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What changed in FULL HOUSE RESORTS INC's 10-K — 2023 vs 2024

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Paragraph-level year-over-year comparison of FULL HOUSE RESORTS INC's 2023 and 2024 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2024 report.

+259 added−296 removedSource: 10-K (2025-03-11) vs 10-K (2024-03-15)

Top changes in FULL HOUSE RESORTS INC's 2024 10-K

259 paragraphs added · 296 removed · 102 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeStarting in the first quarter of 2023, we updated our reportable segments to Midwest & South, West, and Contracted Sports Wagering, reflecting a realignment within the Company as a result of our continued growth. 7 Table of Contents Our mission is to maximize stockholder value, while also being good employers and community participants.
Biggest changeOur reportable segments are identified as Midwest & South, West, and Contracted Sports Wagering. 7 Table of Contents Our mission is to maximize stockholder value, while also being a responsible borrower, good employer, and active community participant. We seek to increase revenues by providing our customers with their favorite games and amenities, high-quality customer service, and appropriate customer loyalty programs.
The lease is secured by our interests under such lease, consisting of certain collateral (as defined and described in a security agreement), and is subordinate to both our 8.25% Senior Secured Notes due 2028 and Revolving Credit Facility due 2026. We own the personal property, including slot machines.
The lease is secured by our interests under such lease, consisting of certain collateral (as defined and described in a security agreement), and is subordinate to both our 8.25% Senior Secured Notes due 2028 and Revolving Credit Facility. We own the personal property, including slot machines.
In addition to its large, modern casino, the Silver Slipper offers 129 hotel rooms or suites, an on-site sportsbook, a fine-dining restaurant, a buffet, a quick-service restaurant, an oyster bar, a casino bar and a beachfront pool and bar. It also manages a nearby beachfront RV park.
In addition to its large, modern casino, the Silver Slipper offers 129 hotel rooms or suites, an on-site sportsbook, a fine-dining restaurant, a buffet, a quick-service restaurant, a casino bar and a beachfront pool and bar. It also manages a nearby beachfront RV park.
American Place is currently located in a temporary facility that we are permitted to operate until August 2027, which includes a large casino floor, a center bar, a fine-dining restaurant, two additional full-service restaurants, and two customized Airstream trailers located within the casino that serve beverages and quick meals. ​ We are currently developing the permanent American Place casino, which is projected to be completed in 2027 and will be located adjacent to the temporary facility.
American Place is currently located in a temporary facility that we are permitted to operate until August 2027, which includes a large casino floor, a center bar, a fine-dining restaurant, two additional full-service restaurants, and two customized Airstream trailers located within the casino that serve beverages and quick meals. ​ We are currently designing the permanent American Place casino, which is projected to be completed in 2027 and will be located adjacent to the temporary facility.
As in Colorado, we historically have contracted with outside companies to operate such skins under their own brands in exchange for a percentage of revenues, as defined in each contract, subject to annual minimum amounts. As of December 31, 2023, one of our three skins was live.
As in Colorado, we historically have contracted with outside companies to operate such skins under their own brands in exchange for a percentage of revenues, as defined in each contract, subject to annual minimum amounts. As of December 31, 2024, one of our three skins was live.
Stockman’s Casino Stockman’s Casino is the largest of several casinos in Churchill County, Nevada, which has a population of approximately 25,000 residents. Churchill County is also the home of the Fallon Naval Air Station, the United States Navy’s premier air training facility, informally referred to as the “Top Gun” school.
Stockman’s Casino Stockman’s Casino is the largest of several casinos in Churchill County, Nevada, which has a population of approximately 26,000 residents. Churchill County is also the home of the Fallon Naval Air Station, the United States Navy’s premier air training facility, informally referred to as the “Top Gun” school.
There are no federally-recognized Native American tribes in the Colorado Front Range, which includes Denver and Colorado Springs. As of December 31, 2023, Bronco Billy’s and Chamonix were two of ten gaming facilities operating in Cripple Creek. Chamonix is significantly larger and higher in quality than any of the existing casinos in Cripple Creek.
There are no federally-recognized Native American tribes in the Colorado Front Range, which includes Denver and Colorado Springs. As of December 31, 2024, Bronco Billy’s and Chamonix were two of 10 gaming facilities operating in Cripple Creek. Chamonix is significantly larger and higher in quality than any of the existing casinos in Cripple Creek.
Its customers are primarily from the Colorado Springs/Pueblo/Cañon City metropolitan area, the second-largest metropolitan area in Colorado, with a population of approximately 985,000 residents. Its secondary market, the Denver metropolitan area, has a population of approximately four million people.
Its customers are primarily from the Colorado Springs/Pueblo/Cañon City metropolitan area, the second-largest metropolitan area in Colorado, with a population of approximately one million people. Its secondary market, the Denver metropolitan area, has a population of approximately four million people.
Bronco Billy’s Casino and Hotel / Chamonix Casino Hotel (Cripple Creek, Colorado) Bronco Billy’s and Chamonix are two integrated and adjoining casinos, and are operated by our management team as a single entity. This property is located in Cripple Creek, Colorado, a historical gold mining town located approximately one hour from Colorado Springs and two hours from Denver.
Bronco Billy’s Casino / Chamonix Casino Hotel (Cripple Creek, Colorado) Bronco Billy’s and Chamonix are two integrated and adjoining casinos, and are operated by our management team as a single entity. The properties are located in Cripple Creek, Colorado, a historical gold mining town located approximately one hour from Colorado Springs and two hours from Denver.
We also generally operate the hotel, food and beverage, and other on-site operations at our properties, although the steakhouse at Chamonix will be operated by a third party upon its expected opening in March 2024. Additionally, we operate a golf course, recreational vehicle park (“RV park”) and ferry service at Rising Star and an RV park at Silver Slipper.
We also generally operate the hotel, food and beverage, and other on-site operations at our properties, although the steakhouse at Chamonix is operated by a third party. Additionally, we operate a golf course, recreational vehicle park (“RV park”) and ferry service at Rising Star and an RV park at Silver Slipper.
At Grand Lodge Casino (“Grand Lodge”), the adjoining hotel and the food and beverage outlets are managed by Hyatt Regency Lake Tahoe Resort, Spa and Casino (“Hyatt Lake Tahoe”). Operating Properties Silver Slipper Casino and Hotel (Hancock County, Mississippi) The Silver Slipper is the western-most casino on the Mississippi Gulf Coast, midway between Biloxi, Mississippi and New Orleans, Louisiana.
At Grand Lodge, the landlord of the Hyatt Regency Lake Tahoe Resort, Spa and Casino (“Hyatt Lake Tahoe”) manages the adjoining hotel, as well as the food and beverage outlets. Operating Properties Silver Slipper Casino and Hotel (Hancock County, Mississippi) The Silver Slipper is the western-most casino on the Mississippi Gulf Coast, midway between Biloxi, Mississippi and New Orleans, Louisiana.
The landlord currently has an option to purchase our leasehold interest and operating assets of the Grand Lodge Casino at a defined price based partially on earnings. 9 Table of Contents American Place (Waukegan, Illinois) American Place is located in Waukegan, Illinois, a northern suburb of Chicago.
The landlord currently has both an option to terminate the lease early with six months’ notice in the event of a significant renovation, and to purchase our leasehold interest and operating assets of the Grand Lodge Casino at a defined price based partially on earnings. 9 Table of Contents American Place (Waukegan, Illinois) American Place is located in Waukegan, Illinois, a northern suburb of Chicago.
The following table presents selected information concerning our casino resort properties as of December 31, 2023: ​ ​ ​ Segments and Properties ​ Locations Midwest & South ​ ​ American Place * ​ Waukegan, IL (northern suburb of Chicago) Silver Slipper Casino and Hotel Hancock County, MS (near New Orleans) Rising Star Casino Resort Rising Sun, IN (near Cincinnati) West ​ ​ Bronco Billy’s Casino and Chamonix Casino Hotel * Cripple Creek, CO (near Colorado Springs) Grand Lodge Casino (leased and part of the Hyatt Regency Lake Tahoe Resort, Spa and Casino) Incline Village, NV (North Shore of Lake Tahoe) Stockman’s Casino Fallon, NV (one hour east of Reno) Contracted Sports Wagering ​ ​ Three sports wagering websites (“skins”), one of which is currently idle ​ Colorado Three sports wagering websites (“skins”), two of which are currently idle ​ Indiana One sports wagering website (“skin”), commenced in August 2023 ​ Illinois __________ * The temporary American Place facility and Chamonix opened on February 17 and December 27, 2023, respectively.
The following table presents selected information concerning our casino resort properties as of December 31, 2024: ​ ​ ​ Segments and Properties ​ Locations Midwest & South ​ ​ American Place * ​ Waukegan, IL (northern suburb of Chicago) Silver Slipper Casino and Hotel (“Silver Slipper”) Hancock County, MS (near New Orleans) Rising Star Casino Resort (“Rising Star”) Rising Sun, IN (near Cincinnati) West ​ ​ Bronco Billy’s Casino (“Bronco Billy’s”) and Chamonix Casino Hotel (“Chamonix”) * Cripple Creek, CO (near Colorado Springs) Grand Lodge Casino (“Grand Lodge”), leased and part of the Hyatt Regency Lake Tahoe Resort, Spa and Casino Incline Village, NV (North Shore of Lake Tahoe) Stockman’s Casino (“Stockman’s”), held for sale starting August 2024 Fallon, NV (one hour east of Reno) Contracted Sports Wagering ​ ​ One active sports wagering website (“skin”), plus two others that are currently idle ​ Colorado One active sports wagering website (“skin”), plus two others that are currently idle ​ Indiana One active sports wagering website (“skin”), commenced in August 2023 ​ Illinois __________ * The temporary American Place facility opened on February 17, 2023.
We manage our casinos based primarily on geographic regions within the United States and type of income. Our corporate headquarters is in Las Vegas, Nevada.
Chamonix opened in phases between December 2023 and October 2024. ​ We manage our casinos based primarily on geographic regions within the United States and type of income. Our corporate headquarters is in Las Vegas, Nevada.
Employees As of March 1, 2024, we had 13 full-time corporate employees. We had four executive officers and three additional senior management employees.
Employees As of December 31, 2024, we had 15 full-time corporate employees. We had four executive officers and three additional senior management employees.
Rather than operate these sports skins ourselves, we historically have contracted with outside companies to operate such skins under their own brands in exchange for a percentage of revenues, as defined in each contract, subject to annual minimum amounts paid to us. As of December 31, 2023, two of our three skins were live.
We are allowed to offer online sports wagering through three sports “skins” in Colorado. Rather than operate these sports skins ourselves, we historically have contracted with outside companies to operate such skins under their own brands in exchange for a percentage of revenues, as defined in each contract, subject to annual minimum amounts paid to us.
We continuously focus on improving the operating results of our existing properties through a combination of revenue growth and expense management efforts. The casino resort industry is capital-intensive, and we rely on the ability of our properties to generate operating cash flow to pay interest, repay debt, and fund maintenance and certain growth-related capital expenditures.
The casino resort industry is capital-intensive; we rely on the ability of our properties to generate operating cash flow to pay interest, repay debt, and fund maintenance and certain growth-related capital expenditures.
When complete, the combined Bronco Billy’s / Chamonix complex will offer two large integrated casinos, approximately 300 luxury guest rooms, 14 additional hotel rooms located nearby, three casual dining outlets, a steakhouse managed by a third-party, parking garage, rooftop pool, and spa.
The combined Bronco Billy’s / Chamonix complex offers two integrated casinos, approximately 300 luxury guest rooms, 14 additional hotel rooms located nearby, two casual dining outlets, a coffee bar, a steakhouse managed by a third-party, parking garage, rooftop pool, jewelry store, spa, and convention and meeting facilities.
Rising Star Casino Resort (Rising Sun, Indiana) Rising Star is located on the banks of the Ohio River in Rising Sun, Indiana, approximately one hour from Cincinnati, Ohio, and within two hours of Indianapolis, Indiana, and Louisville and Lexington, Kentucky.
As of December 31, 2024, one of our three skins was live. 8 Table of Contents Rising Star Casino Resort (Rising Sun, Indiana) Rising Star is located on the banks of the Ohio River in Rising Sun, Indiana, approximately one hour from Cincinnati, Ohio, and within two hours of Indianapolis, Indiana, and Louisville and Lexington, Kentucky.
The Hyatt Lake Tahoe is one of three AAA Four Diamond hotels in the Lake Tahoe area. Our casino’s customers consist of both locals and tourists visiting the Lake Tahoe area. Our lease currently expires on December 31, 2024.
The Hyatt Lake Tahoe is one of three AAA Four Diamond hotels in the Lake Tahoe area. Our casino’s customers consist of both locals and tourists visiting the Lake Tahoe area. Our lease currently expires on December 31, 2034, though it can be cancelled prior to its expiration on terms specified in the lease.
Stockman’s primarily serves the local market of Fallon and surrounding areas, including the nearby Fallon Naval Air Station, which is the Navy’s premier air training facility, informally referred to as the “Top Gun” school. In addition to its casino, Stockman’s offers a bar, fine-dining restaurant and coffee shop.
Stockman’s Casino (Fallon, Nevada) Stockman’s is located in Churchill County, Nevada, approximately one hour from Reno, Nevada. Stockman’s primarily serves the local market of Fallon and surrounding areas, including the nearby Fallon Naval Air Station, which is the Navy’s premier air training facility, informally referred to as the “Top Gun” school.
Although there is no meaningful evidence to date that this has been the case, this could divert customers from our properties, and thus, adversely affect our business. All of our casinos, as well as other casinos that we may develop or acquire, compete with all these forms of gaming.
This could divert customers from our properties, and thus, adversely affect our business. All of our casinos, as well as other casinos that we may develop or acquire, compete with all these forms of gaming. We also compete with any new forms or jurisdictions of gaming that may be legalized, as well as with other types of entertainment.
We own much of the real estate for these two properties, but also lease certain parking lots and buildings, including a portion of the hotel and casino, under a long-term lease.
We own much of the real estate for these two properties, but also lease certain parking lots and buildings, including a portion of the hotel and casino, under a long-term lease. The lease has six renewal options in three-year increments through January 2035. We have the right to buy out the lease at any time during its term.
Our casino properties had 1,536 full-time and 286 part-time employees, as follows: ​ ​ ​ ​ ​ ​ ​ March 1, 2024 Employee Count by Property / Location Full-time Part-time Silver Slipper Casino and Hotel ​ 422 ​ 49 American Place ​ 493 ​ 75 Rising Star Casino Resort ​ 222 ​ 72 Bronco Billy’s / Chamonix Casino Hotel ​ 263 ​ 66 Grand Lodge Casino ​ 75 ​ 17 Stockman’s Casino 61 7 Corporate 13 — Total Employees 1,549 286 ​ We believe that our relationship with our employees is excellent.
Our casino properties had 1,670 full-time and 325 part-time employees, as follows: ​ ​ ​ ​ ​ ​ ​ December 31, 2024 Employee Count by Property / Location Full-time Part-time Silver Slipper Casino and Hotel ​ 424 ​ 60 American Place ​ 552 ​ 85 Rising Star Casino Resort ​ 208 ​ 83 Bronco Billy’s / Chamonix Casino Hotel ​ 365 ​ 70 Grand Lodge Casino ​ 67 ​ 16 Stockman’s Casino 54 11 Corporate 15 — Total Employees 1,685 325 ​ We believe that our relationship with our employees is excellent.
It occupies a significant portion of the key city block of Cripple Creek’s “casino strip.” Chamonix began its phased opening on December 27, 2023.
It occupies a significant portion of the key city block of Cripple Creek’s “casino strip.” Chamonix was opened in phases, beginning in December 2023 and completing in October 2024.
