Boyd Gaming missed Wall Street expectations last quarter, posting negative earnings of eight cents a share, compared to the $0.01/share 
profit the Street was anticipating. Deutsche Bank‘s Carlo Santarelli blamed “softer-than-expected net revenues … below the low-end of management’s guidance.” Las Vegas-area cash flow was up almost 9% and revenue +1% but offset by higher operating expenses. “Given we believe a key component of the bull case story of the stock has been a LV Locals recovery buoyed by operational efficiency improvements, we believe today’s results will cause many to revisit this thesis,” wrote Santarelli. Borgata cash flow exceeded management’s guidance, but Midwest and Southern properties took a 14% plunge.
The Peninsula Gaming-derived properties also undershot expectations. Joseph Greff of J.P. Morgan said the results “aren’t that surprising,” given existing trends. “Weakness at the Fremont” was blamed for poor Downtown performance. According to management, Delta Downs and Diamond Jo Dubuque were robust, but offset by weakness elsewhere in the Midwestern portfolio.
Unhappy anniversary: It’s been a decade since corner-cutting by Aztar Corp. led to a massive and fatal accident at the Tropicana Atlantic City, when a parking garage collapsed. Insufficient structural steel was blamed, leading to a $101 million settlement. This is an occasion the industry would do well to remember.
Where there’s no smoke … Casino expansion into Prince George’s County is going to bring several gambling powers right into the wheelhouse of Smoke-Free Gaming of America. The latter is 
headquartered near MGM Resorts International‘s desired site, National Harbor (left). All three applicants have been touting their smoke-free bonafides. However, Penn National Gaming has a distinct advantage in this respect, since it already operates two smoke-free casinos in Ohio and Maryland. For its part, Greenwood Racing is touting the energy benefits of going smoke free. (So much less HVAC infrastructure to incorporate!) MGM properties have smoke-free areas, of course, but “smoke-free” area on a casino floor is like a “safe” place on a battlefield.
