Amidst a landscape dotted with the glittering facades of casino resorts, esteemed gaming operator Full House Resorts (NASDAQ: FLL) has cast the die and revealed an intriguing mix of challenges and triumphs. Following a quarter that failed to meet analytical predictions, the company’s management has dealt its hand, announcing an ambitious target to unwrap its American Place casino hotel in Waukegan, Illinois, come 2027—if fortunes favor them in a contentious legal showdown with a Tribal competitor.
The stage for this unfolding drama is The Temporary at American Place—a prefabricated harbinger of the opulence anticipated in its permanent iteration. Here, amidst the resonant clinks of chips and the soft shuffle of cards, a blackjack dealer maintains vigil. It is a tableau symbolic of the transitory phase of an enterprise with grandiose aspirations (Image: The Temporary by American Place/Facebook).
Yet, the plot thickens with the Wisconsin Potawatomi Band of Indians—operators of their own gaming establishment in Milwaukee—staking claim to foul play in the casino licensing ballet of Waukegan. The Tribal entity has taken legal action against the city and the Illinois Gaming Board (IGB), stirring the pot and potentially delaying the projected outcome. However, Illinois regulators have paved a path for The Temporary to maintain operations until 2027—a gesture of confidence in the face of adversity, as without this extension, the doors to American Place would have had to swing open within a mere 11 months.
“We were chosen for that license after a robust public process,” asserted Full House CEO Dan Lee, his tone a blend of vindication and steadfast resolve. An independent consultant, he recounted, judged the Tribal proposal to be wanting when juxtaposed with four alternative bids, Full House’s among them. “We believe the lawsuit is without merit,” Lee continued, sharing that both the IGB and Waukegan have rallied for the Illinois Supreme Court to weigh in, with the scales of justice potentially tipping early next year.
For Full House, American Place is not a mere roll of the dice but a pivotal centerpiece to its growth strategy—the casino set to generate tides of revenue that will eclipse its siblings combined. This is the heart of Lee’s vision to triple the footprint of Full House, a venture that will peak in financial appetite between 2026 and 2027. Yet with a streak of confidence, Lee assured stakeholders that the lion’s share of funding for American Place’s permanent palace would be cultivated from the fertile grounds of operating cash flows, with the balance potentially covered by issuing debt—a strategy that has garnered a nod of “stable” from Moody’s Investors Service.
In a dazzling display of what’s to come, The Temporary, which burst forth with a stellar revenue run in December, continued its winning streak with $8.2 million in January and an excess of $9 million in February.
But let not American Place overshadow Full House’s other ace in the hole, Chamonix Casino Hotel in Cripple Creek, Colorado. Though a latecomer in December, contributing only a whisper to the fourth-quarter financials, Chamonix stands poised to echo loudly through Full House’s balance sheets as this gem begins to unveil its full splendor.
Lee, whose career has been punctuated by his affiliation with establishments of renown like the Bellagio, sees Chamonix as the epitome of regional elegance, “You walk in, and it’s every bit the quality that Wynn and Bellagio are,” he lauded during a conference call, his pride unfettered.
Indeed, Full House Resorts is betting high on a future where its creations will draw admirers and avid patrons alike. A risk, certainly, but one it takes with the full weight of experience and ardor of industry veterans.
