|LAS VEGAS, May 12, 1999 - Boyd Gaming Corporation
(NYSE: BYD) today reported that the United States Court of Appeals for
the Ninth Circuit ruled in favor of Boyd Gaming in its appeal of an earlier
Tax Court decision in a case closely watched by the gaming and broader
hospitality industries involving the deductibility of meals provided to
employees without charge. Boyd Gaming began its challenge of the position
taken by the Internal Revenue Service on this issue more than a decade
ago and was joined by other gaming and hospitality companies and later
the American Gaming Association in this matter. The challenge was initiated
by the companies not only for their benefit but also for the benefit of
tens of thousands of their employees who were facing the payment of taxes
on the value of meals provided in company facilities.
The Tax Court ruled in favor of the Internal Revenue Service in the
Boyd case in late 1997. The United States Congress responded to that decision
by enacting a law favorable to the industry and its employees in 1998 clarifying
its intent relative to this issue. Boyd Gaming and various gaming and hospitality
companies funded the appeal which was ruled upon favorably today.
"This is a tremendous victory for Boyd Gaming and the industry," said
William S. Boyd, Chairman and Chief Executive Officer. "We would like to
thank all those who were supportive in our efforts to challenge the IRS
in what we viewed as an overly broad application of Congressional intent."
in Las Vegas, Boyd Gaming Corporation is a leading diversified owner or
operator of 11 casino entertainment properties located in Nevada, Mississippi,
Illinois and Louisiana. The Company recently announced its plans to develop
"The Borgata," a $750 million casino resort, on the H-Tract in the Marina
district of Atlantic City, in partnership with Mirage Resorts.