‘Temporary’ Closure of Boyd Gaming’s Eastside Cannery Casino To Enter Fifth Year

Article by : Erik Gibbs Apr 16, 2024

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Boyd Gaming has recently disclosed the extension of the temporary closure for its Boulder Highway casino, the Eastside Cannery Casino-Hotel, a development stemming from the impact of the COVID-19 pandemic, which initially forced its closure four years ago.

According to information from the Nevada Gaming Control Board, Eastside Cannery’s gaming license remains active but is temporarily closed until March 31, 2025. Earlier, the property’s license was on hold until March 30 of this year, as reported by the Las Vegas Review-Journal.

Previously, company executives had expressed their intention to closely monitor the local market for any discernible uptick in demand before deciding on the property’s reopening. Currently, signage guides visitors to nearby Sam’s Town casino, situated about half a mile north along Boulder Highway.

Boyd Gaming’s Eastside Cannery closure coincides with a difficult phase for its Las Vegas locals segment, which encompasses the property. Unaudited operating results reveal a 2.2% decrease in working cash flow in 2023 compared to the previous year.

Executives attribute this downturn to the segment grappling with challenging comparisons. In 2022, several quarters witnessed near-record or record-setting performances, buoyed by stimulus measures and heightened post-pandemic spending.

In December 2016, Boyd Gaming acquired Eastside Cannery, broadening its portfolio to 11 properties across both downtown and local sections. Following the acquisition, certain amenities at Eastside Cannery were shuttered. The property encountered additional hurdles when the onset of the COVID-19 pandemic mandated its closure in March 2020.

The impact of the pandemic extended beyond Eastside Cannery, affecting other local-oriented casinos as well.

Competitor Station Casinos also grappled with closures, shutting down four of its properties during and after the COVID-19 crisis. These closures included Texas Station, Fiesta Rancho, Fiesta Henderson and Wild Wild West.

In March, William S. Boyd, a major shareholder of Boyd Gaming Corp, sold 96,167 shares of the company over two days, totaling over $6 million. The sales took place on March 13 and 14, with share prices ranging from $62.1 to $63.12. Despite these transactions, Boyd still holds a substantial stake in the company, with 8,762,746 shares directly and indirectly through trusts.

Such insider transactions often attract investor attention, offering insights into the perspectives of company executives and major shareholders. Boyd Gaming Corp operates as a multi-jurisdictional gaming company based in Las Vegas.