The gaming and hospitality company Full House has welcomed an impressive surge in revenue, reporting a 47.6% growth for the fiscal year ending December 31, 2023, achieving revenues of $241.1 million. This substantial increase up from $163.3 million the previous year highlights the company’s significant expansion and operational success.
A major factor contributing to this remarkable growth was the opening of Full House’s American Place in Illinois. The establishment, a temporary facility at present, launched in February, marking one year since the company secured its state license. Already showing impressive performance, American Place hit a monthly gaming revenue high of $8.2 million in December and broke records again in February 2024. American Place, enjoying continued patronage and steady operational escalation, is poised to further enhance Full House’s income through 2024 and beyond.
As of now, American Place’s temporary operations are approved to continue until August 2027, but Full House has ambitious plans to launch a permanent venue that promises to elevate the company’s market standing further.
The tail end of 2023 also saw the debut of Full House’s Chamonix Casino Hotel nestled in the picturesque landscape of Colorado. December 27 marked its soft opening, welcoming guests to enjoy roughly 40% of its accommodations along with the casino and various meeting spaces. Although its late commencement meant a lesser impact on the annual results, the Chamonix Casino Hotel is expected to significantly contribute to Full House’s revenue streams in 2024, especially since the completion of its full suite of amenities is on the near horizon.
2023 was a year of growth on all fronts for Full House. The casino revenue, standing as its primary income stream, saw an increase of 55.3%, escalating to $176.9 million. The food and beverage sector also enjoyed a 28.3% hike in revenue, reaching $34.0 million, while hotel revenue modestly climbed by 4.4% to $9.4 million. Other operations, which encompass contracted sports wagering, also observed a 52.2% upswing to $20.7 million.
Full House’s Midwest & South operations spearheaded the surge, boasting a 60.4% increase to $192.4 million, with American Place contributing a significant $77.0 million. Despite the growth in many areas, West activities showed a marginal decline to $35.9 million, attributed to the loss of on-site parking and hotel rooms due to construction activities. Nevertheless, with Chamonix’s opening, Bronco Billy’s – another of Full House’s assets – is now reaping the benefits of the expansion, including the addition of the new parking structure and guest rooms.
The sports wagering segment also displayed remarkable progress, with a 78.1% increase in contracted sports betting revenue, amounting to $12.8 million. Full House attributed part of this expansion to the launching of sports skins and replacement operators in Illinois and Colorado, respectively, as well as adjusted agreements following other operators’ cessation of activities.
However, prosperity did come at a cost, with total operating expenses climbing by 60.8% to $242.2 million due to heightened expenditures across the board. The rise in administrative costs to $85.7 million reflected the company’s investment in growth and infrastructure. This, coupled with an interest expense of $23.0 million, led to a pre-tax loss of $23.8 million, widening from $14.8 million in the previous year. Despite these losses, adjusted EBITDA showed a positive light, with a 51.4% increase to $48.6 million, suggesting a strong underlying operational performance.
The fourth quarter alone bore witness to a 66.2% increase in revenue, totaling $60.0 million. Casino operations continued to secure the lion’s share at $45.3 million, with food and beverage, hotel, and contracted sports wagering revenue following suit. The Midwest & South regions, which include Silver Slipper Casino and Hotel and Rising Star Casino Resort, jumped 78.8% to $49.1 million, largely due to American Place’s debut, while the West sector experienced a 14.0% revenue rise to $8.6 million. The fourth quarter also experienced a significant boost in contracted sports betting revenue, which soared by 109.1% to $2.3 million.
Full House’s Q4 operating expenses mirrored the annual trend, rising by 65.9% to $65.2 million. After accounting for net interest and tax payments, the company concluded the quarter with a net loss of $12.5 million, higher than the previous year’s $7.0 million. Nevertheless, adjusted EBITDA soared by 87.2% to $7.3 million, underscoring Full House’s enduring potential and resilience in a competitive industry.
Looking ahead, Full House’s strategic expansion plans and recent venue openings lay a solid foundation for continued growth. As the company transitions through this dynamic phase, the gaming and hospitality market anticipates how these developments will shape Full House’s financial landscape in the years to come.
