Full House Resorts, headquartered in Las Vegas, has officially announced its intentions to launch a fresh casino in Illinois within the upcoming three months, as well as another casino in Colorado by summer 2024.
American Place, a site housing 1,000 slot machines in Waukegan, Illinois, is preparing to commence system testing before the end of this month. The company is actively recruiting a large workforce, having already extended over 400 job offers. Situated in Lake County, one of the most affluent regions in the United States and housing approximately 700,000 residents, Waukegan is conveniently located just 26 miles north of Chicago. Chicago itself boasts a metropolitan area with a population exceeding 9.5 million.
In Cripple Creek, Colorado, the Chamonix project by Full House is nearing completion. The construction is in its final stages, and slot machines are set to be installed this week. Testing is anticipated to commence before the month ends.
The company states that once finished, the Chamonix will stand as one of the largest and most luxurious casino hotels in the state, making it an attractive choice for the Colorado Springs market. The Colorado Springs metro area is home to around one million people, while Denver, with its four million residents, is only a two-hour drive away.
In spite of a hopeful perspective, Full House reported underwhelming figures for the third quarter of its 2022 fiscal year. The company experienced a 12.3% decline in revenue compared to the previous year, amounting to $41.4 million. Notably, both casino and food and beverage revenue decreased by 8.6% and 4.2% respectively. Additionally, there was a significant drop of 53.9% in sports betting revenue.
Nevertheless, Lewis Fanger, the Chief Financial Officer of the company, reassured that the planned investments for the casino projects are within the allocated budget. He further emphasized that despite challenging capital markets, the company holds a positive outlook, as its cash balances, operational cash flows, and credit line availability are expected to be sufficient to successfully finish both The American and Chamonix. As of September 30, 2022, the company possessed a total of $241.8 million in cash, with $156.1 million specifically reserved for the completion of Chamonix. Additionally, the company retains an undrawn credit facility of $40 million.
It is worth noting that there was a significant geographical contrast in the performance of Full House’s properties. While the revenue of Silver Slipper Casino and Hotel in Illinois, Rising Star Casino Resort in Indiana, and Bronco Billy’s Casino and Hotel in Colorado declined, both Bronco Billy’s Casino and Stockman’s Casino in Nevada experienced revenue growth.
