Full House Resorts reported a 4.9% year-over-year increase in third-quarter revenue to $81.8 million, while announcing an $8 million cost-saving initiative at its underperforming Chamonix Casino Resort in Colorado as it targets a return to profitability in 2027.
The casino operator recorded a net loss of $8.6 million for the quarter. Cash flow edged down to $14.6 million from $14.8 million in the same period last year.
The company’s Midwest and Southern properties generated revenue of $62.1 million, up 6.4%, while divisional cash flow increased 18% to $13.6 million. Rising Star Casino in Indiana recorded a 10% revenue increase, while The Temporary at American Place in Waukegan delivered its strongest quarter to date.
CEO Dan Lee said American Place had recorded year-over-year revenue and profit growth in every quarter since opening in February 2023.
“We believe our temporary facility will continue to grow in the coming quarters, and we look forward to even greater contributions from our permanent American Place casino, which is expected to open approximately two years from now,” Lee said.
Western property revenue increased 1.2% to $18.2 million, but cash flow fell to $1 million from $3.2 million a year earlier. Wildfires in Colorado affected summer business at Chamonix, while renovations at the Grand Hyatt on Lake Tahoe disrupted operations at Grand Lodge Casino. The hotel renovation is expected to continue for another year.
Full House’s $8 million cost-saving initiative at Chamonix includes eliminating room service, bringing housekeeping and laundry services in-house, ending a steakhouse consulting agreement, and shifting marketing primarily to digital channels. The company has also reduced operating hours at its three restaurants and is converting casino cage positions into telephone service desks.
Company President Lewis Fanger said the changes were intended to improve the property’s financial performance. “It sets Chamonix up to offer positive, meaningful cash flow in 2027,” Fanger said.
The company expects to save up to $900,000 annually through changes to casino cage operations, another $600,000 by bringing laundry services in-house and $300,000 by ending the steakhouse consultancy.
Lee forecast that Chamonix could generate between $10 million and $20 million in profit in 2027. He acknowledged that revenue and market share were improving but remained below the company’s expectations.
The CEO also raised the possibility of selling the Colorado property, although he stressed that it was not currently for sale. Lee said Full House would consider an offer at the right price, potentially involving a loss of around $300 million.
“It would probably make sense to do that at some point,” Lee said, before adding, “It’s not for sale. Don’t anybody panic.”
Full House is also seeking to increase group business at Chamonix, which currently accounts for 1% of room nights. The company wants to move that figure closer to 10%, with Fanger saying an increase to at least 5% next year was probably achievable. Lee said the company was in discussions with major hotel chains to strengthen midweek business.
Meanwhile, Full House is preparing for the permanent American Place casino, which is expected to open in approximately two years. The project has $315 million in third-party financing and a $100 million line of credit, while a new bond is expected to replace the company’s existing one.
Lee said the company wanted to secure all financing before construction begins to avoid costly interruptions.
He added that the permanent casino would generate substantially more revenue than the temporary facility. Full House is currently concentrating on American Place and Chamonix and does not plan to pursue additional projects in the near future.
The company ended the third quarter with $30.7 million in cash and total debt of $475 million.