Here are 1-3 brief analogies to describe Full House Resorts (FLL):

• It's like a **regional, smaller-scale version of Caesars Entertainment or MGM Resorts.**
• Think of it as a **collection of independent, locally-focused casinos** under one umbrella, rather than a chain of mega-resorts like those operated by Wynn or Las Vegas Sands.

• Casino Gaming: Provides a variety of gambling opportunities, including slot machines and table games, as an entertainment and recreation service.
• Lodging: Offers hotel rooms and suites for overnight stays as a hospitality service.
• Food and Beverage: Operates restaurants, bars, and lounges on its properties as a hospitality and dining service.
• Entertainment: Hosts live shows, concerts, and other leisure activities as an entertainment service.
• Meetings & Events: Provides venues and services for conferences, banquets, and special occasions as an event hosting and hospitality service.

Full House Resorts (FLL)

Full House Resorts (FLL) sells primarily to individuals rather than other companies. Its major customer categories include:

• Gaming Enthusiasts and Leisure Travelers: Individuals visiting Full House Resorts' properties for casino gaming, hotel stays, dining, and entertainment as part of a vacation or leisure trip. This category includes both tourists and regional visitors seeking a comprehensive resort experience.
• Local Patrons: Residents living near the company's various properties who frequent the casinos and amenities for regular entertainment, dining, and gaming activities, often on a day-trip basis without overnight stays.
• Conference and Event Attendees: Individuals participating in corporate meetings, conventions, special events, or group gatherings hosted at Full House Resorts' venues, utilizing their event spaces, accommodation, and hospitality services.

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1. High Leverage and Financial Instability: Full House Resorts carries a significant level of debt, reflected in a high leverage ratio (e.g., 9.9x) and an Altman Z-score in the "Distress Zone" (e.g., 0.31), which indicates a possibility of bankruptcy within two years. This financial burden can limit the company's flexibility to invest in growth opportunities, manage revenue downturns, and increases vulnerability to interest rate fluctuations.
2. Operational Challenges and Project Underperformance: The company faces risks related to the slower-than-expected ramp-up and underperformance of new properties, such as the Chamonix Casino Hotel. This has led to downward revisions in EBITDA estimates, significantly impacting near-term financial performance and overall stability. There is no assurance that growth projects will be successful or meet consumer demand expectations.
3. Intense Industry Competition and Regulatory Risks: The gaming and hospitality industry is highly competitive, with Full House Resorts competing against numerous other casinos, hotels, and entertainment venues. Increased competition could lead to reduced revenues and profitability. Additionally, the gaming industry is heavily regulated, and changes in regulations could significantly impact operations and financial results.

The continued and expanding legalization and adoption of online gaming (iGaming and sports betting) poses a clear emerging threat. While Full House Resorts has made inroads into online sports betting through partnerships in certain markets, the proliferation of online casino games and sports wagering provides a direct alternative to visiting their physical casino properties. This trend could increasingly cannibalize revenue and customer traffic from their land-based operations, shifting consumer preferences towards more convenient digital platforms rather than physical visits, a dynamic acknowledged by the company itself in its public filings as a potential adverse effect on its business.

Full House Resorts (FLL) operates primarily in the casino gaming and hospitality sector across several U.S. states. The addressable markets for their main products and services, specifically casino gaming, are as follows:

