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US – Full House highlights slow start at The Temporary by American Place

By - 8 March 2023

Full House Resorts generated revenues in the fourth quarter of 2022 of $36.1m, a decrease from $43.3m in the prior-year period but has highlighted problems at its recently opened venue The Temporary by American Place.

The new venue has so far recorded a win of $1.4m.

Daniel R. Lee, President and Chief Executive Officer of Full House Resorts, said: “On February 17, The Temporary by American Place officially opened to the public. We are very pleased with the positive response received from guests thus far, with many commenting that The Temporary is one of the nicest casinos in the area, despite being in a temporary structure. In its first twelve days of operation, we welcomed more than 40,000 guests through its doors.

“Typical of many new casinos, we opened at less than full capacity. On opening night, for example, only approximately 80 per cent of our slot floor and 60 per cent of our permitted table games were available. Over the coming weeks, we expect to further augment the number of available games on our floor and increase the hours of operation for our table games, which currently operate from 2 p.m. to 2 a.m. As our team gains more experience, we also expect to operate the casino 24 hours per day, versus our current schedule of 8 a.m. to 4 a.m.

He added; “Every opening has its problems. We’re understaffed and having to deal with that. About 200 are in the pipeline. Table-game dealers are proving particularly hard to find, due to the number and proximity of other casinos. In the slot area, we’re pretty well staffed. However, 100 machines are kaput: “One of the slot manufacturers fell flat on us.”

“We are currently operating only one of our restaurants, L’Américain. We expect to open our Asia-Azteca fusion restaurant in the next few weeks. A third restaurant, North Shore Steaks and Seafood, is expected to be completed and open in the second quarter. Given the early response to The Temporary, we remain confident in our ability to generate attractive returns from both The Temporary and our future American Place destination.”

Continued Mr. Lee: “At our Chamonix project in Cripple Creek, Colorado, we continue to make substantial progress. Drywall is being installed in guest rooms and the public areas. We recently installed the escalators from the entry level up to the second-floor meeting space, and are preparing for the installation of elevators. We continue to target an opening of Chamonix later this year, potentially with a phased opening beginning in the third quarter of 2023.”

For the full year, revenues were $163.3m, net loss was $14.8m.

In Mississippi, Silver Slipper Casino and Hotel’s revenues were $18.4m in the fourth quarter of 2022, versus $22.5 m in the prior-year period. Results in the fourth quarter of 2022 were adversely affected by the competitive launch of online sports wagering within nearby Louisiana that started in January 2022, colder than normal temperatures, and significant marketing promotions at a nearby competitor.

In Indiana, Rising Star Casino Resort’s revenues were $9m in the fourth quarter of 2022, compared to $9.7m in the fourth quarter of 2021. As with the company’s other casinos, significant snowstorms adversely affected Rising Star, especially in December 2022. Additionally, a competitor in nearby Northern Kentucky with historical racing machines opened in September 2022.

In Colorado, Cripple Creek, has shown significant growth since betting limits were eliminated in May 2021. Bronco Billy’s, however, has incurred significant construction disruption, including temporarily-reduced gaming and restaurant capacity and the temporary absence of all on-site hotel rooms and on-site self-parking. Revenues were $3.5m in the fourth quarter of 2022, versus $5m in the prior-year period. Adjusted Segment EBITDA in this off-season quarter reflected a small loss, versus a small profit in the prior year period.

In Nevada, Grand Lodge Casino, which is located within the Hyatt Regency Lake Tahoe luxury resort in Incline Village, and Stockman’s Casino, which is located in Fallon, Nevada, generated revenues of $4.1m in the fourth quarter of 2022, compared to $4.3m in the prior-year period.

For the year, the Nevada segment’s revenues rose 7.7 per cent over the prior year, despite the absence of government stimulus checks. This largely reflected the recovery of tourism to the Lake Tahoe region. Adjusted Segment EBITDA was approximately flat at $4.9m in both years.

The company’s on-site and online sports wagering ‘skins’ (akin to websites) in Colorado, Indiana and, upon launch, Illinois. Revenues and Adjusted Segment EBITDA were both $1.1m in the fourth quarter of 2022, versus $1.8m in the prior-year period.

The results of this segment do not yet include income contribution from the company’s Illinois sports skin or the recently-executed agreement for its Colorado sports skin. Similar to the Company’s other sports wagering agreements, the company will receive a percentage of revenues, as defined in the contracts, with minimal expected expenses. The total annualized minimum amount for all six of the Company’s sports wagering agreements will be $10m once these two additional skins are live. The new Colorado sports skin began its contractual term in March 2023, and the Company believes that its Illinois sports skin will begin operations in Spring 2023, pending customary regulatory approvals.

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