Boyd Gaming’s Online segment generated $10.6 million in Adjusted EBITDAR in the second quarter of 2026, down 52.4% from $22.2 million a year earlier, as the restructured market access arrangement with FanDuel replaced revenue-linked economics with fixed state fees. Online segment revenue fell 8.6% to $158.2 million.
Group revenue was flat at $1.03 billion for the quarter ended 30 June 2026, against $1.03 billion in the same period of 2025. Net income attributable to Boyd Gaming was $131.2 million, or $1.75 per share, down 13.4% from $151.5 million, or $1.84 per share. Total Adjusted EBITDAR was $350.5 million, down 2.1% from $357.9 million. Adjusted earnings per share rose 3.2% to $1.93, a function of a share count that shrank 9.1% year on year to 74.8 million.
“Our second-quarter results demonstrated the benefits of our diversified business model, with strong performances from our Midwest & South operations, Online segment and Managed business,” said Keith Smith, President and Chief Executive Officer of Boyd Gaming. “This performance was supported by strength in play from both our core and retail customers across the portfolio, as well as contributions from our recent capital investments.”
The online reset is contractual, not operational
The Online segment decline is the second quarter in a row of the same pattern. First-quarter Online Adjusted EBITDAR came in at $8.4 million against $23.3 million in the first quarter of 2025. Across the first half of 2026 the segment produced $18.9 million, down 58.4% from $45.6 million.
The mechanism sits in the July 2025 agreement under which Boyd sold its 5% equity interest in FanDuel Group to Flutter Entertainment for $1.755 billion. The two companies terminated their existing market access agreements and signed new ones running to 2038, paying Boyd a fixed fee per state for FanDuel’s mobile sports betting in Iowa, Indiana, Kansas, Louisiana and Pennsylvania, and for FanDuel’s online casino operations in Pennsylvania. Fixed fees do not scale with FanDuel’s handle, so the growth that previously flowed through the segment now stops at the contracted amount.
Boyd has guided the Online segment to roughly $30 million to $35 million in Adjusted EBITDAR for 2026, against $50 million to $55 million in 2025. The first-half figure of $18.9 million is tracking above the midpoint of that range.
Within the segment, the reported Online revenue line fell 18.7% to $31.8 million while online reimbursements, the pass-through costs Boyd bills back, fell 5.6% to $126.4 million. Boyd Interactive, the company’s B2B and B2C online casino business, continued to grow, according to the company. Online operating costs rose to $21.0 million from $16.2 million.
The pressure is not unique to Boyd. Online casino margins across mature US states have tightened as promotional spend loses effect on price-conscious players, while regional operators post uneven results. Bally’s grew first-quarter 2026 revenue 28.3% to $755.7 million on a different mix of assets. FanDuel itself cut more than 100 jobs in March as it wound down its TV network and Picks product.
Midwest and South carries the quarter
Midwest & South, Boyd’s largest segment, grew revenue 3.1% to $556.9 million and Adjusted EBITDAR 3.6% to $208.7 million. Boyd attributed the growth to higher play from core and retail customers and to recent capital investments across the segment.
Las Vegas Locals revenue fell 1.4% to $225.9 million and Adjusted EBITDAR fell 5.6% to $106.4 million. Boyd pointed to weaker destination business at the Orleans and construction disruption at the Suncoast, and said the rest of the segment grew revenue and Adjusted EBITDAR with property margins above 50%. Downtown Las Vegas revenue fell 5.7% to $52.1 million and Adjusted EBITDAR fell 12.9% to $16.9 million, with play from core and Hawaiian customers holding steady and destination business soft across the area.
Managed & Other was the strongest performer in percentage terms, with revenue up 13.1% to $41.3 million and Adjusted EBITDAR up 18.2% to $30.7 million on higher management fees from Sky River Casino after its expansion. Group property operating margins were 40%.
Capital returns and a lighter interest bill
Boyd repurchased $156 million of common stock during the quarter and paid a quarterly dividend of $0.20 per share on 15 July, taking total shareholder returns above $170 million for the period. It had $551 million left under its current repurchase authorisation at 30 June. Cash on hand stood at $322.7 million against total debt of $2.6 billion.
Interest expense net of capitalised amounts fell 37.9% to $31.4 million from $50.6 million, reflecting debt paid down with FanDuel sale proceeds. That saving was offset lower down the income statement by depreciation and amortisation, which rose 30.2% to $91.1 million, and by project development, preopening and writedown charges of $15.4 million against $2.8 million a year earlier.
Boyd operates 27 gaming properties across 11 states and manages a tribal casino in northern California. It sits among the mid-sized names in the regional US market, well below the pure-play digital operators that dominate market capitalisation rankings in the Americas.
The next test is retail. Under the 2025 agreement, FanDuel runs Boyd’s retail sportsbooks outside Nevada through mid-2026, after which Boyd takes the operations back in house. That shifts sportsbook revenue and cost onto Boyd’s own accounts from the second half, and gives the third-quarter numbers their first read on whether the company can build its own sports betting margin now that the FanDuel equity upside is gone.
Source: Boyd Gaming Corporation
