Full House Resorts buys Colorado casino for $30 million

Full House Resorts is acquiring Bronco Billy's Casino and Hotel in Cripple Creek, Co., for $30 million, the Las Vegas-based company announced Monday.

The transaction gives Full House it's fifth casino and a property in a fourth regional gaming market. Cripple Creek is located about a one-hour drive from Colorado Springs. Bronco Billy's has 830 slot machines, 13 table games, a 24-room hotel, a steakhouse, four casual dining outlets, and an outdoor amphitheater.

Full House CEO Dan Lee said the casino is being acquired at almost six-times the property's cash flow. He said the purchase will be funded through a refinance of Full House's first and second lien debt. Lee called the casino one of the market leaders in Cripple Creek.

"It is well-run and well-maintained and a stable leader within its market," Lee said. "We expect that its management team will remain at the property."

In addition to Cripple Creek, gaming in Colorado is limited to Black Hawk and Central City, which adjoin each other and are located an hour west of Denver.

Macquarie Securities gaming analyst Chad Beynon told investors Full House is one of the few regional operators focusing on smaller casinos.

"(Full House) is clearly looking for beneficial opportunities to expand, and has found another potentially great addition to its current holdings," Beynon said.. "If Full House continues acquiring a number of these similar-sized properties, it could lead to them taking a much more pronounced position in the regional gaming space."

Full House owns the Stockman's Casino in Fallon and operates the Grand Lodge Casino at the Hyatt Regency Lake Tahoe under a management contract. The company also owns the Rising Sun Casino in Indiana and the Silver Slipper Casino in Bay St. Louis, Miss.

Contact reporter Howard Stutz at hstutz@reviewjournal.com or 702-477-3871. Follow @howardstutz on Twitter.