DEF: Full House Resorts Reports Strong Growth in 2024, Eyes Future Expansion

Full House Resorts experienced significant revenue and EBITDA growth in 2024, driven by the performance of American Place and the opening of Chamonix, while also pursuing strategic opportunities like the potential relocation of Rising Star.

Summary

• Full House Resorts had a busy year that positions the company well for future growth.
• American Place in Waukegan, Illinois, is now the largest revenue contributor, with revenue up 42% and Adjusted Property EBITDA up 60% in 2024 compared to the prior year.
• The Illinois Supreme Court ruled in favor of the company, clearing the way for financing the permanent American Place casino, with groundbreaking planned for later this year and operations transitioning from the temporary structure by August 2027.
• Chamonix, the new casino hotel in Cripple Creek, Colorado, was completed, with revenue rising 160% in 2024 over the prior year.
• Colorado revenue rose 160% in 2024 over the prior year, but expenses also rose as the company incurred the costs of opening and operating different aspects of the hotel without the entire property being fully opened.
• Chamonix accounted for 133% of the 11.2% growth in Cripple Creeks revenues in 2024 and 110% of the 2.1% revenue growth in the entire state.
• The Silver Slipper in Mississippi generated $73 million of revenue in 2024, a small decline from 2023.
• The company is seeking approval to relocate its Rising Star license in Indiana to New Haven, a suburb of Fort Wayne.
• The company sold its property in Fallon, Nevada, for $7 million in real estate and $2.2 million for the operating side.
• Company revenues in 2024 were up 141% versus 2014, and Adjusted EBITDA was up even more.
• Through March 31, 2025, the company's stock price was up more than 234%.

Sentiment

Score: 8

Explanation: The document presents a positive outlook for Full House Resorts, highlighting strong growth in key areas and strategic initiatives for future expansion. While there are some challenges and risks mentioned, the overall tone is optimistic and confident.

Positives

• American Place is performing strongly and is now the largest revenue contributor.
• The Illinois Supreme Court ruling clears the way for the permanent American Place casino.
• Chamonix is completed and driving significant revenue growth in Colorado.
• The company is actively pursuing strategic opportunities, such as the potential relocation of Rising Star.
• The company has made operational changes at the Silver Slipper that it thinks will put its Adjusted Property EBITDA back on a growth trajectory.
• The company's sources of income are much more diverse than they were at that time, and its balance sheet is on a much stronger financial footing.

Negatives

• The Silver Slipper experienced a small revenue decline in 2024.
• Rising Star is geographically challenged due to newer casinos opening closer to its target customers.
• The Grand Lodge Casino is experiencing some impact from hotel renovations.
• Colorado revenue rose 160% in 2024 over the prior year, but expenses also rose as the company incurred the costs of opening and operating different aspects of the hotel without the entire property being fully opened.

Risks

• The company faces competition from other casinos in the regions where it operates.
• The relocation of the Rising Star license is subject to legislative and regulatory approval.
• The company's sports betting contracts are evolving, with some licensees discontinuing operations.
• The company is subject to risks and uncertainties that could cause actual results to differ materially from those indicated in forward-looking statements.

Future Outlook

The company expects revenues to continue to grow and expenses to remain stable as operations become more efficient and early marketing spend becomes more normalized. The company is confident that the study, if approved, will show significant benefits to Indiana if Rising Star is relocated.

Management Comments

• This past year was a busy one that positions our company well for future growth.
• We are very proud to have recently been identified by the Chicago Tribune as one of the best employers in the Chicago area the only casino awarded that honor and to have been also chosen by USA Today as a top workplace.
• We plan to break ground on the permanent casino later this year and, upon its completion, transition operations from the temporary structure.
• We think the renovations impact on our operations will be relatively minor.
• We recently made some operational changes at the Silver Slipper that we think will put its Adjusted Property EBITDA back on a growth trajectory.
• Rising Star is easily the most underutilized license in the state; we are confident that the study, if approved, will show significant benefits to Indiana if it is relocated.
• Weve made a number of operational changes during the year that we believe position us well for the future.

Industry Context

The announcement highlights the competitive landscape of the regional casino industry, with Full House Resorts navigating challenges and opportunities in Illinois, Colorado, Mississippi, and Indiana. The company's focus on new developments and strategic relocations reflects a broader trend of casino operators seeking to optimize their market position and capitalize on evolving gaming regulations.

Comparison to Industry Standards

• The company's strategy of opening new casinos in temporary structures before transitioning to permanent buildings is a relatively common practice in the industry.
• The company's American Place is being compared to Station casinos or many of the Boyd properties in Las Vegas.
• Chamonix is rivaling the best casinos in the state and the entire Midwest.
• The company's Rising Star property is being compared to two traditional riverboat casinos along Lake Michigan in Gary, Indiana that shared a pier and had to compete with newer casinos closer to their customers.

Management Changes

Legal Proceedings

• The Illinois Supreme Court ruled in favor of the Illinois Gaming Board and the City of Waukegan on a lawsuit filed by a competitor, alleging that the competitor had been treated unfairly in the process that awarded the license to us.

Stakeholder Impact

• Shareholders are expected to benefit from the company's growth and strategic initiatives.
• Employees will have opportunities for advancement and development.
• Customers will enjoy enhanced amenities and experiences at the company's properties.
• Communities will benefit from increased tax revenues and job creation.

Next Steps

• The company plans to break ground on the permanent American Place casino later this year.
• The company is seeking approval to relocate its Rising Star license in Indiana to New Haven, a suburb of Fort Wayne.
• The company will continue to monitor and adapt to the evolving sports betting industry.
• The company will work to meet or exceed regulatory and statutory requirements in a timely, transparent manner.

Key Dates

Keywords

casino, resorts, gaming, American Place, Chamonix, Rising Star, Silver Slipper, revenue, EBITDA, relocation, Illinois, Colorado, Indiana