Jai Alai buy
Jai Alai buy
Boyd Gaming acquires Dania Jai Alai for $152.5 million
Las Vegas-based Boyd Gaming Corp. announced in June that it has agreed to buy Dania Jai Alai and an adjacent 50 acres of land in Broward County, Fla. for $152.5 million. The move follows last year's decision by local voters to approve up to 1,500 slot machines for four parimutuel sites in the county.
"We've been looking at Florida ever since the legislation passed," Boyd Gaming President Keith Smith told the Las Vegas Review-Journal. "We think it's a great market and we're always looking for an opportunity to expand our business into new jurisdictions."
The site-owned by Florida-based Aragon Group Inc.-currently offers off-track betting, wagering and jai alai competition. Boyd Gaming has begun plans for an expansion, which would include the addition of several restaurants, a poker room, a large gambling floor and entertainment lounges. The pool of 300-350 employees is also expected to expand. No budget was announced, but the company has said it intends to begin construction next year and open the new facility in early 2008.
"This is just the first step in this whole process, which will ultimately result in a brand-new jai alai facility," Boyd Gaming Vice President Rob Stillwell told the South Florida Sun-Sentinel.
The company seems undeterred by legal limitations, such as operating only 16 hours a day and the tax rate, which is expected to surpass 50 percent on gross gaming revenues.
"With the limited number of licenses and the huge population density of south Florida, it's much easier to accept the higher tax rate," Smith said. "(The population is) a huge dynamic that we believe adds to the attractiveness of our location."
Analysts seem to agree, praising Boyd Gaming's move into the Florida market. "In our view, this is a strong acquisition for Boyd Gaming, as the Florida market has the potential to be a highly lucrative gaming market due to its attractive demographics and wealth characteristics," said Goldman Sachs Analyst Steven Kent in a research note.
Dania Jai Alai is next to the Broward County Convention Center and is the closest gambling site to the Fort Lauderdale International Airport. Miami is less than 30 miles away, and more than 6 million people live within a 100-mile radius of Fort Lauderdale.
"We see this as a solid gain for the Boyd stock," said Jefferies & Company Inc. analyst Lawrence Klatzkin in a research note. "Not a home run, not out of the park, but a solid double."
Gaming boards in six states will review the deal, and the Florida Division of Pari-Mutuel Wagering must approve it.
-Darby Harris
Boyd Gaming acquires Dania Jai Alai for $152.5 million
Las Vegas-based Boyd Gaming Corp. announced in June that it has agreed to buy Dania Jai Alai and an adjacent 50 acres of land in Broward County, Fla. for $152.5 million. The move follows last year's decision by local voters to approve up to 1,500 slot machines for four parimutuel sites in the county.
"We've been looking at Florida ever since the legislation passed," Boyd Gaming President Keith Smith told the Las Vegas Review-Journal. "We think it's a great market and we're always looking for an opportunity to expand our business into new jurisdictions."
The site-owned by Florida-based Aragon Group Inc.-currently offers off-track betting, wagering and jai alai competition. Boyd Gaming has begun plans for an expansion, which would include the addition of several restaurants, a poker room, a large gambling floor and entertainment lounges. The pool of 300-350 employees is also expected to expand. No budget was announced, but the company has said it intends to begin construction next year and open the new facility in early 2008.
"This is just the first step in this whole process, which will ultimately result in a brand-new jai alai facility," Boyd Gaming Vice President Rob Stillwell told the South Florida Sun-Sentinel.
The company seems undeterred by legal limitations, such as operating only 16 hours a day and the tax rate, which is expected to surpass 50 percent on gross gaming revenues.
"With the limited number of licenses and the huge population density of south Florida, it's much easier to accept the higher tax rate," Smith said. "(The population is) a huge dynamic that we believe adds to the attractiveness of our location."
Analysts seem to agree, praising Boyd Gaming's move into the Florida market. "In our view, this is a strong acquisition for Boyd Gaming, as the Florida market has the potential to be a highly lucrative gaming market due to its attractive demographics and wealth characteristics," said Goldman Sachs Analyst Steven Kent in a research note.
Dania Jai Alai is next to the Broward County Convention Center and is the closest gambling site to the Fort Lauderdale International Airport. Miami is less than 30 miles away, and more than 6 million people live within a 100-mile radius of Fort Lauderdale.
"We see this as a solid gain for the Boyd stock," said Jefferies & Company Inc. analyst Lawrence Klatzkin in a research note. "Not a home run, not out of the park, but a solid double."
Gaming boards in six states will review the deal, and the Florida Division of Pari-Mutuel Wagering must approve it.
-Darby Harris
