue. Additionally, revenue from management fees and other sources also saw growth.
The majority of Boyd’s revenue came from Midwest and South operations, followed by Las Vegas Locals and Downtown Las Vegas. Online revenue accounted for a significant portion as well. However, with the increase in online spending, Boyd’s overall costs and expenses also rose.
Year-to-date, Boyd Gaming’s revenue increased by 5.8% to $2.78bn. Gaming revenue remained the highest, followed by online revenue. Other sources of revenue included rooms, food and beverage, management fees, and other activities. Despite higher expenses, Boyd’s pre-tax profit and net profit also improved compared to the previous year.
Overall, Boyd Gaming has shown strong operating performance, allowing them to invest in their properties and provide returns to shareholders.
