Boyd-Coast merger, United Coin deal win preliminary approval

Thursday, June 3, 2004 | 11:14 a.m.

CARSON CITY -- A $1.3 billion merger between the Gaughan and Boyd families' gambling operations to create the fifth largest casino company in the United States won preliminary approval of the state Gaming Control Board on Wednesday.

Boyd Gaming Corp. will acquire Coast Casinos to form a company that will have 19 casinos in six states. Twelve of those casinos are in Clark County and the 13th -- the $400 million South Coast hotel-casino -- is being built along Interstate 15 about six miles south of Tropicana Avenue.

Board Chairman Dennis Neilander said these are two of the strongest companies in Nevada. The merger, he said, will allow the companies to diversify their earnings and permit growth.

"These are two gaming giants who are rooted in the state," said Neilander.

The merger joins William Boyd with Michael Gaughan, whose families have been involved in Nevada gambling for close to half a century.

When the deal is completed, the parent firm of Boyd Gaming Corp. will have $2.3 billion in debt. When joined, the company will have gross revenue of $812.4 million in Clark County or about 10.4 percent of the market.

Jeff Rodefer, attorney for Boyd Gaming, said the surviving firm will not dominate the market in Southern Nevada. There is a state regulation that is aimed at preventing any one company from gaining a monopoly in a certain market.

The will be no major changes in the operations in management or employees. Gaughan will continue to operate the Coast Casinos.

The Nevada Gaming Commission will meet June 17 in Carson City to give final approval. Separately, the board recommended approval for Century Gaming Inc., which operates 1,800 poker, keno and bingo machines in Montana, to buy United Coin Machine Co. of Las Vegas.

Alliance Gaming Corp.'s United Coin has 8,300 slot machines in its slot route business. The deal is for $96.4 million. United Coin is the largest gaming route operator in Nevada. The new owners, all from Montana, are Jon G. Lincoln with 58 percent; his brother David L. Lincoln with 24.9 percent; Steven W. Arntzen with 15.4 percent and Heidi H. Schmalz with 1.7 percent.