Full House Resorts reported its Q1 results for the time ended March 31, 2020, with headline figures taking a hit thanks to the COVID-19 lockout and accounting for the fair value of outstanding warrants, among other items.
On a consolidated basis, net revenues decreased from $40.5 m in the prior-year period by 23.8 percent to $30.9 m in the first quarter of 2020. Net loss for the first quarter of 2020 was $(4.4)m as compared to a year-on-year net loss of $(1.6)m.
In the first quarter of 2020 the adjusted EBITDA was $(1.2)m compared to $3.6 m year-on-year. Results for the first quarter of 2020 also contained $0.4 m in revenue assurances related to a full year of operations for one of the three sport wagering websites approved by the company in Indiana.
The President and CEO Daniel R Lee noted adding some colour to the financials of Q1 said: “Online sports wagering made significant strides during the first quarter. In Indiana, we had our first full quarter of one of our three permitted ‘skins,’ or sports wagering websites, during the quarter.
“Sports wagering contributed $0.4m to Rising Star’s financial results during the first quarter. We expect our two other websites in Indiana to launch shortly, pending the receipt of customary regulatory approvals.
“In Colorado, we are also permitted three sports wagering websites, and all three operators of those skins received their gaming licenses in April 2020. When all of our sports wagering websites have commenced operations – which we believe will be by the third quarter of this year – our sports wagering revenue guarantees should total at least $7m per year.
“As we have noted, our sports wagering contracts have 10-year minimum terms, with each of our providers having two five-year extension options. Our three sports wagering providers are significant operators in the gaming and/or sports book industry. As mobile sports wagering ramps up, we believe it should contribute a significant portion of the company’s income.”
Lee continued about the coronavirus and its impact on the business:
“We are now approximately two months into the shutdown of our properties. These and other government-mandated closures appear to have helped slow the spread of the coronavirus. With the worst days of the pandemic hopefully behind us, we are now beginning to look forward to reopening our properties and safely welcoming back our customers and employees.
“We have spent the last several weeks of the shutdown examining many aspects of our business, from how we sanitise our properties to how we interact with and entertain our guests. We began using infrared devices to test employee temperatures prior to our casino shutdowns. We now also intend to screen guest temperatures when we reopen.
“We also intend to allow customers to block adjoining slot machines to ensure social distancing, and we will provide gloves, masks and hand sanitiser to our employees and guests. In some locations, we are installing dividers between our most popular slot machines. We will also continuously wipe and disinfect our slot machines, paying particular attention to high-touch surfaces, such as buttons and screens.”