Full House Resorts rides sports betting wave
Four out of the five Full House Resorts properties took a hit this past quarter, but its CEO remains optimistic for the regional casino company.
CEO and President Dan Lee expects to see positive results as the Las Vegas-based company explores expansion opportunities and as legalized sports betting continues to spread across the U.S.
“We’re actually pretty lucky,” Lee said during a call to investors Thursday, pointing to two properties in states that either legalized sports betting recently or are expected to do so in the near future.
Full House operates five properties: two in Northern Nevada, one in Colorado, one in Mississippi and another in Indiana.
Indiana legalized sports betting in May, and voters in Colorado will vote on whether to allow sports betting in November.
The company’s Rising Star casino-resort in Rising Sun, Indiana, saw a 7 percent decline in revenue over the past year, which Lee attributed to road construction and one-time costs for new management.
He remained optimistic about the property’s on-site sportsbook, set to open this fall. At the Silver Slipper, located in Mississippi, sports wagering contributed $443,000 to operating income during the first half of the year from retail alone. It was the the only Full House property to report growth in cash flow, up 13 percent from the previous year.
“We think this (sports betting) could be pretty material to a small property,” Lee said.
In June, the Illinois Legislature passed a bill that will dramatically expand its gaming industry, in part allowing up to six new casinos. Full House has made a proposal for a property in the city of Waukegan, which sits about 35 miles north of downtown Chicago.
The American Place proposal includes a new casino-resort with 1,500 slot machines, 60 table games, a boutique hotel and a fountain that is “a different take on Bellagio’s fountains,” Lee said.
There are at least two other proposals the company will be competing against, according to Lee.
“We’d try to capture the high-end of all the gaming that’s done in Chicago,” Lee said. “It would be an important asset.”
Full House shares closed down $0.02, 1.15 percent, on Thursday to $1.72.
Contact Bailey Schulz at bschulz@reviewjournal.com or 702-383-0233. Follow @bailey_schulz on Twitter.
