Full House Resorts Q4 2025 Earnings Call - American Place momentum, financing close and permanent build next

Operator: Welcome to the Full House Resorts fourth quarter and full year 2025 earnings call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. It is now my pleasure to introduce your host, Adam Campbell. Thank you. You may begin.

Lewis Fanger, President and Chief Financial Officer, Full House Resorts: Thank you, good afternoon, everyone. Welcome to our fourth quarter earnings call. As always, before we begin, we remind you that today’s conference call may contain forward-looking statements that we’re making under the Safe Harbor provision of federal security laws. I would also like to remind you that the company’s actual results could differ materially from the anticipated results in these forward-looking statements. Please see today’s press release under the caption Forward-looking Statements for the discussion of risks that may affect our results. Also, we may make reference to non-GAAP measures such as adjusted EBITDA. For reconciliation of those measures, please see our website as well as previous press releases that we issue. Lastly, we are also broadcasting this conference at fullhouseresorts.com, where you can find today’s earnings release as well as our SEC filings. With that said, we’re ready to go, Lewis.

Good afternoon, everyone. It was a very good fourth quarter, the comparisons versus last year aren’t very straightforward. We’ll take you through those really quick. Revenues rose to $75.4 million, up from $73 million in the fourth quarter of 2024. Keep in mind that the fourth quarter of 2024 included one and a half million dollars of revenue from Stockman’s, which was sold in April of 2025. Revenue growth on an apples-to-apples basis was 5.6%. Adjusted EBITDA in the fourth quarter of 2025 rose to $10.7 million. Adjusted EBITDA for the fourth quarter of 2024 was $10.4 million.

That included quite a bit of noise, including the benefit of a $1.2 million recovery settlement and the reversal of about half a million dollars of accruals at corporate. Those two figures increased the fourth quarter of 2024 IS adjusted EBITDA by $1.7 million. Backing those two items out of the prior year’s fourth quarter, the increase was about 23%. At American Place, our temporary casino continues to show significant growth. Revenues increased by 11% to $32 million in the fourth quarter of 2025. Adjusted property EBITDA rose 29% to $8.7 million. For the full year, revenues and adjusted property EBITDA rose to $124 million and $34.3 million, increases of 13% and 17% respectively.

Interestingly, the pace of growth actually increased as the year progressed. We fully expect adjusted EBITDA at American Place to continue to climb in 2026, the year is off to a good start. We have long said that the temporary American Place facility on its own should eventually be able to achieve about $50 million of run rate EBITDA, that its much larger permanent facility should be able to earn double that amount or about $100 million. We continue to believe that our market remains under-penetrated. Some quick facts. Our permanent casino will not only be nicer, but in terms of square footage, it will be about twice the size of our temporary. We are the closest casino to more than 1 million people. We are located in one of the wealthiest counties in the entire country.

Our closest casino competitor is 45 minutes to the south, and they make half a billion dollars a year in gaming revenue. Our second closest casino competitor is about an hour to the north, and they make more than $400 million a year in gaming revenue. We’re sandwiched not just midway between those two very successful casinos, but also between two of the major north-south traffic arteries in northern Chicagoland. Those facts, combined with our three years of operating experience in the market, are what give us so much conviction in what we think American Place can achieve in the long term. Turning to Chaminade, for the first time in recent memory, we have a fully formed management team.

That began with a new general manager in March of 2025, new directors of marketing and group sales in July and August of 2025, the promotion of a talented pastry chef to lead the food and beverage department in January of 2026, a new finance director last month, and a new assistant general manager this week. Here’s an interesting stat to look at. If you look at just the second half of 2025 under the new management team and compare it to the second half of 2024, revenues increased by $1.2 million or about 5%. Adjusted property EBITDA in those six months jumped by $4.2 million. The new team is making great strides. We believe our Colorado operations will be a significant positive contributor to adjusted EBITDA in 2026.

Specifically, for the fourth quarter of 2025, we had a small adjusted property EBITDA loss in the seasonally weaker winter season, but that was a significant improvement versus the much larger loss in the fourth quarter of 2024. After several quarters focusing on the cost side, the new team has redoubled its marketing and awareness efforts. If you look at any of our marketing collateral, it has been completely re-energized after transitioning to a new marketing agency during the fourth quarter of 2025. In January and February of 2026, we had a modest amount of construction disruption as we replaced the carpet and installed new ceilings in Bronco Billy’s. The incremental spend was extremely modest in the low $6 figures, but the result was outsized. It used to be quite jarring to walk from Chaminade into the Bronco Billy’s Casino.

Today, while Chaminade is certainly more elevated, the two casinos now complement each other quite nicely. We also just opened our Mexican restaurant at Bronco Billy’s with an inspired new menu as we prepare to head into the busy summer season. Looking at our database, we’ve been especially focused on driving loyalty and growth in the top two segments of our database. For the first two months of 2026, our top segment has seen unique guest counts increase by almost 20%, and the total number of visits from that segment is up 36%. For the segment under that, unique guests are up 12% and total visits are up 24%. Awareness is expanding and loyalty is expanding, which both bode well in our efforts to continue growing revenue and improve profitability. Regarding our group business at Chaminade, that continues to pick up steam.

