Full House Resorts cites a series of adverse weather conditions and the effects of ongoing construction projects as reasons for the period of struggle that occurred over the past twelve months.
After the opening of the The Temporary By American Place in Illinois and improvements work in Colorado, revenue for the casino operator fell 16.62 percent to $36.1m (from $43.3m in 2021).
This was due to a significant decrease in the casino sub-segment of the group to $25.58m (2021 : $31.21m), and other decreases across food and drink, hotel and other (included contract sports wagering) at $6.23m (2021 : $6.71m), $2.43m (2021 : $2.43m), and $2m (2021 : $2.9m).
Mississippi’s revenue fell 18.22 percent to $18.4m (compared with $22.5m in 2021). Full House stated that this was due to the “unfavorable impact of the competition launch of online sports betting in nearby Louisiana, which began in January 2022, with colder temperatures than usual and substantial marketing promotions at a competitor”.
The Rising Star Casino Resort saw a small drop in Q4 revenues to $9m (compared to $9.7m in 2021).
While Bronco Billy’s Hotel and Casino have “shown significant growth” since May 2021, betting limits were removed in May 2021, construction had an impact on the group’s performance throughout 2018, with the fourth quarter revenue dropping 30% to $3.5m (2021: 5m).
Daniel Lee is the President and CEO at Full House Resorts. He said about the ongoing work in the area: “At our Chamonix Project in Cripple Creek in Colorado, we continue making substantial progress. In guest rooms as well as public areas, drywall is being installed.
“We have just installed the escalators at the entry level, up to the second floor meeting space, and we are now preparing for the installation elevators. Chamonix will open later in the year. We may also have a gradual opening that begins in the third quarter 2023.
Nevada’s revenue fell fractionally to $4.1m in other areas, reflecting a “significant” snowstorm in the Lake Tahoe region.
Net loss of $7m was also recorded in the fourth quarter, compared to income of $5m one-year earlier. Seasonally slower three-month periods more than half off adjusted EBITDA at $3.9m (2021: 7.9m).
According to the company, “The change reflects adverse conditions in December 2022; construction delays at Bronco Billy’s; launch of competing online sporting wagering in Louisiana; as well as increases in certain expenses, particularly for property insurance and food cost.”
Revenue dropped 9.36 percent to $163.28m for the full year (2021: $180.15m). Nevada was the only geographic reporting segment that escaped a downward trend in financial declines throughout the year.
Net loss was $14.8m, compared to the income of 11.7m one year prior. AEBITDA fell 46.92 percent to $32.13m (2021; $47.21m).
Lee closed by looking back at February’s The Temporary grand closing and a rise to be felt in the weeks ahead.
We are pleased with the positive feedback received by guests so far. Many comment that The Temporary is one the most beautiful casinos in the area, even though it is a temporary structure. He stated that more than 40,000 people visited the Temporary in its first 12 days of operation.
“We opened at a lower than usual capacity, as is the case with many new casinos. For example, we had only 80% of our slots floor and 60% of our allowed table games available on opening night.
“We expect to increase the number of games available on our floor over the next weeks and to expand the hours of operation for our tables games, which are currently open from 2pm to 2am. We expect the casino to be open 24 hours a day as our team gains experience. Currently, it is only 8 – 4 a.m.