About Keith Smith
In a September 2018 interview, Boyd Gaming CEO Keith Smith discussed the company's performance and its strategy for sports betting. Smith stated that the company reported its 13th consecutive quarter of profit or EBITDA growth in its locals market, which he attributed to the strength of the Las Vegas economy. He noted that the region had surpassed one million employed residents and had approximately $14 billion in construction projects underway. Smith explained that Boyd Gaming's properties are located off the Las Vegas Strip and primarily serve local residents.
Smith described sports betting as a "very exciting growth opportunity" for the industry and said Boyd Gaming is "uniquely positioned" due to its 40 years of experience operating sportsbooks in Nevada. He stated that the company operated in seven states at the time and expected to operate in ten by the end of the year, with pending acquisitions. Smith highlighted a strategic partnership with FanDuel, which he said would leverage FanDuel's brand and technology, and noted that FanDuel had recently announced a transaction with Paddy Power Betfair. He characterized the combination of the three companies as an "unrivaled entity" for expanding sports betting in the U.S. When asked about potential market saturation, Smith expressed confidence, comparing the expansion of sports betting to the historical spread of commercial casinos to more than 40 states, and said introducing the product to more people would continue to grow the business.
Source: AI-verified profile updated from Keith Smith's recent appearances.
Browse all interviews →
Transcript (7 segments)
K
Keith Smith0:00
I can't really speak to what's happening in some of our competitors' stock or with their business. I can't speak to what's happening in our business. In our second quarter, we reported our 13th straight quarter of profit or EBITDA growth in our locals market. A large part of that is driven by the strength of the Las Vegas economy. We just surpassed the 1 million employment mark, and we've got some $14 billion in construction projects going up right now, which creates a tremendous amount of construction activity and will create a tremendous number of permanent jobs once they're done.
I
Interviewer0:34
Just so I understand, I want to make sure I understand the company. You call it the local segment. A lot of the big casino companies that we talk about have these huge casinos that are really meant for foreigners or for people traveling in from all over the country, but you describe it as the local segment. That's the people who live and work in Las Vegas. They're not showing any signs of slowing down when it comes to gambling or visiting your casinos, is what I'm understanding?
K
Keith Smith0:56
No, that's correct. We don't operate directly on the Strip. Our properties are located off the Strip, and a large share is driven by people that live and work in the community. Those people continue to come out and enjoy our product, and once again, it's driven by a very, very strong local economy here in Las Vegas.
I
Interviewer1:13
Keith, talk to us about sports betting. How transformational could this be for your broader industry, and what's your strategy?
K
Keith Smith1:20
Building sports betting is a very exciting growth opportunity for our industry and in particular our company. I think we're uniquely positioned given the fact we've been running sportsbooks here in Nevada for more than 40 years. We have a great geographic footprint. We operate in seven states currently and will operate in ten states by the end of the year. We have a couple of acquisitions pending. So we've got great experience. Last week we announced a strategic partnership with FanDuel to leverage their brand and their technology to continue to grow our business. FanDuel, just prior to that, had announced a transaction with Paddy Power Betfair, one of the largest online gaming operators in the world. The combination of the three of us will make for a kind of an unrivaled entity as we look to expand sports betting throughout the US. That's obviously pending state regulatory approval.
I
Interviewer2:11
Keith, everybody and their mother thinks they're going to get into sports betting. I mean, can the market get saturated, especially you can do it online and there's no geographic foothold anymore like obviously you specialize in? Are you worried that there's just too few barriers to entry?
K
Keith Smith2:29
No, I'm really not. If you think about the evolution of the casino industry itself, it wasn't too many years ago when it was solely Nevada and then solely New Jersey, or Nevada and New Jersey. Today there's commercial casinos in 40-plus states across the US, and the business is very strong. It simply continues to grow. So introducing this product to more and more people, I think, will just continue to grow the business.
