Boyd Gaming: ‘Younger’ customers have been crucial during pandemic

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Boyd Gaming properties in Las Vegas such as Sam’s Town on Boulder Highway will “remain open at this time,” the company announced. It’s closing properties in other markets because of COVID-19.

Many operations in the Las Vegas Valley have had a rough go during the pandemic, but one locals casino operator has identified a consistent silver lining.

During an earnings call Tuesday, Boyd Gaming Corp. officials said the “younger” gaming customer segment in Las Vegas has remained robust for the company as the pandemic has dragged on.

“The nature of the customers coming into the door hasn’t changed much over the last six months,” said Keith Smith, president and CEO of the company. “It’s the younger demographic and the higher-worth segment. Our more senior population hasn’t shown up yet, which is a great benefit for the future.”

Boyd, which operates casinos around the country, has 11 casinos in the Las Vegas Valley, where it is headquartered.

All but two of its casinos — Main Street Station and Eastside Cannery — have long since reopened following a nearly three-month, state-mandated casino shutdown last year.

For the fourth quarter of last year — the three months that ended Dec. 31 — Boyd reported gaming revenues of $514.5 million.

That’s down from $615.9 million during the same period in 2019, but not as bad as the figure could have been, considering that two of its Las Vegas casinos have remained closed since March. 

Also, the Orleans, which caters more to out-of-town guests than some of Boyd’s other locals casinos in the valley, saw softness for most of last year because of weakened Las Vegas visitation numbers.

Overall, Boyd’s fourth-quarter revenues totaled $635.9 million, down from $833.1 million during the same quarter in 2019.

For the year, Boyd reported revenues of $2.2 billion, down from $3.3 billion in 2019. The company tallied a net loss of $134.7 million in 2020, which compared to a net income total of $157.6 million in 2019.

Thanks to some belt-tightening of its overall operation, along with a positive outlook in various digital areas — Boyd owns a 5% stake in sports book and daily fantasy operator FanDuel — Josh Hirsberg, the company’s executive vice president and chief financial officer, said he’s optimistic about 2021.

Some of that optimism comes from the belief that, as COVID-19 vaccines continue to be administered, more seniors will want to get out of their homes.

“With the passage of time, we expect the participation from that older demographic to grow,” Hirsberg said. “It’s certainly understandable that we’re not seeing that today. With the passage of time, we expect people to feel more comfortable. It’s anybody’s guess when that will happen, but we expect that to improve over time. We expect to get the benefit of that.”

Smith said the pending “recovery on the Strip” will greatly impact business at Boyd’s downtown Las Vegas casinos and at the Orleans.

Smith also said it’s possible that some of the non-seniors frequenting Boyd’s Las Vegas casinos in recent months could be doing so in part because entertainment options continue to be limited.

Gaming

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