Full House reports revenue slightly down to $44.4M in Q2; casino projects progressing despite supply issues

Casino developer and operator Full House Resorts announced Tuesday results for the second quarter of 2022. Revenues were at $44.4 million, a decrease from $47.4 million in the prior-year period. Additionally, the company posted a net loss of $4.4 million, which includes $1.6 million of preopening and development costs. In the prior-year period, the company reported a net income of $5.5 million.

Adjusted EBITDA in the 2022 second quarter was $12.1 million versus $14.9 million in the prior-year period, largely due to planned construction disruptions at Bronco Billy’s; the launch of online sports wagering in Louisiana, which adversely affected Silver Slipper's sports wagering revenues; and increases in certain costs.

Despite these decreases, Daniel R. Lee, President and Chief Executive Officer of Full House Resorts, celebrated the "significant progress" on the company's growth projects during the quarter.

"Our casino site in Waukegan, Illinois, has been transformed, with the Sprung structure now nearly complete," Lee said. "We are now installing utilities within the structure for items like bathrooms, bars, and slot machines, and expect to pour the floor slab within the next month."

View of the construction site of The Temporary by American Place in Waukegan, Illinois.

The provisional casino in Waukegan, called The Temporary by American Place, is expected to open during the fourth quarter of 2022, and it will be the only casino in Lake County, Illinois once it does. The permanent American Place casino is anticipated to open by late 2025, within three years of the opening of The Temporary.

"We have identified and are placing orders for The Temporary’s approximately 1,000 slot machines, have hired much of the management team for the property, and have begun hosting job fairs for positions throughout the casino," added Lee.

Regarding the company’s Chamonix project in Cripple Creek, Colorado, the executive stated that "construction also continues at a swift pace." The CEO said that the central tower, which anchors the casino and includes the spa, "has topped out."

The parking garage is complete, and the guest rooms above the garage are starting to take shape, the company says. Foundations for the final guest room tower are currently being completed, and brick and glass are now being installed on the facade.

View of the construction site of the Chamonix Casino Hotel in Cripple Creek, Colorado. 

When complete, Chamonix is expected to be one of the larger casino hotels in Colorado as well as the "largest and most luxurious" casino hotel in Cripple Creek. The venue is expected to open in mid-2023.

"Our anticipated opening dates have slipped a few weeks, reflecting supply issues and normal construction challenges. Our anticipated investment in each project, however, remains within budgets," added Lewis Fanger, the company’s Chief Financial Officer.

Chamonix Casino Hotel render.

In Mississippi, Silver Slipper Casino and Hotel's revenues were $21.1 million in the second quarter of 2022, versus $24.2 million in the prior-year period. Adjusted Segment EBITDA was $5.3 million reflecting the competitive launch of online sports wagering within nearby Louisiana, as well as cost increases for food and other supplies.

In the prior-year period, the property had recorded the best second-quarter ever, as it – and all of the company’s properties – benefited from customer-related government stimulus checks due to the COVID-19 pandemic. Adjusted Segment EBITDA was $9 million in the prior-year period.

In Indiana, Rising Star Casino Resort's revenues were $11.8 million in the second quarter of 2022, an 11.5% increase from $10.6 million in the prior-year period. The increase was the result of the sale of "free play," which resulted in $2.1 million of revenue and income in the second quarter of 2022.

Adjusted Segment EBITDA here was $3.9 million in the second quarter of 2022, up 46.1% from the prior-year period. The free play sale, as well as a $0.1 million reduction in normal operating expenses, helped offset a decline in total casino revenue.

The Colorado gaming market, including Cripple Creek, has shown significant growth since betting limits were eliminated in May 2021, the company says. Nevertheless, due to disruptions caused by the construction of the Chamonix Casino Hotel, revenues, and Adjusted Segment EBITDA declined in the quarter versus the prior-year period.

Revenues were $4.1 million in the second quarter of 2022, versus $6.4 million in the prior-year period. Meanwhile, Adjusted Segment EBITDA was $(0.2) million, versus a positive $1.8 million.

Bronco Billy’s Casino

To alleviate the lack of on-site parking, Bronco Billy’s currently offers complimentary valet parking and a free shuttle service to an off-site parking lot, both of which resulted in increased operating expenses.

The casino has also maintained much of its payroll, despite reduced activity levels, anticipating the need for the larger workforce required to open and operate Chamonix. Nevertheless, some expenses, such as gaming taxes and costs of food and beverages, vary with activity levels.

Lastly, Nevada revenues were $5.2 million, an increase from $4.7 million in the prior-year period. Adjusted Segment EBITDA for both quarters was $1.4 million, with the increase in revenue offset by an increase in labor costs.

As for sports betting, revenues and Adjusted Segment EBITDA were both $2.2 million in the second quarter for on-site and online "skins" in Colorado, Indiana, and, upon launch Illinois. This marks an increase from $1.5 million in the prior-year period.

Rendering for Waukegan's American Place casino.

The company has recently entered into an agreement whereby Full House and Circa Sports will jointly develop and manage on-site sportsbooks at both The Temporary and American Place. In addition to the on-site sportsbook, Circa Sports will utilize Full House’s expected mobile sports skin in Illinois to conduct Internet sports wagering throughout the state, subject to customary regulatory approvals. The term of the agreement is for eight years, followed by two four-year extension opportunities at the option of Circa Sports.

See the full Q2 report here.