Other companies currently operate the active online sports wagering websites under their brands, paying us a percentage of revenues, as defined, subject to annual minimum amounts. Regarding our remaining idle skins, we continue to evaluate whether to operate them ourselves or to have other third parties operate them.
Other companies currently operate the active online sports wagering websites under their brands, paying us a percentage of revenues, as defined, subject to annual minimum amounts. In February 2023, we opened our temporary American Place facility, which we are permitted to operate until August 2027.
We also compete with any new forms or jurisdictions of gaming that may be legalized, as well as with other types of entertainment. Some of our competitors have more personnel and greater financial or other resources than we do.
Some of our competitors have more personnel and greater financial or other resources than we do.
A proposal in 2021 to relocate an existing riverboat casino license to the North Shore of Lake Pontchartrain failed to achieve approval in a local referendum by a 63-to-37 margin. 11 Table of Contents Bronco Billy’s / Chamonix Casino Hotel Bronco Billy’s and Chamonix are located in Cripple Creek, Colorado, which is a historical gold mining town located less than one hour from Colorado Springs, on the west side of Pikes Peak.
There are occasionally proposals to relocate casinos within Louisiana or to develop new casinos in Mississippi, but there are considerable political and economic constraints on such potential competition. 11 Table of Contents Bronco Billy’s Casino / Chamonix Casino Hotel Bronco Billy’s and Chamonix are located in Cripple Creek, Colorado, which is a historical gold mining town located less than one hour from Colorado Springs, on the west side of Pikes Peak.
We currently operate seven casinos: six on real estate that we own or lease and one located within a hotel owned by a third party. In December 2023, we began the phased opening of our newest property, Chamonix Casino Hotel (“Chamonix”), located adjacent to our existing Bronco Billy’s Casino and Hotel in Cripple Creek, Colorado.
We currently operate seven casinos: six on real estate that we own or lease, and one located within a hotel owned by a third party. Additionally, we benefit from seven permitted sports wagering skins – three in Colorado, three in Indiana, and one in Illinois.
We seek to increase revenues by providing our customers with their favorite games and amenities, high-quality customer service, and appropriate customer loyalty programs. Our customers include nearby residents who represent a high potential for repeat visits, along with drive-in tourist patrons.
Our customers include nearby residents who represent a high potential for repeat visits, along with drive-in tourist patrons. We continuously focus on improving the operating results of our existing properties through a combination of revenue growth and expense management efforts.
Removed
We are currently designing our permanent American Place casino destination, which will be built adjacent to a temporary facility that we opened in February 2023. We are currently permitted to operate the temporary American Place facility until August 2027. Additionally, we benefit from seven permitted sports wagering “skins” – three in Colorado, three in Indiana, and one in Illinois.
Added
We have begun the design work for the permanent gaming resort facility that we plan to build on adjoining land. In August 2024, we entered into an agreement to sell Stockman’s to a privately owned company. We closed on the sale of Stockman’s real property in September 2024.
Removed
However, there is no certainty that we will be able to enter into agreements with replacement operators or successfully operate the skins ourselves.
Added
We continue to operate the business under a leaseback agreement with the new owners for use of their facilities until the second closing of the Stockman’s sale, which is expected to occur in the first half of 2025. In October 2024, we completed the phased opening of Chamonix, our newest property, located adjacent to our existing Bronco Billy’s Casino.
Removed
The lease has six renewal options in three-year increments through January 2035, and we have the right to buy out the lease at any time during its term. 8 Table of Contents We are allowed to offer online sports wagering through three sports “skins” in Colorado.
Added
In addition to its casino, Stockman’s offers a bar, fine-dining restaurant and coffee shop. On August 28, 2024, we entered into an agreement with a privately-owned company to sell Stockman’s for total gross proceeds of $9.2 million, plus certain expected working capital adjustments at closing. We closed on the sale of Stockman’s real property in September 2024.
Removed
For our idle skin, we continue to evaluate whether to operate it ourselves or to utilize a replacement operator. There is no certainty that we will be able to enter into an agreement with a replacement operator or successfully operate the skin ourselves.
Added
We continue to operate the business under a leaseback agreement with the new owners for use of their facilities until the second closing of the Stockman’s sale, which is expected to occur in the first half of 2025. See Note 3 to the consolidated financial statements set forth in Part II, Item 8. “Financial Statements and Supplementary Data” for details.
Removed
For our two idle skins, we continue to evaluate whether to operate them ourselves or to utilize replacement operators. There is no certainty that we will be able to enter into agreements with replacement operators or successfully operate the skins ourselves. Stockman’s Casino (Fallon, Nevada) Stockman’s is located in Churchill County, Nevada, approximately one hour from Reno, Nevada.
Removed
There are occasionally proposals to relocate casinos within Louisiana or to develop new casinos in Mississippi, but there are considerable political and economic constraints on such potential competition.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeAs described elsewhere in these Risk Factors, such events may result in closures of our properties, a period of business disruption, and/or in reduced operations, any of which could materially affect our business, financial condition and results of operations. 17 Table of Contents Catastrophic events, such as terrorist and war activities in the United States and elsewhere, when they occur, have had a negative effect on travel and leisure expenditures, including lodging, gaming and tourism.
Biggest changeAs described elsewhere in these Risk Factors, such events may result in closures of our properties, a period of business disruption, and/or in reduced operations, any of which could materially affect our business, financial condition and results of operations.
Events outside of our control, including changes in state and federal regulations and laws, as well as economic trends, also could adversely affect our ability to realize the anticipated benefits from the acquisition or development. We expect to continue pursuing expansion opportunities. We regularly evaluate opportunities for acquisition and development of new properties.
Events outside of our control, including changes in state and federal regulations and laws, as well as economic trends, could also adversely affect our ability to realize the anticipated benefits from the acquisition or development. We expect to continue pursuing expansion opportunities. We regularly evaluate opportunities for acquisition and development of new properties.
The process of integrating properties that we may acquire also could interrupt the activities of those businesses, which could have a material adverse effect on our business, financial condition and results of operations.
The process of integrating properties that we may acquire could also interrupt the activities of those businesses, which could have a material adverse effect on our business, financial condition and results of operations.
Our debt could, among other things: ● require us to dedicate a large portion of our cash flow from operations to the servicing and repayment of our debt, thereby reducing funds available for working capital, capital expenditures and acquisitions, and other general corporate requirements; ● limit our ability to obtain additional financing to fund future working capital, capital expenditures and other general corporate requirements; ● limit our flexibility in planning for, or reacting to, changes in our business and the industries in which we operate; ● restrict our ability to make strategic acquisitions or dispositions or to exploit business opportunities; ● increase our vulnerability to general adverse economic and industry conditions and increases in interest rates; ● place us at a competitive disadvantage compared to our competitors that have less debt; and ● adversely affect our credit rating, which may adversely affect our cost to borrow funds or the market price of our common stock. ​ Any of these risks could impact our ability to fund our operations or limit our ability to expand our business, which could have a material adverse effect on our business, financial condition, results of operations and prospects. 27 Table of Contents The indenture governing the Notes and the Credit Facility impose restrictive covenants and limitations that could significantly affect our ability to operate our business and lead to events of default if we do not comply with the covenants.
Our debt could, among other things: ● require us to dedicate a large portion of our cash flow from operations to the servicing and repayment of our debt, thereby reducing funds available for working capital, capital expenditures and acquisitions, and other general corporate requirements; ● limit our ability to obtain additional financing to fund future working capital, capital expenditures and other general corporate requirements; ● limit our flexibility in planning for, or reacting to, changes in our business and the industries in which we operate; ● restrict our ability to make strategic acquisitions or dispositions or to exploit business opportunities; ● increase our vulnerability to general adverse economic and industry conditions and increases in interest rates; ● place us at a competitive disadvantage compared to our competitors that have less debt; and ● adversely affect our credit rating, which may adversely affect our cost to borrow funds or the market price of our common stock. ​ Any of these risks could impact our ability to fund our operations or limit our ability to expand our business, which could have a material adverse effect on our business, financial condition, results of operations and prospects. 26 Table of Contents The indenture governing the Notes and the Credit Facility impose restrictive covenants and limitations that could significantly affect our ability to operate our business and lead to events of default if we do not comply with the covenants.
The operating expenses associated with our gaming properties could increase due to, among other reasons, the following factors: ● continued or increased inflationary pressures; ● supply chain issues that are beyond our control; ● changes in federal, state or local tax or regulations, including gaming regulations or gaming taxes, could impose additional restrictions or increase our operating costs; ● aggressive marketing and promotional campaigns by our competitors for an extended period of time could force us to increase our expenditures for marketing and promotional campaigns in order to maintain our existing customer base or attract new customers; ● as our properties age, we may need to increase our expenditures for repairs, maintenance, and to replace equipment necessary to operate our business in amounts greater than what we have spent historically; ● our reliance on slot play revenues and any additional costs imposed on us from slot machine vendors; ● availability and cost of the many products and services we provide our customers, including food, beverages, retail items, entertainment, hotel rooms, spa services and golf; ● availability and costs associated with insurance; ● increases in costs of labor; ● our properties use significant amounts of electricity, natural gas and other forms of energy, and energy price increases may adversely affect our cost structure; ● our properties use significant amounts of water, and a water shortage may adversely affect our operations; and ● at Grand Lodge, we rely on Hyatt Lake Tahoe to provide certain items at reasonable costs, including food, beverages, parking and rooms.
The operating expenses associated with our gaming properties could increase due to, among other reasons, the following factors: ● continued or increased inflationary pressures; ● supply chain issues that are beyond our control; ● changes in federal, state or local tax or regulations, including gaming regulations, gaming taxes, and tariffs on imported goods, could impose additional restrictions or increase our costs; ● aggressive marketing and promotional campaigns by our competitors for an extended period of time could force us to increase our expenditures for marketing and promotional campaigns in order to maintain our existing customer base or attract new customers; ● as our properties age, we may need to increase our expenditures for repairs, maintenance, and to replace equipment necessary to operate our business in amounts greater than what we have spent historically; ● our reliance on slot play revenues and any additional costs imposed on us from slot machine vendors; ● availability and cost of the many products and services we provide our customers, including food, beverages, retail items, entertainment, hotel rooms, spa services and golf; ● availability and costs associated with insurance; ● increases in costs of labor; ● our properties use significant amounts of electricity, natural gas and other forms of energy, and energy price increases may adversely affect our cost structure; ● our properties use significant amounts of water, and a water shortage may adversely affect our operations; and ● at Grand Lodge, we rely on Hyatt Lake Tahoe to provide certain items at reasonable costs, including food, beverages, parking and rooms.
This may result in insufficient funds to complete these projects or the need to raise additional capital. Delays in the completion of the plans and specifications for our growth projects, including Chamonix and the permanent American Place facility, could delay completion of the projects.
This may result in insufficient funds to complete these projects or the need to raise additional capital. Delays in the completion of the plans and specifications for our growth projects, including the permanent American Place facility, could delay completion of the projects.
These items could disrupt our operations, cause extensive damage to our reputation, and expose us to legal claims from customers, employees, financial institutions, regulators, payment card associations, and other persons, any of which could adversely affect our business, results of operations and financial condition. 33 Table of Contents There are also laws and regulations governing the collection and use of biometric information, such as fingerprints and facial scans.
These items could disrupt our operations, cause extensive damage to our reputation, and expose us to legal claims from customers, employees, financial institutions, regulators, payment card associations, and other persons, any of which could adversely affect our business, results of operations and financial condition. 32 Table of Contents There are also laws and regulations governing the collection and use of biometric information, such as fingerprints and facial scans.
The operating lease at the Grand Lodge Casino, which is set to expire on December 31, 2024, includes certain lessor buyout rights based upon a multiple of EBITDA that, if exercised, could result in the lessor purchasing our leasehold interest and the operating assets on terms that may be less than fair market value or financially unfavorable to us.
The operating lease at the Grand Lodge Casino, which is set to expire on December 31, 2034, includes certain lessor buyout rights based upon a multiple of EBITDA that, if exercised, could result in the lessor purchasing our leasehold interest and the operating assets on terms that may be less than fair market value or financially unfavorable to us.
Delays in opening new or upgraded facilities could lead to increased costs and delays in receiving anticipated revenues with respect to such facilities and could have a material adverse effect on our business, financial condition and results of operations. 24 Table of Contents We may face disruption and other difficulties in integrating and managing facilities we have recently developed or acquired, or may develop or acquire in the future.
Delays in opening new or upgraded facilities could lead to increased costs and delays in receiving anticipated revenues with respect to such facilities and could have a material adverse effect on our business, financial condition and results of operations. 23 Table of Contents We may face disruption and other difficulties in integrating and managing facilities we have recently developed or acquired, or may develop or acquire in the future.
The operation of our ferry boat is subject to various inherent risks, including: ● catastrophic marine disasters and accidents; ● adverse weather conditions or natural disasters; ● mechanical failure or equipment damage; ● hazardous substance spills; and ● navigation and human errors. ​ The occurrence of any of these events may result in, among other things, damage to or loss of our ferry boat, damage to other vessels and the environment, loss of revenues, short-term or long-term interruption of ferry boat service, termination of our regulatory permission to operate, fines, penalties or other restrictions on conducting business, damage to our reputation and customer relationships, and death or injury to personnel and passengers.
The operation of our ferry boat is subject to various inherent risks, including: ● catastrophic marine disasters and accidents; ● adverse weather conditions or natural disasters; ● mechanical failure or equipment damage; ● hazardous substance spills; and ● navigation and human errors. ​ 17 Table of Contents The occurrence of any of these events may result in, among other things, damage to or loss of our ferry boat, damage to other vessels and the environment, loss of revenues, short-term or long-term interruption of ferry boat service, termination of our regulatory permission to operate, fines, penalties or other restrictions on conducting business, damage to our reputation and customer relationships, and death or injury to personnel and passengers.
In addition, at the state level, there may be periods during which the use of NOL carryforwards is suspended or otherwise limited, which could accelerate or permanently increase state taxes owed. 34 Table of Contents The market price for our common stock may be volatile, and investors may not be able to sell our stock at a favorable price or at all.
In addition, at the state level, there may be periods during which the use of NOL carryforwards is suspended or otherwise limited, which could accelerate or permanently increase state taxes owed. 33 Table of Contents The market price for our common stock may be volatile, and investors may not be able to sell our stock at a favorable price or at all.
Our development and expansion projects are exposed to significant risks, including: ● shortage of materials, including due to supply chain issues that are beyond our control; ● shortage of skilled labor or work stoppages; ● unforeseen construction scheduling, engineering, excavation, environmental or geological problems; ● increases in the cost of steel and other raw materials for construction, driven by inflation, U.S. tariffs on imports, demand, higher labor and construction costs and other factors, may cause price increases beyond those anticipated in the budgets for our development projects; ● natural disasters, hurricanes, weather interference, changes in river levels, floods, fires, earthquakes, the impacts of pandemics, or other casualty losses or delays; ● unanticipated cost increases or delays in completing the project; ● delays in obtaining, or inability to obtain or maintain, necessary licenses or permits; ● lack of sufficient funds, or delays in the availability of, financing; ● failure to comply with the terms of our disbursement agreements under our indenture could limit our access to funds for the projects; ● changes to plans or specifications; ● performance by contractors and subcontractors; ● disputes with contractors; ● mechanic’s liens on real property collateral that may have priority over the liens securing our indebtedness; ● personal injuries to workers and other persons; ● structural heights and the use of cranes; ● disruption of our operations caused by diversion of management’s attention to new development projects and construction at our existing properties; ● potential remediation of environmental contamination at our proposed construction sites, which may prove more difficult or expensive than anticipated in our construction budgets; ● failure to obtain and maintain necessary gaming regulatory approvals and licenses, or failure to obtain such approvals and licenses on a timely basis; ● requirements or government-established “goals” concerning union labor or requiring that a portion of the project expenditures be through companies controlled by specific ethnic or gender groups, goals that may not be obtainable, or may only be obtainable at additional project cost; and ● other unanticipated circumstances or cost increases. ​ The occurrence of any of the foregoing could increase the total costs of a project, or delay or prevent its construction, development, expansion or opening.
