Operator News
Full House up 40 per cent as American Place ramps up
By Phil - 9 May 2024
Full House Resorts saw its revenues surge by 39.6 per cent for the first quarter ended March 31, 2024, to reach $69.9m, due to the continued ramp-up of operations at American Place, which opened in mid-February 2023, and the phased opening of Chamonix Casino Hotel, beginning in late-December 2023.
Net loss for the first quarter of 2024 was $11.3m, which includes $1.7m of preopening costs, as well as depreciation and amortization charges related to our new American Place and Chamonix facilities of $5.5m and $3.7m, respectively. Adjusted EBITDA rose 22.6 per cent in the first quarter of 2024 to $12.4m from $10.1m in the prior-year period, reflecting strong growth from American Place, partially offset by the adverse effects of heavy snowfall in several markets.
“We had a strong quarter of growth, led by American Place,” said Daniel R. Lee, President and Chief Executive Officer of Full House Resorts. “Typical of most new casino openings, American Place has continued to improve its operations since its opening just over a year ago. During the first quarter, quarterly revenues at American Place rose to their highest yet – $25.8 m. Similarly, Adjusted Property EBITDA rose to $7.4m. As reported by the Illinois Gaming Board, monthly revenues at American Place reached a new record in December 2023, only to then exceed that record in February 2024 and again in March 2024. March was the first month with full year-over-year comparisons, and gaming revenues in that month rose 34 per cent compared to March 2023. The strong first quarter results were assisted by the opening of our high-end restaurant, North Shore Steaks & Seafood, which opened on February 14, 2024. We look forward to continued growth at American Place as its database continues to grow and operations continue to season.
“We believe that American Place provides a reasonable case study for how Chamonix should perform in the nearer-term,” continued Mr. Lee, “modestly at first, with meaningful improvement in revenues and profitability as we progress through years one and two. Similar to American Place, we elected to open Chamonix in phases, beginning with Chamonix’s casino, meeting space, and approximately one-third of its guestrooms in late-December. The remainder of Chamonix’s 300 guestrooms came online gradually during the first quarter. Our high-end steakhouse, 980 Prime by Barry Dakake, began welcoming its first guests on April 19; our pool and spa should begin operations before Memorial Day weekend. We believe Chamonix is far superior to the other casinos in Cripple Creek, and its guestrooms and amenities rival those of Colorado destinations such as Aspen and Vail. Driven by the new casino, revenues from our Colorado operations have more than doubled amounts seen in 2023, but we expect significantly more growth in the future. As Chamonix’s full breadth of amenities come online, operations continue to season, and its customer database expands, revenue and profitability should follow. The early seeds for Chamonix’s success are there, which give us increased confidence in the longer-term success of our Colorado investment.”
Revenues for the Midwest & South segment, which includes Silver Slipper Casino and Hotel, Rising Star Casino Resort, and American Place, were $54.6m in the first quarter of 2024, a 33.9 per cent increase.
The west segment, which includes Grand Lodge Casino (located within the Hyatt Regency Lake Tahoe resort in Incline Village), Stockman’s Casino, Bronco Billy’s Casino, and Chamonix Casino Hotel, generated revenues for the segment of $13m, an increase of 60.4 per cent.
In terms of sportsbetting in Colorado, Indiana, and Illinois, revenues were $2.3m, reflecting the contractual launch of its permitted Illinois sports skin in August 2023, as well as a provision for credit losses on sports wagering receivables of $0.3m, which adversely affected Adjusted Segment EBITDA. For the first quarter of 2023, both revenues and Adjusted Segment EBITDA were $1.2m.