At this point, we have a couple thousand room nights on the books with a couple thousand more that are close to commitment or with decent prospects. As we mentioned last quarter, our ideal group size is between 100 and 150 attendees. Within 500 miles of us, we estimate that there are up to 4,000 conferences that fit that profile. Groups of this size tend to book years ahead of time. When we have a fully ramped group business in a couple years, we think it will consist of about 55 events per year or about one per week. That is the key to improving our midweek occupancy. Among our smaller properties, Silver Slipper and Rising Star declined slightly for the quarter.

Similar to Chaminade, we’ve upgraded most of the management team at Silver Slipper, and they are gearing up for growth in 2026. Grand Lodge, which is a pretty small part of the company at this point, continues to be adversely affected by renovation disruption at the Hyatt Regency Lake Tahoe that houses our casino. The Hyatt Resort will be beautiful when that renovation is complete, but in the meantime, we’re trying to manage through the disruption. That includes proactive efforts to find new casino guests in advance of completion of the renovated amenities in 2027. On the balance sheet side, we had about $51 million of liquidity at the end of the quarter, including the undrawn portion of our revolver, and we’re about to enter that part of the year where we generate meaningful cash flow.

We amended our revolving credit facility a few days ago. That was a simple amendment to extend the maturity date of our revolver to August 15, 2027. We’ve said this several times, but our Illinois operations alone pay for the interest expense on our current debt. Of course, Illinois continues to ramp as does Colorado. An update on our continuing progress for our permanent American Place Casino. In real time, our architects are putting the finishing touches on our foundation drawings. Those drawings should be done imminently. With those drawings in hand, we’ll be able to officially break ground on the casino’s foundations. We expect that to occur sometime in the coming weeks. The foundation work does not take a lot of money, but it does take several months to complete.

By getting it done now, we can accelerate our timeline to construct the permanent facility. Meanwhile, we are making good progress with respect to the financing of the American Place facility. We have received several proposals for the construction of the permanent facility at attractive rates, including proposals that fully fund its construction without the issuance of equity. We’re not quite able to provide details just yet, but we hope to do so in the next several weeks. As we’ve noted previously, we are currently allowed to operate our temporary casino until August of 2027. In conjunction with our anticipated financing, a bill was recently introduced into the Illinois legislature to extend that operations date by 18 months. Typically, items in the legislature don’t get voted on until the end of the session, so we expect it to pass in April or May.

Passage of the bill will allow us to transition smoothly from the temporary casino in 2018 to 2020. Bally’s has a similar bill in front of the legislature for the same reason. I covered a lot there, Dan. What’d I forget?

Dan Lee, Chief Executive Officer, Full House Resorts: Get it all, and we’ll get to questions. If we forgot something, it’ll almost certainly come out in the questions.

Lewis Fanger, President and Chief Financial Officer, Full House Resorts: Very true.

Operator: Thank you. We will now be conducting a question-and-answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two to remove yourself from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. One moment please while we pull for questions. Our first question comes from the line of Ryan Sigdahl with Craig-Hallum Capital Group. Please proceed with your question.

Ryan Sigdahl, Analyst, Craig-Hallum Capital Group: Hey, Dan, Lewis. Nice job and good to see the results in Waukegan. Wanna start with Chaminade, though, for the first question. Appreciate the improvement kind of on a full year basis, especially on the cost side. If I look at revenue, 19% growth in the first half of the year-over-year, 7% in Q3, 2% in Q4, flip to a loss. I get the seasonal aspect of that, but I guess just walk through, I guess, what’s going on there specifically, just given kind of the decel from a trend standpoint and considering it’s still, you know, very subscale or early stage in its maturity. Thanks.

Dan Lee, Chief Executive Officer, Full House Resorts: Well, Ryan, if you recall last year when we reported the third quarter, we pretty bluntly said we had run some marketing programs in, I think it was principally September of 2024, which were non-economical. In other words, we induced people to come down, gave them free rooms, and then they didn’t gamble. It actually cost us at the bottom line quite a bit, but it did puff up the top line. In the fourth quarter, we had a big grand opening party. It was a very expensive party to have. We had Jay Leno, et cetera. I remember looking around and realizing that the people who were there were the same people we’d always had when it was a golden opportunity to try to get new customers and people down from Denver and so on.

It was about that time I realized that we had the wrong management team and we had to make a bunch of changes. We have now. The prior year numbers were kind of artificially inflated by inefficient marketing in those two quarters. Now we have a new advertising agency. We have a chief marketing officer here. We have new marketing people at the property. You know, they’ve been getting organized and all that stuff is coming into play now, and Lewis gave you some of those numbers. I think you’ll see revenue growth pick up going forward. The reason it looks like such a small year-over-year growth was the promotional stuff we did last year that kind of boosted revenue, but not income.