Our development and expansion projects are exposed to significant risks, including: ● shortage of materials, including due to supply chain issues that are beyond our control; ● shortage of skilled labor or work stoppages; ● unforeseen construction scheduling, engineering, excavation, environmental or geological problems; ● increases in the cost of steel and other raw materials for construction, driven by inflation, U.S. tariffs on imports, demand, higher labor and construction costs and other factors, may cause price increases beyond those anticipated in the budgets for our development projects; ● natural disasters, hurricanes, weather interference, changes in river levels, floods, fires, earthquakes, the impacts of pandemics, or other casualty losses or delays; ● unanticipated cost increases or delays in completing the project; ● delays in obtaining, or inability to obtain or maintain, necessary licenses or permits; ● lack of sufficient funds, or delays in the availability of, financing; ● changes to plans or specifications; ● performance by contractors and subcontractors; ● disputes with contractors; ● mechanic’s liens on real property collateral that may have priority over the liens securing our indebtedness; ● personal injuries to workers and other persons; ● structural heights and the use of cranes; ● disruption of our operations caused by diversion of management’s attention to new development projects and construction at our existing properties; ● potential remediation of environmental contamination at our proposed construction sites, which may prove more difficult or expensive than anticipated in our construction budgets; ● failure to obtain and maintain necessary gaming regulatory approvals and licenses, or failure to obtain such approvals and licenses on a timely basis; ● requirements or government-established “goals” concerning union labor or requiring that a portion of the project expenditures be through companies controlled by specific ethnic or gender groups, goals that may not be obtainable, or may only be obtainable at additional project cost; and ● other unanticipated circumstances or cost increases. ​ The occurrence of any of the foregoing could increase the total costs of a project, or delay or prevent its construction, development, expansion or opening.
In addition, failure to comply with applicable laws and regulations may result in administrative and civil penalties, criminal sanctions or, in certain cases, the suspension or termination of our ferry boat service. 32 Table of Contents Risks Related to Technology Our gaming operations rely heavily on technology services and an uninterrupted supply of electrical power.
In addition, failure to comply with applicable laws and regulations may result in administrative and civil penalties, criminal sanctions or, in certain cases, the suspension or termination of our ferry boat service. 31 Table of Contents Risks Related to Technology Our gaming operations rely heavily on technology services and an uninterrupted supply of electrical power.
Any expansion of gaming or restriction on or prohibition of our gaming operations or enactment of other adverse regulatory changes could have a material adverse effect on our operating results. 31 Table of Contents Stockholders may be required to dispose of their shares of our common stock if they are found unsuitable by gaming authorities.
Any expansion of gaming or restriction on or prohibition of our gaming operations or enactment of other adverse regulatory changes could have a material adverse effect on our operating results. 30 Table of Contents Stockholders may be required to dispose of their shares of our common stock if they are found unsuitable by gaming authorities.
Further, the perception that such securities might be exercised could adversely affect the trading price of our shares of common stock. During the time that such securities are outstanding, they may adversely affect the terms on which we could obtain additional capital. Item 1B. Unresolved Staff Comments. Not applicable. 35 Table of Contents
Further, the perception that such securities might be exercised could adversely affect the trading price of our shares of common stock. During the time that such securities are outstanding, they may adversely affect the terms on which we could obtain additional capital. Item 1B. Unresolved Staff Comments. Not applicable. 34 Table of Contents
Risks from regional conditions include the following: ● regional economic conditions; ● regional competitive conditions, including legalization or expansion of gaming in Mississippi, Colorado, Indiana, Nevada, Illinois or in neighboring states; ● allowance of new types of gaming, such as the introduction of online sports wagering or Internet gaming; ● reduced land or air travel due to increasing fuel costs or transportation disruptions; and, ● vulnerability to regional economic downturns in the markets in which we operate. ​ Some of our operations are located on leased property.
Risks from regional conditions include the following: ● regional economic conditions; ● regional competitive conditions, including legalization or expansion of gaming in Mississippi, Colorado, Indiana, Nevada, Illinois or in neighboring states; ● allowance of new types of gaming, such as the introduction of online sports wagering or Internet gaming; ● reduced land or air travel due to increasing fuel costs or transportation disruptions; and, ● vulnerability to regional economic downturns in the markets in which we operate. ​ 15 Table of Contents Some of our operations are located on leased property.
In the event that we do not receive distributions from our subsidiaries, we may be unable to make required principal and interest payments on our indebtedness, including the Notes and the Credit Facility. 29 Table of Contents Our ability to obtain additional financing on commercially reasonable terms may be limited.
In the event that we do not receive distributions from our subsidiaries, we may be unable to make required principal and interest payments on our indebtedness, including the Notes and the Credit Facility. 28 Table of Contents Our ability to obtain additional financing on commercially reasonable terms may be limited.
We may not obtain the necessary permits, licenses, entitlements and approvals within the anticipated time frames, or at all. 26 Table of Contents Insufficient or lower-than-expected results generated from our new developments and acquired properties may negatively affect our operating results and financial condition.
We may not obtain the necessary permits, licenses, entitlements and approvals within the anticipated time frames, or at all. 25 Table of Contents Insufficient or lower-than-expected results generated from our new developments and acquired properties may negatively affect our operating results and financial condition.
Furthermore, because we are subject to regulation in each jurisdiction in which we operate, and because regulatory agencies within each jurisdiction review our compliance with gaming laws in other jurisdictions, it is possible that gaming compliance issues in one jurisdiction may lead to reviews and compliance issues in other jurisdictions. 30 Table of Contents Taxation and fees.
Furthermore, because we are subject to regulation in each jurisdiction in which we operate, and because regulatory agencies within each jurisdiction review our compliance with gaming laws in other jurisdictions, it is possible that gaming compliance issues in one jurisdiction may lead to reviews and compliance issues in other jurisdictions. 29 Table of Contents Taxation and fees.
If the lessor of the Grand Lodge Casino exercises its buyout rights or fails to extend the lease, or if we default on this or certain of our other leases, the applicable lessors could terminate the affected leases and we could lose possession of the affected casino.
If the lessor of the Grand Lodge Casino exercises its buyout or early termination rights or fails to extend the lease, or if we default on this or certain of our other leases, the applicable lessors could terminate the affected leases and we could lose possession of the affected casino.
As of December 31, 2023, the total principal amount of our indebtedness, excluding unamortized debt issuance costs, was $450.0 million, consisting entirely of the Notes. Our Credit Facility remains outstanding for $27.0 million as of this report date.
As of December 31, 2024, the total principal amount of our indebtedness, excluding unamortized debt issuance costs, was $450.0 million, consisting entirely of the Notes. Our Credit Facility remains outstanding for $27.0 million as of this report date.
Although we believe that our cash, cash equivalents, working capital, future cash from operations, and the capital obtained from the Notes and available borrowing under the Credit Facility will provide adequate resources to fund completion of Chamonix and ongoing operating requirements, we may need to refinance or seek additional financing to compete effectively or grow our business, including to complete the permanent American Place facility.
Although we believe that our cash, cash equivalents, working capital, future cash from operations, and the capital obtained from the Notes and available borrowing under the Credit Facility will provide adequate resources to fund ongoing operating requirements, we may need to refinance or seek additional financing to compete effectively or grow our business, including to complete the permanent American Place facility.
Any harm to our reputation could impact employee engagement and retention and the willingness of customers and our partners to do business with us, which could have a material adverse effect on our business, results of operations and cash flows. 21 Table of Contents Risks Related to Development and Growth Opportunities We are engaged from time to time in one or more construction and development projects, such as Chamonix and American Place, and many factors could prevent us from completing them as planned.
Any harm to our reputation could impact employee engagement and retention and the willingness of customers and our partners to do business with us, which could have a material adverse effect on our business, results of operations and cash flows. 21 Table of Contents Risks Related to Development and Growth Opportunities We are engaged from time to time in one or more construction and development projects, and many factors could prevent us from completing them as planned.
We generally carry insurance to cover certain liabilities related to construction, but not all risks are covered, and it is uncertain whether such insurance will provide sufficient payment in a timely fashion even for those risks that are insured and material to us. 22 Table of Contents The construction costs for our growth projects, including Chamonix and American Place, may exceed budgeted amounts plus contingencies.
We generally carry insurance to cover certain liabilities related to construction, but not all risks are covered, and it is uncertain whether such insurance will provide sufficient payment in a timely fashion even for those risks that are insured and material to us. 22 Table of Contents The construction costs for our growth projects may exceed budgeted amounts plus contingencies.
Completion of the permanent American Place facility could also be delayed by weather, labor shortages, supply chain issues or other construction delays. There is no assurance that construction projects such as the permanent American Place facility will not be subject to additional restrictions, delays, or challenges.
Completion of the permanent American Place facility could also be delayed by weather, labor shortages, supply chain issues or other construction delays. There is no assurance that construction projects such as the permanent American Place facility will not be subject to additional restrictions, delays, or challenges. There is no assurance that our growth projects will be successful.
The Notes and the Credit Facility are summarized in Note 6 to the consolidated financial statements set forth in Part II, Item 8. “Financial Statements and Supplementary Data.” We also have a finance lease at our Rising Star Casino Resort with an outstanding balance of $2.2 million.
The Notes and the Credit Facility are summarized in Note 7 to the consolidated financial statements set forth in Part II, Item 8. “Financial Statements and Supplementary Data.” We also have a finance lease at our Rising Star Casino Resort with an outstanding balance of $1.7 million.
If we fail to retain our current employees, it would be difficult and costly to identify, recruit and train replacements needed to continue to conduct and expand our business. There can be no assurance that we will be able to retain and motivate our employees. 18 Table of Contents Higher wage and benefit costs could adversely affect our business.
If we fail to retain our current employees, it would be difficult and costly to identify, recruit and train replacements needed to continue to conduct and expand our business. There can be no assurance that we will be able to retain and motivate our employees. Higher wage and benefit costs could adversely affect our business.
The gaming industry is characterized by an element of chance. In addition to the element of chance, win rates are also affected by other factors, including players’ skill and experience, the mix of games played, the financial resources of players, the spread of table limits, the volume of bets played and the amount of time played.
In addition to the element of chance, win rates are also affected by other factors, including players’ skill and experience, the mix of games played, the financial resources of players, the spread of table limits, the volume of bets played and the amount of time played.
Disruptions in operations at our Colorado or Illinois facilities could have an adverse effect on our business, financial condition and results of operations. 25 Table of Contents The permanent American Place facility, additional growth projects or potential enhancements at our properties may require us to raise additional capital.
Disruptions in operations at our temporary facility could have an adverse effect on our business, financial condition and results of operations. 24 Table of Contents The permanent American Place facility, additional growth projects or potential enhancements at our properties may require us to raise additional capital.
Increased labor costs brought about by changes in either federal or state minimum wage laws, other regulations or prevailing market conditions have recently, and could in the future, further increase our expenses, which could have an adverse impact on our profitability, or decrease the number of employees we are able to employ, which could decrease customer service levels at our gaming facilities and therefore adversely impact revenues.
Increased labor costs brought about by changes in either federal or state minimum wage laws, other regulations or prevailing market conditions have recently, and could in the future, further increase our expenses, which could have an adverse impact on our profitability, or decrease the number of employees we are able to employ, which could decrease customer service levels at our gaming facilities and therefore adversely impact revenues. 18 Table of Contents Rising operating costs at our gaming properties could have a negative impact on our business.
The occurrence of some or all of the above-described events could have a material adverse effect on our business, financial condition and results of operations. The construction of Chamonix and the permanent American Place facility may inconvenience customers and disrupt business activity at our adjoining facilities.
The occurrence of some or all of the above-described events could have a material adverse effect on our business, financial condition and results of operations. The construction of the permanent American Place facility may inconvenience customers and disrupt business activity at our adjacent temporary casino facility.
There is no assurance that our growth projects, including Chamonix and American Place, will be successful. In addition to the construction and regulatory risks associated with the development of our growth projects, including Chamonix and American Place, we cannot assure you that the level of consumer demand for these projects will meet our expectations.
In addition to the construction and regulatory risks associated with the development of our growth projects, including Chamonix and American Place, we cannot assure you that the level of consumer demand for these projects will meet our expectations.
Our casinos are our primary sources of income and operating cash flows that we rely upon to pay all of our obligations and to remain in compliance with debt covenants under any indebtedness we may incur and meet our obligations when due.
A prolonged closure of our casinos would negatively impact our ability to service our debt. Our casinos are our primary sources of income and operating cash flows that we rely upon to pay all of our obligations and to remain in compliance with debt covenants under any indebtedness we may incur and meet our obligations when due.
In addition, negative publicity related to such schemes could have an adverse effect on our reputation, potentially causing a material adverse effect on our business, financial condition, results of operations and cash flows. 19 Table of Contents Win rates for our gaming operations depend on a variety of factors, some beyond our control.
In addition, negative publicity related to such schemes could have an adverse effect on our reputation, potentially causing a material adverse effect on our business, financial condition, results of operations and cash flows. Win rates for our gaming operations depend on a variety of factors, some beyond our control. The gaming industry is characterized by an element of chance.
We cannot assure you that our assets or cash flow would be sufficient to repay our obligations under the Notes, the Credit Facility or any future outstanding debt obligations, if accelerated upon an event of default, or that we would be able to borrow sufficient funds to refinance the Notes, the Credit Facility or any future debt instruments.
We cannot assure you that our assets or cash flow would be sufficient to repay our obligations under the Notes, the Credit Facility or any future outstanding debt obligations, if accelerated upon an event of default, or that we would be able to borrow sufficient funds to refinance the Notes, the Credit Facility or any future debt instruments. 27 Table of Contents To service our indebtedness, we will require a significant amount of cash.
Our contracted sports betting parties, through the use of our permitted website “skins,” compete in a rapidly evolving and highly competitive market.
Three of our seven permitted sports “skins” are currently active. Our contracted sports betting parties, through the use of our permitted website “skins,” compete in a rapidly evolving and highly competitive market.
The loss of a lease could have a significant adverse effect on our business, financial condition and results of operations and we may then be unable to operate all or portions of the affected facilities, which, in turn, may result in a default under our debt agreements. 16 Table of Contents A prolonged closure of our casinos would negatively impact our ability to service our debt.
The loss of a lease could have a significant adverse effect on our business, financial condition and results of operations and we may then be unable to operate all or portions of the affected facilities, which, in turn, may result in a default under our debt agreements.
The concentration and evolution of the slot machine manufacturing industry could impose additional costs on us. A majority of our revenues are attributable to slot machines and related systems operated by us at our gaming facilities. It is important, for competitive reasons, that we offer popular and up-to-date slot machine games to our customers.
A majority of our revenues are attributable to slot machines and related systems operated by us at our gaming facilities. It is important, for competitive reasons, that we offer popular and up-to-date slot machine games to our customers.
If our winnings do not exceed the winnings of our gaming customers by enough to cover our operating costs, we may record a loss from our gaming operations, which could have a material adverse effect on our business, financial condition, results of operations and cash flows.
If our winnings do not exceed the winnings of our gaming customers by enough to cover our operating costs, we may record a loss from our gaming operations, which could have a material adverse effect on our business, financial condition, results of operations and cash flows. 19 Table of Contents The concentration and evolution of the slot machine manufacturing industry could impose additional costs on us.
Such occurrences may also result in a significant increase in our operating costs or liability to third parties. Our Mississippi casino hotel and Illinois casino operations currently generate a significant percentage of our revenues and Adjusted EBITDA. Our ability to meet our operating and debt service requirements is dependent, in part, upon the continued success of those properties.
