Boyd Gaming sees solid Las Vegas locals play, downtown slowdown in third quarter

Boyd Gaming Corp. reported a profit increase in the third quarter of 2025, driven by the sale of its stake in FanDuel, while steady performance from core customers in the Las Vegas locals market helped offset softer results at The Orleans and the company’s downtown casinos.

The Las Vegas–based operator posted net income of $1.44 billion, or $17.81 per share, up from $131.1 million, or $1.43 per share, in the same quarter a year earlier. The outsized result was largely because of a $1.4 billion after-tax gain from the sale of Boyd’s 5 percent equity stake in FanDuel to Flutter Entertainment.

Excluding that one-time gain and other non-recurring items, adjusted net income was $139.1 million, or $1.72 per share, roughly even with the same three-month period in 2024 and above Wall Street expectations. Revenue totaled $1 billion, compared with $961.2 million last year, while adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) came in at $353.5 million.

Las Vegas locals casino business steady

Boyd’s Las Vegas locals segment generated $211 million in revenue and $92 million in EBITDA, with overall gaming revenue up year-over-year. Company executives said strong demand from regular, in-market players continued to support the business, even as The Orleans saw weakness among destination visitors.

“Gaming revenues continue to grow during the quarter, driven by strong demand from our locals customers,” said Keith Smith, president and CEO of Boyd Gaming. “We continue to benefit from ongoing growth in play from our core customers, as well as improving trends in play from our retail customers.”

Smith said softness at The Orleans was tied to out-of-town visitation rather than a pullback from local patrons.

“The health of the locals market is supported by solid wage growth throughout the Southern Nevada economy,” he said, adding, “An important driver of this growth has been the increasing diversification of the local economy.”

Boyd has invested heavily in maintaining and upgrading its locals properties, including major renovations at The Orleans, Suncoast and Sam’s Town, and is moving forward with Cadence Crossing, a new locals-oriented casino in Henderson slated to open in the second quarter of 2026.

Downtown Las Vegas stable but foot traffic down

Boyd’s downtown Las Vegas segment, which includes the California, Fremont and Main Street Station casinos, posted results roughly in line with the prior year. Core play from Hawaiian customers remained steady, but executives cited lower hotel occupancy and weaker pedestrian traffic as ongoing challenges.

“Much like our locals segment, growth in gaming revenues were offset by softest and destination business, including lower hotel revenues and reduce pedestrian traffic along the Fremont Street Experience,” Smith said.

Capital investments reshape Boyd portfolio

Chief Financial Officer Josh Hirsberg said Boyd spent $146 million on capital projects during the quarter, bringing the company’s year-to-date total to $440 million. Full-year capex is expected to reach about $600 million.

The company is renovating hotel rooms at The Orleans and IP Casino Resort in Biloxi, while continuing a casino floor refresh at Suncoast and an expansion of Ameristar St. Charles in Missouri.

Beyond Las Vegas, Boyd has begun construction on a new casino resort in Norfolk, Virginia, with completion expected in 2027, and continues planning for a new Illinois casino in Paradise.

At Sky River Casino in Northern California, which Boyd manages for the Wilton Rancheria tribe, expansion is underway with 400 additional slot machines, a new 1,600-space parking garage, a 300-room hotel, and a resort-style spa and entertainment venue scheduled for completion in 2027.

Strong balance sheet, shareholder returns

Boyd used proceeds from the FanDuel sale to pay down debt, reducing its leverage ratio from 2.8x to 1.5x, and returned $175 million to shareholders in the quarter through $160 million in share repurchases and $15 million in dividends.

Since resuming capital returns in 2021, the company has repurchased $2.5 billion worth of shares and reduced its share count by 11 percent over the past year.

” We are maintaining the strongest balance sheet in our company’s history, and we’re continuing to invest in our business and return capital to shareholders,” Hirsberg said Thursday.

Contact David Danzis at ddanzis@reviewjournal.com or 702-383-0378. Follow @AC2Vegas_Danzis on X.