Colorado’s newly expanded gaming offerings have propelled Full House Resorts to increase the size and scope of its expansion at the company’s Bronco Billy’s Casino and Hotel in Cripple Creek.
In a statement Monday, Las Vegas-based Full House said would increase the size of the property’s expansion by 67% by adding a 300-room hotel and increasing the budget to $180 million.
Other planned amenities for the expansion – a new parking garage, meeting and entertainment space, an outdoor rooftop pool, spa, and a fine-dining restaurant – remain largely unchanged, the company said.
As part of the announcement, Full House preannounced fourth-quarter earnings. The company expected its net revenues to range between $37.8 million to $38.5 million for the three months that ended Dec. 31. Full House – which five casinos in four states – reported net revenues of $39 million in the 2019 fourth quarter.
Net income is expected to range between $1.2 million to $4 million for the quarter, an improvement from a net loss of $4.1 million in the 2019 fourth quarter. Cash flow is expected to range between $9.3 million to $10 million for the three-month period, compared to $2.3 million in 2019.
As of Dec. 31, Full House had approximately $38 million of cash and equivalents.
The news sent shares of Full House, which are traded on the Nasdaq, up 11.99%, or 64 cents to close at $5.98 on Monday.
Last November, Colorado voters approved Amendment 77, which removed the state’s $100 wagering limit on a single bet and allows casinos to begin offering several previously forbidden games, such as baccarat, keno, and the big six wheel.
The changes could be worth millions of dollars in revenue to casino operators in Central City, Black Hawk, and Cripple Creek.
Full House did not comment specifically on the changes, other than the “new opportunity” that allowed the company to increase the size of the expansion.
Full House said it would fund the expansion with debt financing and would complete the project in one phase by the end of 2022.
In its statement, Full House said the Cripple Creek Historic Preservation Commission and Cripple Creek City Council had approved the plans and a final approval required a second reading by the City Council, which is expected to take place on Feb. 3.
During Full House’s third-quarter conference call in November after the vote, CEO Dan Lee said the expanded gaming opportunities was “a plus” for the Cripple Creek property.
“Is it a huge plus? I don’t know, but it’s certainly a plus,” Lee said. “Bronco Billy’s is a pretty simple casino today, but we do look and have talked a lot and have acquired land and have plans to eventually build a high-end hotel in Cripple Creek and fix up Bronco Billy’s. And obviously, this is a very big plus for that.”
(Disclosure: Ken Adams, CDC Gaming’ senior analyst, is a member of the Full House board of directors)
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.
