8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): August 3, 2010

Boyd Gaming Corporation

(Exact name of registrant as specified in its charter)

Nevada	1-12882	88-0242733
(State of other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification Number)

3883 Howard Hughes Parkway, Ninth Floor

Las Vegas, Nevada 89169

(Address of principal executive offices including zip code)

(702) 792-7200

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On August 3, 2010, Boyd Gaming Corporation (the “Company”) issued a press release announcing its financial results for the three and six months ended June 30, 2010 and other financial information. A copy of the press release is furnished hereto as Exhibit 99.1 and incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

99.1 Press Release Dated August 3, 2010

* Pursuant to Item 2.02 of Form 8-K, Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be expressly set forth by specific reference in such filing.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: August 3, 2010	Boyd Gaming Corporation
	/S/    JOSH HIRSBERG
	Josh Hirsberg Senior Vice President, Chief Financial Officer and Treasurer

EXHIBIT INDEX

Exhibit	Description
99.1	Press Release dated August 3, 2010. Also provided in PDF format as a courtesy.

EX-99.1

Exhibit 99.1

Financial Contact:

Josh Hirsberg

(702) 792-7234

joshhirsberg@boydgaming.com

Media Contact:

Rob Meyne

(702) 792-7353

robmeyne@boydgaming.com

BOYD GAMING REPORTS SECOND QUARTER RESULTS

LAS VEGAS – AUGUST 3, 2010 – Boyd Gaming Corporation (NYSE: BYD) today reported financial results for the second quarter ended June 30, 2010.

For the quarter, we reported net income of $3.4 million, or $0.04 per share, compared to net income of $12.8 million, or $0.15 per share, in the same period last year. Certain pre-tax items resulted in a net increase in income of $1.3 million ($0.8 million, net of tax, or $0.01 per share) during the second quarter 2010. By comparison, the second quarter 2009 included certain pre-tax items that had a net effect of decreasing net income by $3.6 million ($2.3 million, net of tax, or $0.03 per share). Pre-tax items in the second quarter 2010 and 2009 are listed in a table at the end of this press release.

Adjusted Earnings⁽¹⁾ for the second quarter 2010 were $4.2 million, or $0.05 per share, compared to $10.4 million, or $0.12 per share, for the same period in 2009.

Net revenues were $578.4 million for the second quarter 2010, compared to $614.5 million⁽²⁾ during the same quarter in 2009, a decrease of 5.9%. Total Adjusted EBITDA was $113.5 million for the quarter, a decrease of 19.0% from $140.2 million⁽²⁾ in the prior year.

Commenting on the quarter, Keith Smith, President and Chief Executive Officer of Boyd Gaming, said “Despite a difficult May and June, our overall performance was consistent with the previous two quarters, and generally in line with our expectations. The lingering effects of the recession have left consumers unusually sensitive to shifts in the economy, and they now react more quickly

to economic data and other developments, such as fluctuations in the stock market. Although conditions remain uncertain, we believe long-term stabilizing trends are still in place, and that year-over-year growth is achievable by the end of 2010.”

(1) See footnotes at the end of the release for additional information relative to non-GAAP financial measures.

(2) See financial schedules at the end of this release for reconciliations relative to the pro forma effect of the consolidation of Borgata as if such consolidation had occurred as of the beginning of the period presented.

Year-To-Date Results

We reported net income for the six months ended June 30, 2010 of $11.8 million, or $0.14 per share. By comparison, we reported a loss of $1.1 million, or $0.01 per share for the six months ended June 30, 2009.

Adjusted Earnings for the six months ended June 30, 2010 were $13.1 million, or $0.15 per share, as compared to $23.4 million, or $0.27 per share for the six-month period in 2009.

Net revenues as reported were $993.6 million and $857.8 million for the six months ended June 30, 2010 and June 30, 2009, respectively. Total Adjusted EBITDA was $204.9 million for the current six-month period. By comparison, total Adjusted EBITDA for the first six months of 2009 was $216.6 million. The 2010 results reflect the consolidation of Borgata, effective March 24, 2010. On a pro forma consolidated basis, as of the beginning of the six month periods ended June 30, 2010 and 2009, net revenues were $1.15 billion and $1.24 billion, respectively. Given the pro forma effect of the consolidation of Borgata, as of the beginning of each period, Adjusted EBITDA on a comparable basis was $229.8 million and $283.4 million for the six-month periods ended June 30, 2010, and 2009, respectively.

2

Key Operations Review

Las Vegas Locals

In our Las Vegas Locals segment, second quarter 2010 net revenues were $153.1 million versus $166.1 million for the second quarter of 2009. Second quarter 2010 Adjusted EBITDA was $36.8 million, a 16.2% decrease from the $43.9 million in the same quarter of 2009. While the decline in the second quarter of 2010 was higher than the previous quarter, it is a marked improvement over the declines we experienced throughout 2009.

Downtown

Our Downtown Las Vegas properties generated net revenues of $55.2 million for the second quarter 2010, compared to $57.6 million in the second quarter 2009. Adjusted EBITDA was $9.3 million, a decrease of 21.2% from $11.8 million in the second quarter 2009. Results in the Downtown region showed sequential quarterly improvement, despite continued lower spend per visit and reduced visitor volumes.

Midwest and South

In our Midwest and South region, we recorded $181.7 million in net revenues for the second quarter 2010, compared to $197.3 million for the same period in 2009. Adjusted EBITDA for the current period was $35.6 million, a decrease of 20.9% from the $45.0 million reported in the second quarter of 2009. Our Louisiana properties continue to account for the majority of the region’s year-over-year decline, as they face tough comparable results from the strong levels experienced throughout most of 2009. Overall, the Midwest and South region continued to show trends similar to the previous two quarters.

Borgata

Borgata’s net revenues for the second quarter 2010 were $186.9 million, versus $191.5 million in the second quarter 2009. Adjusted EBITDA was $43.0 million, down 9.9% from $47.7 million in the comparable period in 2009. Borgata’s quarterly performance was negatively impacted by higher promotional activity from competitors in Pennsylvania, higher utility costs due to unseasonably hot weather, and reduced day trip visitation to the Atlantic City market in June.

3

Paul Chakmak, Chief Operating Officer of Boyd Gaming, said: “As we expected, our largest decrease came from the Midwest and South Region, where the Louisiana properties will continue to face difficult comparisons to the strong results they posted through the third quarter of 2009. In Las Vegas, the Locals business declined at a slightly higher rate than the first quarter, but still showed marked improvement over the large quarterly declines we saw throughout 2009. In the aggregate, our business performed as anticipated, and we remain on track to continue reducing year-over-year EBITDA declines.”

