Locals casino showdown: Boyd Gaming says ‘no impact’ from Durango opening
LAS VEGAS (KLAS) — Boyd Gaming officials have been watching closely since a new competitor landed in town. But so far, Durango Casino & Resort hasn’t caused Boyd any headaches — at least, ones that officials will talk about.
Analysts peppered Keith Smith, president and CEO of Boyd Gaming, with questions about the new kid in town during an earnings call Thursday where the company talked about record revenue in 2023. Boyd reported $3.7 billion in revenue for the year, up from $3.6 billion in 2022.
Smith pointed to the company’s strong fourth quarter, with $954.4 million in revenue, up 3% over Q4 in 2022. He cited Las Vegas hotel revenue that grew 4%.
But the analysts wanted to know more about whether Durango was cutting into Boyd’s Las Vegas business. The Orleans Hotel & Casino is the closest Boyd property to Durango, and Station Casinos talked up their entry into the market, saying they staked out a neighborhood with no competition within five miles.
“We haven’t seen any significant impact as a result of the opening of Durango. Now, it’s still early, the property has only been open 60 days. But we haven’t seen any significant impact,” Smith said.
Boyd officials had said they might see a $25 million impact. And that was a conservative estimate, according to Josh Hirsberg, executive vice president, CFO and treasurer.
But Smith said he hasn’t seen it yet. “It’s a really hard question to answer,” Smith said. “We haven’t seen a significant impact,” he repeated, acknowledging that it’s only been 60 days. He said Boyd was being cautious and diligent about how they do business. He added that he couldn’t say the worst is behind them.
Durango Casino & Resort ‘a smash’ with customers, Fertitta says
“Every market is different, every opening is different, every property is different, and so it’s really tough to peg that,” he said.
He talked about the strong tourism and gaming statistics that followed 2023, and cited the profit margin — more than 40% — of Boyd’s operations.
Analysts asked if the companies overlapped as they pursued customers, and whether out-of-town tourists were more likely to go to Durango. Smith offered that it was likely locals where were checking out the new property. But he didn’t budge. No effect yet.
And when that line of question fizzled out, analysts came back hard with questions about Boyd’s opportunity to buy other properties. But Boyd’s ambitions remain veiled.
In Las Vegas, Boyd owns Aliante Casino + Hotel + Spa, California Hotel Casino, Cannery Casino Hotel, Fremont Hotel & Casino, Gold Coast Hotel & Casino, Jokers Wild Casino, Main Street Station Casino Brewery Hotel, Sam’s Town Hotel & Gambling Hall, Suncoast Hotel & Casino and The Orleans Hotel & Casino.
A planned room remodel at the Gold Coast, Boyd’s property on W. Flamingo Road, will cut hotel occupancy in half through the third quarter of 2024, officials said.
The company just finished renovations at Main Street and it has more renovations planned in 2024 at Blue Chip Casino Hotel in Indiana, Ameristar St. Charles in Missouri and Valley Forge Casino Resort in Pennsylvania.
Boyd is also in the process of converting a three-story riverboat casino — Treasure Chest Casino on Lake Pontchartrain in Louisiana — to a land-based operation.
Boyd also expects continued good performance from its downtown Las Vegas hotels. “I think downtown has been plagued with construction disruption throughout the year,” Smith said. That will change in 2024, following strong performances last year from the Fremont and Main Street properties.
For the latest news, weather, sports, and streaming video, head to KLAS.
