Boyd Gaming Corporation: Success Across the Board

The gambling industry is experiencing impressive growth worldwide. Notably, the USA is seeing a remarkable increase in activity: According to the American Gaming Association, over 55% of American adults participated in gambling over the past 12 months. This rising social acceptance has led to an 8.9% year-over-year increase in revenue for the US commercial gambling sector, reaching $17.63 billion in the last quarter. This marked the 14th consecutive quarter of growth, driven by casino developments in various states such as Illinois, Virginia, and Nebraska. A particularly robust segment within the gambling industry is sports betting. Since the legalization of sports betting in 38 states, the sector has generated over $120 billion in bets and $11 billion in revenue in 2023 alone. At a recent CNBC Boardroom event, executives from FanDuel, Fanatics, and Sportradar highlighted that live betting and wagers on individual players are becoming increasingly popular. The CEO of FanDuel recently decided not to implement a planned "super tax" on gaming activities after several competitors dropped similar plans. This decision is attributed to a proposal by two US lawmakers to introduce federal regulation for sports betting. In our recently published article on the top 10 casino stocks, we also discussed the impact of such taxes on the market. A significant development in the sports betting market is the expected revenue increase in the current NFL season. Forecasts predict a record $35 billion in legal sports bets, representing a 30% increase compared to last year. This promises further growth for sports betting platforms, which already process over 95% of their bets online, presenting an exciting opportunity for leading providers in this sector. To identify the 11 best stocks from Las Vegas, we used the Finviz Screener and ETFs, analyzing stocks based on hedge fund ownership. Our analysis shows that Boyd Gaming Corporation (NYSE: BYD) holds a solid position among the best Las Vegas stocks, particularly due to stable financial metrics and strategic expansions. Boyd Gaming operates 28 physical gaming locations in 10 US states, including the Gold Coast Hotel and Sam’s Town Hotel in Las Vegas. The company recently opened a new land-based casino at Treasure Chest, which immediately recorded double the revenue compared to the previous year. The online gaming segment, in partnership with FanDuel, also shows promising growth and is expected to generate between $65 million and $70 million in EBITDAR this year. At the end of the quarter, Boyd Gaming had $281 million in cash, indicating short-term growth potential. The number of hedge funds holding this stock increased from 29 in the first quarter to 33 in the second quarter of 2024. HG Vora Capital Management is the largest shareholder, with holdings valued at $220.4 million.