On Thursday, Boyd Gaming released the figures for the last three months of 2019. Now, what’s catching the attention of gaming enthusiasts is the fact that the report came with good news. It shows that each of the venues operated by Boyd posted marked revenue gains, contrary to other similar gaming companies which are currently battling the coronavirus.
The increased revenue can highly be attributed to the sports betting options that have been included in several of the venues run by Boyd Gaming. According to news by CalvinAyre.com, addition of the sports betting options is said to have attracted lots of customers, who are not afraid to spend money.
In the last three months of 2019, Boyd generated a cumulative income of $833 million, a 5.2% increase from the same period last year. Operating income went up by a fifth to $114.8 million while the net income was $24.3 million, 6.2% rise
The venue with the biggest revenue gains was Midwest& South with $539.7 million, a 7.5% increase year on year. Revenue for Las Vegas locals remained flat at $223.8 million, while the Downtown Las Vegas went up by 3.3% to $67.3 million.
The numbers for 2019 as a whole were not disappointing as well. Revenue went up by 26.6% to 3.32 billion, operating income increased by a third to $472.6 million while the net income rose by 37% to $157.6 million.
The 2019 numbers were some welcome news by Boyd Gaming, which has being facing a few challenges of late. The gaming operator has not bought a property of late. The most likely reason is because its debt has accumulated to just a little over $3.8 billion while the rent it pays for the land on which its expanded property rests has increased fourfold to $97.7 million
Therefore, investors should enjoy the good times while they last, before there comes a time when they will have to decide what to sell and what to keep.
Boyd Gaming has been operating sports betting in its Las Vegas casinos for a long time. After the gaming operator struck a deal with Flutter Entertainment FanDuel, Boyd has been adding sportsbooks to its other casinos. So far, it has active sports betting in Indiana, Iowa, Mississippi and Pennsylvania, with plans to have its Illinois casino added to the list
Keith Smith, CEO Boyd Gaming has been caught on camera several times before discussing the impact of welcoming sports betting to Boyd properties. On Thursday, when releasing the figures for Q4, Keith still addressed the issue.
He explained that when a customer is walking into a casino, it is not possible to tell whether they came to bet on sports. Since the addition of sports betting in several of their venues, they have noticed a marked increase in revenue from all sectors, be it table games, slots, foods or beverages.
FanDuel has launched an online casino gambling site in Pennsylvania. Smith said that Boyd may also launch a product there, though he did not specify what brand it would take.