Key points:
- Revenue for Q3 2024 rose 5.8% year-on-year to $75.7m
- American Place Casino in Illinois achieved a 17.7% increase in revenue as operations continued to ramp up
- Chamonix Casino Hotel in Colorado celebrated its grand opening and showed early success with record monthly gaming revenues
Full House Resorts reported a 5.8% year-on-year increase in revenue for Q3 2024, bringing in $75.7m. This growth was driven by the ramp-up of operations at the newly opened American Place Casino in Waukegan, Illinois and the official grand opening of Chamonix Casino Hotel in Cripple Creek, Colorado.
However, despite the rise in revenue, the company recorded a net loss of $8.5m, contrasting with a net income of $4.6m for Q3 2023. This turnaround reflects higher costs associated with new property development and preopening expenses.
Adjusted EBITDA dropped significantly by 43.1%, reaching $11.7m in Q3 2024. The decline in adjusted EBITDA reflects the absence of $5.8m in deferred revenue recognised in the prior year, alongside higher operating costs as Full House scaled up its new properties.
Property performance by region
- Midwest & South: The Midwest & South segment, which includes American Place, Rising Star Casino Resort and Silver Slipper Casino and Hotel, posted a 3.7% revenue increase to $54.5m in Q3 2024. Growth in the region was primarily led by American Place, which saw a 17.7% revenue increase to $28.1m. However, adjusted segment EBITDA for this segment dropped by 12.8% to $10.2m in Q3 2024, partly due to adverse weather affecting Silver Slipper’s operations in Mississippi.
- West: Revenue for the West segment, which includes Grand Lodge Casino, Stockman’s Casino, Bronco Billy’s Casino and the new Chamonix Casino Hotel, rose by 74.9% to $19.4m in Q3 2024. This increase was reportedly driven by Chamonix, which achieved record gaming revenue and reached a September occupancy rate of 88.5%, up from an average of 52% in Q2 2024. However, adjusted segment EBITDA for the West segment declined by 47.8% to $1.2m, due to high operating costs associated with Chamonix’s grand opening.
Contracted sports wagering segment
Contracted sports wagering revenue decreased by 77.4%, falling to $1.8m in Q3 2024. The decrease primarily reflects the termination of specific sports wagering agreements in Colorado. Adjusted EBITDA for this segment fell by 74.1%, totalling $2m for Q3 2024. The decline reflects the absence of $5.8m in accelerated deferred revenues recognised in Q3 2023.
Development and divestitures
Full House Resorts continues to expand its property portfolio and adjust its assets strategically. The Chamonix Casino Hotel in Colorado, which began phased operations in late 2023, celebrated its official grand opening in early November 2024.
CEO Daniel Lee noted: “These revenue gains were despite the lack of a large-scale marketing campaign. Such a campaign was largely on hold until recently, when construction was complete. Accordingly, awareness of Chamonix remains in the early stages in the key markets of Colorado Springs and Denver.”
The operator also made progress on its divestiture strategy, completing the first phase of the sale of Stockman’s Casino in Nevada to Clarity Game.
Good to know: Full House recognised a $2m gain on the property’s real estate sale, completed in September 2024, with the remaining operational assets expected to transfer to Clarity after regulatory approvals
Outlook and strategic focus
During the Q3 earnings call, CEO Daniel Lee highlighted Full House’s expansion strategy in the Midwest and South, where American Place Casino has demonstrated strong performance.
Full House plans to move forward with constructing a permanent facility at American Place once legal challenges are resolved, expecting the transition to significantly boost revenue.
Lee drew attention to Illinois’ Rockford market, where a comparable shift from a temporary to a permanent facility yielded a 139% revenue increase, bolstering Full House’s optimism for American Place’s long-term growth.
Earlier in 2024, Full House reported a 23.8% revenue increase for Q2, attributed to the phased opening of Chamonix Casino Hotel and positive performance at American Place. The Q3 results continue this trend of revenue growth, tempered by higher operating costs and reduced contributions from the sports wagering segment.
