Boyd Gaming and gaming equipment provider Aristocrat Technologies announced an agreement Wednesday for a management systems contract that will unify under one structure the more than two dozen casinos operated by the regional gaming company.
Under terms of the agreement, Boyd’s casinos will utilize the Aristocrat Oasis 360 system, improving the connection for the company’s B Connected player-loyalty program. Installation of the Aristocrat system will begin immediately, but the project won’t be completed until well into next year.
Financial terms were not disclosed.
Boyd currently operates 24 casinos in seven states. However, several properties, including the two Las Vegas-area Cannery Casinos and Aliante in North Las Vegas that Boyd acquired in 2016, as well as several of the company’s Midwest casinos, haven’t previously been linked to the B Connected program.
Also, Boyd is in the process of acquiring five further casinos, in four states, in two separate deals that are expected to be completed by the end of the year.
The timing of the deal with Aristocrat allows Boyd to grow its margins in all segments of the company’s business, a promise Boyd CEO Keith Smith made on the casino operator’s second quarter conference call on July 27.
“We will add to our toolkit, if you will, in terms of technology and systems,” Smith said in response to an analyst’s question. “The opportunities are different in each segment given where we’re at in the process of rolling out our expanded capabilities both on the marketing side and in other parts of the business.”
Matt Wilson, managing director of the Americas for Australia-based Aristocrat, said the agreement with Boyd marks the largest single systems contract the company has signed with one casino operator. Once the installation is completed, Boyd’s 29 casinos will become a gaming industry case study for gaming manufacturer’s system and technology.
Aristocrat and Boyd will also jointly develop new gaming features at the casinos, including property-wide bonus games and jackpots. The system innovations are in addition to Aristocrat games currently in operation at Boyd properties nationwide, including Buffalo, Game of Thrones, Lightning Link, and Walking Dead II.
“This was a great opportunity to build a platform of this scale,” Wilson said. “The two organizations are very similar in strategy and heritage and how we treat gaming customers. We invested in some loyalty technology and the goal is to create and provide the best gaming experience for Boyd’s customers.”
The Aristocrat system includes several casino management features to better reward players. Once fully installed, Boyd customers will be able to earn rewards while playing at any Boyd Gaming property.
Boyd is acquiring the operations of four properties from Pinnacle Entertainment – two Ameristar casinos in Missouri and the Belterra gaming brands in Indiana and Ohio – for $575 million. Boyd will sign a lease agreement with Gaming and Leisure Properties, a real estate investment trust that is the landlord for the Pinnacle-owned casinos.
Boyd is also acquiring the Valley Forge Casino Resort in Pennsylvania for $280.5 million.
The transactions will open Boyd to potential customers in Philadelphia, Cincinnati, St. Louis, and Kansas City – four major metropolitan cities.
“Through this partnership, Boyd Gaming will be able to deliver an enhanced, compelling gaming entertainment experience across our portfolio, supported by a brand-differentiating level of customer service,” said Steve Thompson, executive vice president, operations for Boyd Gaming.
Wilson said the systems’ innovations “will help to increase player excitement and boost Boyd Gaming’s competitive advantages in the markets in which they operate.”
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgamingreports.com. Follow @howardstutz on Twitter