Our Mississippi casino hotel and Illinois casino operations currently generate a significant percentage of our revenues and Adjusted EBITDA. Our ability to meet our operating and debt service requirements is dependent, in part, upon the continued success of those properties.
The temporary American Place facility was designed so that construction of its permanent facility on adjoining land should not materially disrupt business activity, but there is no certainty that this will be the case.
Although we will attempt to minimize operational disruptions, construction of the permanent American Place facility may disrupt business at the adjacent temporary casino facility. The temporary American Place facility was designed so that construction of its permanent facility on adjoining land should not materially disrupt business activity, but there is no certainty that this will be the case.
This, to a certain extent, is subject to general economic, financial, competitive, legislative, regulatory and other factors. 28 Table of Contents We cannot assure you that our business will generate sufficient cash flows from operations or asset sales, our anticipated growth in operations, including through our expansion efforts, will be realized, or that future borrowings will be available to us in amounts sufficient to enable us to repay the Notes, and any amounts outstanding under the Credit Facility and to fund our other liquidity needs.
We cannot assure you that our business will generate sufficient cash flows from operations or asset sales, our anticipated growth in operations, including through our expansion efforts, will be realized, or that future borrowings will be available to us in amounts sufficient to enable us to repay the Notes, and any amounts outstanding under the Credit Facility and to fund our other liquidity needs.
If our contingency, cash flow from operations and anticipated excess liquidity are insufficient to cover any shortfall, we may not have sufficient funds to complete the projects without seeking additional capital or at all.
If our contingency, cash flow from operations and anticipated excess liquidity are insufficient to cover any shortfall, we may not have sufficient funds to complete the projects without seeking additional capital or at all. There is no assurance that any growth projects will not be subject to additional regulatory restrictions, delays, or challenges.
For the year ended December 31, 2023, we generated 31.9% of our revenues and 37.9% of our Adjusted EBITDA from our casino in Illinois. Similarly, we generated 32.1% of our revenues and 30.7% of our Adjusted EBITDA from our casino resort in Mississippi.
For the year ended December 31, 2024, we generated 37.5% of our revenues and 60.5% of our Adjusted EBITDA from our casino in Illinois. Similarly, we generated 25.1% of our revenues and 25.0% of our Adjusted EBITDA from our casino resort in Mississippi.
Our results of operations and financial condition could be materially adversely affected by the occurrence of natural disasters, including as a result of climate change, such as hurricanes, floods, wildfires, pandemics, epidemics, widespread health emergencies, or outbreaks of infectious diseases such as the coronavirus pandemic, or other catastrophic events, including war, terrorism and gun violence.
Our ferry boat that we operate at Rising Star has similar risks as our Indiana casino vessel, as well as additional risks related to ferry boat operations. 16 Table of Contents Our results of operations and financial condition could be materially adversely affected by the occurrence of natural disasters, including as a result of climate change, such as hurricanes, floods, wildfires, pandemics, epidemics, widespread health emergencies, or outbreaks of infectious diseases such as the coronavirus pandemic, or other catastrophic events, including war, terrorism and gun violence.
There also can be no assurance that we will be able to obtain or choose to purchase any insurance coverage with respect to occurrences of terrorist and violent acts and any losses that could result from these acts.
We cannot accurately predict the extent to which such events may affect us, directly or indirectly, in the future. There also can be no assurance that we will be able to obtain or choose to purchase any insurance coverage with respect to occurrences of terrorist and violent acts and any losses that could result from these acts.
Likewise, our ability to meet our operating and debt service requirements is dependent, in part, upon the continued success of these properties. 15 Table of Contents We derive our revenues and operating income from our properties located in Mississippi, Colorado, Indiana, Nevada and Illinois, and are especially subject to certain risks, including economic and competitive risks, associated with the conditions in those areas and in the states from which we draw patrons.
We derive our revenues and operating income from our properties located in Mississippi, Colorado, Indiana, Nevada and Illinois, and are especially subject to certain risks, including economic and competitive risks, associated with the conditions in those areas and in the states from which we draw patrons.
We are currently in the final stages of construction at Chamonix in Cripple Creek, Colorado, adjoining and connected to our existing Bronco Billy’s casino. We also intend to construct the permanent American Place facility in Waukegan, Illinois, located adjacent to its current temporary facility.
We recently completed the phased opening at Chamonix in Cripple Creek, Colorado, adjoining and connected to our existing Bronco Billy’s casino. We have begun the design work for the construction of the permanent American Place facility in Waukegan, Illinois, located adjacent to its current temporary facility.
It is either currently more advantageous for us to continue to lease rather than exercise such buyout options, or we have certain restrictions which only allow us to exercise the purchase option during certain future time periods. The obligations under the Notes and the Credit Facility are collateralized by a security interest in substantially all of our assets.
It is either currently more advantageous for us to continue to lease rather than exercise such buyout options, or we have certain restrictions which only allow us to exercise the purchase option during certain future time periods.
We may enter into similar arrangements with the general contractor for the permanent American Place facility. We can give no assurance that changes in the scope of these projects will not increase the cost of the projects or extend their completion dates.
We can give no assurance that changes in the scope of these projects will not increase the cost of the projects or extend their completion dates.
To service our indebtedness, we will require a significant amount of cash. Our ability to generate cash depends on many factors beyond our control. Our ability to make payments on and to refinance our indebtedness, and to fund planned capital expenditures and expansion efforts, will depend upon our ability to generate cash in the future.
Our ability to generate cash depends on many factors beyond our control. Our ability to make payments on and to refinance our indebtedness, and to fund planned capital expenditures and expansion efforts, will depend upon our ability to generate cash in the future. This, to a certain extent, is subject to general economic, financial, competitive, legislative, regulatory and other factors.
Marine transportation is inherently risky, and insurance may be insufficient to cover losses that may occur to our assets or result from our ferry boat operations.
If access to any of these roads is blocked for any significant period, our results of operations and financial condition could be materially affected. Marine transportation is inherently risky, and insurance may be insufficient to cover losses that may occur to our assets or result from our ferry boat operations.
Therefore, until Chamonix has fully ramped up its operations, our results will be dependent on the regional economies and competitive landscapes at our Illinois and Mississippi properties.
Therefore, even after Chamonix has fully ramped up its operations, our results will still be dependent on the regional economies and competitive landscapes at our Illinois and Mississippi properties. Likewise, our ability to meet our operating and debt service requirements is dependent, in part, upon the continued success of these properties.
If access to any of these roads is blocked for any significant period, our results of operations and financial condition could be materially affected. We may incur property and other losses that are not adequately covered by insurance, including adequate levels of Weather Catastrophe Occurrence/Named Windstorm, Flood and Earthquake insurance coverage for our properties.
Such occurrences may also result in a significant increase in our operating costs or liability to third parties. We may incur property and other losses that are not adequately covered by insurance, including adequate levels of Weather Catastrophe Occurrence/Named Windstorm, Flood and Earthquake insurance coverage for our properties.
The occurrence of any of these issues could adversely affect our prospects, financial condition and results of operations. Failure to comply with the terms of our disbursement agreement related to Chamonix could limit our access to funds. As of December 31, 2023 , we had approximately $37.6 million deposited in a construction disbursement account for Chamonix.
The occurrence of any of these issues could adversely affect our prospects, financial condition and results of operations. We face a number of challenges prior to opening new or upgraded facilities.
Removed
The Notes contain representations and warranties, financial covenants, and restrictions on dividends customary for notes of this type.
Added
The lease at Grand Lodge Casino also permits the lessor to terminate the lease early to renovate the premises. If the lessor were to termination the lease early, our results of operations and financial condition could be materially affected.
Removed
Mandatory prepayments, in whole or in part, of the Notes will be required upon the occurrence of certain events, including sales of certain assets (unless the proceeds from the sale are reinvested in other facilities within specified periods), upon certain changes of control, or should the Company have certain unused funds in the construction disbursement account following the completion of Chamonix.
Added
Catastrophic events, such as terrorist and war activities in the United States and elsewhere, when they occur, have had a negative effect on travel and leisure expenditures, including lodging, gaming and tourism. Gun violence has also occurred at casinos, including a mass shooting at a casino in Las Vegas in 2017.
Removed
The Credit Facility contains a number of negative covenants that, subject to certain exceptions, are substantially similar to the covenants contained in the Notes.
Removed
The Credit Facility also requires compliance with a financial covenant as of the last day of each fiscal quarter, such that Adjusted EBITDA (as defined) for the trailing twelve-month period must equal or exceed the utilized portion of the Credit Facility, if drawn.
Removed
Our ferry boat that we operate at Rising Star has similar risks as our Indiana casino vessel, as well as additional risks related to ferry boat operations.
Removed
Gun violence has also occurred at casinos, including a mass shooting at a casino in Las Vegas in 2017. We cannot accurately predict the extent to which such events may affect us, directly or indirectly, in the future.
Removed
Rising operating costs at our gaming properties could have a negative impact on our business.
Removed
Although construction of Chamonix is nearing completion, the Pre-Construction Services Agreement and Letter of Intent with our general contractor for Chamonix provides that the cost of construction may increase and the deadlines for the contractor’s obligations to complete construction may be adjusted for alterations in the project’s scope.
Removed
A lawsuit was filed by an unsuccessful bidder for the Waukegan casino license, which could also have a negative impact on the development of our permanent American Place facility.
Removed
On October 21, 2019, the Forest County Potawatomi Community, the owner/operator of a competing casino in downtown Milwaukee and one of the unsuccessful bidders for the Waukegan casino license, sued the City of Waukegan seeking further consideration of its casino proposal. In its complaint, the plaintiff alleges several violations of law and seeks monetary damages from the City of Waukegan.
Removed
In January 2020, the City of Waukegan removed the lawsuit to the U.S. District Court for the Northern District of Illinois (the “Federal Action”).
Removed
The City of Waukegan has moved for summary judgment on all claims brought in the Federal Action; such motion has been fully briefed since January 2022, and the parties are waiting for the judge’s ruling on the motion.
Removed
On November 17, 2021, the same plaintiff filed a second lawsuit in the Circuit Court of Cook County against the City of Waukegan, the Illinois Gaming Board (“IGB”), members of the IGB, and the IGB Administrator (the “State Action”).
Removed
Per the State Action, the plaintiff sought, among other relief, temporary, preliminary, and permanent injunctive relief enjoining the IGB from taking formal steps toward issuing the Waukegan casino license; a declaration that the City failed to comply with the statutory requirements to certify applicants for the IGB; and a finding that the IGB, therefore, had no jurisdiction to issue an owner’s license for the Waukegan casino.
Removed
The judge denied the plaintiff’s request for a temporary restraining order, which was later affirmed by the Appellate Court.
Removed
On May 13, 2022, defendants in the State Action filed a motion to dismiss the State Action based upon the plaintiff’s lack of standing relating to the purported lack of compliance by the City with the certification process and that the Illinois Gambling Act does not provide for a private right of action.
Removed
The trial court granted the motion and the plaintiff appealed. While the appeal was pending, on June 15, 2023, the IGB issued us an owner’s license for American Place, our Waukegan casino.
Removed
Subsequent to the issuance of the owner’s license, defendants in the State Action sought to dismiss the appeal in the State Action as moot, given the IGB’s issuance of the owner’s license. The court granted such dismissal.
Removed
However, on July 28, 2023, the Illinois Appellate Court reversed the lower court’s dismissal of the State Action, finding that the plaintiff’s action was not a private right of action under the Illinois Gambling Act and that the plaintiff had standing to pursue its claims. The Illinois Appellate Court decision was appealed to the Illinois Supreme Court.
Removed
Although we are not a party to either lawsuit, court rulings in these actions could negatively impact our ability to secure financing for the permanent American Place facility, delay the opening of the permanent facility, or otherwise affect our licensing, which would have a negative impact on us.
Removed
If the City of Waukegan and/or regulatory agencies were found to have operated improperly, we would likely have certain rights to protect or recoup our Waukegan investment.
Removed
If the plaintiff were found to be filing frivolous lawsuits to delay the development of a competing casino, we also could have certain rights against the tribe. 23 Table of Contents There is no assurance that any growth projects, such as American Place, will not be subject to additional regulatory restrictions, delays, or challenges.
Removed
The funds in the construction disbursement account, which will be used to fund the completion of the design, development, construction, equipping and opening costs of Chamonix, will be disbursed pursuant to the terms of our Cash Collateral and Disbursement Agreement.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

13 edited+2 added−2 removed4 unchanged
Biggest changeOur Board, with direct oversight by the Audit Committee and senior management, ultimately presides over our management of cybersecurity risk. The Board routinely receives reports from the Cybersecurity Committee, via the Audit Committee, about the prevention, detection, mitigation, and remediation of cybersecurity incidents, including material security risks and information system security vulnerabilities.
Biggest changeThe Board routinely receives reports from the Cybersecurity Committee , via the Audit Committee, about the prevention, detection, mitigation, and remediation of cybersecurity incidents, including material security risks and information system security vulnerabilities. There can be no guarantee that our policies and procedures will be properly followed in every instance or that those policies and procedures will be effective.
“Financial Statements and Supplementary Data.” Several of our facilities are subject to leases of the underlying real estate assets, which may, among other things, include the land underlying the facility and, in some cases, buildings used in business operations, as discussed in Note 7 to the consolidated financial statements set forth in Part II, Item 8.
“Financial Statements and Supplementary Data.” Several of our facilities are subject to leases of the underlying real estate assets, which may, among other things, include the land underlying the facility and, in some cases, buildings used in business operations, as discussed in Note 8 to the consolidated financial statements set forth in Part II, Item 8.
We can provide no assurance that there will not be incidents in the future or that they will not materially affect us, including our business strategy, results of operations, or financial condition. See Part I, Item 1A. “ Risk Factors – Risks Related to Technology ” for additional discussion. 36 Table of Contents Item 2. Properties.
We can provide no assurance that there will not be incidents in the future or that they will not materially affect us, including our business strategy, results of operations, or financial condition. See Part I, Item 1A. “ Risk Factors – Risks Related to Technology ” for additional discussion. 35 Table of Contents Item 2. Properties.
At a minimum, our cybersecurity programs are benchmarked against and aligned to the Center for Internet Security (CIS) Version 8 framework ⸺ a universally accepted and recognized controls standard published in 2021 ⸺ to guide annual risk assessments and ongoing control monitoring activities.
At a minimum, our cybersecurity programs are benchmarked against and aligned to the Center for Internet Security (CIS) Version 8 framework ⸺ a universally accepted and recognized controls standard published in 2021 ⸺ to guide periodic risk assessments and ongoing control monitoring activities.
A discussion of our legal proceedings is contained in Note 9 to our consolidated financial statements set forth in Part II, Item 8. “Financial Statements and Supplementary Data” of this Annual Report on Form 10-K. Item 4. Mine Safety Disclosures. Not applicable. ​ 37 Table of Contents PART II
A discussion of our legal proceedings is contained in Note 10 to our consolidated financial statements set forth in Part II, Item 8. “Financial Statements and Supplementary Data” of this Annual Report on Form 10-K. Item 4. Mine Safety Disclosures. Not applicable. ​ 36 Table of Contents PART II
Substantially all of our assets collateralize our indebtedness, as discussed in Note 6 to the consolidated financial statements set forth in Part II, Item 8.
Substantially all of our assets collateralize our indebtedness, as discussed in Note 7 to the consolidated financial statements set forth in Part II, Item 8.
The combined experience of this group consists of approximately 14 decades of direct information technology leadership experience, in addition to multiple degrees and specialized training and certifications in the information technology and cybersecurity field. External Assessments. We engage independent third parties to conduct infrastructure and application security assessments and penetration testing.