Key Financial Statistics

The following is additional information as of and for the three months ended June 30, 2010:

• Cash, excluding Borgata: $78.2 million

• Cash at Borgata: $21.9 million

• Debt, excluding Borgata: $2.52 billion

• Debt at Borgata: $626.9 million

Conference Call Information

We will host our second quarter 2010 conference call today, August 3, at 12:00 p.m. Eastern. The conference call number is 888.679.8033 and the passcode is 28265494. Please call up to 15 minutes in advance to ensure you are connected prior to the start of the call.

The conference call will also be available live on the Internet at www.boydgaming.com, www.streetevents.com, or http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=95703&eventID=3223877

Pre-registrants will be issued a pin number to use when dialing into the live call, which will provide quick access to the conference by skipping the operator sequence upon connection.

Following the call’s completion, a replay will be available by dialing 888.286.8010 today, August 3, beginning two hours after the completion of the call and continuing through Tuesday, August 10. The passcode for the replay will be 78991526. The replay will also be available on the Internet at www.boydgaming.com.

4

The results of Borgata for the period from April 1, 2010 through June 30, 2010 are included in our condensed consolidated statement of operations for the three months ended June 30, 2010, and its results for the period from March 24, 2010 through June 30, 2010 are included in our condensed consolidated statement of operations for the six months ended June 30, 2010.

	Three Months Ended June 30,						Six Months Ended June 30,
	2010			2009			2010			2009
	(In thousands, except per share data)
Revenues
Gaming	$	490,132		$	353,597		$	840,537		$	719,660
Food and beverage		94,020			58,688			154,002			117,729
Room		58,671			32,548			90,105			63,189
Other		33,813			24,486			57,635			51,421
Gross revenues		676,636			469,319			1,142,279			951,999
Less promotional allowances		98,190			46,369			148,698			94,204
Net revenues		578,446			422,950			993,581			857,795
Costs and expenses
Gaming		229,755			167,427			397,860			340,339
Food and beverage		49,149			32,114			81,791			63,498
Room		13,056			10,069			23,106			20,026
Other		27,006			19,553			46,244			38,867
Selling, general and administrative		99,666			72,618			169,944			146,591
Maintenance and utilities		37,970			22,973			62,109			45,359
Depreciation and amortization		55,408			42,093			95,454			84,745
Corporate expense		13,526			11,036			25,615			23,721
Preopening expenses		1,243			4,054			2,306			9,893
Write-downs and other charges, net		1,991			(1,835	)		3,592			27,128
Total costs and expenses		528,770			380,102			908,021			800,167
Operating income from Borgata		—			13,310			8,146			25,732
Operating income		49,676			56,158			93,706			83,360
Other expense (income)
Interest income		—			—			(4	)		(4	)
Interest expense, net of amounts capitalized		34,650			36,235			63,657			81,506
Gain on early retirements of debt		(1,912	)		(6,057	)		(3,949	)		(8,457	)
Other non-operating expenses from Borgata, net		—			4,504			3,133			9,026
Total other expense, net		32,738			34,682			62,837			82,071
Income before income taxes		16,938			21,476			30,869			1,289
Income taxes		(4,912	)		(8,698	)		(9,161	)		(2,339	)
Net income (loss)		12,026			12,778			21,708			(1,050	)
Noncontrolling interest		(8,644	)		—			(9,891	)		—
Net income (loss) attributable to Boyd Gaming Corporation	$	3,382		$	12,778		$	11,817		$	(1,050	)
Basic net income (loss) per common share	$	0.04		$	0.15		$	0.14		$	(0.01	)
Weighted average basic shares outstanding		86,511			86,254			86,471			86,591
Diluted net income (loss) per common share	$	0.04		$	0.15		$	0.14		$	(0.01	)
Weighted average diluted shares outstanding		86,942			86,291			86,743			86,591

5

The following table sets forth the consolidation of Borgata from a basis comparable to the historical reporting by Boyd Gaming Corporation. For purposes of this presentation, and consistent with GAAP, Borgata has been consolidated for the entire period presented, or for the period from April 1, 2010 through June 30, 2010. The historical column reflects the equity method accounting for Borgata. The consolidating columns are presented for purposes of additional disclosure and as a reconciliation to the current GAAP presentation of Boyd Gaming Corporation.

	Three Months Ended June 30, 2010
	Boyd Gaming Corp Historical			MDDC LLC			Adjustments			Boyd Gaming  Corp GAAP
	(In thousands, except per share data)
Revenues
Gaming	$	325,602		$	164,530		$	—		$	490,132
Food and beverage		58,026			35,994			—			94,020
Room		30,967			27,704			—			58,671
Other		23,117			10,696			—			33,813
Gross revenues		437,712			238,924			—			676,636
Less promotional allowances		46,158			52,032			—			98,190
Net revenues		391,554			186,892			—			578,446
Costs and expenses
Gaming		162,807			66,948			—			229,755
Food and beverage		31,726			17,423			—			49,149
Room		9,597			3,459			—			13,056
Other		18,391			8,615			—			27,006
Selling, general and administrative		67,825			31,841			—			99,666
Maintenance and utilities		22,324			15,646			—			37,970
Depreciation and amortization		37,172			18,236			—			55,408
Corporate expense		13,526			—			—			13,526
Preopening expenses		1,243			—			—			1,243
Write-downs and other charges, net		1,979			12			—			1,991
Total costs and expenses		366,590			162,180			—			528,770
Operating income from Borgata		12,356			—			(12,356	)		—
Operating income		37,320			24,712			(12,356	)		49,676
Other expense (income)
Interest expense, net of amounts capitalized		29,062			5,588			—			34,650
Gain on early retirements of debt		(1,912	)		—			—			(1,912	)
Other non-operating expenses from Borgata, net		3,713			—			(3,713	)		—
Total other expense, net		30,863			5,588			(3,713	)		32,738
Income before income taxes		6,457			19,124			(8,643	)		16,938
Income taxes		(3,075	)		(1,837	)		—			(4,912	)
Net income		3,382			17,287			(8,643	)		12,026
Noncontrolling interest		—			—			(8,644	)		(8,644	)
Net income attributable to Boyd Gaming Corporation	$	3,382		$	17,287		$	(17,287	)	$	3,382
Basic net income per common share	$	0.04								$	0.04
Weighted average basic shares outstanding		86,511									86,511
Diluted net income per common share	$	0.04								$	0.04
Weighted average diluted shares outstanding		86,942									86,942

6

The following table sets forth the consolidation of Borgata from a basis comparable to the historical reporting by Boyd Gaming Corporation. For purposes of this presentation, and consistent with GAAP, Borgata has been consolidated for the period from March 24, 2010 through June 30, 2010. The historical column reflects the equity method accounting for Borgata. The consolidating columns are presented for purposes of additional disclosure and as a reconciliation to the current GAAP presentation of Boyd Gaming Corporation.

