Boyd Gaming sells Dania Jai-Alai Fronton for $80 million

May 2, 2011 12:54 PM

Looking to eliminate a loser from its balance sheet, Boyd Gaming Corp. announced Monday that it had a definitive agreement to sell the Jai-Alai Fronton in Dania, Florida, for $80 million.

The unidentified buyers were listed as being a group of private investors.

The company purchased the fronton in March, 2007, with the hopes of developing the property into a slots facility. However, since acquiring the facility the company has been limited to operating a poker room and a simulcasting system, in addition to the Basque-based jai-alai games.

Subject to regulatory approvals, the sale is expected to be completed by September 26.

In announcing the sale, Keith Smith, president and CEO of Boyd Gaming said, "After a careful analysis, we determined that Dania Jai-Alai no longer fits our current growth strategy. The sale of this asset is consistent with our priority of strengthening our balance sheet, and will be immediately accretive to earnings."

When Boyd Gaming acquired the facility for nearly $150 million, expectations were that the property would be granted authority to install some 1,500 slot machines. However, legalities intervened and a slot license was not granted.