The combined experience of this group consists of approximately 14 decades of direct information technology leadership experience, in addition to multiple degrees and specialized training and certifications in the information technology and cybersecurity field. External Assessments. We engage independent third parties to conduct external vulnerability and penetration testing. Management’s Role.
“Business — Operating Properties ” for additional discussions. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2023 ​ ​ ​ ​ Owned ​ Leased ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Land ​ Land ​ Slot ​ Table ​ Hotel Segments and Properties ​ Locations ​ (acres) ​ (acres) ​ Machines ​ Games ​ Rooms Midwest & South ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ American Place (a) ​ Waukegan, IL ​ 9.95 ​ 31.70 (b) ​ ​ 937 ​ 48 ​ ─ Silver Slipper Casino and Hotel Hancock County, MS 0.03 44.18 (b) ​ 759 20 129 Rising Star Casino Resort Rising Sun, IN 289.58 3.01 (b) ​ 633 16 294 West ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Bronco Billy’s / Chamonix Casino Hotel (c) Cripple Creek, CO 6.20 4.13 (b) ​ 606 16 313 Grand Lodge Casino Incline Village, NV ─ 0.48 ​ 265 9 (d) Stockman’s Casino Fallon, NV 4.73 ─ ​ 189 3 ─ __________ (a) The temporary American Place facility opened on February 17, 2023 and does not have hotel operations.
“Business — Operating Properties ” for additional discussions. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ December 31, 2024 ​ ​ ​ ​ Owned ​ Leased ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Land ​ Land ​ Slot ​ Table ​ Hotel Segments and Properties ​ Locations ​ (acres) ​ (acres) ​ Machines ​ Games ​ Rooms Midwest & South ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ American Place (a) ​ Waukegan, IL ​ 9.95 ​ 31.70 (b) ​ ​ 933 ​ 43 ​ ─ Silver Slipper Casino and Hotel Hancock County, MS 0.03 44.18 (b) ​ 769 ​ 20 ​ 129 Rising Star Casino Resort Rising Sun, IN 312.69 3.01 (b) ​ 623 ​ 16 ​ 294 West ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Bronco Billy’s Casino / Chamonix Casino Hotel (c) Cripple Creek, CO 6.20 2.89 (b) ​ 630 ​ 10 ​ 307 Grand Lodge Casino Incline Village, NV ─ 0.48 ​ 264 ​ 9 ​ (d) Stockman’s Casino (e) Fallon, NV ─ 4.73 ​ 189 ​ 3 ​ ─ __________ (a) The temporary American Place facility opened on February 17, 2023 and does not have hotel operations.
As part of our risk identification efforts and overall cybersecurity risk management framework, we have processes in place to assess and manage third-party service provider cybersecurity risks.
All of these items are incorporated into our overall risk management program. Third-Party Risk Management. As part of our risk identification efforts and overall cybersecurity risk management framework, we have processes in place to assess and manage third-party service provider cybersecurity risks .
These third parties also help us assess our internal preparedness. Management’s Role. Our Cybersecurity Committee members and external experts meet quarterly, at a minimum, with the primary purpose of identifying emerging company risks and related solutions, and evaluating the progress of previously-identified risk mitigation activities. Board Oversight.
Our Cybersecurity Committee members and external experts meet quarterly, at a minimum, with the primary purpose of identifying emerging company risks and related solutions, and evaluating the progress of previously-identified risk mitigation activities. Board Oversight. Our Board, with direct oversight by the Audit Committee and senior management, ultimately presides over our management of cybersecurity risk.
There can be no guarantee that our policies and procedures will be properly followed in every instance or that those policies and procedures will be effective. Further, although we have not experienced any recent material cybersecurity incidents, we face a number of cybersecurity risks in connection with our business. Other casino companies have reported large-scale cybersecurity incidents.
Further, although we have not experienced any recent material cybersecurity incidents, we face a number of cybersecurity risks in connection with our business. Other casino companies have reported large-scale cybersecurity incidents.
We have established comprehensive incident response and recovery plans and continue to regularly test and evaluate the effectiveness of these plans, while also providing necessary training tools and guidance for company personnel. All of these items are incorporated into our overall risk management program. Third-Party Risk Management.
External experts are also utilized for cybersecurity evaluations, as needed, to ensure broad and in-depth evaluations of the transforming cybersecurity environment. Incident Response and Recovery Planning. We have established comprehensive incident response and recovery plans and continue to regularly test and evaluate the effectiveness of these plans, while also providing necessary training tools and guidance for company personnel.
The permanent American Place facility (under development) is currently expected to have 1,640 slot machines, 100 table games, and a premium boutique hotel comprised of 20 luxury villas. (b) The Company has the right to buy out such leases at a fixed price.
The permanent American Place facility (under development) is currently expected to have a significantly larger casino and a premium boutique hotel comprised of 20 luxury villas. (b) We have the right to buy out such leases at a fixed price. (c) Bronco Billy’s and Chamonix are two integrated and adjoining casinos, operated by our management team as a single entity.
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External experts are also utilized for both annual and periodic risk assessments, as needed, to ensure broad and in-depth evaluations of the transforming cybersecurity environment. Incident Response and Recovery Planning.
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Chamonix opened in phases between December 2023 and October 2024. (d) Located within the Hyatt Lake Tahoe, which offers 422 rooms. (e) We closed on the sale of Stockman’s real property in September 2024 to a privately-held company.
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(c) Bronco Billy’s and Chamonix are two integrated and adjoining casinos, operated by our management team as a single entity. Chamonix began its phased opening on December 27, 2023. (d) Located within the Hyatt Lake Tahoe, which offers 422 rooms. ​ ​ Item 3. Legal Proceedings.
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We continue to operate the business under a leaseback agreement with the new owners for use of their facilities until the second closing of the Stockman’s sale, which is expected to occur in the first half of 2025. ​ ​ Item 3. Legal Proceedings.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

1 edited+1 added−146 removed3 unchanged
Biggest changeItem 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Our common stock is traded on the Nasdaq Capital Market under the symbol “FLL.” On March 13, 2024, we had 70 “registered holders” of record of our common stock.
Biggest changeItem 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. Our common stock is traded on the Nasdaq Capital Market under the symbol “FLL.” On March 6, 2025, we had 59 “registered holders” of record of our common stock.
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Item 6. [Reserved] ​ 38 Table of Contents Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. The following discussion of our results of operations and financial condition should be read together with the other financial information and consolidated financial statements included in this Form 10-K. This discussion contains forward-looking statements that involve risks and uncertainties.
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Item 6. [Reserved] ​ 37 Table of Contents
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Our actual results could differ materially from the results anticipated in the forward-looking statements as a result of a variety of factors, including those discussed in Part I, Item 1A. “ Risk Factors ” and elsewhere in this Annual Report on Form 10-K.
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The results of operations for the periods reflected herein are not necessarily indicative of results that may be expected for future periods.
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Full House Resorts, Inc., together with its subsidiaries, may be referred to as “Full House,” the “Company,” “we,” “our” or “us.” Executive Overview Our primary business is the ownership and/or operation of casino and related hospitality and entertainment facilities, which includes offering, among other amenities, casino gambling, hotel accommodations, dining, golf, RV camping, sports betting, entertainment and retail outlets.
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We currently operate seven casinos: six on real estate that we own or lease and one located within a hotel owned by a third party. In December 2023, we began the phased opening of our newest property, Chamonix Casino Hotel (“Chamonix”), located adjacent to our existing Bronco Billy’s Casino and Hotel in Cripple Creek, Colorado.
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We are currently designing our permanent American Place casino destination, which will be built adjacent to a temporary facility that we opened in Waukegan, Illinois, in February 2023. We are currently permitted to operate the temporary American Place facility until August 2027.
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Additionally, we benefit from seven permitted sports wagering “skins” – three in Colorado, three in Indiana, and one in Illinois. Other companies operate the active sports wagering websites under their brands, paying us a percentage of revenues, as defined, subject to annual minimum amounts.
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Regarding our remaining idle skins, we continue to evaluate whether to operate them ourselves or to have other third parties operate them. However, there is no certainty that we will be able to enter into agreements with replacement operators or successfully operate the skins ourselves.
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Starting in the first quarter of 2023, we updated our reportable segments to Midwest & South, West, and Contracted Sports Wagering. This change reflects a realignment within the Company as a result of our continued growth. See Note 11 for additional information about our segments, which are based primarily on geographic regions within the United States and type of income.
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The following table presents selected information concerning our segments: ​ ​ ​ Segments and Properties ​ Locations Midwest & South ​ ​ American Place * ​ Waukegan, IL (northern suburb of Chicago) Silver Slipper Casino and Hotel Hancock County, MS (near New Orleans) Rising Star Casino Resort Rising Sun, IN (near Cincinnati) West ​ ​ Bronco Billy’s Casino and Chamonix Casino Hotel * Cripple Creek, CO (near Colorado Springs) Grand Lodge Casino (leased and part of the Hyatt Regency Lake Tahoe Resort, Spa and Casino) Incline Village, NV (North Shore of Lake Tahoe) Stockman’s Casino Fallon, NV (one hour east of Reno) Contracted Sports Wagering ​ ​ Three sports wagering websites (“skins”), one of which is currently idle ​ Colorado Three sports wagering websites (“skins”), two of which are currently idle ​ Indiana One sports wagering website (“skin”), commenced in August 2023 ​ Illinois __________ * The temporary American Place facility and Chamonix opened on February 17 and December 27, 2023, respectively. ​ 39 Table of Contents Our financial results are dependent upon the number of patrons that we attract to our properties and the amounts those guests spend per visit.
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While we provide credit at some of our casinos where permitted by gaming regulations, most of our revenues are cash-based, through customers wagering with cash or paying for non-gaming services with cash or credit cards. Our revenues are primarily derived from slot machines, but also include other gaming activities, including table games, keno and sports betting.
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In addition, we derive a significant amount of revenue from our hotels and our food and beverage outlets. We also derive revenues from our golf course and ferry boat service at Rising Star, our RV parks owned at Rising Star and managed at Silver Slipper, and retail outlets and entertainment.
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We often provide hotel rooms, food and beverages, entertainment, ferry usage, and golf privileges to customers on a complimentary basis; the value of such services is included as revenue in those categories, offset by contra-revenue in the casino revenue category.
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As a result, the casino revenues in our financial statements reflect patron gaming wins and losses, reduced by the retail value of complimentary services, the value of free play provided to customers, the value of points earned by casino customers that can be redeemed for services or free play, and adjustments for certain progressive jackpots offered by the Company.
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We set minimum and maximum betting limits for our slot machines and table games based on market conditions, customer demand and other factors. Our gaming revenues are derived from a broad base of guests that includes both high- and low-stakes players. At Silver Slipper, our sports book operations are in partnership with a company specializing in race and sports betting.
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At Rising Star, Bronco Billy’s, and American Place, we have contracted with other companies to operate our online sports wagering skins under their own brands in exchange for a percentage of revenues, as defined, subject to annual minimum amounts.
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Our operating results may also be affected by, among other things, overall economic conditions affecting the disposable income of our guests, weather conditions affecting access to our properties, achieving and maintaining cost efficiencies, taxation and other regulatory changes, and competitive factors, including but not limited to, additions and improvements to the competitive supply of gaming facilities, as well as pandemics and similar widespread health emergencies.
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We may experience significant fluctuations in our quarterly operating results due to seasonality, variations in gaming hold percentages and other factors. Consequently, our operating results for any quarter or year are not necessarily comparable and may not be indicative of results in future periods. Our market environment is highly competitive and capital-intensive.
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Nevertheless, there are significant restrictions and barriers to entry vis-à-vis opening new casinos in most of the markets in which we operate. We rely on the ability of our properties to generate operating cash flow to pay interest, repay debt, and fund maintenance and certain growth-related capital expenditures.
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We continuously focus on improving the operating margins of our existing properties through a combination of revenue growth and expense management. We also assess growth and development opportunities, which include capital investments at our existing properties, the development of new properties, and the acquisition of existing properties. Recent Developments Chamonix Casino Hotel.
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On December 27, 2023, we began the phased opening of Chamonix in Cripple Creek, Colorado. Designed to integrate with our adjacent Bronco Billy’s Casino, the combined gaming complex currently offers a large, modern casino; luxury hotel with approximately 300 guest rooms; 14 additional guest rooms located nearby; parking garage; meeting and entertainment facilities; high-end steakhouse; and two additional casual restaurants.
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When complete later this year, the destination will also include a spa, rooftop pool, and a new Italian restaurant. Chamonix is the only luxury casino hotel located near the Colorado Springs metropolitan area. ​ American Place.
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In February 2023, we opened our temporary American Place facility in Waukegan, Illinois, which we intend to operate while we design and construct the larger, permanent American Place facility. We recently received approvals to operate the temporary American Place facility until August 2027.
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It currently includes approximately 940 slot machines, 48 table games, a fine-dining restaurant, two additional restaurants, a center bar and a sportsbook.
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The permanent American Place facility is expected to include a world-class casino with a state-of-the-art sportsbook, a premium boutique hotel comprised of 20 luxurious villas, and various food and beverage outlets. ​ ​ 40 Table of Contents Key Performance Indicators We use several key performance indicators to evaluate the operations of our properties.
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These key operating measures are presented as supplemental disclosures because management uses these measures to better understand period-over-period fluctuations in our casino and hotel operating revenues and as a measure of our performance.
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These key performance indicators include the following and are disclosed in our discussions, where applicable, for certain jurisdictions on segment performance: Gaming revenue indicators: Slot coin-in is the gross dollar amount wagered in slot machines and table game drop is the total amount of cash or credit exchanged into chips at table games for use by our customers.
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Slot coin-in and table game drop are indicators of volume, and are monitored on a consolidated basis in relation to slot and table game win. Such metrics can be influenced by marketing activity and are not necessarily indicative of profitability trends. Slot win is the difference between customer wagers and customer winnings on slot machines.
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Table game hold is the difference between the amount of money or markers exchanged into chips and customer winnings paid. Slot win and table game hold percentages represent the relationship between slot win and coin-in and table game win and drop.
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Both the slot win and table game hold percentages are monitored on a consolidated basis in our evaluation of Company performance. Room revenue indicators: Hotel occupancy rate is an indicator of the utilization of our available rooms.
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Complimentary room sales, or the retail value of accommodations furnished to customers on a complimentary basis, are included in the calculation of the hotel occupancy rate. Adjusted EBITDA, Adjusted Segment EBITDA, Adjusted Segment EBITDA Margin and Adjusted Property EBITDA: Management uses Adjusted EBITDA as a measure of our performance.
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For a description of Adjusted EBITDA, see “ Non-GAAP Financial Measure .” We utilize Adjusted Segment EBITDA as the measure of segment profitability in assessing performance and allocating resources at the reportable segment level. For information regarding our operating segments, see Note 11 to the consolidated financial statements set forth in Part II, Item 8.
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“Financial Statements and Supplementary Data.” Additionally, we use Adjusted Segment EBITDA Margin, which is calculated by dividing Adjusted Segment EBITDA by the segment’s total revenues. Same-store Adjusted Segment EBITDA is Adjusted Segment EBITDA further adjusted to exclude the Adjusted Property EBITDA of properties that have not been in operation for a full year.