	Six Months Ended June 30, 2010
	Boyd Gaming Corp As Reported			MDDC LLC 3/24/2010 to  6/30/2010			Adjustments			Boyd Gaming  Corp GAAP
	(In thousands, except per share data)
Revenues
Gaming	$	660,062		$	180,475		$	—		$	840,537
Food and beverage		114,862			39,140			—			154,002
Room		60,153			29,952			—			90,105
Other		46,275			11,360			—			57,635
Gross revenues		881,352			260,927			—			1,142,279
Less promotional allowances		91,439			57,259			—			148,698
Net revenues		789,913			203,668			—			993,581
Costs and expenses
Gaming		326,787			71,073			—			397,860
Food and beverage		61,898			19,893			—			81,791
Room		18,882			4,224			—			23,106
Other		37,051			9,193			—			46,244
Selling, general and administrative		136,644			33,300			—			169,944
Maintenance and utilities		43,987			18,122			—			62,109
Depreciation and amortization		75,593			19,861			—			95,454
Corporate expense		25,615			—			—			25,615
Preopening expenses		2,306			—			—			2,306
Write-downs and other charges, net		3,580			12			—			3,592
Total costs and expenses		732,343			175,678			—			908,021
Operating income from Borgata		22,141			—			(13,995	)		8,146
Operating income		79,711			27,990			(13,995	)		93,706
Other expense (income)
Interest income		(4	)		—			—			(4	)
Interest expense, net of amounts capitalized		57,585			6,072			—			63,657
Gain on early retirements of debt		(3,949	)		—			—			(3,949	)
Other non-operating expenses from Borgata, net		7,238			—			(4,105	)		3,133
Total other expense, net		60,870			6,072			(4,105	)		62,837
Income before income taxes		18,841			21,918			(9,890	)		30,869
Income taxes		(7,024	)		(2,137	)		—			(9,161	)
Net income		11,817			19,781			(9,890	)		21,708
Noncontrolling interest		—			—			(9,891	)		(9,891	)
Net income attributable to Boyd Gaming Corporation	$	11,817		$	19,781		$	(19,781	)	$	11,817
Basic net income per common share	$	0.14								$	0.14
Weighted average basic shares outstanding		86,471									86,471
Diluted net income per common share	$	0.14								$	0.14
Weighted average diluted shares outstanding		86,743									86,743

7

The following supplemental pro forma information presents the financial results as if the effective control of Borgata had occurred on January 1, 2009 for the three months ended June 30, 2009. This supplemental pro forma information has been prepared for comparative purposes and does not purport to be indicative of what the actual results would have been had the consolidation of Borgata been completed as of the earlier dates, nor are they indicative of any future results.

	Three Months Ended June 30, 2009
	Boyd Gaming  Corp Consolidated			MDDC LLC			Adjustments			Boyd Gaming Corp Pro Forma
	(In thousands, except per share data)
Revenues
Gaming	$	353,597		$	173,837		$	—		$	527,434
Food and beverage		58,688			34,490			—			93,178
Room		32,548			27,123			—			59,671
Other		24,486			10,302			—			34,788
Gross revenues		469,319			245,752			—			715,071
Less promotional allowances		46,369			54,239			—			100,608
Net revenues		422,950			191,513			—			614,463
Costs and expenses
Gaming		167,427			69,814			—			237,241
Food and beverage		32,114			15,290			—			47,404
Room		10,069			2,798			—			12,867
Other		19,553			9,192			—			28,745
Selling, general and administrative		72,618			32,864			—			105,482
Maintenance and utilities		22,973			13,829			—			36,802
Depreciation and amortization		42,093			20,040			325			62,458
Corporate expense		11,036			—			—			11,036
Preopening expenses		4,054			346			—			4,400
Write-downs and other charges, net		(1,835	)		71			—			(1,764	)
Total costs and expenses		380,102			164,244			325			544,671
Operating income from Borgata		13,310			—			(13,310	)		—
Operating income		56,158			27,269			(13,635	)		69,792
Other expense (income)
Interest expense, net of amounts capitalized		36,235			7,447			—			43,682
Gain on early retirements of debt		(6,057	)		—			—			(6,057	)
Other non-operating expenses from Borgata, net		4,504			—			(4,504	)		—
Total other expense, net		34,682			7,447			(4,504	)		37,625
Income before income taxes		21,476			19,822			(9,131	)		32,167
Income taxes		(8,698	)		(1,561	)		—			(10,259	)
Net income		12,778			18,261			(9,131	)		21,908
Noncontrolling interest		—			—			(9,130	)		(9,130	)
Net income attributable to Boyd Gaming Corporation	$	12,778		$	18,261		$	(18,261	)	$	12,778
Basic net income per common share	$	0.15								$	0.15
Weighted average basic shares outstanding		86,254									86,254
Diluted net income per common share	$	0.15								$	0.15
Weighted average diluted shares outstanding		86,291									86,291

8

The following supplemental pro forma information presents the financial results as if the effective control of Borgata had occurred on January 1, 2009 for the six months ended June 30, 2009. This supplemental pro forma information has been prepared for comparative purposes and does not purport to be indicative of what the actual results would have been had the consolidation of Borgata been completed as of the earlier dates, nor are they indicative of any future results.

	Six Months Ended June 30, 2009
	Boyd Gaming  Corp Consolidated			MDDC LLC			Adjustments			Boyd Gaming Corp Pro Forma
	(In thousands, except share and per share data)
Revenues
Gaming	$	719,660		$	342,686		$	—		$	1,062,346
Food and beverage		117,729			68,483			—			186,212
Room		63,189			53,164			—			116,353
Other		51,421			19,607			—			71,028
Gross revenues		951,999			483,940			—			1,435,939
Less promotional allowances		94,204			104,537			—			198,741
Net revenues		857,795			379,403			—			1,237,198
Costs and expenses
Gaming		340,339			140,542			—			480,881
Food and beverage		63,498			30,077			—			93,575
Room		20,026			5,262			—			25,288
Other		38,867			16,080			—			54,947
Selling, general and administrative		146,591			64,630			—			211,221
Maintenance and utilities		45,359			29,160			—			74,519
Depreciation and amortization		84,745			40,131			649			125,525
Corporate expense		23,721			—			—			23,721
Preopening expenses		9,893			699			—			10,592
Write-downs and other charges, net		27,128			61			—			27,189
Total costs and expenses		800,167			326,642			649			1,127,458
Operating income from Borgata		25,732			—			(25,732	)		—
Operating income		83,360			52,761			(26,381	)		109,740
Other expense (income)
Interest income		(4	)		—			—			(4	)
Interest expense, net of amounts capitalized		81,506			15,458			—			96,964
Gain on early retirements of debt		(8,457	)		—			—			(8,457	)
Other non-operating expenses from Borgata, net		9,026			—			(9,026	)		—
Total other expense, net		82,071			15,458			(9,026	)		88,503
Income before income taxes		1,289			37,303			(17,355	)		21,237
Income taxes		(2,339	)		(2,593	)		—			(4,932	)
Net income (loss)		(1,050	)		34,710			(17,355	)		16,305
Noncontrolling interest		—			—			(17,355	)		(17,355	)
Net income (loss) attributable to Boyd Gaming Corporation	$	(1,050	)	$	34,710		$	(34,710	)	$	(1,050	)
Basic and diluted net loss per common share	$	(0.01	)							$	(0.01	)
Weighted average basic and diluted shares outstanding		86,591									86,591

9

The following table reconciles the net income (loss) in accordance with GAAP to adjusted earnings and adjusted earnings per share.

