Boyd will look to bring sports betting to the Valley Forge Casino
July 28, 2018 8:05 AM
by Robert Mann
Las Vegas-based Boyd Gaming Corp., as part of its earnings call to investors this week, has revealed some of its sport betting plans outside of Nevada.
Boyd CEO Keith Smith said during the second quarter earnings call that the casino operator says it will have sports betting available at IP Casino Resort Spa and Sam’s Town Tunica as soon as Mississippi officials grant regulatory approval,
Boyd will also look to bring sports betting to the Valley Forge Casino Resort in King of Prussia, Pennsylvania once it completes its $281 million acquisition in September, Smith said. Sports betting in Pennsylvania is currently delayed by current state operators’ resistance to a high license fee ($10 million) and tax rate (36 percent) in the state.
“We are in an envious position when it comes to this growth opportunity. Few companies can match our 40 plus years of experience in sports wagering, our significant sports betting infrastructure here in Nevada and our growing geographical footprint across the country,” Smith told Wall Street analysts.
Significant growth in in Nevada lifted Boyd Gaming’s second quarter margins to a record high of 26.5 percent, Smith said. Revenue rose 2.1 percent to $617 million for the three months ending June 30 compared with $604 million in the same period a year ago. The company’s EBITDA -- earnings before interest, taxes, depreciation and amortization -- rose 8 percent to $163 million.
EBITDA at Boyd’s properties in the Midwest and South rose 5 percent to $98 million thanks to strong economic conditions across the company’s regional markets.