Hotel Online Special Report

 Federal Appeals Court Overturns Lower Court in Employee Meals Case / Boyd Gaming Began IRS Challenge 10 Years Ago 
Case Represents Victory for Hospitality Industry and Its Employees
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."

Headquartered 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.

Ellis Landau, 702-792-7210, 
or Rob Stillwell, 702-792-7353, 
both of Boyd Gaming
Also See: Boyd Gaming Unveils 'The Borgata' Name and Concept for its Atlantic City Resort Joint Venture With Mirage Resorts / Jan 1999 

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