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Adjusted Property EBITDA is defined as earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening expenses, certain impairment charges, asset write-offs, recoveries, gain (loss) from asset disposals, project development and acquisition costs, non-cash share-based compensation expense, and corporate-related costs and expenses that are not allocated to each property. 41 Table of Contents Results of Operations 2023 Compared to 2022 Consolidated operating results The following tables summarize our consolidated operating results for the years ended December 31, 2023 and 2022: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ ​ (In thousands) ​ December 31, ​ Increase / ​ 2023 2022 (Decrease) Revenues ​ $ 241,060 ​ $ 163,281 47.6 % Operating expenses ​ 242,222 ​ 150,598 60.8 % Operating (loss) income ​ (1,162) ​ 12,683 (109.2) % Interest and other non-operating expenses, net ​ 22,593 ​ 27,518 (17.9) % Income tax expense (benefit) ​ 1,149 ​ (31) 3,806.5 % Net loss ​ $ (24,904) ​ $ (14,804) 68.2 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ ​ (In thousands) ​ December 31, ​ Increase / ​ 2023 2022 (Decrease) Casino revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ Slots ​ $ 148,363 ​ $ 99,490 49.1 % Table games ​ 28,122 ​ 13,535 107.8 % Other ​ 448 ​ 851 (47.4) % ​ ​ 176,933 ​ 113,876 55.4 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-casino revenues, net ​ ​ ​ ​ ​ ​ ​ ​ ​ Food and beverage ​ 33,980 ​ 26,494 28.3 % Hotel ​ 9,428 ​ 9,282 1.6 % Other ​ 20,719 ​ 13,629 52.0 % ​ ​ 64,127 ​ 49,405 29.8 % Total revenues ​ $ 241,060 ​ $ 163,281 47.6 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ ​ December 31, ​ Increase / (In thousands) 2023 ​ 2022 ​ (Decrease) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Slot coin-in $ 2,605,335 ​ ​ $ 1,837,852 ​ ​ 41.8 % Slot win (1) $ 191,556 ​ ​ $ 135,793 ​ ​ 41.1 % Slot hold percentage (2) ​ 7.4 % ​ ​ 7.4 % ​ — pts Table game drop $ 152,854 ​ ​ $ 76,130 ​ ​ 100.8 % Table game win (1) $ 28,372 ​ ​ $ 13,733 ​ ​ 106.6 % Table game hold percentage (2) ​ 18.6 % ​ ​ 18.0 % ​ 0.6 pts __________ (1) Does not reflect reductions in casino revenues from “discretionary comps.” For details on our customer loyalty programs, see Note 2 to the consolidated financial statements set forth in Part II, Item 8.
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“Financial Statements and Supplementary Data.” (2) The three-year averages for slot hold percentage and table game hold percentage were 7.4% and 18.3%, respectively.
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Longer-term hold percentages can vary due to a number of factors, including the addition of new properties like Chamonix and American Place, or changes in our game mix. 42 Table of Contents ​ The following discussion is based on our consolidated financial statements for the years ended December 31, 2023 and 2022. Revenues.
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Consolidated total revenues increased by 47.6% (or $77.8 million) in 2023, reflecting the February 2023 opening of American Place, which contributed $77.0 million during the year. This increase also reflects the termination of two sports wagering agreements in September 2023, which contributed $5.8 million in accelerated revenues for the year ended December 31, 2023.
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Excluding revenue contributions from American Place, total revenues increased $0.8 million (0.5%) when compared to 2022, despite lower gaming volumes in 2023. For more information, see “ Supplemental Information – Same-store Operating Results. ” Operating expenses.
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Consolidated operating expenses increased by 60.8% (or $91.6 million) in 2023, which was primarily due to the commencement of operations at American Place, including $23.7 million in selling, general and administrative costs, $23.6 million in depreciation and amortization, and $10.0 million of preopening costs for the year ended December 31, 2023.
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Operating expenses in 2023 also included $5.7 million of preopening costs related to the construction and opening of Chamonix. See further information within our reportable segments described below. Interest and other non-operating expense, net.
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Interest Expense Interest expense, net, consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended (In thousands) ​ December 31, ​ 2023 2022 Interest expense (excluding bond fee amortization and discounts/premiums) ​ $ 39,860 ​ $ 33,496 Amortization of debt issuance costs and discounts/premiums ​ 2,793 ​ 1,649 Capitalized interest ​ (15,938) ​ (10,802) Interest income and other ​ ​ (3,738) ​ ​ (1,355) ​ ​ $ 22,977 ​ $ 22,988 ​ Net interest expense for 2023 was relatively flat, reflecting an increase in capitalized interest related to the construction of Chamonix and additional interest income earned from our cash balances, which nearly offset an increase in interest expense due to additional borrowings in the first quarter of 2023.
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See Note 6 to the consolidated financial statements set forth in Part II, Item 8. “Financial Statements and Supplementary Data” for a more detailed discussion. Other non-operating expense, net In 2023, we had $0.4 million of other non-operating income, consisting of insurance settlement proceeds from hurricane damage at Silver Slipper in 2020.
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In 2022, we incurred $4.5 million of other non-operating expense, primarily consisting of debt modification costs related to our offering of $100 million of additional notes in February 2022. Income taxes. Our effective income tax rates for the years ended December 31, 2023 and 2022 were (4.8%) and 0.2%, respectively.
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Our tax rates differ from the statutory rate of 21.0% primarily due to changes in our valuation allowance and items that are permanently treated differently for GAAP and tax purposes.
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During 2023, we continued to provide a valuation allowance against our deferred tax assets (“DTAs”), net of any available deferred tax liabilities, as applicable, based on our analysis of the timing of reversal of such deferred taxes. For 2023, the valuation allowance was $24.0 million, compared to $15.2 million for 2022.
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In future years, if it is determined that we meet the more-likely-than-not threshold of utilizing our DTAs, then we may reverse some or all of our valuation allowance. 43 Table of Contents We do not expect to pay any federal income taxes or receive any federal tax refunds related to our 2023 results.
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Due to the commencement of business operations at American Place, we expect to pay a state income tax in Illinois of $0.5 million. We used net operating loss carryforwards from previous years to offset federal taxable income generated in 2023.
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Due to the level of uncertainty regarding sufficient prospective income as measured under GAAP, we maintain a valuation allowance against our DTAs, as mentioned above. See Note 8 to the consolidated financial statements set forth in Part II, Item 8. “Financial Statements and Supplementary Data” for a more detailed discussion.
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Operating Results — Reportable Segments We manage our casinos based primarily on geographic regions within the United States and type of income. For more information, please refer to our earlier discussion within the “ Executive Overview ” section.
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The following table presents detail by segment of our consolidated revenues and Adjusted EBITDA (see “ Non-GAAP Financial Measure ” for more information).
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Additionally, management uses Adjusted Segment EBITDA as its measure of segment profitability in accordance with GAAP. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands) ​ Year Ended ​ ​ ​ ​ ​ December 31, ​ Increase / ​ 2023 2022 (Decrease) Revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ Midwest & South $ 192,358 ​ $ 119,950 60.4 % West 35,888 ​ 36,135 (0.7) % Contracted Sports Wagering ​ ​ 12,814 ​ ​ 7,196 ​ 78.1 % ​ $ 241,060 ​ $ 163,281 47.6 % Adjusted Segment EBITDA and Adjusted EBITDA ​ ​ ​ ​ ​ ​ ​ ​ ​ Midwest & South $ 39,028 ​ $ 26,376 48.0 % West 2,408 ​ 4,220 (42.9) % Contracted Sports Wagering ​ ​ 11,663 ​ ​ 7,127 ​ 63.6 % Adjusted Segment EBITDA 53,099 ​ 37,723 40.8 % Corporate (4,542) ​ (5,589) (18.7) % Adjusted EBITDA $ 48,557 ​ $ 32,134 51.1 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Adjusted Segment EBITDA Margin ​ ​ ​ ​ ​ ​ ​ ​ ​ Midwest & South ​ ​ 20.3 % ​ 22.0 % (1.7) pts West ​ ​ 6.7 % ​ 11.7 % (5.0) pts Contracted Sports Wagering ​ ​ 91.0 % ​ 99.0 % (8.0) pts ​ 44 Table of Contents Supplemental Information — Same-store Operating Results The following table presents the financial results of our Midwest & South operations on a same-store basis for the years ended December 31, 2023 and 2022 for revenues and Adjusted Segment EBITDA; see “ Adjusted EBITDA, Adjusted Segment EBITDA, Adjusted Segment EBITDA Margin and Adjusted Property EBITDA ” for additional information.
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Same-store operations exclude results of new and acquired operating segments that have not been in operations for longer than a year, starting from the date of commencement or acquisition through the end of the reporting period.
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Accordingly, for Midwest & South, we have excluded the results of American Place for periods subsequent to its commencement of operations. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands) ​ Year Ended ​ ​ ​ ​ ​ December 31, ​ Increase / ​ 2023 2022 (Decrease) Midwest & South same-store total revenues (1) ​ $ 115,371 ​ $ 119,950 ​ (3.8) % American Place ​ 76,987 ​ — N.M.
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Midwest & South total revenues ​ $ 192,358 ​ $ 119,950 60.4 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Midwest & South same-store Adjusted Segment EBITDA (1) ​ $ 20,619 ​ $ 26,376 ​ (21.8) % American Place ​ 18,409 ​ — N.M.
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Midwest & South Adjusted Segment EBITDA ​ $ 39,028 ​ $ 26,376 48.0 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Midwest & South same-store Adjusted Segment EBITDA margin (1) ​ ​ 17.9 % ​ 22.0 % (4.1) pts American Place ​ ​ 23.9 % ​ — % 23.9 pts Midwest & South Adjusted Segment EBITDA margin ​ ​ 20.3 % ​ 22.0 % (1.7) pts __________ N.M.
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(1) Same-store operations exclude results from American Place, which opened on February 17, 2023. ​ 45 Table of Contents The following table presents the financial results of our Contracted Sports Wagering operations on a same-store basis for the years ended December 31, 2023 and 2022 for revenues and Adjusted Segment EBITDA; see “ Adjusted EBITDA, Adjusted Segment EBITDA, Adjusted Segment EBITDA Margin and Adjusted Property EBITDA ” for additional information.
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Same-store operations exclude results of new and acquired operating segments that have not been in operations for longer than a year, starting from the date of commencement or acquisition through the end of the reporting period. Accordingly, for Contracted Sports Wagering, we have excluded the results in Illinois for periods subsequent to its contractual commencement of revenue payments.
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For comparability, we also excluded accelerated revenues due to contract terminations from same-store operations. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands) ​ Year Ended ​ ​ ​ ​ ​ December 31, ​ Increase / ​ 2023 2022 (Decrease) Contracted Sports Wagering same-store total revenues (1) ​ $ 4,773 ​ $ 5,555 ​ (14.1) % Accelerated revenues due to contract terminations (2) ​ ​ 5,794 ​ ​ 1,641 ​ 253.1 % Illinois ​ 2,247 ​ — N.M.
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Contracted Sports Wagering total revenues ​ $ 12,814 ​ $ 7,196 78.1 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contracted Sports Wagering same-store Adjusted Segment EBITDA (1) ​ $ 3,717 ​ $ 5,486 ​ (32.2) % Accelerated revenues due to contract terminations (2) ​ ​ 5,794 ​ ​ 1,641 ​ 253.1 % Illinois ​ 2,152 ​ — N.M.
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Contracted Sports Wagering Adjusted Segment EBITDA ​ $ 11,663 ​ $ 7,127 63.6 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contracted Sports Wagering same-store Adjusted Segment EBITDA margin (1) ​ ​ 77.9 % ​ 98.8 % (20.9) pts Illinois ​ ​ 95.8 % ​ — % 95.8 pts Contracted Sports Wagering Adjusted Segment EBITDA margin ​ ​ 91.0 % ​ 99.0 % (8.0) pts __________ N.M.
Removed
Not meaningful. (1) Same-store operations exclude results from Illinois, which contractually commenced on August 15, 2023. For enhanced comparability, we also excluded accelerated revenues due to contract terminations from same-store operations. (2) For enhanced comparability, we also excluded accelerated revenues due to contract terminations from same-store operations.
Removed
Such adjustments reflect two sports skins that ceased operations in the third quarter of 2023, and two sports skins that ceased operations in the second quarter of 2022. ​ 46 Table of Contents Midwest & South Our Midwest & South segment includes Silver Slipper Casino and Hotel, Rising Star Casino Resort and American Place, which opened in Waukegan, Illinois, in February 2023.
Removed
Compared to 2022, total revenues in 2023 increased by 60.4% (or $72.4 million), primarily due to the opening of American Place. Excluding results from American Place, same-store revenues declined by 3.8% (or $4.6 million), primarily due to lower casino revenue during the year.
Removed
Reflecting the February 2023 opening of American Place, casino revenue increased by 78.0% (or $63.7 million), led by a 70.2% increase in slot revenue (or $50.0 million). Table games revenue increased by 146.8% (or $14.1 million).
Removed
Excluding results from American Place, same-store casino revenue declined by 9.9% (or $8.0 million), primarily due to lower slot and table games hold percentages at Silver Slipper and changes in promotions versus the prior year.
Removed
To a lesser extent, same-store slot revenue for 2023 was adversely impacted by lower slot volumes at Rising Star versus the prior year, likely due to the opening of a new, competing racetrack casino in September 2022 in Northern Kentucky. Non-casino revenue increased by 22.7% (or $8.7 million), largely due to increases in food and beverage revenue.
Removed
Food and beverage revenue rose 29.7% (or $7.0 million), including $3.8 million generated by American Place. Non-casino revenue also benefited from $1.4 million in ATM and related surcharge income at American Place during 2023. Hotel revenues for the segment remained relatively flat during the year, as the temporary American Place facility does not have hotel operations.
Removed
Adjusted Segment EBITDA increased by 48.0% (or $12.7 million) from the prior year, reflecting the February 2023 opening of American Place, which generated $18.4 million of Adjusted Property EBITDA, offsetting a same-store Adjusted Segment EBITDA decline of $5.8 million (21.8%) during 2023.
Removed
Same-store operations were primarily affected by declines in casino revenues and higher operating costs at Silver Slipper, such as property insurance, as well as increases in labor expenses generally. Of note, the temporary American Place facility was not operating at full capacity during 2023.
Removed
American Place operated only one of its major restaurants in the first quarter, followed by a second restaurant that opened in April 2023. In February 2024, its high-end restaurant opened, thus completing the temporary American Place facility. Also, in September 2023, an on-site sportsbook commenced operations.
Removed
West Our West segment includes Grand Lodge, Stockman’s Casino, Bronco Billy’s Casino and Hotel, and Chamonix Casino Hotel, which opened on December 27, 2023. The market in Cripple Creek, Colorado, is seasonal, favoring the summer months. Our Nevada operations have historically been seasonal, with the summer months accounting for a disproportionate share of annual revenues.
Removed
Additionally, snowfall levels during the winter months can often affect operations, as Grand Lodge is located near several major ski resorts.
Removed
While Grand Lodge typically benefits from a “good” snow year, resulting in extended periods of operation at the nearby ski areas, excessive snow levels can also result in challenging driving conditions or the closure of roads leading to the property. Total revenues decreased by 0.7% (or $0.2 million), primarily due to planned business disruptions to accommodate the construction of Chamonix.
Removed
These significant construction disruptions included temporarily-reduced gaming and restaurant capacity at Bronco Billy’s, as well as the absence of all on-site hotel rooms and on-site self-parking until Chamonix’s opening at the end of 2023.
Removed
To alleviate the lack of on-site parking during 2022 and nearly all of 2023, Bronco Billy’s offered, and incurred the cost of offering, complimentary valet parking, as well as a free shuttle service to an off-site parking lot. Casino revenue decreased by 2.0% (or $0.7 million), largely due to the construction disruptions at Bronco Billy’s mentioned above.
Removed
Slot revenue declined by 3.9% (or $1.1 million), despite an increase in slot hold percentages at Bronco Billy’s and Grand Lodge.
Removed
Table games revenue improved by 11.4% (or $0.4 million) due to an increase in table games drop at Bronco Billy’s, as Bronco Billy’s was undergoing a casino refurbishment for a majority of 2022, and an increase in the table games hold percentage at Stockman’s.