• United States: The U.S. casino gaming market size is estimated to grow by USD 9.5 billion, accelerating at a CAGR of 3.22% between 2023 and 2028. Commercial gaming revenue in the U.S. reached a record $66.5 billion in 2023. The global casino market size was valued at USD 308.52 billion in 2024 and is projected to grow to USD 542.41 billion by 2033, with North America dominating the market.
• Illinois: Illinois' 17 land-based casinos generated over $167.5 million in gross gaming revenue in July 2025. In 2024, Illinois was home to 16 licensed casinos and generated over $1.76 billion in combined gaming tax revenues from casinos, video gaming, and sports wagering. The greater Chicagoland market, which includes northwest Indiana casinos, had estimated current casino revenues of $1.8 billion, with a saturation potential between $3.8 billion and $5.7 billion.
• Mississippi: Mississippi's 26 commercial casinos generated $215.5 million in revenue in August 2025. The Coastal region of Mississippi, where Full House Resorts has a property, consistently leads in revenue, with $142.3 million in August 2025.
• Indiana: Total statewide commercial casino gaming revenue in Indiana was $2.94 billion in 2024. For the 12-month period ending July 2025, commercial casinos in Indiana generated $3 billion in adjusted gross receipts. In August 2025, casino revenue in Indiana increased to $204.2 million.
• Nevada: Total statewide commercial casino gaming revenue in Nevada reached a record $15.61 billion in 2024. Clark County casinos, including the Las Vegas Strip, accounted for a significant portion of this, with the Las Vegas Strip reporting $8.62 billion in total gaming revenue in 2024. In January 2025, Nevada's casinos generated $1.44 billion in gaming win.
• Colorado: Colorado's land-based gaming market generated record adjusted gross proceeds of $1.11 billion during the 2025 fiscal year. In August 2025, Colorado's three gaming regions (Black Hawk, Central City, and Cripple Creek) generated $103.8 million in revenue. Cripple Creek, where Full House Resorts operates, recorded $18.1 million in August 2025.

1. Continued Ramp-Up and Development of American Place: Full House Resorts anticipates significant revenue growth from its American Place property in Illinois. The temporary American Place Casino has been performing strongly, achieving record revenue and profitability, with revenues increasing by 14% to $32 million in the third quarter of 2025. The company has also noted a consistent pace of new customer sign-ups, growing its database to over 115,000 people. Looking ahead, the much larger permanent American Place facility is projected to significantly increase revenue, with management expressing high conviction that the permanent facility could generate $100 million in EBITDA annually, double the potential run rate of the temporary casino. The project for the permanent facility has received unanimous site approval from the Waukegan City Council, and its budget has been refined.

2. Operational Improvements and Maturation of Chamonix Casino Hotel: The Chamonix Casino Hotel in Cripple Creek, Colorado, is another key driver as it continues through its ramp-up phase. The property demonstrated notable improvement, with revenues increasing by more than 7% and adjusted property EBITDA rising to a positive $2.1 million in the third quarter of 2025, up from a negative $0.7 million in the prior year. Particularly strong growth was seen in table game revenues, which increased by 53% year-over-year and 296% compared to the third quarter of 2023, driven by a focus on higher-tier players. Slot revenues also saw increases of 6% and 161% over the same periods.

3. Enhanced Performance and Operational Improvements at Silver Slipper Casino and Hotel: Full House Resorts expects growth from operational improvements at its Silver Slipper Casino and Hotel in Mississippi. The company's first-quarter 2025 results for the Midwest & South segment, which includes Silver Slipper, reflected operational improvements at this property. Management has also indicated a focus on increasing Silver Slipper's performance, with aspirations to grow its EBITDA.

4. Focus on Efficiency and Customer Base Expansion Across Properties: Beyond specific property developments, Full House Resorts is concentrating on company-wide cost reductions, efficiency improvements, and expanding its customer base and market reach. These strategic measures, including implemented cost-cutting initiatives, are aimed at enhancing overall profitability and can indirectly contribute to revenue growth by improving competitiveness and reinvestment capabilities across its portfolio.

Share Issuance

• Full House Resorts experienced a notable increase in its outstanding shares, with a 26.25% rise in 2021, from 27.11 million to 34.23 million shares.
• The number of shares outstanding continued to increase in subsequent years, reaching 34.4 million in 2022, 34.58 million in 2023, 35.6 million in 2024, and 36.055 million by October 2025.

Capital Expenditures

• The company invested approximately $250 million in the construction of the Chamonix Casino Hotel in Cripple Creek, Colorado, which became fully operational in late December 2023.
• Capital expenditures in 2021 amounted to $37.2 million, primarily allocated to the construction of Chamonix, real estate acquisitions in Cripple Creek, and repairs at Silver Slipper due to hurricane damage.
• Full House Resorts is developing the permanent American Place facility in Waukegan, Illinois, with a reduced budget of $302 million (excluding capitalized interest), and expects to commence construction as early as the second half of 2025, targeting financing by Q1 2026. The temporary American Place facility opened in February 2023.