Boyd Gaming has spent $3 million so far on the evaluation. By law, real estate investment trusts, often referred to as REITs, don't pay federal income taxes. With real estate as their primary source of income, REITs are required to distribute at least 90 percent of their taxable earnings to shareholders. Penn National Gaming split off 21 or its 29 casinos and racetracks into a REIT last year. In March, a New York-based hedge fund acquired 5 percent ownership in Boyd and analysts speculated the firm would try and push Boyd into forming a REIT. Smith read from prepared remarks about Boyd's REIT process and avoided answering questions about the topic from analysts. He said the company wouldn't provide updates on the process unless the board votes to approve a transaction.