Full House revenue up 226.9% in Q2, considering response to Indiana RFP for new casino

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ull House Resorts announced its second quarter results on August 10, showing a revenue increase of 226.9%: $47.4 million versus $14.5 million in the prior-year period.

Net income for Q2 2021 improved to $5.5 million from a net loss of $6.7 million in the same period 2020. Adjusted EBITDA in the 2021 second quarter raised to $14.9 million, versus a $1.4 million loss in Q2 2020.

On the strong growth in the 2021 period, the company attributes this positive trend to operational and marketing improvements, as well as the mandated closures that affected the company throughout 2020. Also, the company plans to implement the Konami Gaming slot machine management system in its Nevada properties, following positive results in Colorado and Indiana, as reported by Las Vegas Review-Journal.

During the last year, all of the company’s properties suffered pandemic-related closures: mid-March through late-May for Sliver Slipper, and through June for its other properties. The net loss for the prior-year period was affected by an adjustment to the fair market value of outstanding warrants, all of which the company repurchased and retired in February 2021.

Other highlights of the report include $1.5 million of revenue related to the company’s contracted sports wagering segment, with five of the company’s six permitted sports wagering skins in Indiana and Colorado now live, and two additional sports wagering websites launched on April 1 and April 23. The last remaining sports skin is expected to begin operations “in the coming months”.

“As with last quarter, our financial results continue to benefit from structural changes throughout the company,” said Daniel R. Lee, President and Chief Executive Officer of Full House Resorts. “These operating results are significantly above not only the 2020 period, but also meaningfully above any second quarter or first-half results in at least the past five years.”

The company is now moving forward with the construction of Chamonix Casino Hotel in Cripple Creek, as the major portion of the on-site utility work has been already completed, and installation of micro-piles for the project’s foundation is approximately 25% complete.

Substantial completion of the project is expected in the fourth quarter of 2022, while it is still “relatively early” in the construction process as to provide certain estimates of cost and completion dates.

The Full House Resorts CEO further adds that Colorado’s gaming markets “remain significantly underpenetrated and do not have enough guestrooms,” making the Cripple Creek addition a natural fit, with recent hotel expansions in the area performing well. Because of this, the company is currently evaluating whether to build an additional hotel wing on the Chamonix site, which would increase the total size of the forthcoming hotel by 23%.

The strong results have allowed the company to re-invest and improve properties, including the ramp-up of the marketing systems at Bronco Billy’s and Rising Star, now largely complete. “We now look forward to upgrading the casino marketing systems at our two Nevada properties, scheduled for this year’s fourth quarter,” said R. Lee.

Moreover, the company’s Silver Slipper property is now “essentially a new and reinvigorated destination”, following several years of adding amenities and with a new exterior color scheme. Full House Resorts has also been investing in new slot product, also the result of several years of work.

“We also continue to pursue other growth opportunities in the longer-term,” added the President of Full House. This includes the proposed American Place project in Waukegan, Illinois, as the state’s Gaming Board hired a consultant to evaluate the proposals. “We look forward to the opportunity, perhaps later this year, to share our vision for a new casino destination for the Waukegan community”.

Further proposals from the company include a possible one to develop a casino in Terre Haute, Indiana, as the Indiana Gaming Commission recently issued a RFP. “Full House had previously proposed development of a casino in Terre Haute and is considering responding to the RFP,” said R. Lee.