Ryan Sigdahl, Analyst, Craig-Hallum Capital Group: Quick follow-up on that, and then I do have another question. Have you seen any re-acceleration thus far in Q1 of 2026?

Dan Lee, Chief Executive Officer, Full House Resorts: We have, with the caveat that it was pretty torn up back in January. We renovated the west part of Bronco Billy’s and putting down the carpet and ceilings. Frankly, I was surprised it didn’t have more disruption than it did, ’cause we are showing better revenue numbers. I think if we hadn’t had that disruption, we’d be doing even better than that. I mean, at the end of the day, you know, this is one of those where you open it’s not performing as well as you thought it would, and you start looking at it and saying, "Well, first, did we make a mistake?" You know, I’ve gone back several times now and gone through the numbers again of how many people live in Colorado Springs and Denver and competition and everything else.

I’m absolutely convinced we did not make a mistake. In fact, I can underline that by the fact that Monarch’s EBITDA for the year was $199 million. Now, they only have two casinos. They don’t break out the one from the other. The smaller one, which is in Reno, you know, made $40 million-$50 million a year for a long time before they opened in Black Hawk. So Black Hawk’s only been around three years, I think, in their portfolio. So, you know, they must be making significantly north of $100 million a year in Black Hawk. It’s a good property, and frankly, they’re a well-managed company, and they opened it far more smoothly than we did.

I look at it and I say, "Well, they’re there with 500 rooms. We’re equivalent in quality. We have 300 rooms. There are aspects of ours that are nicer than theirs." Now they are an hour from Denver. We’re an hour from Colorado Springs. From southern Denver, we’re about equal distance. They also have significant competitors there. I mean, they not only make a lot of money, but so does Ameristar, the Horseshoe, and The Lodge, and then there’s a bunch of smaller ones. There’s a lot less competition in Cripple Creek, the competitors are not anywhere near as good as the quality of ours. I think we are in the right place. I think we’ve built the right product.

I think fixing up Bronco Billy’s makes it quite a bit nicer. We didn’t spend a whole lot of money, but it really made a pretty big difference just changing the carpet and putting in a drop ceiling. Now we have the right management team all put together and there’s a lot of blocking and tackling that we need to do. I mean, there’s simple stuff like the housekeeping department there cleans 9 rooms a day. At our other properties, they clean 14 rooms a day. 9 rooms a day is pretty ridiculous. We have a new assistant GM who has a strong background in hospitality, and that’s one of the first tasks he’ll try to figure out.

We do it through an outside company, and we probably need to adjust that. That factors in all the way down because if you’re only cleaning 9 rooms a day, the cost to turn a room is like $50 or $60 when it should be $30 or $35. In other words, the cost of renting a room that would otherwise sit empty when I say the cost of turning a room. That factors into who you’re willing to comp a room for. If we can get the cost of turning the room down, then we can be a little more generous with who we comp rooms for. There’s a lot of blocking and tackling, which we are doing. We had a Mexican restaurant, for example, that had terrible food, to be honest.

It’s been closed for about six months. We promoted a very talented chef to be the food and beverage manager, and it was kind of funny to persuade him to take the job because he was hesitant. He came back and said, "Well, I really wanna promote some people and then get rid of some deadwood." I said, "Well, that’s exactly why I want you to take the job. I too wanna promote good people and get rid of deadwood." He stepped up, the quality of the food in the reopened Mexican restaurant is 10 times what it used to be. It was just last weekend it opened. You know, that’s important going into the summer.

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At American Place, we are in the middle of 1 million people. They drive by us all the time, but we’re in a sprung structure. It looks like we’re the Department of Motor Vehicles store salt for the winter. I mean, it has absolutely no curb appeal, but a lot of people driving by. If you go up to Colorado Springs, we have fantastic curb appeal. The building looks fantastic, but nobody’s just driving by. We have to persuade people from Colorado Springs to drive up there, it’s just under 1 hour, but to come up and see it. Once they do come up and see it, we get very good repeat visitation and that’s how you build the business, but it doesn’t happen overnight.

David Bain, Analyst, Texas Capital Bank: I mean, the most promising thing that we’re seeing behind the scenes is that those upper segments, which, you know, this property was built for, and when I say upper segments, I don’t mean someone that’s gambling $10,000 a day. I’m talking about someone that might go in and gamble a couple hundred dollars a day. That is a very ripe customer that’s in abundance, that is our biggest group. It’s a customer that’s finding the building now for the first time. You know, and as I kind of hinted at or said, actually, I didn’t hint at in my, in my opening comments, that group is where we’re seeing pretty significant growth and loyalty.

Dan Lee, Chief Executive Officer, Full House Resorts: Yeah.

Ryan Sigdahl, Analyst, Craig-Hallum Capital Group: Very good.

Dan Lee, Chief Executive Officer, Full House Resorts: In my experience, I remember Beau Rivage in Mississippi opened slowly. We went through the same sort of things, and then eventually it found its stride, and it’s led Mississippi now for 20 years. Similar on, in Las Vegas, Luxor opened slowly and then found its stride, and it’s been very successful for a long time now and so on. You know, thinking back, there’s things we should have been smarter about. We should have hired a sales while we were under construction. We didn’t, but we’re fixing those things now, so.

