One-time startup costs have kept Boyd Gaming’s online gambling sites in New Jersey—through the Borgata Hotel Casino & Spa—in the red, but Boyd officials expect a profit by the end of 2014.
Boyd Gaming CEO Keith Smith, speaking on a conference call with reporters, said he expects online gaming in New Jersey “will be cash-flow neutral or profitable by the end of the year.”
Boyd lost $3.2 million through online gambling in the first quarter of the year.
Smith said the loss came from one-time costs associated with the launch of Borgata’s online poker and casino brands.
“Like any startup business, we invested heavily in marketing and advertising,” Smith said. “Of the $3.2 million operating loss reported by our online business during the quarter, about $2 million was due to one-time, nonrecurring expenses.”
Smith said he doesn’t think a reduction in marketing costs will hurt the sites, which have taken the early lead in the New Jersey online gambling market.