AR07 Fellow Shareholders Every company measures success in different ways. Whether it’s financial performance, market-leading properties, customer loyalty, employee satisfaction, or triumphs over the everyday challenges in today’s business environment, the threads of success are many, encompassing all facets of our business. At Boyd Gaming, measuring our success has long been about focusing on the big picture and positioning the Company for future growth. Our goal is to create long-term, sustainable growth, positioning Boyd Gaming as a leading casino entertainment company. Our commitment to executing on the strategies that define our Company brings us closer to reaching our goals, both financially and philosophically. As we review the last year, the ties that bind our Company’s success to a promising future are far reaching, and include many milestone moments. From high-level changes in our management team, the commencement of construction on the most ambitious development in our history, the continued progress on two key expansion projects, to our new branding initiative, we’re making momentous progress as we prepare Boyd Gaming for an exciting and successful future. ANNU A L R E P O R T 2 0 0 7 ANNU A L R E P O R T 2 0 0 7 TOC LETTER 2 3 May ‘01 Boyd Gaming acquires Delta Downs Racetrack in Vinton, Louisiana and adds October ‘93 a casino to the operation The Boyd Group becomes February ‘04 in February 2002. In a blockbuster merger, Coast Casinos, a publicly traded company Inc becomes a wholly-owned subsidiary on the New York Stock November ‘99 of Boyd Gaming and immediately Exchange and changes its Boyd Gaming acquires positions the Company as a leading name to Boyd Gaming Blue Chip Casino in June ‘07 Las Vegas Locals operator. Corporation, trading May ‘94 – Dec.’96 Michigan City, Indiana. Boyd Gaming begins under the symbol BYD. During these two years, Boyd July ‘03 construction of Echelon, Gaming opens or acquires Borgata opens in Atlantic our multi-property resort six new properties, more City, featuring premier destination planned for than doubling the size of dining, top-notch enter- the Las Vegas Strip. the Company. September ‘00 tainment, Vegas-style Boyd Gaming begins construction gaming, upscale shopping of Borgata at Renaissance Pointe. and indulgent luxury. Last year’s financial results perform the Downtown market. is indicative of our strong The proof is in the 395 In July, we announced that Building a Strong reflect the ups and downs we Our Las Vegas Locals business operating base and experienced “Best of” awards Boyd Gaming Bill Boyd would step aside as faced in a year of exciting remained resilient in the face of management team. We see much properties earned in 2007 from Chief Executive Officer at the advancement, reinforcing our a weakening economy toward brighter days ahead, as two key Casino Player and Strictly Slots end of the year, allowing him position as a leading casino the end of the year, posting growth initiatives are expected magazines, including more than to focus on one of his favorite entertainment company. three consecutive quarters of to be completed in 2008. 150 first-place nods. We were aspects of our business, inter- There’s no question 2007 year-over-year growth begin- particularly proud of this acting with the employees and wasn’t without challenges. In ning in the second quarter BUILDING A recognition because they’re customers of Boyd Gaming. northwest Indiana, our Blue 2007. Borgata remained the GREAT COMPANY based directly on the votes That transition occurred on Chip Casino Hotel was leader in Atlantic City, even of casino customers across January 1, 2008, as Bill moved 2 shareholders letter significantly impacted by the while the market lost ground From our earliest beginnings the country. into the newly established 6 the water club opening of a new competitor. in the face of new competition in the 1970s, we made a Leadership is also an integral position of Executive Chairman 8 blue chip The closure of the Stardust in Pennsylvania. commitment to our shareholders part of our Boyd Style of hospi- and turned over the Chief in 2006 impacted last year’s tality. As successful as the Executive reins to long-time 10 echelon Although the weakening and our employees to create financial results, as did the con- economy impacted customer an operating style built around past decades have been, our Company veteran Keith Smith. 