Ryan Sigdahl, Analyst, Craig-Hallum Capital Group: Well worth the visit. I can personally attest to that. For my second question, and then maybe I’ll try and ask this in a shorter way. Indiana bill, it originally included a fair value payment to you guys if you were not the winning bid for the relocation. Now it appears like it’s just a new license that you can apply for. Just give us an update there on the future of Rising Sun if you guys are interested, kind of under the current structure. Thanks.

Dan Lee, Chief Executive Officer, Full House Resorts: Listen, this is a long process and a rapidly evolving one. I mean, that bill get changed many times in the last week that it was in the legislature. We’ll continue to watch it and see. We make money in Rising Sun, we always have. Not a lot of money, but we make money. You know, we’re the ones who said to the state, we think the state would be much better off if it relocated to an urban center. You know, when they legalized casinos along the Ohio River, you didn’t have casinos in Ohio and Kentucky, and you do now. The original locations where they legalized were the wrong locations.

The independent study that the legislature called for that was done underneath the Gaming Commission said exactly that there would be significantly higher revenues to the state with a casino in Indianapolis and in Fort Wayne. Now they chose to widen it out. It’s not just Fort Wayne, it’s three different counties. They’re all gonna have a referendum in November. I think it’s gonna be a challenging referendum because the way they did it, there’s three different counties are gonna have a referendum. Let’s say all three pass it, then the Gaming Commission is supposed to choose from the three and then run a process to figure out a developer. You actually have like it would be problematic for us or anyone else to try to fund the pro side of any county.

Yet there’s very clearly well-funded opposition. Just look at the website, savefw.com. It’s clearly well-funded by somebody, and I’m guessing it’s an Indian tribe in southern Michigan or something along those lines, somebody who might be hurt by this. You’re gonna have 3 referendums where the opposition is probably well-funded, and the pro side probably isn’t. Will it pass or not? I don’t know. I think normally these things do pass because it produces jobs and tax revenues and so on. The way the legislature has set this up, and I think it’s inadvertent, but I think the way they’ve set it up, those are gonna be very challenging referendums. We will watch the process and see what happens. Legislature meets again next year. We know where it meets.

Meanwhile, we continue to make rising money in Rising Sun, and we will continue that are good for our shareholders as well as good for the state. That’s about it.

Ryan Sigdahl, Analyst, Craig-Hallum Capital Group: Thanks, Dan. Good luck, guys.

Dan Lee, Chief Executive Officer, Full House Resorts: Yep.

Operator: Thank you. Our next question comes from the line of David Bain with Texas Capital Bank. Please proceed with your questions.

David Bain, Analyst, Texas Capital Bank: Great. Thanks so much. First, congratulations on the progress on the American Place financing. I understand you’re not giving a ton of detail, but one, I think you reiterated no equity will be sold, and I’m sure you looked at multiple options from whatever asset sales to high yield to REITs, as the financing environment evolved. You know, if you could help us process, you know, that, you know, balancing, you know, your thoughts, as you went through that process, that could be very helpful for us. Then does that financing come in tandem or include the refinancing or extension of the existing debt?

Dan Lee, Chief Executive Officer, Full House Resorts: David, as I’m sure you’ll appreciate, you know, when you’re going through one of these processes, you reach out for a lot of people, and you find people who are most interested in working with us. Then there’s a point where you say, "Okay, fine. We want you to invest in the due diligence to start working on the legal documents, and we will keep it confidential." I would argue that’s about where we are. Until we have a real deal to announce, I really can’t go into any of the details. We are pretty comfortable that we are going to have a deal that will allow us to be open there in 2 years.

We’ve always said that we’re not going to issue equity, at anywhere close to these prices, and we’re confident that we can get there. Any further than that, I can’t tell you yet. I wish I could, David.

David Bain, Analyst, Texas Capital Bank: Awesome. Okay. Understood.

Dan Lee, Chief Executive Officer, Full House Resorts: Okay. Obviously, it’s an all-encompassing. I mean, It does involve refinancing the existing bonds.

Lewis Fanger, President and Chief Financial Officer, Full House Resorts: Yeah. We’re looking at an all-encompassing solution. I think the only thing to add to what Dan said is, again, not only no equity, but also we view the financing cost as attractive as well. I We’re excited to give you more details. I just wish I wish we could, just can’t quite yet.

Dan Lee, Chief Executive Officer, Full House Resorts: Yeah. Attractive, I think I would say acceptable.

Lewis Fanger, President and Chief Financial Officer, Full House Resorts: Okay.

Dan Lee, Chief Executive Officer, Full House Resorts: Attractive would be 5%. We’re not 5%. Right.

Lewis Fanger, President and Chief Financial Officer, Full House Resorts: Okay.

Dan Lee, Chief Executive Officer, Full House Resorts: It’s also not 15. I think it’s acceptable. Just on refinancing the existing bonds, they mature in 2027.

