Full House Resorts NASDAQ: FLL reported second-quarter revenue growth of 5.6% and a 19.5% increase in adjusted EBITDA, led by continued gains at its American Place temporary casino in Waukegan, Illinois, and improving results at the Chamonix Casino Hotel in Colorado.
President, CFO and Treasurer Lewis Fanger said American Place delivered its best quarter to date, with revenue rising 13.4% year over year to $34.8 million. Adjusted property EBITDA increased 13.8% to $10.1 million, compared with $8.9 million in the prior-year period.
American Place exceeded $12 million in monthly gaming revenue for the first time in May, reaching $12.7 million, Fanger said. July was the property’s second-best gaming revenue month on record, according to management, though the company said the monthly gaming revenue report had not yet been released.
American Place financing and construction plans
The company is working toward a refinancing that would simultaneously address its existing bonds, fund construction of the permanent American Place casino and establish a revolving credit facility. Fanger said commitments for the revolver have been received from four banks and that related documentation is largely complete.
Management said it expects to complete the broader financing package during the third quarter, while acknowledging that documentation remains extensive and complex. CEO Dan Lee described the transaction as involving roughly 1,500 pages of documents and said the company has continued moving forward with selected planning work while financing is finalized.
Full House has authorized additional schematic and civil plans for the permanent casino and has been conducting soil testing at the site. Lee said the company likely would not release a roughly $3 million earth-moving contract until financing is in place.
Management’s current expectation is for the permanent casino to open in roughly 18 to 24 months, with Lee characterizing the third quarter of 2028 as a reasonable estimate. The planned facility is expected to have substantially more capacity than the temporary venue, including approximately 35% more slot machines and 60% more table games, according to Lee.
The permanent project has evolved based on the operating experience at the temporary casino and reviews of recently opened northern Illinois gaming properties. Lee said the company has added plans for a food hall and family dining access that would not require guests to pass through the casino floor.
Temporary casino extension and event-space opportunity
During the quarter, Full House received approvals that will allow American Place’s temporary casino to remain open through February 2029. The approval followed passage of a state legislative measure in May and Gaming Board approval in June.
The extension is intended to minimize potential downtime between the temporary and permanent casino operations. The company also amended its development agreement with the City of Waukegan, allowing it to retain the temporary Sprung structure for five years after the permanent casino opens.
Management said it may use the temporary structure for trade shows, concerts and other entertainment events. The building includes bathrooms, bars and a large indoor footprint, and Lee said it is larger than a football field inside. The possible event-center use was not included in the company’s projections, he said.
American Place has been producing EBITDA margins above 29% despite paying rent to the city and leasing kitchen and office facilities, management said. Lee said those margins would be in the low-30% range when adjusted for those costs, while Fanger said margins in the permanent facility could reach the mid-30% range.
Chamonix revenue improves as marketing efforts change
At Chamonix in Cripple Creek, Colorado, second-quarter revenue rose nearly 12% as Full House implemented more targeted marketing, changed guest offers and revamped branding, particularly on social media. Adjusted property EBITDA was approximately breakeven for the quarter.
Lee said the property’s year-over-year EBITDA improvement was approximately $1.1 million, reflecting a shift from a $1.2 million loss in the prior-year quarter to just below breakeven. He said the company has focused on controlling expenses, improving marketing efficiency and making operational changes across food, beverage and gaming.
The company expanded the casino-host team and hired a new casino director with prior experience at Fontainebleau and Wynn Las Vegas. Management said it is seeking to build more high-end gaming business at the property.
Fanger said Chamonix’s current win per position per day is about $175, compared with about $330 for the overall Black Hawk market. He said that reaching the Black Hawk average, with 70% EBITDA flow-through, could translate to roughly $30 million of annual EBITDA, while a 15% premium to the market average could approach $40 million. Management said it does not expect to reach those levels this year or fully next year, but anticipates substantial improvement over the next 18 months.
The company also highlighted growth among higher-value rated guests in June. Its strongest-performing database segments were guests generating at least $750 of gaming win in a single trip, followed by those generating $350 to $749 and $150 to $349.
Other property updates
- Rising Star: A downed power line caused a 42-hour outage during the quarter. Lee said the property lost about $100,000 during the period, compared with about $500,000 of EBITDA in the prior-year quarter. The company said it does not expect business-interruption insurance proceeds because the property itself was not damaged.
- Silver Slipper: Revenue declined slightly as the company continued eliminating unprofitable business, while adjusted property EBITDA improved slightly. Management said it is examining opportunities to improve profitability, including food-waste controls at the property’s buffet.
- Grand Lodge Casino: Renovations at the Hyatt Regency Lake Tahoe continue to disrupt casino operations. Lee said work involving cottages, a restaurant and beach access is now expected to be completed in the second half of 2027, rather than the first half. Management expects the renovated resort ultimately to benefit the casino.
On potential acquisitions, Lee said the company is focused on improving Chamonix and building the permanent American Place facility. He said Full House is heavily leveraged and does not want to issue equity at current prices, though it could consider an unusually attractive opportunity. Fanger said the company’s perspective could differ in approximately three years, following the expected opening of the permanent casino and a potentially lower leverage profile.
About Full House Resorts (NASDAQ:FLL)
Full House Resorts, Inc NASDAQ: FLL is a gaming, lodging and entertainment company headquartered in Summerfield, Nevada. Founded in 1987, the company designs, develops and operates casino resorts and ancillary hospitality facilities in multiple U.S. markets. Its business model emphasizes regional gaming properties that combine slot machines, table games, hotel accommodations and live entertainment to serve a broad customer base.
The company's property portfolio spans five states, including Bronco Billy's Casino & Hotel and Grand Lodge Casino in Black Hawk, Colorado; Silver Slipper Casino Hotel and Harlow's Casino Resort in Mississippi; Running Aces Harness Park & Casino in Minnesota; Rising Star Casino Resort in Indiana; and Stockman's Casino in Nevada.
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