Future Mergers and Acquisitions Discussions Minimized by Boyd Gaming in Q2 of 2025
In a move aimed at strengthening its financial position, Boyd Gaming has announced a change in its M&A strategy following the sale of its 5% stake in FanDuel. The company is now prioritizing disciplined capital allocation focused on organic growth and strengthening its core operations, rather than pursuing large-scale mergers and acquisitions in the near term.
The $1.755 billion cash influx from the FanDuel sale is being used mainly for debt reduction and balance sheet strengthening. This move is expected to reduce Boyd's lease-adjusted leverage below 2x, improving liquidity.
Despite speculation about potential M&A or takeover talks, Boyd management has explicitly downplayed such moves. CEO Keith Smith and CFO Josh Hirsberg emphasized a balanced and disciplined investment approach, indicating that increased flexibility from the FanDuel sale does not mean the company will pursue acquisitions that don’t align with its strategic rationale or shareholder value.
Strong Financial Performance
Boyd Gaming's strategic approach is paying off. The company surpassed $1 billion in Q2 2025 revenue—a 6.9% year-over-year increase—and saw net income rise 7.5% year-over-year to $150.4 million. The online segment expanded by 33.2% year-on-year to $173 million, indicating a growing focus on digital gaming.
The Las Vegas Locals segment showed its best quarterly growth in over two years, with margins approaching 50%. The Midwest & South region delivered solid results, driven by continued strength at Treasure Chest Casino.
Focus on Digital Gaming
Boyd's approach to digital gaming remains focused and regionally aligned. The company aims to have a competitive product in the markets where it operates, with online casino being considered a bigger priority. The long-term goal is to have both sportsbooks and online casinos as part of its portfolio.
Starting from 2026, Boyd will start managing its own online casino operations in the markets where it operates, leveraging four decades of experience in the state. The company will also begin managing its own sportsbooks outside Nevada in 2026.
Future Plans
Despite the cooling of acquisition talks, Boyd remains open to regional acquisitions, but only where the size, quality, and regulatory environment align with its strategic goals. The company has nearly $1.1 billion forecasted for 2025 and 2026 combined to support expansion and modernization of its casinos and online operations.
In summary, Boyd Gaming is focusing on organic growth and core business strengthening, with a balanced and disciplined investment approach. The company's strong financial performance and strategic focus on digital gaming position it well for the future.
Boyd Gaming, despite selling its stake in FanDuel, is not focusing on large-scale mergers or acquisitions for the near future, instead prioritizing organic growth and strengthening its core operations. Instead, they are planning to use their $1.755 billion cash influx from the sale mainly for debt reduction and balance sheet strengthening. In line with this strategic shift, Boyd is also investing in digital gaming, aiming to have both sportsbooks and online casinos as part of its portfolio. They plan to manage their own online casino operations in the markets they operate and begin managing sportsbooks outside Nevada in 2026. Despite the shift in acquisition strategy, Boyd remains open to regional acquisitions where the size, quality, and regulatory environment align with their strategic goals.