Lewis Fanger, President and Chief Financial Officer, Full House Resorts: Twenty-eight.

Dan Lee, Chief Executive Officer, Full House Resorts: February 28. They become a current liability on February 27, so you pretty much have to refinance them. I think anybody would look at it and say, "Of course, you have to do that." We’ve had some really good proposals, and we’ve kind of zeroed in on one formula that we think works, and we’re trying to nail that down. So.

David Bain, Analyst, Texas Capital Bank: Awesome. Well, congrats on that. I guess my other question, I gotta keep you here. I guess I would go with, the Chaminade. You know, you gave some encouraging data points on penetration. I think the last call you mentioned 15% of Colorado Springs, visits Colorado or Cripple Creek once a year. Something you intended to tackle, it sounds like the biggest feeder lever. You know, if you could speak to some of the progress specific to the penetration of that market. I know you have a marketing group, but anything, whether it be buses or new forms of advertising and any, you know, thing that we can look for in terms of, impact that’s, been fruitful so far would be helpful.

Dan Lee, Chief Executive Officer, Full House Resorts: Yeah. Well, you mentioned buses. We’ve looked at buses. We’ve looked at working with the one company that’s in Cripple Creek. We’ve looked at looking, working with other bus companies. We’ve even looked at buying our own buses. At the end of the day, that’s not one of the bigger levers. Most people drive themselves, and that’s true even in the markets like Atlantic City, that traditionally has had a lot of busing. The bus customers still drive themselves. It’s a very complicated algorithm because at the same time we’re trying to figure out how to attack these different markets, the whole world of advertising is changing, right? Like, you know, far more people watch TV shows now through YouTube than on the networks.

Ultimately that’s good because we can target it. Like, we don’t have to be buying ads for all of the Denver metropolitan area. We can target those who live on the south side, which is closer to us. We’re much less likely to get somebody from Fort Collins because they’re quite a bit closer to Black Hawk than to us. Castle Rock is pretty much equal distance. It’s about targeting the people in Castle Rock. If you can go further and target those people who might have a proclivity to gamble. We’re getting. You know, we’ve hired a bunch of good people who have experience in this at a new advertising agency that has experience in this to try to make our dollars be most efficient in different markets.

In Colorado Springs, you know, you can be in more general advertising, right? Anybody in Colorado Springs is a potential customer. Whereas in Denver, if you bought a Denver-wide ad, probably the people who live on the north side of Denver, half the people whose eyeballs you’re paying for are less, a lot not likely to come to us. Whereas in Colorado Springs, everybody’s a potential customer. There’s a lot of that parsing and trying to understand it and even, like, trying to reduce direct mail we send and trying to do more emails ’cause it’s so much more cost-effective. Like, we don’t send any direct mail anymore out of American Place, and we wanna get to that point in Chaminade.

David, honestly, I’ve got a chief marketing guy.

David Bain, Analyst, Texas Capital Bank: Mm-hmm.

Dan Lee, Chief Executive Officer, Full House Resorts: Spend all afternoon answering this question for you.

David Bain, Analyst, Texas Capital Bank: Right.

Dan Lee, Chief Executive Officer, Full House Resorts: I guess from our point of view, it’s like we’ve hired people who we think are very competent in this area, and they are working on it full time, and we’re seeing some results, and we’re confident we’re gonna get there.

Lewis Fanger, President and Chief Financial Officer, Full House Resorts: Yeah. I mean, look, the penetration in Colorado Springs is creeping up. The percentage coming out of Denver is still an extremely high number. Ultimately, I think those are, you know, that’s a good setup because I think as more and more people that are closer to us experience our brand, we’re finding out they’re enjoying it. To have the reach as far as Denver was never in the original model. It was always viewed as overflow. To the extent that that number continues to flourish, it’s all to the better as well. We’re set up well.

Dan Lee, Chief Executive Officer, Full House Resorts: There’s some other little blocking and tackling. Like, you know, Cripple Creek is in the middle of some of the best fly fishing in the world. I mean, there’s fantastic fly fishing around it. There’s fly fishing guides and fly fishing camps and everything. It’s like, okay, we need to have a high roller weekend where everybody gets to go fly fishing, and we have a fly fishing tournament, and people will gamble in the evening. I mean, the same way the hotels in Las Vegas have golf tournaments. The fly fishing around Las Vegas isn’t so good, so you have golf tournaments, right? There’s no golf course in Cripple Creek, so we can have fly fishing tournaments, right? There’s a lot of stuff like that that we’re looking at.

Frankly, you know, for a fly fishing tournament in, say, you know, July, we can get gamblers to fly in from Texas for that. I mean, there are nonstop flights from Dallas and Houston into Colorado Springs. It’s a pretty easy trip, actually. For the right high roller, now we have to find the high roller in Dallas who likes to fly fish, but there are ways to find those people.

Jordan Bender, Analyst, Citizens: Very good. All right. Thanks, guys.

Operator: Thank you. Our next question comes from the line of Jordan Bender with Citizens. Please proceed with your question.

