Full House Resorts posts revenue down 12% in Q3; expects temporary Illinois casino opening within three months

Full House Resorts has announced its results for the third quarter of the year. For the three months ended September 30, the company delivered revenue of $41.4 million, down 12% from $47.2 million in the same period last year; and a net loss of $3.6 million amid heightened development costs, against net income of $4.6 million in 2021. The company has also updated its latest plans, and said it intends to open its temporary Illinois casino within the next three months.

“We continue to make progress on our two new casinos, with the first of them on the verge of opening,” said Daniel R. Lee, President and CEO of Full House Resorts. “In Waukegan, Illinois, we are installing décor and are preparing for the installation of slot machines this week. We expect to have our entire slot floor installed and ready for testing before the end of November.”

Construction of temporary Waukegan casino

The principal uncertainty in the opening date of the temporary Waukegan casino corresponds to the testing of the slot machines, surveillance systems and other technology, which Lee called “a complicated process” that usually takes several weeks. In the meantime, the hiring process for the venue is ramping up, with approximately 400 outstanding offers already made.

“As with all new casino openings, we have an extensive checklist to complete prior to welcoming our first customers,” noted the firm’s CEO. “Therefore, while the company expects to open the casino within the next three months, the precise opening date is still uncertain. When The Temporary opens, it will be the only casino in Lake County, Illinois, which has a population of approximately 700,000 and ranks as one of the wealthiest counties in the U.S.”

The transitory venue will be located near the Fountain Square shopping center, and according to previously shared plans, its size will be about 70,000 square feet. Reports earlier this year indicated the space will feature restaurants and room for 1,000 slot machines and 50 table games. The permanent American Place casino is expected to cost about $400 million, with the first phase of the property expected to complete in about three years.

Chamonix to open in mid-2023

The casino operator also provided an update on its Chamonix Casino Hotel in Cripple Creek, Colorado. Construction of the project reached its “topping off” milestone back in September, with officials and crew celebrating the placement of a construction beam at the highest point of the building. The property is now anticipated to open in mid-2023.

“Chamonix’s construction continues at a meaningful pace, with glass now being installed on the façade and drywall within the building,” said Lee. “When complete, Chamonix will be one of the larger casino hotels in Colorado and the largest and most luxurious casino hotel in Cripple Creek, which is the primary casino destination for the Colorado Springs market.”

The company noted Cripple Creek is approximately one hour from the roughly one million people who live in the Colorado Springs metropolitan area, and two hours from the about four million people who reside in the Denver area. 

Chamonix construction underway

Adjoining and connected to the company’s existing Bronco Billy’s Casino, Chamonix will include “a spacious and exciting” new casino; and approximately 300 luxury guest rooms and suites, “including some of the most lavish high-roller suites in Colorado,” according to plans shared earlier this year. The adjoining Bronco Billy’s Casino is also being renovated.

“Our anticipated investments in both of these growth projects remain within budgets,” said Lewis Fanger, the company’s CFO. “Importantly in these difficult capital markets, we remain confident that our cash balances, cash flows from operations, and credit line availability will be sufficient to complete both The Temporary and Chamonix.”

As of September 30, the company had $241.8 million of cash, including $156.1 million cash that is reserved for the completion of Chamonix. Full House Resorts also has a $40 million credit facility, which remains undrawn.

Third quarter highlights

For the three-month period, the company delivered an Adjusted EBITDA of $7.8 million versus $13.6 million in the prior-year quarter. The change reflects timing differences for Indiana’s Rising Star’s $2.1 million sale of “free play”; the wide distribution of government stimulus checks in the prior year; construction disruptions at Bronco Billy’s; the launch of competing online sports wagering in Louisiana; and increases in certain expenses, the company noted.

Full House Resorts’ Mississippi operations, which include Silver Slipper Casino and Hotel, posted revenue of $20 million, down from $21.5 million in 2021. The company partly credits this to the prior-year period being “one of the best quarters in the property’s history,” making up for tough comparatives. Operating expenses for the venue also increased during Q3.

As for Indiana’s Rising Star Casino Resort, it posted revenue of $9.6 million, down from $12.6 million in Q3 2021. As with the company’s other casinos, Rising Star faced tough comparatives in 2021, which benefited from the distribution of government stimulus checks. But in this particular case, the venue was impacted by the opening of “a competitor with historical racing machines,” which made its debut in the state in September this year.

Colorado, where Bronco Billy’s Casino and Hotel is based, has shown “significant growth” since betting limits were eliminated in May 2021, the company noted. However, Bronco Billy’s has “incurred significant construction disruption,” including temporarily-reduced gaming and restaurant capacity, and the temporary absence of all on-site hotel rooms and self-parking. The company expects to complete the refurbishment of Bronco Billy’s gaming space near year-end, and to augment its restaurant capacity in the first quarter of the next year.

Bronco Billy's

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 result 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 operate Chamonix. Revenues were $4.4 million in the third quarter, versus $6.3 million in the prior-year period. 

Lastly, the company shared its results for the Nevada segment, which consists of the Grand Lodge Casino, located within the Hyatt Regency Lake Tahoe resort in Incline Village; and Stockman’s Casino, located in Fallon. Revenues were $6.3 million in the third quarter, a 22.6% increase from the same period last year, and the only segment up in Q3 this year.

Grand Lodge Casino benefited from a 7.8% increase in the table games hold percentage during the third quarter. Additionally, visitation to Grand Lodge Casino in the prior-year period was adversely affected by significant wildfires in the area. Adjusted Segment EBITDA increased to $2.3 million in the third quarter, up 48.3% from $1.5 million in the prior-year period.

See Full House Resorts' complete Q3 results here.