The Midwest and South segment of Boyd Gaming carried first-quarter earnings, while the operator continued to be negatively impacted in Las Vegas by construction disruption.
Companywide, CEO Keith Smith said gaming revenue from both core and retail customers continued to grow in the first quarter, consistent with trends in 2025. That has continued into April.
Revenue grew by 4% in the first quarter in the Midwest and South segment, while EBITDAR grew 5% and margins improved to nearly 37%.
“What we have seen for several quarters now is people are staying and spending their money closer to home,” Smith said. “We’re the beneficiary of having properties spread across 10 states.”
Smith said renovations in Biloxi and Valley Forge contributed to gains. Treasure Chest Casino in Louisiana continues to deliver year-over-year growth. “We plan to build on this performance with the addition of a new high-limit room we expect to open early next year.”
The Las Vegas segment reflected what Smith called “continued softness” in destination business with the largest impact at The Orleans. It also saw significant construction disruption with a casino renovation at the Suncoast in Summerlin west valley.
Excluding those two properties, Smith said revenue and EBITDAR were in line with 2025 and operating margins exceeded 50%. Boyd casinos that serve local residents are doing “good” for the same reasons as the Midwest and South segment. “Even with the impact at The Orleans and Suncoast, play from our core customers during the quarter was in line with the prior year for the Las Vegas locals segment.”
Smith was asked by Wall Street analysts when Vegas tourism would return in stronger numbers; he responded that as they get into the second half of the year, the comparisons will be easier, but “when it is fully turned back up is hard to tell.”
CFO Josh Hirsberg said the impact from a drop in destination business that started in the third quarter of 2025 has remained stable. He said it won’t “flip on a dime,” but will continue to be down and be “less bad” before gradually improving in the fourth quarter. The biggest improvement will come in 2027.
Smith said Cadence Crossing in east Henderson that opened March 26 has received “an enthusiastic response” through the first couple of weeks. “We’re happy with the opening and new customer sign ups.”
Suncoast renovations will be completed at the end of the third quarter and Orleans room renovations are on track for completion later this year, with a modernization project to start in 2027. A room renovation project will start in the summer at the Suncoast.
“We are confident these capital investments will contribute to long-term growth in our locals’ segment,” Smith said.
Downtown Las Vegas trends were similar to past quarters, with Hawaiian guests and core customers remaining stable, Smith said. He added destination traffic to downtown was down during the quarter.
