Boyd Gaming Corporation (NYSE:BYD) Q4 2015 Earnings Conference Call - Final Transcript
Feb 16, 2016 • 05:00 pm ET
the tax issues, whether or not you guys have started withholding tax there, or not paying the gaming tax with this city? And then secondly, on the Borgata, any comments or thoughts about what's going on in Northern New Jersey, if whether or not the Borgata JV would be interested or looking to pursue something there, if that was to pass?
Keith E. Smith
With respect to the property tax settlement, we certainly stand ready and willing to engage in serious negotiations. Unfortunately, none have occurred yet. We're certainly hopeful that some will occur in the near future. But other than that, all that we know is out there and is public. We did exercise some help, some what I call self-help about 10 days ago where we withheld our quarterly property tax payment, as we're legally allowed to do, as a way to, I guess start the process of getting us repaid, because no other progress have been made.
And once again, we're just hopeful that there will be some serious negotiations sometime in the near future, but other than that, that's all we know. It's all we have to report. I think with respect to North Jersey, it's an evolving situation. You know, they're talking about two licenses and $1 billion minimum investment. What they haven't talked about is kind of what the tax rate would be and some of the other rules and regulations, and so it's a little difficult to decide whether or not that will be a benefit or a detriment at the end of the day to New Jersey, not knowing what's going to be built, because I think some of that will be driven by the tax rate.
So we need some clarity on some more of the rules around what they're actually proposing for North Jersey before we can understand whether we think there's an opportunity to play there or not.
Excellent. Thank you. And just a quick a follow-up on Vegas. I think, Keith, did you mention that there was a low hold in Suncoast this quarter? And what was the impact there?
Keith E. Smith
Yes. We had abnormally kind of low slot hold. It just happens from time-to-time in the business. It's nothing that is systemic or ongoing. It made the difference between the Suncoast posting an up quarter in EBITDA versus posting a down quarter in EBITDA. And so that is the significance of the whole difference. It's come back, and like I said, it was temporary and it does happen occasionally, although not frequently in the slot area.
And did you think if you hadn't had that, you would've seen materially better performance from some of the sort of non-gaming initiatives and such that you've made in there?
Keith E. Smith
Well, the non-gaming initiatives performed just fine, it really was. We had good volumes. We had coin-in at the Suncoast as we recovered from some of the road construction that impacted us during the first nine months. And we had plans to wrap the business