US casino operator Full House Resorts reported a 33.8% year-to-year jump in revenue during its second-quarter earnings call.
The company also noted that a full quarter of activity at its newest Illinois casino contributed to group revenue growth.
2023 Full House Q2 financials
Second-quarter highlights included $59.4 million in revenue, up 33.8% from the prior-year period. Net loss for Q2 was $5.6 million, or $0.16 per share, while adjusted EBITDA was $10.5 million.
- Sports betting revenue/adjusted EBITDA: $1.4 million
- Midwest & South revenue: $49.9 million
- West revenue: $8.1 million
In a statement, Full House President and CEO Daniel Lee said:
“The Temporary by American Place completed its first full quarter of operations, recording $20.3m in revenue and $4.1m in adjusted property EBITDA.”
The company’s Chicagoland property opened in February, contributing revenue to its Midwest and South segments, which was $49.9 million overall. The Midwest/South segments include the Silver Slipper Casino and Hotel (Mississippi) and Rising Star Casino Resort (Indiana).
“The trends at The Temporary are similar to those of many other successful casinos. The number of visitors surged at opening in mid-February and then, after a short lull, has grown steadily since April. Meanwhile, its win per admission, while still less than more-established casinos in Illinois, has grown steadily since opening, as regular players replace people who were more tourists than gamblers.”
Second-quarter financials followed a positive first quarter when Full House saw a 21% year-over-year revenue jump.
New Illinois casino came with several hurdles
According to Lee, the opening of The Temporary came with several challenges.
“Our expenses relative to revenues have been higher than we expect them to be at ‘maturity,’ reflecting primarily our costs to train new personnel, especially dealers, and additional advertising and marketing costs,” he said.
Lee noted that recruitment costs were high due to a shortage of table game dealers and that it was only operating 30 of the 48 table games on the casino floor.
“We continue to operate our own dealer school, where potential dealers are paid during their several weeks of training, which affects margins and profitability, but is necessary to reach the property’s potential.”