Boyd Gaming Buys Illinois Route Operator
Las Vegas-based Boyd Gaming Corporation recently announced it has an agreement to purchase video gambling machine operator Lattner Entertainment Group in Ottawa, Illinois for $100 million. The deal, expected to close by the end of June, gives Boyd Gaming nearly 1,000 machines in 220 locations across Illinois. Boyd Gaming owns the Par-A-Dice Hotel and Casino in East Peoria, Illinois.
Boyd Gaming President and Chief Executive Officer Keith Smith said, “The acquisition of Lattner is a strategic opportunity to further diversify and expand our business. Lattner will provide us a valuable new avenue to access gaming customers, and a platform to participate in the expansion of distributed gaming. We are excited to welcome the Lattner team to Boyd Gaming, and look forward to establishing ourselves as one of the leading distributed gaming operators in the country.”
Boyd Gaming spokesman David Strow noted, “It’s worth emphasizing the whole Lattner team is coming on board with us. They have built a lot of great relationships with local tavern owners over the years. We have not had a presence in video gaming until now. By buying Lattner and joining forces it allows us to take part in that growth. We see it as a very complimentary business.”
According to the Illinois Gaming Board, adjusted gross receipts at Par-A-Dice dropped 32 percent since video gambling machines came online in late 2012, falling from $116 million in 2012—before the games were introduced—to $107 million in 2013—the first full year of video gambling terminals in bars and restaurants—to less than $79 million in 2017.
Statewide, gaming board figures indicate casino adjusted gross receipts peaked in 2007 at nearly $2 billion. A 10th casino license was added in 2011. In 2013, adjusted gross receipts from the state’s 10 casinos dropped to about $1.55 billion. At the time, 3,271 establishments offered 13,374 video gambling machines, generating a total net income of $300 million. In 2017, according to the latest figures, 6,359 establishments offer 28,271 video gaming machines, more than quadrupling annual net income to $1.3 billion. Meanwhile, casino adjusted gross receipts decreased to $1.41 billion for the year.
Boyd Gaming owns or operates 24 gaming entertainment properties in seven states, offering more than 30,000 gaming machines, 630 table games, 9,400 hotel rooms and 280 food and beverage outlets.