Removed
Adverse weather also negatively affected gaming volumes in Nevada, especially at Grand Lodge, where heavy snowfall in February and March 2023 created challenging driving conditions and trip cancellations to our property.

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Item 6. [Reserved]

Selected Financial Data — reserved (removed by SEC in 2021)

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Biggest changeItem 6. [Reserved] 38 ​ ​ Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 39 ​ ​ Item 7A. Quantitative and Qualitative Disclosures About Market Risk 54 ​ ​ Item 8. Financial Statements and Supplementary Data 55 ​ ​
Biggest changeItem 6. [Reserved] 37 ​ ​ Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 38 ​ ​ Item 7A. Quantitative and Qualitative Disclosures About Market Risk 53 ​ ​ Item 8. Financial Statements and Supplementary Data 54 ​ ​

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeItem 7. “ Management’s Discussion and Analysis of Financial Condition and Results of Operations ” of this Annual Report on Form 10-K.
Biggest changeItem 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations. The following discussion of our results of operations and financial condition should be read together with the other financial information and consolidated financial statements included in this Form 10-K. This discussion contains forward-looking statements that involve risks and uncertainties.
Removed
These forward-looking statements speak only as of the date on which this statement is made, and we undertake no obligation to update or revise any forward-looking statements as a result of future developments, events or conditions, except as required by law.
Added
Our actual results could differ materially from the results anticipated in the forward-looking statements as a result of a variety of factors, including those discussed in Part I, Item 1A. “ Risk Factors ” and elsewhere in this Annual Report on Form 10-K.
Removed
New risks emerge from time to time and it is not possible for us to predict all such risk factors, nor can we assess the impact of all such risk factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ significantly from those forecast in any forward-looking statements.
Added
The results of operations for the periods reflected herein are not necessarily indicative of results that may be expected for future periods.
Removed
You should also be aware that while we communicate from time to time with securities analysts, we do not disclose to them any material non-public information, internal forecasts or other confidential business information. Therefore, you should not assume that we agree with any statement or report issued by any analyst, irrespective of the content of the statement or report.
Added
Full House Resorts, Inc., together with its subsidiaries, may be referred to as “Full House,” the “Company,” “we,” “our” or “us.” Executive Overview Our primary business is the ownership and/or operation of casino and related hospitality and entertainment facilities, which includes offering, among other amenities, casino gambling, hotel accommodations, dining, golf, RV camping, sports betting, entertainment and retail outlets.
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To the extent that reports issued by securities analysts contain projections, forecasts or opinions, those reports are not our responsibility and are not endorsed by us. ​ ​ 3 Table of Contents Summary of Risk Factors ​ The following is a summary of the risk factors discussed in Part I, Item 1A. “ Risk Factors ” of this Form 10-K.
Added
The following table identifies our segments, along with properties and their locations as of December 31, 2024: ​ ​ ​ Segments and Properties ​ Locations Midwest & South ​ ​ American Place * ​ Waukegan, IL (northern suburb of Chicago) Silver Slipper Casino and Hotel (“Silver Slipper”) Hancock County, MS (near New Orleans) Rising Star Casino Resort (“Rising Star”) Rising Sun, IN (near Cincinnati) West ​ ​ Bronco Billy’s Casino (“Bronco Billy’s”) and Chamonix Casino Hotel (“Chamonix”) * Cripple Creek, CO (near Colorado Springs) Grand Lodge Casino (“Grand Lodge”), leased and part of the Hyatt Regency Lake Tahoe Resort, Spa and Casino Incline Village, NV (North Shore of Lake Tahoe) Stockman’s Casino (“Stockman’s”), held for sale starting August 2024 Fallon, NV (one hour east of Reno) Contracted Sports Wagering ​ ​ One active sports wagering website (“skin”), plus two others that are currently idle ​ Colorado One active sports wagering website (“skin”), plus two others that are currently idle ​ Indiana One active sports wagering website (“skin”), commenced in August 2023 ​ Illinois __________ * The temporary American Place facility opened on February 17, 2023.
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This summary should be read in conjunction with those Risk Factors and should not be relied upon as an exhaustive summary of the material risks facing our business. ​ Risks Related to our Business and Operations ● We face significant competition from other gaming and entertainment operations. ● We may face revenue declines if discretionary consumer spending drops, including due to an economic downturn. ● We cannot assure you that any of our contracted sports betting parties, through the use of our permitted website “skins,” will be able to compete effectively, that our contracted sports parties will have the ability and/or willingness to sustain sports betting operations should they experience an extended period of unprofitability, or that we will have the ability to replace existing partners or vendors on similar terms as our existing contractual revenue minimums. ● Marine transportation is inherently risky, and insurance may be insufficient to cover losses that may occur to our assets or result from our ferry boat operations. ● Our Mississippi casino hotel and Illinois casino operations currently generate a significant percentage of our revenues and Adjusted EBITDA.
Added
Chamonix opened in phases between December 2023 and October 2024. ​ We currently operate seven casinos: six on real estate that we own or lease, and one located within a hotel owned by a third party. Additionally, we benefit from seven permitted sports wagering skins – three in Colorado, three in Indiana, and one in Illinois.
Removed
Our ability to meet our operating and debt service requirements is dependent, in part, upon the continued success of those properties. ● We derive our revenues and operating income from our properties located in Mississippi, Colorado, Indiana, Nevada and Illinois, and are especially subject to certain risks, including economic and competitive risks, associated with the conditions in those areas and in the states from which we draw patrons. ● Some of our operations are located on leased property.
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Three of these sports skins are currently in use. In February 2023, we opened our temporary American Place facility, which we are permitted to operate until August 2027. We have begun the design work for the permanent gaming resort facility that we plan to build on adjoining land.
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If the lessor of the Grand Lodge Casino exercises its buyout rights or fails to extend the lease, or if we default on this or certain of our other leases, the applicable lessors could terminate the affected leases and we could lose possession of the affected casino. ● A prolonged closure of our casinos would negatively impact our ability to service our debt. ● Adverse weather conditions, road construction, gasoline shortages and other factors affecting our facilities and the areas in which we operate could make it more difficult for potential customers to travel to our properties and deter customers from visiting our properties. ● Our results of operations and financial condition could be materially adversely affected by the occurrence of natural disasters, including as a result of climate change, such as hurricanes, floods, wildfires, pandemics, epidemics, widespread health emergencies, or outbreaks of infectious diseases such as the coronavirus pandemic, or other catastrophic events, including war, terrorism and gun violence. ● Several of our properties, including Silver Slipper, Chamonix, Bronco Billy’s and Rising Star, are accessed by our customers via routes that have few alternatives. ● We may incur property and other losses that are not adequately covered by insurance, including adequate levels of Weather Catastrophe Occurrence/Named Windstorm, Flood and Earthquake insurance coverage for our properties. ● We depend on our key personnel and our ability to attract and retain employees. ● Higher wage and benefit costs could adversely affect our business. ● Rising operating costs at our gaming properties could have a negative impact on our business. ● We face the risk of fraud and cheating. ● Win rates for our gaming operations depend on a variety of factors, some beyond our control. ● The concentration and evolution of the slot machine manufacturing industry could impose additional costs on us. ● Our business may be adversely affected by legislation prohibiting tobacco smoking. ● We rely on, among other things, trademarks, licenses, confidentiality procedures, and contractual provisions to protect our intellectual property rights and we may be unable to protect or may not be successful in protecting our intellectual property rights. ● Our commercial success depends upon us avoiding the infringement of intellectual property rights owned by others and any such infringements, including those that are inadvertent, may have a material adverse effect on our business. ● We are subject to risks related to corporate social responsibility and reputation. ​ 4 Table of Contents Risks Related to Development and Growth Opportunities ● We are engaged from time to time in one or more construction and development projects, such as Chamonix and American Place, and many factors could prevent us from completing them as planned. ● The construction costs for our growth projects, including Chamonix and American Place, may exceed budgeted amounts plus contingencies.
Added
In August 2024, we entered into an agreement to sell Stockman’s to a privately owned company. We closed on the sale of Stockman’s real property in September 2024.
Removed
This may result in insufficient funds to complete these projects or the need to raise additional capital. ● There is no assurance that any growth projects, such as American Place, will not be subject to additional regulatory restrictions, delays, or challenges. ● A lawsuit was filed by an unsuccessful bidder for the Waukegan casino license, which could also have a negative impact on the development of our permanent American Place facility. ● There is no assurance that our growth projects, including Chamonix and American Place, will be successful. ● Failure to comply with the terms of our construction disbursement agreement related to Chamonix could limit our access to funds. ● We face a number of challenges prior to opening new or upgraded facilities. ● We may face disruption and other difficulties in integrating and managing facilities we have recently developed or acquired, or may develop or acquire in the future. ● The construction of Chamonix and the permanent American Place facility may inconvenience customers and disrupt business activity at our adjoining casino facilities. ● The permanent American Place facility, additional growth projects or potential enhancements at our properties may require us to raise additional capital. ● The casino, hotel and resort industry is capital intensive, and we may not be able to finance expansion and renovation projects, which could put us at a competitive disadvantage. ● We may face risks related to our ability to receive regulatory approvals required to complete certain acquisitions, mergers, joint ventures, and other developments, as well as other potential delays in completing certain transactions. ● If we fail to obtain necessary government approvals in a timely manner, or at all, it can adversely impact our various expansion, development, investment and renovation projects. ● Insufficient or lower-than-expected results generated from our new developments and acquired properties may negatively affect our operating results and financial condition. ​ Risks Related to our Indebtedness ● Our significant indebtedness could adversely affect our financial health and prevent us from fulfilling our obligations. ● The indenture governing the Notes and the Credit Facility impose restrictive covenants and limitations that could significantly affect our ability to operate our business and lead to events of default if we do not comply with the covenants. ● To service our indebtedness, we will require a significant amount of cash.
Added
We continue to operate the business under a leaseback agreement with the new owners for use of their facilities until the second closing of the Stockman’s sale, which is expected to occur in the first half of 2025.
Removed
Our ability to generate cash depends on many factors beyond our control. ● We may not be able to generate sufficient cash flows to service all of our indebtedness and fund our operating expenses, working capital needs and capital expenditures, and we may be forced to take other actions to satisfy our obligations under our indebtedness, which may not be successful. ● We depend on our subsidiaries for certain dividends, distributions and repayment of our indebtedness, including the Notes and any borrowings under the Credit Facility. ● Our ability to obtain additional financing on commercially reasonable terms may be limited. ● The obligations under the Notes and the Credit Facility are collateralized by a security interest in substantially all of our assets.
Added
In October 2024, we completed the phased opening of Chamonix, our newest property, located adjacent to our existing Bronco Billy’s Casino. 38 Table of Contents Our financial results are dependent upon the number of patrons that we attract to our properties and the amounts those guests spend per visit.
Removed
If we default on those obligations, the holders of the Notes and lenders under the Credit Facility could foreclose on our assets.
Added
While we provide credit at some of our casinos where permitted by gaming regulations, most of our revenues are cash-based, through customers wagering with cash or paying for non-gaming services with cash or credit cards. Our revenues are primarily derived from slot machines, but also include other gaming activities, including table games, keno and sports betting.
Removed
In addition, the existence of these security interests may adversely affect our financial flexibility. ● We and our subsidiaries may still be able to incur substantially more debt, including subordinated debt, which could further exacerbate the risks described above. ​ 5 Table of Contents Risks Related to our Legal and Regulatory Environment ● We face extensive regulation from gaming and other regulatory authorities and the cost of compliance or failure to comply with such regulations may adversely affect our business and results of operations. ● Changes in legislation and regulation of our business could have an adverse effect on our financial condition, results of operations and cash flows. ● Stockholders may be required to dispose of their shares of our common stock if they are found unsuitable by gaming authorities. ● We are subject to environmental laws and potential exposure to environmental liabilities. ● We are subject to litigation which, if adversely determined, could cause us to incur substantial losses. ● Our ferry boat service is highly regulated, which can adversely affect our operations. ​ Risks Related to Technology ● Our gaming operations rely heavily on technology services and an uninterrupted supply of electrical power.
Added
In addition, we derive a significant amount of revenue from our hotels and our food and beverage outlets. We also derive revenues from our golf course and ferry boat service at Rising Star, our RV parks owned at Rising Star and managed at Silver Slipper, and retail outlets and entertainment.
Removed
If we experience damage or service interruptions, we may have to cease some or all of our operations, which will result in a decrease in revenue. ● Our information technology and other systems are subject to cybersecurity risk, misappropriation of customer information and other breaches of information security. ​ General Risks ● Our ability to utilize our net operating loss (“NOL”) carryforwards and certain other tax attributes may be limited. ● The market price for our common stock may be volatile, and investors may not be able to sell their stock at a favorable price, or at all. ● The exercise of outstanding options to purchase common stock may result in substantial dilution and may depress the trading price of our common stock. ​ ​ 6 Table of Contents PART I ​ ​
Added
We often provide hotel rooms, food and beverages, entertainment, ferry usage, and golf privileges to customers on a complimentary basis; the value of such services is included as revenue in those categories, offset by contra-revenue in the casino revenue category.
Added
As a result, the casino revenues in our financial statements reflect patron gaming wins and losses, reduced by the retail value of complimentary services, the value of free play provided to customers, the value of points earned by casino customers that can be redeemed for services or free play, and adjustments for certain progressive jackpots offered by the Company.
Added
We set minimum and maximum betting limits for our slot machines and table games based on market conditions, customer demand and other factors. Our gaming revenues are derived from a broad base of guests that includes both high- and low-stakes players. At Silver Slipper, our sports book operations are in partnership with a company specializing in race and sports betting.
Added
At Rising Star, Bronco Billy’s, and American Place, we have contracted with other companies to operate our online sports wagering skins under their own brands in exchange for a percentage of revenues, as defined, subject to annual minimum amounts; the same company also operates our on-site sports book at American Place.
Added
Our operating results may also be affected by, among other things, overall economic conditions affecting the disposable income of our guests, weather conditions affecting access to our properties, achieving and maintaining cost efficiencies, taxation and other regulatory changes, and competitive factors, including but not limited to, additions and improvements to the competitive supply of gaming facilities, as well as pandemics and similar widespread health emergencies.
Added
We may experience significant fluctuations in our quarterly operating results due to seasonality, variations in gaming hold percentages and other factors. Consequently, our operating results for any quarter or year are not necessarily comparable and may not be indicative of results in future periods. Our market environment is highly competitive and capital-intensive.
Added
Nevertheless, there are significant restrictions and barriers to entry vis-à-vis opening new casinos in most of the markets in which we operate. We rely on the ability of our properties to generate operating cash flow to pay interest, repay debt, and fund maintenance and certain growth-related capital expenditures.
Added
We continuously focus on improving the operating margins of our existing properties through a combination of revenue growth and expense management. We also assess growth and development opportunities, which include capital investments at our existing properties, the development of new properties, and the acquisition of existing properties. Recent Developments Stockman’s Sale.
Added
On August 28, 2024, we entered into an agreement to sell Stockman’s for total gross proceeds of $9.2 million, plus certain expected working capital adjustments at closing.
Added
The sale was designed to be completed in two phases: the sale of Stockman’s real property for $7.0 million, which closed on September 27, 2024; and the sale of certain remaining operating assets and related liabilities for $2.2 million (excluding any adjustments for working capital), upon the receipt of customary gaming approvals.
Added
To accommodate the buyer while it seeks its gaming approvals, we are temporarily continuing to operate Stockman’s under the West segment while leasing back the real property. Upon the second closing that is expected to occur in the first half of 2025, we will transfer all operations of Stockman’s to the buyer and the leaseback will terminate.
Added
During 2024, we recognized a $1.9 million gain from the sale of Stockman’s real property to operating income, net of $0.8 million in transaction costs. ​ Chamonix Casino Hotel. Designed to integrate with our adjacent Bronco Billy’s Casino, Chamonix is the only luxury casino hotel located near the Colorado Springs metropolitan area.
