Buys out FanDuel stake, Boyd in excellent financial health
Boyd Gaming Expands Its Horizons with New Casinos
Boyd Gaming, a leading name in the gaming industry, is set to make its mark in new territories with the construction of two major casinos. The company announced the commencement of the Norfolk casino, also known as Project Mermaid, in February 2025, and the Cadence Crossing Casino in April 2025.
Norfolk Casino (Project Mermaid)
The Norfolk casino is being built with a phased approach. An interim gaming hall is expected to open by October 2025, offering immediate revenue opportunities and helping Boyd Gaming establish a presence in Norfolk. The full casino resort, set to complete by late 2027, will feature a 65,000 ft² casino, a 5-story hotel with 200 rooms, spa and meeting spaces, eight restaurants and bars, entertainment venues, and a large parking garage.
In addition to the casino, Boyd Gaming has partnered with Norfolk State University to create a specialized tourism and hospitality management department, indicating a long-term commitment to the region.
Cadence Crossing Casino
Details about the Cadence Crossing Casino are still scarce, but the construction start indicates an active expansion in Boyd Gaming's gaming portfolio.
Financial Impact
Boyd Gaming reported strong financial results in Q2 2025, with revenues reaching $1.0 billion, up from $967.5 million in the previous year’s second quarter. The new casinos and expansions are expected to contribute positively to revenue growth given their scale and expected market demand.
The Norfolk casino interim facility, opening late 2025, should provide near-term cash flow, while the full resort completion by 2027 is positioned to be a significant long-term revenue and profit driver, enhancing Boyd Gaming’s footprint on the East Coast.
These projects demonstrate Boyd Gaming’s strategic growth focus on new markets and enhanced property offerings, potentially strengthening its competitive position and financial stability over the next several years.
Financial Implications of FanDuel Sale
Boyd Gaming sold its 5% interest in FanDuel to Flutter Entertainment last week for a total of $1.758 billion. The proceeds from the sale are expected to be used to repay portions of Boyd's revolver and term loan A, resulting in an improvement in lease-adjusted leverage, estimated to be in the low 2x range post-transaction.
The improved leverage ratio makes Boyd's bonds more attractive to investors, as indicated by the outperform rating on Boyd's 2027 corporate debt. The proceeds from the FanDuel sale are also expected to boost the appeal of Boyd's remaining corporate bonds.
GimmeCredit analyst Kim Noland estimates that Boyd will net approximately $1.4 billion after taxes from the FanDuel sale. With several large projects in development, notably the Virginia project at a total cost of $750 million and Cadence Crossing slated at $100 million, investment projects will keep Boyd's capital expenditure elevated for the next two years.
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