	Three Months Ended June 30,						Six Months Ended June 30,
	2010			2009			2010			2009
	(In thousands, except per share data)
Net income (loss) attributable to Boyd Gaming Corporation	$	3,382		$	12,778		$	11,817		$	(1,050	)
Adjustments:
Preopening expenses		1,243			4,054			2,306			9,893
Our share of Borgata’s preopening expenses		—			173			—			349
Our share of Borgata’s write-downs and other items, net		6			36			40			31
Gain on early retirements of debt		(1,912	)		(6,057	)		(3,949	)		(8,457	)
Write-downs and other charges, net		1,979			(1,835	)		3,580			27,128
Prior period interest expense related to the finalization of our purchase price for Dania Jai-Alai		—			—			—			8,883
Income tax effect for above adjustments		(468	)		1,280			(702	)		(13,346	)
Adjusted earnings	$	4,230		$	10,429		$	13,092		$	23,431
Adjusted earnings per diluted share (Adjusted EPS)	$	0.05		$	0.12		$	0.15		$	0.27
Weighted average diluted shares outstanding		86,942			86,291			86,743			86,591

The following table illustrates the impact of the above adjustments on earnings per share.

	Three Months Ended June  30,						Six Months Ended June  30,
	2010			2009			2010			2009
Diluted net income (loss) per common share	$	0.04		$	0.15		$	0.14		$	(0.01	)
Adjustments:
Preopening expenses		0.02			0.05			0.03			0.12
Our share of Borgata’s preopening expenses		—			—			—			—
Our share of Borgata’s write-downs and other items, net		—			—			—			—
Gain on early retirements of debt		(0.03	)		(0.07	)		(0.05	)		(0.10	)
Write-downs and other charges, net		0.02			(0.02	)		0.04			0.32
Prior period interest expense related to the finalization of our purchase price for Dania Jai-Alai		—			—			—			0.10
Income tax effect for above adjustments		—			0.01			(0.01	)		(0.16	)
Adjusted earnings per diluted share (Adjusted EPS)	$	0.05		$	0.12		$	0.15		$	0.27

10

The following table presents Net Revenues and Adjusted EBITDA by operating segment and reconciles Adjusted EBITDA to net income (loss) attributable to Boyd Gaming Corporation for the three and six months ended June 30, 2010 and 2009. Note that the results from Dania Jai-Alai are classified as part of total other operating costs and expenses and are not included in Adjusted EBITDA. Additionally, the results for the three months ended June 30, 2010, as reported in the table below, reflect the consolidation of Borgata for the entire period and the results for the six months ended June 30, 2010 reflect the consolidation of Borgata for the period from March 24, 2010 through June 30, 2010. The three and six month periods ended June 30, 2009 are reported on a historical basis.

	Three Months Ended June 30,						Six Months Ended June 30,
	2010			2009			2010			2009
	(In thousands)
Net Revenues
Las Vegas Locals	$	153,078		$	166,127		$	309,650		$	336,226
Downtown Las Vegas (a)		55,183			57,577			109,190			116,243
Midwest and South		181,719			197,297			367,526			401,221
Atlantic City		186,892			—			203,668			—
Reportable Segment Net revenues		576,872			421,001			990,034			853,690
Other		1,574			1,949			3,547			4,105
Net revenues	$	578,446		$	422,950		$	993,581		$	857,795
Adjusted EBITDA
Las Vegas Locals	$	36,810		$	43,917		$	77,223		$	89,237
Downtown Las Vegas		9,310			11,800			17,682			25,154
Midwest and South		35,590			45,010			74,869			93,598
Wholly-owned property Adjusted EBITDA		81,710			100,727			169,774			207,989
Corporate expense (c)		(11,171	)		(8,216	)		(20,921	)		(18,196	)
Wholly-owned Adjusted EBITDA		70,539			92,511			148,853			189,793
Atlantic City		42,960			—			47,863			—
Our share of Borgata’s operating income before net amortization, preopening and other items (d)		—			13,844			8,180			26,761
Adjusted EBITDA (e)		113,499			106,355			204,896			216,554
Other operating costs and expenses
Deferred rent		1,067			1,088			2,135			2,177
Depreciation and amortization (f)		55,408			42,418			95,454			85,394
Preopening expenses		1,243			4,054			2,306			9,893
Our share of Borgata’s preopening expenses		—			173			—			349
Our share of Borgata’s write-downs and other items, net		—			36			34			31
Share-based compensation expense		2,872			3,506			5,728			6,898
Write-downs and other charges, net		1,991			(1,835	)		3,592			27,128
Other (g)		1,242			757			1,941			1,324
Total other operating costs and expenses		63,823			50,197			111,190			133,194
Operating income		49,676			56,158			93,706			83,360
Other non-operating items
Interest expense, net (b)		34,650			36,235			63,653			81,502
Gain on early retirements of debt		(1,912	)		(6,057	)		(3,949	)		(8,457	)
Our share of Borgata’s non-operating expenses, net		—			4,504			3,133			9,026
Total other non-operating costs and expenses, net		32,738			34,682			62,837			82,071
Income (loss) before income taxes		16,938			21,476			30,869			1,289
Income taxes		(4,912	)		(8,698	)		(9,161	)		(2,339	)
Net income (loss)		12,026			12,778			21,708			(1,050	)
Noncontrolling interest		(8,644	)		—			(9,891	)		—
Net income (loss) attributable to Boyd Gaming Corporation	$	3,382		$	12,778		$	11,817		$	(1,050	)

11

The following table sets forth the consolidation of Borgata from a basis comparable to the historical reporting by Boyd Gaming Corporation. For purposes of this presentation, and consistent with GAAP, Borgata has been consolidated for the entire period presented, or for the period from April 1, 2010 through June 30, 2010. The historical column reflects the equity method accounting for Borgata. The consolidating columns are presented for purposes of additional disclosure and as a reconciliation to the current GAAP presentation of Boyd Gaming Corporation.

