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CONFIDENTIAL Investor Presentation October 2012 2 Intense Focus On Improving And Growing The Business • Diversifying Asset Base and Pursuing Other Growth Opportunities • Pending acquisition of Peninsula - good strategic fit and expected solid returns to shareholders • Expanded presence in attractive domestic markets with significant growth potential • Positioned to be a leader in internet gaming • Strengthening and Growing Operations • Continued drive for efficiencies • Committed to property improvements • Focus on generating profitable growth • Expanding Leading Customer Loyalty Program and Online Opportunities • Optimizing revenue from leading loyalty program across all properties • Leverage award-winning online and mobile presence to drive incremental visitation • Maintaining Strong Financial Profile • Actively strengthening balance sheet and generating free cash flow • Significant operating leverage 3 Increasingly Diverse Asset Base In Attractive Markets Boyd Gaming Peninsula Las Vegas Locals Diamond Jo Dubuque Diamond Jo Worth • Sam's Town Hotel and Gambling Hall Blue Chip Casino Hotel Spa • Suncoast Hotel and Casino Kansas Star • The Orleans Hotel and Borgata Hotel Par-A-Dice Hotel Casino Casino Casino and Spa • Gold Coast Hotel and Casino Sam’s Town Hotel and Gambling Hall Tunica • Jokers Wild Casino • Eldorado Casino Evangeline Downs Sam’s Town Hotel and Casino Shreveport Downtown Amelia Belle IP Casino Resort Spa Las Vegas Delta Downs Racetrack • California Hotel and Casino Casino Hotel Treasure Chest Casino • Fremont Hotel and Casino • Main Street Station Casino Brewery Hotel 4 Peninsula – A Strategic and Transformative Transaction High Quality • A high-margin, high-return business Assets in Protected • Peninsula LTM EBITDA margin of 35.2% is well above its industry peers average of 27.0% (1) Markets • Peninsula operates in low promotional and gaming tax environments, resulting in high EBITDA margins Further • Upon closing, Boyd will expand into two new states – Iowa and Kansas Jurisdictional • Increases relative importance of the Midwest and South regions, providing stability to earnings while Diversification maintaining upside potential in a Las Vegas recovery Near-Term • The Kansas Star Casino is a near and long-term growth opportunity Identified • Property EBITDA of $49.8 million in first two quarters of operations Growth Catalyst Attractive • Pure-play Midwest and regional gaming comparables currently trade at a multiple of roughly Valuation 7.0 to 8.0x versus the acquisition multiple of ~7.0x High • Peninsula has the potential to increase our free cash flow by over $78 million/yr., which increases Free Cash Flow return on equity, strengthens the balance sheet and accelerates deleveraging Revenue • Additional revenue opportunities through expanding the B Connected loyalty program to Peninsula’s Opportunities customers 1) Industry peers include ASCA, PENN and PNK. 5 Diversification into Growth Markets in Midwest/South Location: Dubuque, IA Gaming Tax Rate: 21% LTM EBITDA: $24 million EBITDA Margin: 34.2% Location: Northwood, IA Gaming Tax Rate: 21% LTM EBITDA: $40 million EBITDA Margin: 41.5% Location: Mulvane, KS Gaming Tax Rate: 27%-31% 1H ’12 EBITDA: $50 million EBITDA Margin: 52.1% Location: Opelousas, LA Gaming Tax Rate: 36.5% LTM EBITDA: $31 million EBITDA Margin: 26.0% Location: Amelia, LA Gaming Tax Rate: 21.5% Existing Boyd Properties LTM EBITDA: $15.3 million Peninsula Properties EBITDA Margin: 31.1% Note: LTM EBITDA figures are as of June 30, 2012, except for Kansas Star which represents Q1 & Q2 2012 results. 6 Significant Growth Potential in Kansas Star At opening of the permanent facility, approximately $260 million expected to be invested in the premier gaming property in Kansas December 2011 (Interim Facility) January 2013 (Permanent Facility) January 2015 (Phase II) Slots: 1,411 + 425 Slots: 1,836 + 164 Slots: 2,000 Table Games: 35 + 10 Table Games: 45 + 10 Table Games: 55 Hotel Rooms (1): 0 + 150 Hotel Rooms (1): 150 + 150 Hotel Rooms (1): 300 Budget (2): $179 million Budget (2): $83 million Budget (2): $28 million 1H 2012 $96 million Net Revenue: 1H 2012 $50 million Property EBITDA: Source: Public filings. 1) To be developed and operated by a third-party. 2) Development costs do not incorporate hotel development costs by a third-party. 