PokerStars wonât impact us, says Boyd Gaming CEO
Online operator posts record Q3 profit, expects PokerStars to launch in Q4Â
Boyd Gamingâs real-money gaming platforms in New Jersey posted record revenues in the third quarter of the year with CEO Keith Smith confidently predicting the imminent launch of PokerStars wonât impact its dominant market position. [private]
The casino firm, which has a 50% stake in the Borgata in Atlantic City, said its casino and poker business in the Garden State generated EBITDA of $3.4m for the three months ended 30 September 2015.
The amount is more than the operatorâs combined H1 performance of $2.7m in EBITDA, with Smith attributing growth to improved marketing.
âI think we’re still learning a lot about that business, being only really the second year in operation,â Smith told analysts yesterday.
âAnd I think we’re learning to market more effectively. We’re understanding how best to incentivize customers, and who to incentivize, and not to over incentivize those customers,â he added.
The Borgata has maintained its position as the market leader in terms of GGR in New Jersey since the state opened its digital doors back in 2013.
But its place at the top of the table could be under threat after PokerStars and Full Tilt were awarded a license by the state gaming regulator last month, with Smith expecting them to enter the market in Q4.
âPokerStars will be opening sometime in the fourth quarter, at least that’s our expectation. They will have an impact on the market [and] we expect they will grow market somewhat,â Smith said.
âWe expect that they will take a little bit of our share on the poker side. The good news is on the casino side, which is where we make the bulk of our revenue and profit, we don’t expect it to impact us.â
Smith also touched on the daily fantasy sports data leak scandal which has engulfed the sector, and the wider gaming industry, in recent weeks, and called for regulation.
âI think the first focus is to make sure that fantasy sports is viewed for what it is, which is gambling, and that it is regulated,â he said.
âAnd that no more scandals appear in that product, because I think any of those scandals serve to hurt us overall as a gaming industry,â Smith added.