	Three Months Ended June 30, 2010
	Boyd Gaming  Corp Historical			MDDC LLC 4/1/2010 to  6/30/2010			Adjustments			Boyd Gaming  Corp GAAP
	(In thousands)
Net Revenues
Las Vegas Locals	$	153,078		$	—		$	—		$	153,078
Downtown Las Vegas (a)		55,183			—			—			55,183
Midwest and South		181,719			—			—			181,719
Atlantic City		—			186,892			—			186,892
Reportable Segment Net revenues		389,980			186,892			—			576,872
Other		1,574			—			—			1,574
Net revenues	$	391,554		$	186,892		$	—		$	578,446
Adjusted EBITDA
Las Vegas Locals	$	36,810		$	—		$	—		$	36,810
Downtown Las Vegas		9,310			—			—			9,310
Midwest and South		35,590			—			—			35,590
Wholly-owned property Adjusted EBITDA		81,710			—			—			81,710
Corporate expense (c)		(11,171	)		—			—			(11,171	)
Wholly-owned Adjusted EBITDA		70,539			—			—			70,539
Atlantic City		—			42,960			—			42,960
Our share of Borgata’s operating income before net amortization, preopening and other items (d)		12,362			—			(12,362	)		—
Adjusted EBITDA (e)		82,901			42,960			(12,362	)		113,499
Other operating costs and expenses					—			—
Deferred rent		1,067			—			—			1,067
Depreciation and amortization (f)		37,172			18,236			—			55,408
Preopening expenses		1,243			—			—			1,243
Our share of Borgata’s preopening expenses		—			—			—			—
Our share of Borgata’s write-downs and other items, net		6			—			(6	)		—
Share-based compensation expense		2,872			—			—			2,872
Write-downs and other charges, net		1,979			12			—			1,991
Other		1,242			—			—			1,242
Total other operating costs and expenses		45,581			18,248			(6	)		63,823
Operating income		37,320			24,712			(12,356	)		49,676
Other non-operating items
Interest expense, net (b)		29,062			5,588			—			34,650
Gain on early retirements of debt		(1,912	)		—						(1,912	)
Our share of Borgata’s non-operating expenses, net		3,713			—			(3,713	)		—
Total other non-operating costs and expenses, net		30,863			5,588			(3,713	)		32,738
Income before income taxes		6,457			19,124			(8,643	)		16,938
Income taxes		(3,075	)		(1,837	)		—			(4,912	)
Net income		3,382			17,287			(8,643	)		12,026
Noncontrolling interest		—			—			(8,644	)		(8,644	)
Net income attributable to Boyd Gaming Corporation	$	3,382		$	17,287		$	(17,287	)	$	3,382

12

The following supplemental pro forma information presents the financial results as if the effective control of Borgata had occurred on January 1, 2010, for the six months ended June 30, 2010. This supplemental pro forma information has been prepared for comparative purposes and does not purport to be indicative of what the actual results would have been had the consolidation of Borgata been completed as of the earlier dates, nor are they indicative of any future results.

	Six Months Ended June 30, 2010
	Boyd Gaming Corp As Reported			MDDC LLC 1/1/2010 to 3/23/2010			Adjustments			Boyd Gaming Corp Pro Forma
	(In thousands)
Net Revenues
Las Vegas Locals	$	309,650		$	—		$	—		$	309,650
Downtown Las Vegas (a)		109,190			—			—			109,190
Midwest and South		367,526			—			—			367,526
Atlantic City		203,668			158,289			—			361,957
Reportable Segment Net revenues		990,034			158,289			—			1,148,323
Other		3,547			—			—			3,547
Net revenues	$	993,581		$	158,289		$	—		$	1,151,870
Adjusted EBITDA
Las Vegas Locals	$	77,223		$	—		$	—		$	77,223
Downtown Las Vegas		17,682			—			—			17,682
Midwest and South		74,869			—			—			74,869
Wholly-owned property Adjusted EBITDA		169,774			—			—			169,774
Corporate expense (c)		(20,921	)		—			—			(20,921	)
Wholly-owned Adjusted EBITDA		148,853			—			—			148,853
Atlantic City		47,863			33,113			—			80,976
Our share of Borgata’s operating income before net amortization, preopening and other items (d)		8,180			—			(8,180	)		—
Adjusted EBITDA (e)		204,896			33,113			(8,180	)		229,829
Other operating costs and expenses					—			—
Deferred rent		2,135			—			—			2,135
Depreciation and amortization (f)		95,454			16,754			—			112,208
Preopening expenses		2,306			—			—			2,306
Our share of Borgata’s preopening expenses		—			—			—			—
Our share of Borgata’s write-downs and other items, net		34			—			(34	)		—
Share-based compensation expense		5,728			—			—			5,728
Write-downs and other charges, net		3,592			68			—			3,660
Other		1,941			—			—			1,941
Total other operating costs and expenses		111,190			16,822			(34	)		127,978
Operating income		93,706			16,291			(8,146	)		101,851
Other non-operating items
Interest expense, net (b)		63,653			5,060			—			68,713
Gain on early retirements of debt		(3,949	)		—			—			(3,949	)
Our share of Borgata’s non-operating expenses, net		3,133			—			(3,133	)		—
Total other non-operating costs and expenses, net		62,837			5,060			(3,133	)		64,764
Income before income taxes		30,869			11,231			(5,013	)		37,087
Income taxes		(9,161	)		(1,206	)		—			(10,367	)
Net income		21,708			10,025			(5,013	)		26,720
Noncontrolling interest		(9,891	)		—			(5,012	)		(14,903	)
Net income attributable to Boyd Gaming Corporation	$	11,817		$	10,025		$	(10,025	)	$	11,817

13

The following supplemental pro forma information presents the financial results as if the effective control of Borgata had occurred on January 1, 2009 for the three months ended June 30, 2009. This supplemental pro forma information has been prepared for comparative purposes and does not purport to be indicative of what the actual results would have been had the consolidation of Borgata been completed as of the earlier dates, nor are they indicative of any future results.