Jordan Bender, Analyst, Citizens: Everyone, afternoon. Louis, I think you kind of characterized Chaminade as it was, you know, the investment thesis there was to focus more on the higher end customer, the luxury customer. Is there a point maybe this year where if you’re not starting to see the revenue start to tick up, that you could start to shift some of your focus into that middle or lower end, you know, given that the cost structure is fully baked?

Lewis Fanger, President and Chief Financial Officer, Full House Resorts: Apologies. I didn’t mean for you to think that we’re not focused on the other tiers. We certainly are. You know, I’m looking at my list for January and February, I’ll tell you, we have meaningful growth across every segment. The most growth is in that top tier, but down the line, we’re seeing pretty meaningful growth.

Jordan Bender, Analyst, Citizens: Okay.

Lewis Fanger, President and Chief Financial Officer, Full House Resorts: It’s. If you think of the, if you think of the product that we have, it’s certainly, if you bring a upper tier customer into town, they are extremely likely to go to us and only us. If you bring in a lower tier customer, you have the potential and likelihood of sharing that customer around another place or two. You know, all things to keep in mind. Ultimately, we’ve got half of the room product in town, and so long as we see people adding to the bottom line, you know, we will market to them.

You know, what naturally happens in these processes is kind of, you know, year one, year two, you focus on getting customers in general and finding customers that are additive to the bottom line. You know, fast-forward a year after that, then you start cycling, and you say, "All right, this customer used to get a Friday, free Friday room. Now he does not. Now we’ve got more customers in the database. We know what people spend. That person doesn’t warrant the Friday room, but they might get a Wednesday room." You know, then a year after that, you continue to cycle that database and just optimize it. We’re early in the optimization process, and we’re kind of taking people up and down the line.

Jordan Bender, Analyst, Citizens: Perfect. Just switching to Silver Slipper. It’s a property that I guess we don’t really talk about all that much on these calls anymore. Just curious how you view maybe the 2026 outlook there, and then just in general, how does that property maybe fit into the overall portfolio as we move forward?

Dan Lee, Chief Executive Officer, Full House Resorts: Well, in year-over-year, the EBITDA there was about. It was off a little bit, almost flat. It was at the. In 24, it was a bit above 12, and then 25, it was a bit below 12. It should be in the high teens. I mean, if you look at the margins, you know, it did $70 million of revenue. If you take $70 million and apply a normal regional gaming margin, you’d be in the high teens, maybe even the low twenties. We’ve made quite a few management changes there as well, including a new GM, a new food and beverage manager, a new table games manager, new HR director, new finance director.

You know, whereas it had had the same management team since it opened 15 years ago. We’ve made a lot of changes in the, in the past year, and the intent is to get it up to the sort of income it should be having. Now, we’re not ignoring revenue either, but this is a pretty saturated market. The people in this part of the country gamble more per capita than most areas, and it’s not a particularly wealthy region. I think the upside will be being more efficient on stuff, and we’ll get some revenue upside as well. It’s a good property. It’s kind of a cash cow for us, but it’s a cash cow that should make a little more money than it’s making.

I think we’ll get there in 2026.

Lewis Fanger, President and Chief Financial Officer, Full House Resorts: Not to the high teens in 2026, but I think.

Dan Lee, Chief Executive Officer, Full House Resorts: Well, I’d be disappointed if we don’t get to 15.

Lewis Fanger, President and Chief Financial Officer, Full House Resorts: Yeah.

Dan Lee, Chief Executive Officer, Full House Resorts: That’s not 19.

Lewis Fanger, President and Chief Financial Officer, Full House Resorts: Yeah.

Dan Lee, Chief Executive Officer, Full House Resorts: 19 is not out of the question when you look at what you should be bringing to the bottom line with $70 million of revenue and in a state where the gaming taxes aren’t particularly high.

Lewis Fanger, President and Chief Financial Officer, Full House Resorts: We’re on the same page.

Dan Lee, Chief Executive Officer, Full House Resorts: Yeah.

Lewis Fanger, President and Chief Financial Officer, Full House Resorts: We’re on the same page, Dan.

Jordan Bender, Analyst, Citizens: Understood. Thanks, guys.

Lewis Fanger, President and Chief Financial Officer, Full House Resorts: Yep.

Operator: Thank you. Our next question comes from the line of Chad with, Beynon with Macquarie Asset Management. Please proceed with your question.

Chad Beynon, Analyst, Macquarie Asset Management: Hi. Afternoon, Dan and Lewis. Thanks for taking my question. Wanted to ask about your Sports wagering business, so pulling over around $7 million of EBITDA this year. I guess talking about a cash cow, that’s certainly a good one with pretty high margins there. Can you talk about, you know, how that contract looks, if there’s any risk to that in 2026 or if we should continue to assume the same amount for the year? Thank you.

Dan Lee, Chief Executive Officer, Full House Resorts: Well, most of that is with Circa, in Illinois, and I think they’re pretty happy with what they have. They also operate the sports book in the temporary casino and will in the permanent. You know, Illinois has a big population and a limited number of licenses, so that’s by far the most valuable license we have. Now, we have other licenses that are available. One of them was Smarkets, who paid us upfront for several years. There’s an amortization of deferred revenue, which is why you get a little bigger than $5 million. The we did do a little change that got approved by the Gaming Commission last week.