12 market segment tinued normalization of results behavior late in the year, our family. This style has come to Company continues to grow Keith was succeeded as Chief 14 property overview at Treasure Chest Casino. results from 2007 showed the set our business apart from and evolve, and we saw this year Operating Officer by Paul 16 management team At the same time, a number effectiveness of our strategy of the rest of the field. In a highly as the ideal moment to begin a Chakmak, formerly our Chief 18 business of encouraging trends developed geographic diversification. And competitive industry, our Boyd transition in leadership. In that Financial Officer; replacing Paul 21 extras last year despite these challenges. in spite of multiple challenges, Style of hospitality has come to regard, we announced several as Chief Financial Officer was 22 property directory Our Downtown Las Vegas several of our operations showed define us in a most unique way. strategic changes at the highest Josh Hirsberg, who brings 17 properties continued to out- year-over-year growth, which levels of our management team years of financial experience in in 2007. the gaming industry. ANNU A L R E P O R T 2 0 0 7 LETTER 4 5 As our new Chief Executive, In December, Echelon In both Indiana and New We are creating a BUILDING FOR the introduction of our One Our milestone moments Keith has an ambitious task launched The Meeting Center, Jersey, we face heightened THE FUTURE Card is a key step forward from the last year are the ahead… lead Boyd Gaming our 650,000 square-foot competition, but we anticipated destination resort that for our Company, and one threads of success shaping in a period of unprecedented convention center scheduled that dynamic by planning to will be seen for miles, Success rarely happens that will unify our casinos our future, one we believe is growth, as we bring a number to open with Echelon in the expand those operations with without challenges, and the and drive cross-property bright and promising. Our of ambitious new projects to third quarter 2010. The launch projects that we believe will and yet, be accessible story of our Company is visitation nationwide. The employees have been central fruition in key gaming markets. of our meeting and convention strengthen our competitive within feet. With highlighted by triumph in first phase began in January to our success, and much like The most exciting of these sales effort at Echelon is a key positions in these markets. the face of adversity time and 2008 when our four Las Vegas the first three decades of our new developments is on the milestone, as it represents the We remain optimistic Echelon, we are time again. Our decades-long Locals casinos… Sam’s Town, Company, we are charting Las Vegas Strip, where in 2007 earliest signs of life for a resort about our long-term prospects making the most of track record speaks volumes Suncoast, The Orleans and a course, leading us to a we commenced construction experience that is still under in northwest Indiana, as about our ability to persevere Gold Coast… were unified bright future. on what promises to be one of construction. construction continues on a our extraordinary and succeed under the most under a new Club Coast our greatest achievements in The demographic trends $130 million expansion project extreme circumstances. The players card program. our history… Echelon. of Las Vegas are expanding at Blue Chip in Michigan City. and highly-visible current period of challenge Now underway is the second As our most ambitious and to include more upscale This project will add a dramatic Las Vegas Strip site and transition is no different, phase of the rollout. The upscale destination to date, leisure and business travelers. 22-story, 300-room hotel and we are building the Connected program introduces Echelon will span 87 acres, According to industry statistics, tower to Blue Chip that will by building five foundation today for a much a single players club program including 22 acres available vacationers seeking luxury transform the Michigan City hotels with world stronger Boyd Gaming, well- for our six casino properties for future development. It will experiences are currently skyline when it opens in positioned for what we believe in the Midwest and South. include five distinct hotels, an underserved in Las Vegas, December 2008. class amenities, in will be a period of substantial, Once the rollout is complete, extensive array of dining, night- while convention visitors have Our investment in Atlantic one dramatic phase. sustained growth. players will be able to use life, shopping and entertainment increased at nearly three times City is growing as well, as we Ready access to capital is their cards at Boyd Gaming Thank you for your support. We look experiences, and more than the rate of leisure visitors ready to open The Water Club the lifeblood of any growing properties in five states: Nevada, forward to sharing more with you as 750,000 square feet of meeting since 1990. at Borgata. This $400 million, William S. Boyd company, and our credit Illinois, Indiana, Louisiana and convention space. Assisting Echelon is aimed squarely 800-room hotel will be Atlantic Executive Chairman position is as strong as ever.