	Three Months Ended June 30, 2009
	Boyd Gaming Corp As Reported			MDDC LLC 4/1/2009 to  6/30/2009			Adjustments			Boyd Gaming Corp Pro Forma
	(In thousands)
Net Revenues
Las Vegas Locals	$	166,127		$	—		$	—		$	166,127
Downtown Las Vegas (a)		57,577			—			—			57,577
Midwest and South		197,297			—			—			197,297
Atlantic City		—			191,513			—			191,513
Reportable Segment Net revenues		421,001			191,513			—			612,514
Other		1,949			—			—			1,949
Net revenues	$	422,950		$	191,513		$	—		$	614,463
Adjusted EBITDA
Las Vegas Locals	$	43,917		$	—		$	—		$	43,917
Downtown Las Vegas		11,800			—			—			11,800
Midwest and South		45,010			—			—			45,010
Wholly-owned property Adjusted EBITDA		100,727			—			—			100,727
Corporate expense (c)		(8,216	)		—			—			(8,216	)
Wholly-owned Adjusted EBITDA		92,511			—			—			92,511
Atlantic City		—			47,726			—			47,726
Our share of Borgata’s operating income before net amortization, preopening and other items (d)		13,844			—			(13,844	)		—
Adjusted EBITDA (e)		106,355			47,726			(13,844	)		140,237
Other operating costs and expenses					—			—
Deferred rent		1,088			—			—			1,088
Depreciation and amortization (f)		42,418			20,040			—			62,458
Preopening expenses		4,054			346			—			4,400
Our share of Borgata’s preopening expenses		173			—			(173	)		—
Our share of Borgata’s write-downs and other items, net		36			—			(36	)		—
Share-based compensation expense		3,506			—			—			3,506
Write-downs and other charges, net		(1,835	)		71			—			(1,764	)
Other		757			—			—			757
Total other operating costs and expenses		50,197			20,457			(209	)		70,445
Operating income		56,158			27,269			(13,635	)		69,792
Other non-operating items
Interest expense, net (b)		36,235			7,447			—			43,682
Gain on early retirements of debt		(6,057	)		—			—			(6,057	)
Our share of Borgata’s non-operating expenses, net		4,504			—			(4,504	)		—
Total other non-operating costs and expenses, net		34,682			7,447			(4,504	)		37,625
Income before income taxes		21,476			19,822			(9,131	)		32,167
Income taxes		(8,698	)		(1,561	)		—			(10,259	)
Net income		12,778			18,261			(9,131	)		21,908
Noncontrolling interest		—			—			(9,130	)		(9,130	)
Net income attributable to Boyd Gaming Corporation	$	12,778		$	18,261		$	(18,261	)	$	12,778

14

The following supplemental pro forma information presents the financial results as if the effective control of Borgata had occurred on January 1, 2009, for the six months ended June 30, 2009. This supplemental pro forma information has been prepared for comparative purposes and does not purport to be indicative of what the actual results would have been had the consolidation of Borgata been completed as of the earlier dates, nor are they indicative of any future results.

	Six Months Ended June 30, 2009
	Boyd Gaming Corp As Reported			MDDC LLC 1/1/2009 to 6/30/2009			Adjustments			Boyd Gaming Corp Pro Forma
	(In thousands)
Net Revenues
Las Vegas Locals	$	336,226		$	—		$	—		$	336,226
Downtown Las Vegas (a)		116,243			—			—			116,243
Midwest and South		401,221			—			—			401,221
Atlantic City		—			379,403			—			379,403
Reportable Segment Net revenues		853,690			379,403			—			1,233,093
Other		4,105			—			—			4,105
Net revenues	$	857,795		$	379,403		$	—		$	1,237,198
Adjusted EBITDA
Las Vegas Locals	$	89,237		$	—		$	—		$	89,237
Downtown Las Vegas		25,154			—			—			25,154
Midwest and South		93,598			—			—			93,598
Wholly-owned property Adjusted EBITDA		207,989			—			—			207,989
Corporate expense (c)		(18,196	)		—			—			(18,196	)
Wholly-owned Adjusted EBITDA		189,793			—			—			189,793
Atlantic City		—			93,652			—			93,652
Our share of Borgata’s operating income before net amortization, preopening and other items (d)		26,761			—			(26,761	)		—
Adjusted EBITDA (e)		216,554			93,652			(26,761	)		283,445
Other operating costs and expenses					—			—
Deferred rent		2,177			—			—			2,177
Depreciation and amortization (f)		85,394			40,131			—			125,525
Preopening expenses		9,893			699			—			10,592
Our share of Borgata’s preopening expenses		349			—			(349	)		—
Our share of Borgata’s write-downs and other items, net		31			—			(31	)		—
Share-based compensation expense		6,898			—			—			6,898
Write-downs and other charges, net		27,128			61			—			27,189
Other		1,324			—			—			1,324
Total other operating costs and expenses		133,194			40,891			(380	)		173,705
Operating income		83,360			52,761			(26,381	)		109,740
Other non-operating items
Interest expense, net (b)		81,502			15,458			—			96,960
Gain on early retirements of debt		(8,457	)		—			—			(8,457	)
Our share of Borgata’s non-operating expenses, net		9,026			—			(9,026	)		—
Total other non-operating costs and expenses, net		82,071			15,458			(9,026	)		88,503
Income before income taxes		1,289			37,303			(17,355	)		21,237
Income taxes		(2,339	)		(2,593	)		—			(4,932	)
Net income (loss)		(1,050	)		34,710			(17,355	)		16,305
Noncontrolling interest		—			—			(17,355	)		(17,355	)
Net income (loss) attributable to Boyd Gaming Corporation	$	(1,050	)	$	34,710		$	(34,710	)	$	(1,050	)

(a) Includes revenues related to Vacations Hawaii and other travel related entities of $7.7 million and $15.1 million for the three and six months ended June 30, 2010, respectively, and $7.5 million and $16.3 million for the three and six months ended June 30, 2009, respectively.

(b) Net of interest income and amounts capitalized.

15

(c) The following table reconciles the presentation of corporate expense on our condensed consolidated statements of operations to the presentation on the accompanying table.

	Three Months Ended June 30,						Six Months Ended June 30,
	2010			2009			2010			2009
	(In thousands)
Corporate expense as reported on our condensed consolidated statements of operations	$	13,526		$	11,036		$	25,615		$	23,721
Corporate share-based compensation expense		(2,355	)		(2,820	)		(4,694	)		(5,525	)
Corporate expense as reported on the accompanying table	$	11,171		$	8,216		$	20,921		$	18,196

(d) The following table reconciles the presentation of our share of Borgata’s operating income on our condensed consolidated statements of operations to the presentation of our share of Borgata’s results on the accompanying table.

	Three Months Ended June  30,				Six Months Ended June 30,
	2010		2009		2010		2009
	(In thousands)
Operating income from Borgata, as reported on our condensed consolidated statements of operations	$	—	$	13,310	$	8,146	$	25,732
Add back:
Net amortization expense related to our investment in Borgata		—		325		—		649
Our share of preopening expenses		—		173		—		349
Our share of write-downs and other items, net		—		36		34		31
Our share of Borgata’s operating income before net amortization, preopening and other items as reported on the accompanying table	$	—	$	13,844	$	8,180	$	26,761

16

(e) The following table reconciles Adjusted EBITDA to EBITDA and net income (loss) attributable to Boyd Gaming.

