After expanding its planned footprint in response to improvements in the state’s gaming rules, Full House Resorts expects to launch its reimagined casino resort project in Cripple Creek, Colorado, in the fourth quarter of 2022.
This happened in November 2020, when Colorado voters repealed betting restrictions and allowed new table games, which, according to the operator, “significantly enhanced the already-favourable feasibility project.”
Entirely new casino hotel
Daniel Lee, president and CEO of Full House Resorts said: “It is not an expansion of our existing Bronco Billy’s casino; it is an entirely new casino hotel, with its own unique name and personality, that happens to be located adjacent to, and behind, Bronco Billy’s.
“We look forward to disclosing that name and personality at a future date. With funding complete, we recently restarted construction of the project and plan to welcome guests to our new casino hotel beginning in the fourth quarter of 2022.”
Q4 and FY 2020 trading updates
The remarks come as the company releases its Q4 and FY 2020 trading updates, with sales falling marginally to $38.3 million (2019: $39 million) and a net loss of $4.1 million narrowing to $3.5 million.
Adjusted EBITDA for the quarter was $9.8 million, up from $2.3 million a year ago, owing to innovative campaign campaigns and workforce changes implemented at Full House’s assets in late 2019 and early 2020, according to the company.
A total of $600,000 in revenue was generated during the quarter from two of the company’s six licenced sports wagering websites, as well as approximately one week of operations from a third party. The remaining operations are expected to start soon, according to the group.
Revenue fell 24 percent to $125.6 million for the full year (2019: $165.4 million), owing to nearly three months of pandemic-related closures across the company’s entire property estate.
Marketing changes bearing fruit in H2
Due to financial and marketing changes that bear fruit in H2, net income was announced as $100,000, up from a loss of $5.8 million a year ago, with adjusted EBITDA up 23.3 percent to $19.7 million from $15.9 million.
Lee continued: “Much like our third quarter, we had a phenomenal fourth quarter. The fourth quarter tends to be seasonally weaker than the third quarter, but our properties continued to perform extremely well adjusted for the seasonality.
“Adjusted EBITDA for the second half of 2020 was more than the total for all of 2019. We now have approximately eight months of successful ‘reset operations’ behind us.
“While capacity restrictions remain, as well as some additional costs related to the pandemic, so do the structural changes that we have made regarding our marketing and the ways we operate. We continue to believe that these results of the past several months are sustainable.”
Live sports ‘skins’
He added: “Our sports ‘skins’ also continue to go live. In late 2020, an affiliate of Wynn Resorts launched its sports offering through one of our licenses in Colorado. As of today, two of our three permitted skins are live in Colorado and one of our three permitted skins is live in Indiana. We receive a percentage of defined revenues of each skin, subject to annual minimums.
“Combined, these three sports wagering websites represent a minimum of $3.5m of annualised contractual revenue. We continue to expect our three remaining skins to go live shortly.
“When all six skins are in operation, we should receive a contractual minimum of $7m per year of sports gaming revenues. Since we incur very little expense related to these operations, almost all of such revenues should result in income.”
Full House remains one of three bidders for the building of a new casino in Waukegan, Illinois, with its plan requiring the creation of a temporary agency in order to immediately raise tax revenue and employment. The profits from this temporary casino will be used to help finance a permanent facility on the same property, dubbed “American Place.”