Boyd’s shareholders overwhelmingly reject the idea of a smoke-free Vegas
Boyd Gaming investors recently voted against initiating a study to assess the potential adoption of a smoke-free policy at its gaming establishments.
Shareholders rejected a proposal on Monday requiring management to conduct a study on probable cost savings from enforcing smoke-free guidelines. Boyd reported in a recent SEC filing that over 63.6 million investors voted against the proposal, with just 18.5 million voting to adopt the recommendation.
“The proposal asks for a report on implementing a smoke-free policy, but we believe this proposal is the first step toward forcing our company to unilaterally adopt such a policy, regardless of the actions of our competitors,” said Boyd in a letter to shareholders last month.
The Nevada Tobacco Control and Smoke-free Coalition recently surveyed residents, with nearly 60 percent favoring a smoke-free work environment. Another study by ANR revealed that 90% of casino customers are non-smokers.
Caesars Entertainment and Bally’s Corporation shareholders will consider proposals to eliminate smoking at gaming venues over the next few months. Both companies have already voiced their opposition to a smoking ban at their facilities.
Boyd’s Board of Directors recently approved an additional $500 million share repurchase. The company had $721 million in repurchase authority remaining at the beginning of April and recorded a $0.17 per share quarterly cash dividend.
The Nevada-based gaming giant produced $960.5 million in revenue in the first quarter of 2024, slightly down from the $964 million generated in Q1 2023. Boyd also fell short of Wall Street estimates of $1.59 per share in Q1, earning $1.51 per share.
Boyd, which manages 28 gaming properties in 10 states, has seen its stock fall by over 15% since April 15.
