Boyd Gaming Buys Land Next to Stardust

Boyd Gaming (BYD Quote) has picked up a 13-acre plot of land next to its Stardust Resort and Casino that could provide room for the resort's expansion.

In a filing with the Securities and Exchange Commission, the Las Vegas company said it paid $43 million for the site, including the assumption of about $16 million in debt. The land adjoins the southwest side of the Stardust -- located on the Las Vegas Strip -- and is currently occupied by a motel. Under a lease with Boyd expiring November 2006, the site's former owner will continue to operate the motel.

With the purchase, Boyd Gaming now owns 63 acres and leases nine acres of the Stardust site.

A Boyd spokesman declined to comment on whether the purchase was intended to pave the way for a Stardust expansion.

The resort is a strategic, showcase property for Boyd, however, and the gaming industry is in expansion mode, with major players announcing plans for new resorts and big additions to existing ones.

For example, MGM Mirage (MGG Quote) recently unveiled plans for a 66-acre city within a city on the Strip, the first phase of which carries a $4 billion price tag. Meanwhile, Wynn Resorts (WYNN Quote) recently hatched plans for a $900 million addition to its luxury Wynn Las Vegas resort on the Strip, even though the resort has yet to open.