Investors in Boyd Gaming have voted against commissioning a study to evaluate the implementation of a smoke-free policy at the company’s gaming facilities.
Boyd shareholders voted on Monday to reject a proposal that required company management to generate a report on potential cost savings from implementing a smoke-free policy. Boyd, which operates 28 properties in 10 states, reported more than 63.6 million votes against the study with 18.5 million in favor, according to a filing with the SEC.
“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 an April letter to shareholders.
Boyd shareholders have rejected the proposal despite efforts to ban smoking by nonprofit healthcare system Trinity Health and Americans for Nonsmokers’ Rights (ANR).
The Nevada Tobacco Control and Smoke-free Coalition has also stepped in by releasing a survey that found nearly 60 percent of polled residents prefer a smoke-free workplace. In addition, an ANR study has found that nine out of 10 casino visitors are non-smokers.
Over the next several months, shareholders in Caesars Entertainment and Bally’s Corp. will also be voting on additional proposals to ban smoking at gaming facilities. Leadership at Bally’s and Caesars have already declared their opposition to smoke-free gaming.
Slow profits for Boyd
The proposal rejection comes as Boyd’s Board of Directors has authorized an additional $500 million share repurchase. As of March 31, Boyd had $721 million remaining in repurchase authority. It has also declared a quarterly cash dividend of $0.17 per share.
Boyd repurchasing shares follows lackluster earnings to start the fiscal year.
In Q1 2024, the Nevada-based company generated $960.5 million in revenue compared to $964 million for the same period last year. Boyd earned $1.51 per share in Q1, which failed to meet Wall Street analyst estimates of $1.59.
Since April 15, Boyd stock is down over 15%.