We’ve had a sports book in the Grand Lodge Casino up at Tahoe for many years. It was pretty small. It was leased to an outside operator. The guys who were running it never really did much, right? It was pretty insignificant for us. There’s a new startup company that came to us and said, "Hey, we’d like to take that over and put some money in and try to make it something meaningful." It’s not material to the whole company, but they’re paying us significantly more rent than we were getting. Perhaps more importantly, they’re paying attention to it better.

So it’s one of those, not material to the company as a whole, but I think it’s a step in the right direction of changing that to a different operator. We tend not to operate these ourselves because we’re not diverse enough to spread the risk. In other words, if, you know, like, we have a sports book at the Silver Slipper. If the Saints get into the Super Bowl, our customers are all gonna be betting on the Saints, and we won’t have bets on the other side. It’s better to leave it to somebody who’s in that business, and we tend to just get the license fees for it.

Lewis Fanger, President and Chief Financial Officer, Full House Resorts: If you’re thinking about what the number should be on an ongoing basis, ’cause there’s always been a lot of noise in that line over the last, you know, year or 2. The right number for EBITDA is roughly like $5.9 million if you, if you’re assuming the minimums on the existing contracts.

Dan Lee, Chief Executive Officer, Full House Resorts: Now, there’s always risk. I mean, if Circa decides to cancel and leave the business, there’s some limitations in the contract on them, their ability to do that. But it’s not like a treasury bond. I mean, it could happen. So.

Lewis Fanger, President and Chief Financial Officer, Full House Resorts: I will say, though, Circa more than most companies, Circa has sports in their DNA. They love that sports book in Illinois. You’ll see that they really... I mean, look, I’m looking at them as I say this. I think there’s still the patch on the Chicago hockey team, the Blackhawks and the... They continue to fully embrace the sports side. I’d be surprised if there are any changes anytime soon there.

Dan Lee, Chief Executive Officer, Full House Resorts: Frankly, the permanent casino has a sports book that’s kind of modeled after the one at Durango Station, and that should be good for both us and Circa.

Chad Beynon, Analyst, Macquarie Asset Management: Excellent. Thanks, guys. Then Lewis, yeah, looking forward to some of the financing details, hopefully in the next couple or in the next several weeks. You talked about an 18-24 month construction period for the permanent. If that deal is executed and you do decide to kind of push forward on some of the heavier lifting, heavier spending parts of the project, I mean, will there be a meaningful amount of CapEx in 2026, maybe some of that comes in the fourth quarter, or is it safe to assume that a lot of the permanent spending, kind of the real outflows will come in 2027? Just any parameters around that would be helpful.

Dan Lee, Chief Executive Officer, Full House Resorts: All of it’s 27.

Lewis Fanger, President and Chief Financial Officer, Full House Resorts: 27. Yeah. Yeah.

Dan Lee, Chief Executive Officer, Full House Resorts: I mean, some may even spill into 2028. Some of the construction payments are made in arrears, for example.

Lewis Fanger, President and Chief Financial Officer, Full House Resorts: A big portion will be made in arrears. Yeah.

Dan Lee, Chief Executive Officer, Full House Resorts: Yeah. How much falls in this year depends a lot on exactly when we get going. The foundation isn’t a big number, but it does take time. You literally have a guy moving a bulldozer around, and then they dig some trenches and pour some concrete, which is the foundations for the building that will go up. If you had to pause after doing that, like let’s say the debt markets just weren’t cooperating and we had to pause for several months, it’s okay. The concrete doesn’t go bad. It’s still there, right? You can come back and finish. Hopefully, we don’t have to. Hopefully, we have the financing arranged, and so by the time we’re done with the foundations, we can move into the other stuff.

You don’t really wanna go into the heavier spending until you know you have the money to finish it. We’re willing to start on the foundation so that we can speed up the opening date and that we can fund with our existing resources and, while we try to nail down the financing.

Lewis Fanger, President and Chief Financial Officer, Full House Resorts: I will say, though, you know, Dan and I talked about this at lunch today. We talk about an 18-24 month build, but one thing to keep in mind is the build itself is on the simpler side. In terms of there’s nothing subterranean, there’s no parking garages, you know, it’s a kind of a basic.

Dan Lee, Chief Executive Officer, Full House Resorts: No-

Lewis Fanger, President and Chief Financial Officer, Full House Resorts: Yeah, no high rise. Exactly. It’s a basic two-story building, and it’s a basic rectangular building. On the inside, you know, the fit out is quite fanciful, but in terms of getting that actual structure up and enclosed and then starting work on the inside, it’s one of the easier paths that we’ve seen in our lifetimes.

Dan Lee, Chief Executive Officer, Full House Resorts: Actually, only a small part of it is two-story. Most of it’s one story.

Lewis Fanger, President and Chief Financial Officer, Full House Resorts: Exactly right.