8 Kansas Star Update Construction Update Phase 1B Development • Construction of Kansas Star is • 1,836 total slots on schedule and on budget • 45 total table games • Phase 1B is expected to be completed by January 2013 • 10 table poker room • Construction has been aided • 246-seat buffet by favorable weather • 140-seat steakhouse conditions and has had no impact on existing operations • 74-seat deli / grill • Transition to permanent • Asian noodle bar casino and added amenities • 162,000 sq.ft. indoor will underpin continued arena strong performance at the property • 150 room hotel 9 Expands Geographic & Operating Diversification Current Geographical Diversification Pro Forma Geographical Diversification Gaming Gaming Operations in Operations in 6 Jurisdictions 8 Jurisdictions Boyd LTM 6/30/12 EBITDA Diversification (1) Pro Forma EBITDA Diversification (1) Atlantic City Atlantic City Las Vegas Las Vegas 21% 30% 24% 33% Midwest and South(2) Midwest and South 55% 37% Note: Borgata results are presented to reflect full consolidation of the property, consistent on a GAAP basis. 1) Excludes corporate expenses. 2) Includes $110 million of Peninsula LTM 6/30/12 property EBITDA (excluding Kansas) and $100 million of annualized YTD 2012 Kansas EBITDA. 10 Pro Forma Operating Performance Pro Forma Adjusted EBITDA ($ in millions) $800 $683 600 $199 $484 400 $178 $178 200 $306 $306 0 Boyd Consolidated LTM 6/30/12 Pro Forma Consolidated LTM 6/30/12 (1) (1) (2) Las Vegas & Atlantic City Midwest and South Peninsula Note: Borgata results are presented to reflect full consolidation of the property, consistent on a GAAP basis. 1) Includes proportional amount of corporate expenses. 2) Includes $110 million of Peninsula LTM 6/30/12 property EBITDA (excluding Kansas), $100 million of annualized YTD 2012 Kansas EBITDA and $10 million of corporate expenses. 11 Future Growth Initiatives • Acquisitions remain key pillar in growth strategy • Close and integrate Peninsula • Continue to unlock value at IP • Long-term opportunities • JV to develop gaming facility adjacent to BB&T Center in Broward County, Florida • Agreement with Wilton Rancheria Tribe near Sacramento, California • Attractive options at Dania Jai-Alai in south Florida • Internet Poker: JV with bwin.party positions BYD to be “Day One” leader domestically • B Connected continues to drive growth in operations • Targeted players club program drives player loyalty, cross-property visitation nationwide • Recently launched B Connected Social, a comprehensive social gaming platform • B Connected Online & Mobile delivers effective, targeted promotions based customer interests • Additional properties grow our database, create new cross-marketing opportunities nationwide 12 Summary • High quality, well-positioned assets in diverse markets • Consistently strengthening business and driving efficiencies – focus on profitable growth • Significant new growth opportunities • Strengthening financial profile • Experienced management team with strong track record CONFIDENTIAL IMPORTANT INFORMATION REGARDING FORWARD LOOKING STATEMENTS This presentation contains, or may contain, “forward-looking statements” concerning Boyd Gaming, which are subject to the safe harbor provisions created by the Private Securities Litigation Reform Act of 1995. Generally, the words “believe,” “anticipate,” “expect,” “may,” “should,” “could,” and other future-oriented terms identify forward-looking statements. Forward-looking statements include, but are not limited to, statements relating to the following: (i) information included on the page titled “intense focus on improving and growing the business” including, Boyd Gaming’s intent to strengthen and grow operations, expand customer loyalties and online opportunities and maintain a strong financial profile, (ii) potential long-term opportunities in Florida and California, (iii) continued progress on deleveraging and strengthening Boyd’s balance sheet, (iv) that the negative macroeconomic trends affecting Boyd are one-time issues, (v) that Boyd expects long-term growth trends to continue in the second half of ’12, (vi) that Borgata remains the clear market leader despite rising competition, (vii) that B Connected is expected to drive additional growth at IP starting in Q3 2012, (viii) statements regarding Boyd’s pending acquisition of Peninsula, including the anticipated benefits that the acquisition will provide Boyd, (ix) information included on the page titled “Peninsula – a strategic and transformative transaction” including Peninsula’s anticipated returns and the expected benefits of the merger, (x) information included on the page titled “Significant growth potential in Kansas Star” including the anticipated budgets, facility amenities and offerings within the time periods indicated, (xi) the anticipated geographic and operating diversification that Peninsula is expected to provide Boyd, (xii) the anticipated pro forma financial benefits that the acquisition will provide Boyd, including EBITDA, free cash flow and a strengthened financial profile, (xiii) information included on the page titled “Future growth initiatives” including statements regarding the importance of future acquisitions,