	Three Months Ended June 30,						Six Months Ended June 30,
	2010			2009			2010			2009
	(In thousands)
Adjusted EBITDA	$	113,499		$	106,355		$	204,896		$	216,554
Deferred rent		1,067			1,088			2,135			2,177
Preopening expenses		1,243			4,054			2,306			9,893
Our share of Borgata’s preopening expenses		—			173			—			349
Our share of Borgata’s write-downs and other items, net		—			36			34			31
Share-based compensation expense		2,872			3,506			5,728			6,898
Write-downs and other charges, net		1,991			(1,835	)		3,592			27,128
Gain on early retirements of debt		(1,912	)		(6,057	)		(3,949	)		(8,457	)
Other non-operating expenses from Borgata, net		—			4,504			3,133			9,026
Other		1,242			757			1,941			1,324
EBITDA		106,996			100,129			189,976			168,185
Depreciation and amortization		55,408			42,418			95,454			85,394
Interest expense, net		34,650			36,235			63,653			81,502
Income taxes		4,912			8,698			9,161			2,339
Net income (loss)	$	12,026		$	12,778		$	21,708		$	(1,050	)
Noncontrolling interest		(8,644	)		—			(9,891	)		—
Net income (loss) attributable to Boyd Gaming Corporation	$	3,382		$	12,778		$	11,817		$	(1,050	)

(f) The following table reconciles the presentation of depreciation and amortization on our condensed consolidated statements of operations to the presentation on the accompanying table.

	Three Months Ended June 30,				Six Months Ended June 30,
	2010		2009		2010		2009
	(In thousands)
Depreciation and amortization as reported on our condensed consolidated statements of operations	$	55,408	$	42,093	$	95,454	$	84,745
Net amortization expense related to our investment in Borgata		—		325		—		649
Depreciation and amortization as reported on the accompanying table	$	55,408	$	42,418	$	95,454	$	85,394

17

The following table reports Borgata’s financial results.

	Three Months Ended June 30,						Six Months Ended June 30,
	2010			2009			2010			2009
	(In thousands)
Gaming revenue	$	164,530		$	173,837		$	318,306		$	342,686
Non-gaming revenue		74,394			71,915			145,002			141,254
Gross revenues		238,924			245,752			463,308			483,940
Less promotional allowances		52,032			54,239			101,350			104,537
Net revenues		186,892			191,513			361,958			379,403
Operating expenses		143,932			143,787			280,981			285,751
Depreciation and amortization		18,236			20,040			36,615			40,131
Preopening expenses		—			346			—			699
Write-downs and other items, net		12			71			80			61
Operating income		24,712			27,269			44,282			52,761
Interest expense, net		(5,588	)		(7,447	)		(11,132	)		(15,458	)
Provision for state income taxes		(1,837	)		(1,561	)		(3,343	)		(2,593	)
Total non-operating expenses		(7,425	)		(9,008	)		(14,475	)		(18,051	)
Net income	$	17,287		$	18,261		$	29,807		$	34,710

The following table reconciles our share of Borgata’s financial results to the amounts reported on our condensed consolidated statements of operations.

	Three Months Ended June 30,					Six Months Ended June 30,
	2010		2009			2010		2009
	(In thousands)
Our share of Borgata’s operating income	$	—	$	13,635		$	8,146	$	26,381
Net amortization expense related to our investment in Borgata		—		(325	)		—		(649	)
Operating income from Borgata, as reported on our condensed consolidated statements of operations	$	—	$	13,310		$	8,146	$	25,732
Other non-operating expenses from Borgata, as reported on our condensed consolidated statements of operations	$	—	$	4,504		$	3,133	$	9,026

18

The following table reconciles operating income to Adjusted EBITDA for Borgata.

	Three Months Ended June 30,				Six Months Ended June 30,
	2010		2009		2010		2009
	(In thousands)
Operating income	$	24,712	$	27,269	$	44,282	$	52,761
Depreciation and amortization		18,236		20,040		36,615		40,131
Preopening expenses		—		346		—		699
Write-downs and other items, net		12		71		80		61
Adjusted EBITDA	$	42,960	$	47,726	$	80,977	$	93,652

The following table reconciles Adjusted EBITDA to EBITDA and net income for Borgata.

	Three Months Ended June 30,				Six Months Ended June 30,
	2010		2009		2010		2009
	(In thousands)
Adjusted EBITDA	$	42,960	$	47,726	$	80,977	$	93,652
Preopening expenses		—		346		—		699
Write-downs and other items, net		12		71		80		61
EBITDA		42,948		47,309		80,897		92,892
Depreciation and amortization		18,236		20,040		36,615		40,131
Interest expense, net		5,588		7,447		11,132		15,458
Provision for income taxes		1,837		1,561		3,343		2,593
Net income	$	17,287	$	18,261	$	29,807	$	34,710

Footnotes and Safe Harbor Statements

Non-GAAP Financial Measures

Regulation G, “Conditions for Use of Non-GAAP Financial Measures,” prescribes the conditions for use of non-GAAP financial information in public disclosures. We believe that our presentations of the following non-GAAP financial measures are important supplemental measures of operating performance to investors: earnings before interest, taxes, depreciation and amortization (EBITDA), Adjusted EBITDA, Adjusted Earnings, Adjusted Earnings Per Share (Adjusted EPS) and net revenues (excluding the 8 days of consolidation for Borgata). The following discussion defines these terms and why we believe they are useful measures of our performance.

In the accompanying release, and the Company’s periodic reports filed with the Securities and Exchange Commission, Dania Jai-Alai’s results are included as part of total other operating costs and expenses. In addition, as of the same date, we reclassified the reporting of corporate expense to exclude it from our subtotal for Reportable Segment Adjusted EBITDA and include it as part of total other operating costs and expenses. Furthermore, in the Company’s periodic reports, corporate expense is presented to include its portion of share-based compensation expense.

19

Net Revenues

Net revenues are commonly displayed on the face of our condensed consolidated statement of operations in accordance with Generally Accepted Accounting Principles in the United States (“GAAP”) to represent our gross revenues less promotional allowances. While the term is used throughout this release to refer to such presentation, in certain instances it also includes an additional net amount representing the exclusion of the eight days of the consolidation of Borgata. A reconciliation of net revenues is included in the financial schedules accompanying this release. We reflect net revenues in this earnings release net of the consolidated results of Borgata since March 24, 2010 in order to provide comparability among periods. We think that the presentation of net revenues in this manner, for this earnings release, provides investors with a better ability to assess our business from period to period.