Dan Lee, Chief Executive Officer, Full House Resorts: Yeah.

Lewis Fanger, President and Chief Financial Officer, Full House Resorts: you know, we talk about 18 to 24 months, but, you know, it’s. We’ll keep you in the loop, but we feel good. It is an easier project to build is maybe the right thing to say.

Dan Lee, Chief Executive Officer, Full House Resorts: We’ll go as fast as we can, but we don’t wanna incur a lot of overtime.

Lewis Fanger, President and Chief Financial Officer, Full House Resorts: Yes.

Chad Beynon, Analyst, Macquarie Asset Management: Perfect. Thanks, guys. Best of luck. Appreciate it.

Operator: Thank you. Our next question comes from the line of John DeCree with CBRE. Please proceed with your question.

John DeCree, Analyst, CBRE: Hi, Louis, Dan, thank you for taking my question. I think just one from me on Waukegan. I think if I’m not mistaken, just kinda hit the three-year anniversary a couple of weeks ago and 11% growth in the fourth quarter, still growing double digits. I know you talked a little bit about it in your prepared remarks, I don’t know, Louis or Dan, if you could give us a little bit more insight as to kind of, you know, what’s driving the growth there. Is it bigger database? Are you still growing the database, or is it more spend per the existing database? I’m guessing at that double-digit growth, it’s probably a little bit of both, but, you know, three years in, still growing double digits is pretty great. If you could give-

Dan Lee, Chief Executive Officer, Full House Resorts: A little bit of both.

John DeCree, Analyst, CBRE: ... a little more color on what’s going on there, that’d be helpful.

Dan Lee, Chief Executive Officer, Full House Resorts: Well, actually, I wanna give credit to the team we have there. I mean, where we kinda stubbed our toe in Colorado and had to put together a new team, we had a great team from day one in Illinois, and they’ve just every month, every quarter, figured out a way to increase our penetration, increase our not only our number of customers, but the satisfaction levels of the customers. You know, we have the only casino in the whole region that made the list of the Chicago Tribune’s best employers. I mean, they list, I think, 50 employers and who are the best employers in the region. There’s 50 of them. 2 years in a row now, we’ve been the only casino on that list.

That trades into very low turnover, which, you know, helps. I mean, and so the team has done a very good job, and every month they’re trying to figure out, okay, how do we do better? How do we do better? You know, had we had an equivalent team in Colorado, we would be much better in Colorado. People matter. We’ve had a great team in Illinois. Now, we also have the right demographics. I mean, we’re the closest casino to 1 million people. We have a easy to see. While the outside of the building looks a Department of Motor Vehicles storage place, once you’re inside, it feels like a real casino.

Even though we did it without spending a lot of money, you know, when you go in, people are like, "Wow, we didn’t expect this. It’s wonderful." I think we have, you know, the right product and the right market in a year. I mean, it was very fast. Equally important, we had the right team, and they’ve done a great job, so.

Lewis Fanger, President and Chief Financial Officer, Full House Resorts: Yeah. I think Dan for this, it’s a little bit of both, John. It’s, it’s, you know, the database in terms of adding new names to it continues to grow at a pace meaningfully similar to what it was three, six, nine months ago. It really hasn’t slowed down in terms of the number of people that are going into that database. We’ve crossed 121,000 names. We’re closing in on 125,000 names in the database. Not showing signs of slowing down, so. It’s a little of both. It’s, it’s.

Dan Lee, Chief Executive Officer, Full House Resorts: We’ve done it without hurting the competition. I mean, most of it.

Lewis Fanger, President and Chief Financial Officer, Full House Resorts: Huge.

Dan Lee, Chief Executive Officer, Full House Resorts: Increased gambling by people in Lake County.

Lewis Fanger, President and Chief Financial Officer, Full House Resorts: Yeah.

Dan Lee, Chief Executive Officer, Full House Resorts: Which is what we expected. I guess I should also give a tip of the hat to Alex, who forecasted that this is exactly what would happen, and he’s been right.

John DeCree, Analyst, CBRE: Thanks, guys. I appreciate it.

Operator: Thank you. We have reached the end of the question and answer session. I would like to turn the floor back over to President and Chief Financial Officer, Lewis Fanger, for closing remarks.

Lewis Fanger, President and Chief Financial Officer, Full House Resorts: I’ll turn it over. Dan, any last words?

Dan Lee, Chief Executive Officer, Full House Resorts: Listen, it’s been kind of a challenging year of fixing Colorado while we try to figure out how to finance the permanent American Place. I think we now have the team in place, and the stuff is trending the right way in Colorado, and I think we’re on the cusp of having the financing arranged for American Place. You know, that it doesn’t happen overnight. I mean, I think the financing would be in place in May or June, which is approximately when we would also have the extension that we mentioned in the legislature. Hopefully, by the time we’re having this call for the next quarter, we have a lot more concrete stuff we can talk about. Thank you very much, everybody.

Operator: This concludes today’s conference, and you may disconnect your lines at this time. We thank you for your participation.