Full House's Q3 revenue hit by climate disasters; company seeks to double size

Las Vegas-based Full House Resorts, headed by experienced Nevada casino executive Dan Lee, shared on Monday its third-quarter report. For the period ended September 30, the business reported net income of $4.6 million, and revenue of $47.2 million (12.6% up), versus net income of $7.7 million and revenue of $42 million in the same quarter last year.

During a call with investors that same day, Lee, president and CEO of the gaming company, explained that the net income decline responded to additional interest expenses related to the funding of the construction of its new Chamonix property in Cripple Creek, Colorado. 

The company is still early in the construction process, and is spending about $1 million a week at this point. But the impact that interest expenses will have on the year-over-year comparisons will go down “in the next few quarters,” said Lee.

Chamonix is one of three projects in the Full House development pipeline. Throughout the call, Lee remarked the potential these projects have in expanding the business, which could more than double the size of the company, reports Las Vegas Review-Journal.

“It’s getting pretty exciting,” the CEO commented on the Chamonix venue construction. “The first tower will top out in April and the third tower in August, while the second tower is in between.”

While quarterly revenue was in the double digits, Lee said it could have been even higher than last year had it not been for Hurricane Ida, which affected operations at the Silver Slipper Casino in Bay St. Louis, Mississippi. Nearby forest fires also affected business at the Nevada-located Grand Lodge Casino. 

These factors forced Silver Slipper to close for a few days, and many regular customers stayed away even once the casino reopened as they lost power. Meanwhile, while the second venue was never in any danger from the fire, smoke kept customers away throughout one of the quarter’s weekends.

Further updating on the Chamonix development, which will be a 300-room property next door to its existing Bronco Billy’s casino, Lee said it would have the first luxury guest rooms in the market.

The executive further said the company would seek waivers from city officials requiring the property be completed by December 31, 2022, because the company doesn’t expect to hit that construction deadline: it is more likely to open in early 2023, further reports Review-Journal.

“Frankly, whether we open in December or April, it doesn’t make a whole lot of difference,” remarked Lee. “That’s the slow period of the year in Cripple Creek, and so we think we are going to be a little bit later than we had originally envisioned. I don’t think it changes much on the income side.”

In terms of growth plans, Full House is currently one of two finalists for a project in Waukegan, Illinois. The company expects to have an answer by January on the casino race. It is also expecting an answer as soon as November 17 on a third development plan in Terre Haute, Indiana.

The company is among four prospective developers that will be making project presentations to the state’s gaming commission that date. A decision is set to be made that same day. Full House is proposing “American Place,” a $250 million venue featuring a 100-room hotel and casino in a shape resembling a happy smile.