EBITDA and Adjusted EBITDA

EBITDA is a commonly used measure of performance in our industry which we believe, when considered with measures calculated in accordance with GAAP, gives investors a more complete understanding of operating results before the impact of investing and financing transactions and income taxes and facilitates comparisons between us and our competitors. Management has historically adjusted EBITDA when evaluating operating performance because we believe that the inclusion or exclusion of certain recurring and non-recurring items is necessary to provide the most accurate measure of our core operating results and as a means to evaluate period-to-period results. We have chosen to provide this information to investors to enable them to perform more meaningful comparisons of past, present and future operating results and as a means to evaluate the results of core on- going operations. We do not reflect such items when calculating EBITDA; however, we adjust for these items and refer to this measure as Adjusted EBITDA. We have historically reported this measure to our investors and believe that the continued inclusion of Adjusted EBITDA provides consistency in our financial reporting. We use Adjusted EBITDA in this press release because we believe it is useful to investors in allowing greater transparency related to a significant measure used by management in its financial and operational decision-making. Adjusted EBITDA is among the more significant factors in management’s internal evaluation of total company and individual property performance and in the evaluation of incentive compensation related to property management. Management also uses Adjusted EBITDA as a measure in determining the value of acquisitions and dispositions. Adjusted EBITDA is also widely used by management in the annual budget process. Externally, we believe these measures continue to be used by investors in their assessment of our operating performance and the valuation of our company. Adjusted EBITDA reflects EBITDA adjusted for deferred rent, preopening expenses, share-based compensation expense, write-downs and other charges, net, increase in value of derivative instruments, gain on early retirements of debt, other non-operating expenses, and our share of Borgata’s non-operating expenses, preopening expenses and other items and write-downs, net. In addition, Adjusted EBITDA includes corporate expense. A reconciliation of Adjusted EBITDA to EBITDA and net income (loss), based upon GAAP, is included in the financial schedules accompanying this release.

Adjusted Earnings and Adjusted EPS

Adjusted Earnings is net income (loss) before preopening expenses, increase in value of derivative instruments, write-downs and other charges, net, gain on early retirements of debt, prior period interest expense related to the finalization of our purchase price for Dania Jai-Alai, accelerated interest expense related to our bank credit facility amendment, certain one-time permanent tax readjustments, other non-operating expenses, and our share of Borgata’s preopening expenses and other items and write-downs, net. Adjusted Earnings and Adjusted EPS are presented solely as supplemental disclosures because management believes that they are widely used measures of performance in the gaming industry. A reconciliation of net loss based upon GAAP to Adjusted Earnings and Adjusted EPS are included in the financial schedules accompanying this release.

Pro Forma Effect of Consolidation of Borgata

The effective change in control of Borgata was triggered at the end of the first quarter 2010. For purposes of comparability throughout this release, when such results are reported on a consolidated basis, the results of the prior year are retroactively recast to present such results on a consolidated basis, comparable to the current period. Additionally, for further purposes of comparability, certain year to date amounts have been presented on a pro forma basis, as if the consolidation of Borgata had occurred as of the beginning of the period presented (i.e. January 1, for the six months ended June 30, 2010, or June 30, 2009, as applicable).

Limitations on the Use of Non-GAAP Measures

The use of EBITDA, Adjusted EBITDA, Adjusted Earnings, Adjusted EPS and certain other non-GAAP financial measures has certain limitations. Our presentation of EBITDA, Adjusted EBITDA, Adjusted Earnings, Adjusted EPS or certain other non-GAAP financial measures may be different from the presentation used by other companies and therefore comparability may be limited. Depreciation and amortization expense, interest expense, income taxes and other items have been and will be incurred and are not reflected in the presentation of EBITDA or Adjusted EBITDA. Each of these items should also be considered in the overall evaluation of our results. Additionally, EBITDA and Adjusted EBITDA do not consider capital expenditures and other investing activities and should not be considered as a measure of our liquidity. We compensate for these limitations by providing the relevant

20

disclosure of our depreciation and amortization, interest and income taxes, capital expenditures and other items both in our reconciliations to the GAAP financial measures and in our consolidated financial statements, all of which should be considered when evaluating our performance.

EBITDA, Adjusted EBITDA, Adjusted Earnings, Adjusted EPS and certain other non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP. EBITDA, Adjusted EBITDA, Adjusted Earnings, Adjusted EPS and certain other non-GAAP financial measures should not be considered as an alternative to net income, operating income, or any other operating performance measure prescribed by GAAP, nor should these measures be relied upon to the exclusion of GAAP financial measures. EBITDA, Adjusted EBITDA, Adjusted Earnings, Adjusted EPS and certain other non-GAAP financial measures reflect additional ways of viewing our operations that we believe, when viewed with our GAAP results and the reconciliations to the corresponding GAAP financial measures, provide a more complete understanding of factors and trends affecting our business than could be obtained absent this disclosure. Management strongly encourages investors to review our financial information in its entirety and not to rely on a single financial measure.

Forward Looking Statements and Company Information

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements contain words such as “may,” “will,” “might,” “expect,” “believe,” “anticipate,” “could,” “would,” “estimate,” “continue,” “pursue,” or the negative thereof or comparable terminology, and may include (without limitation) information regarding the Company’s expectations, goals or intentions regarding the future, including, but not limited to, statements regarding consumer sentiment and consumer sensitivities, that long-term stabilizing trends are still in place, trends in the Company’s various regions of operation, including the continued trends in the Company’s Midwest and South region, that the Company remains on track to continue reducing year-over-year EBITDA declines, and statements regarding the Company’s resources and strategy, and future outlook. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. These risks and uncertainties include, but are not limited to: fluctuations in our operating results; recovery of our properties in various markets; the economic downturn and its effect on consumer spending and our results of operations; consumer reaction to fluctuations in the stock market and economic factors; the fact that our expansion, development and renovation projects (including enhancements to improve property performance) are subject to many risks inherent in expansion, development or construction of a new or existing project; the effects of events adversely impacting the economy or the regions from which we draw a significant percentage of our customers; competition; litigation; financial community and rating agency perceptions of the Company; changes in laws and regulations, including increased taxes; the availability and price of energy, weather, regulation, economic, credit and capital market conditions; and the effects of war, terrorist or similar activity. Additional factors that could cause actual results to differ are discussed under the heading “Risk Factors” and in other sections of the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2010, filed with the SEC, and in the Company’s other current and periodic reports filed from time to time with the SEC. All forward-looking statements in this press release are made as of the date hereof, based on information available to the Company as of the date hereof, and the Company assumes no obligation to update any forward-looking statement.

About Boyd Gaming

Headquartered in Las Vegas, Boyd Gaming Corporation (NYSE: BYD) is a leading diversified owner and operator of 16 gaming entertainment properties located in Nevada, New Jersey, Mississippi, Illinois, Indiana, and Louisiana. Boyd Gaming press releases are available at www.prnewswire.com. Additional news and information on Boyd Gaming can be found at www.boydgaming.com.

21