Added
On December 27, 2023, we began its phased opening, starting with the casino, meeting space, and approximately one-third of its 300 guestrooms. Chamonix’s remaining guestrooms came online gradually during the first quarter of 2024. Our high-end steakhouse, 980 Prime, began welcoming its first guests in April 2024, while our rooftop pool and portions of our spa opened in May 2024.
Added
We completed Chamonix’s opening in October 2024, with its jewelry store and the rest of its spa. 39 Table of Contents ​ American Place. In February 2023, we opened our temporary American Place facility in Waukegan, Illinois, which we are permitted to operate until August 2027.
Added
American Place currently includes approximately 940 slot machines, 48 table games, a fine-dining restaurant, two additional restaurants, a center bar and a sportsbook.
Added
We have begun design work for the permanent American Place facility, which is expected to include a larger casino, state-of-the-art sportsbook, premium boutique hotel comprised of 20 luxurious villas, and various food and beverage outlets. ​ Grand Lodge Casino Lease Extension through December 2034.
Added
In July 2024, our lease with the owner of the Hyatt Lake Tahoe to operate the Grand Lodge Casino was amended to further extend the current term through December 31, 2034. The current annual rent of $2.0 million will increase nominally in 2025, followed by annual increases of 2% for the remainder of this extended term.
Added
In the event of a significant renovation, the lessor may terminate the lease early with six months’ notice. Similar to previous lease arrangements, the lessor also has an option to purchase our leasehold interest and related operating assets of the Grand Lodge Casino at any time prior to lease expiration, subject to assumption of applicable liabilities.
Added
The option price is an amount equal to Grand Lodge Casino’s positive working capital, plus its earnings before interest, income taxes, depreciation and amortization (“EBITDA”) for the 12-month period preceding the acquisition (or pro-rated if less than 12 months remain on the lease), plus the fair market value of Grand Lodge Casino’s personal property. Contracted Sports Wagering Amendments and Settlements.
Added
In July 2024, we amended two contracted sports wagering agreements, resulting in the collection of a total of $2.1 million. Specifically, these amendments settled overdue payments owed to our subsidiaries in Colorado and Indiana, reduced certain future annual amounts due to us under the agreements, and required such annual fees to be paid in advance of each annual term.
Added
In January 2025, we received notice that this sports betting operator was discontinuing its operations in Colorado and Indiana, to be effective prior to the June 2025 and December 2025 anniversaries in its agreements with us. ​ Key Performance Indicators We use several key performance indicators to evaluate the operations of our properties.
Added
These key operating measures are presented as supplemental disclosures because management uses these measures to better understand period-over-period fluctuations in our casino and hotel operating revenues and as a measure of our performance.
Added
These key performance indicators include the following and are disclosed in our discussions, where applicable, for certain jurisdictions on segment performance: Gaming revenue indicators: Slot coin-in is the gross dollar amount wagered in slot machines and table game drop is the total amount of cash or credit exchanged into chips at table games for use by our customers.
Added
Slot coin-in and table game drop are indicators of volume, and are monitored on a consolidated basis in relation to slot and table game win. Such metrics can be influenced by marketing activity and are not necessarily indicative of profitability trends. Slot win is the difference between customer wagers and customer winnings on slot machines.
Added
Table game hold is the difference between the amount of money or markers exchanged into chips and customer winnings paid. Slot win and table game hold percentages represent the relationship between slot win and coin-in and table game win and drop.
Added
Both the slot win and table game hold percentages are monitored on a consolidated basis in our evaluation of Company performance. Room revenue indicators: Hotel occupancy rate is an indicator of the utilization of our available rooms.
Added
Complimentary room sales, or the retail value of accommodations furnished to customers on a complimentary basis, are included in the calculation of the hotel occupancy rate. 40 Table of Contents Adjusted EBITDA, Adjusted Segment EBITDA, Adjusted Segment EBITDA Margin and Adjusted Property EBITDA: Management uses Adjusted EBITDA as a measure of our performance.
Added
For a description of Adjusted EBITDA, see “ Non-GAAP Financial Measure .” We utilize Adjusted Segment EBITDA as the measure of segment profitability in assessing performance and allocating resources at the reportable segment level. For information regarding our operating segments, see Note 12 to the consolidated financial statements set forth in Part II, Item 8.
Added
“Financial Statements and Supplementary Data.” Additionally, we use Adjusted Segment EBITDA Margin, which is calculated by dividing Adjusted Segment EBITDA by the segment’s total revenues. Same-store Adjusted Segment EBITDA is Adjusted Segment EBITDA further adjusted to exclude the Adjusted Property EBITDA of properties that have not been in operation for a full year.
Added
Adjusted Property EBITDA is defined as earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening expenses, impairment charges, asset write-offs, recoveries, gain (loss) from asset sales and disposals, project development and acquisition costs, non-cash share-based compensation expense, and corporate-related costs and expenses that are not allocated to each property.
Added
Results of Operations ─ 2024 Compared to 2023 Consolidated operating results The following tables summarize our consolidated operating results for the years ended December 31, 2024 and 2023: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ ​ (In thousands) ​ December 31, ​ Increase / ​ 2024 2023 (Decrease) Revenues ​ $ 292,065 ​ $ 241,060 21.2 % Operating expenses ​ 289,315 ​ 242,222 19.4 % Operating income (loss) ​ 2,750 ​ (1,162) N.M.
Added
Interest and other non-operating expenses, net ​ 43,201 ​ 22,593 91.2 % Income tax expense ​ 221 ​ 1,149 (80.8) % Net loss ​ $ (40,672) ​ $ (24,904) 63.3 % __________ N.M.
Added
Not meaningful. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ ​ (In thousands) ​ December 31, ​ Increase / ​ 2024 2023 (Decrease) Casino revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ Slots ​ $ 180,827 ​ $ 148,363 21.9 % Table games ​ 35,632 ​ 28,122 26.7 % Other ​ 421 ​ 448 (6.0) % ​ ​ 216,880 ​ 176,933 22.6 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-casino revenues, net ​ ​ ​ ​ ​ ​ ​ ​ ​ Food and beverage ​ 41,871 ​ 33,980 23.2 % Hotel ​ 15,709 ​ 9,428 66.6 % Other ​ 17,605 ​ 20,719 (15.0) % ​ ​ 75,185 ​ 64,127 17.2 % Total revenues ​ $ 292,065 ​ $ 241,060 21.2 % ​ ​ ​ 41 Table of Contents ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended ​ ​ ​ December 31, ​ Increase / (In thousands) 2024 ​ 2023 ​ (Decrease) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Slot coin-in $ 3,076,528 ​ ​ $ 2,605,335 ​ ​ 18.1 % Slot win (1) $ 233,622 ​ ​ $ 191,556 ​ ​ 22.0 % Slot hold percentage (2) ​ 7.6 % ​ ​ 7.4 % ​ 0.2 pts Table game drop $ 202,987 ​ ​ $ 152,854 ​ ​ 32.8 % Table game win (1) $ 36,349 ​ ​ $ 28,372 ​ ​ 28.1 % Table game hold percentage (2) ​ 17.9 % ​ ​ 18.6 % ​ (0.7) pts __________ (1) Does not reflect reductions in casino revenues from “discretionary comps.” For details on our customer loyalty programs, see Note 2 to the consolidated financial statements set forth in Part II, Item 8.
Added
“Financial Statements and Supplementary Data.” (2) The three-year averages for slot hold percentage and table game hold percentage were 7.4% and 18.2%, respectively.
Added
Longer-term hold percentages can vary due to a number of factors, including the addition of new properties like Chamonix and American Place, or changes in our game mix. ​ The following discussion is based on our consolidated financial statements for the years ended December 31, 2024 and 2023. Revenues. Consolidated total revenues increased by 21.2% (or $51.0 million) in 2024.
Added
Such increase was primarily due to a full year of operations at American Place, which opened on February 17, 2023. Revenues during 2024 also benefited from the opening of Chamonix, which opened in phases between December 2023 and October 2024. For more information, see “ Supplemental Information – Same-store Operating Results. ” Operating expenses.
Added
Consolidated operating expenses increased by 19.4% (or $47.1 million) in 2024, primarily due to the commencement of operations at American Place in February 2023 and Chamonix in December 2023. Both openings resulted in increased casino, food and beverage, hotel, selling, general and administrative and depreciation expenses.
Added
Selling, general and administrative expenses at American Place rose $5.1 million from 2023 to 2024. For Chamonix, selling, general and administrative expenses increased $11.1 million from 2023 to 2024, and depreciation and amortization expense rose by $14.9 million. See further information within our reportable segments described below. 42 Table of Contents Interest and other non-operating expense, net.
Added
Interest Expense Interest expense, net, consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ Year Ended (In thousands) ​ December 31, ​ 2024 2023 Interest expense (excluding bond fee amortization and discounts/premiums) ​ $ 42,091 ​ $ 39,860 Amortization of debt issuance costs and discounts/premiums ​ 2,987 ​ 2,793 Capitalized interest ​ (1,114) ​ (15,938) Interest income and other ​ ​ (763) ​ ​ (3,738) ​ ​ $ 43,201 ​ $ 22,977 ​ The increase in net interest expense for 2024 was primarily due to reductions in capitalized interest, as construction of the temporary American Place facility and Chamonix was largely complete during the year.
Added
Additionally, as we invested cash into the construction of both projects, our cash balances were lower during the 2024 period, resulting in reduced interest income. Further, we issued $40.0 million of Additional Notes in February 2023, so the 2023 period does not reflect a full year of the related interest expense.
Added
See Note 7 to the consolidated financial statements set forth in Part II, Item 8. “Financial Statements and Supplementary Data” for a more detailed discussion. Other non-operating expense, net In 2024, we did not have any other non-operating expense.
Added
In 2023, we had $0.4 million of other non-operating income, consisting of insurance settlement proceeds from hurricane damage at Silver Slipper in 2020. Income taxes. Our effective income tax rates for the years ended December 31, 2024 and 2023 were (0.5%) and (4.8%), respectively.
Added
Our tax rates differ from the statutory rate of 21.0% primarily due to the effects of changes in our valuation allowance, state taxes, and items that are permanently treated differently for GAAP and tax purposes.
Added
During 2024, we continued to provide a valuation allowance against our deferred tax assets (“DTAs”), net of any available deferred tax liabilities, as applicable, based on our analysis of the timing of reversal of such deferred taxes. For 2024, the valuation allowance was $35.6 million, compared to $24.0 million for 2023.
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In future years, if it is determined that we meet the “more likely than not” threshold of utilizing our DTAs, then we may reverse some or all of our valuation allowance against our DTAs. We do not expect to pay any federal income taxes or receive any federal tax refunds related to our 2024 results.
Added
Similarly, we do not expect to pay income taxes related to any states the Company operates in. Any future federal taxable income is expected to result in the utilization of our net operating loss carryforwards, which can be used to offset 80% of taxable income.
Added
Due to the level of uncertainty regarding sufficient prospective income as measured under GAAP, we maintain a valuation allowance against our DTAs, as mentioned above. See Note 9 to the consolidated financial statements set forth in Part II, Item 8.
Added
“Financial Statements and Supplementary Data” for a more detailed discussion. 43 Table of Contents Operating Results — Reportable Segments We manage our casinos based primarily on geographic regions within the United States and type of income. For more information, please refer to our earlier discussion within the “ Executive Overview ” section.
Added
The following table presents detail by segment of our consolidated revenues and Adjusted EBITDA (see “ Non-GAAP Financial Measure ” for more information).
Added
Additionally, management uses Adjusted Segment EBITDA as its measure of segment profitability in accordance with GAAP. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands) ​ Year Ended ​ ​ ​ ​ ​ December 31, ​ Increase / ​ 2024 2023 (Decrease) Revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ Midwest & South $ 219,626 ​ $ 192,358 14.2 % West 63,648 ​ 35,888 77.4 % Contracted Sports Wagering ​ ​ 8,791 ​ ​ 12,814 ​ (31.4) % ​ $ 292,065 ​ $ 241,060 21.2 % Adjusted Segment EBITDA and Adjusted EBITDA ​ ​ ​ ​ ​ ​ ​ ​ ​ Midwest & South $ 45,737 ​ $ 39,028 17.2 % West (1,302) ​ 2,408 N.M.
Added
Contracted Sports Wagering ​ ​ 9,503 ​ ​ 11,663 ​ (18.5) % Adjusted Segment EBITDA 53,938 ​ 53,099 1.6 % Corporate (5,290) ​ (4,542) 16.5 % Adjusted EBITDA $ 48,648 ​ $ 48,557 0.2 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Adjusted Segment EBITDA Margin ​ ​ ​ ​ ​ ​ ​ ​ ​ Midwest & South ​ ​ 20.8 % ​ 20.3 % 0.5 pts West ​ ​ (2.0) % ​ 6.7 % (8.7) pts Contracted Sports Wagering ​ ​ 108.1 % ​ 91.0 % 17.1 pts __________ N.M.
Added
Not meaningful. ​ 44 Table of Contents Supplemental Information — Same-store Operating Results The following table presents the financial results of our Midwest & South operations on a same-store basis for the years ended December 31, 2024 and 2023 for revenues and Adjusted Segment EBITDA; see “ Adjusted EBITDA, Adjusted Segment EBITDA, Adjusted Segment EBITDA Margin and Adjusted Property EBITDA ” for additional information.
Added
Same-store operations exclude results of new and acquired properties that have not been in operations for longer than a year, starting from the date of commencement or acquisition through the end of the reporting period.
Added
Accordingly, for Midwest & South, we have excluded the results of American Place for periods subsequent to its commencement of operations. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands) ​ Year Ended ​ ​ ​ ​ ​ December 31, ​ Increase / ​ 2024 2023 (Decrease) Midwest & South same-store total revenues (1) ​ $ 109,964 ​ $ 115,371 ​ (4.7) % American Place 109,662 ​ 76,987 42.4 % Midwest & South total revenues $ 219,626 ​ $ 192,358 14.2 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Midwest & South same-store Adjusted Segment EBITDA (1) ​ $ 16,327 ​ $ 20,619 ​ (20.8) % American Place 29,410 ​ 18,409 59.8 % Midwest & South Adjusted Segment EBITDA $ 45,737 ​ $ 39,028 17.2 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Midwest & South same-store Adjusted Segment EBITDA margin (1) ​ ​ 14.8 % ​ 17.9 % (3.1) pts American Place ​ ​ 26.8 % ​ 23.9 % 2.9 pts Midwest & South Adjusted Segment EBITDA margin ​ ​ 20.8 % ​ 20.3 % 0.5 pts __________ (1) Same-store operations exclude results from American Place, which opened on February 17, 2023. ​ 45 Table of Contents The following table presents the financial results of our Contracted Sports Wagering operations on a same-store basis for the years ended December 31, 2024 and 2023 for revenues and Adjusted Segment EBITDA; see “ Adjusted EBITDA, Adjusted Segment EBITDA, Adjusted Segment EBITDA Margin and Adjusted Property EBITDA ” for additional information.
Added
Same-store operations exclude results of new sports wagering contracts that have not been in operations for longer than a year, starting from the date of commencement or acquisition through the end of the reporting period. Accordingly, for Contracted Sports Wagering, we have excluded the results in Illinois for periods subsequent to its contractual commencement of revenue payments.
Added
For comparability, we also excluded accelerated revenues and recoveries in connection with contract terminations from same-store operations. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands) ​ Year Ended ​ ​ ​ ​ ​ December 31, ​ Increase / ​ ​ 2024 2023 (Decrease) Contracted Sports Wagering same-store total revenues (1) ​ $ 2,004 ​ $ 4,773 ​ (58.0) % Accelerated revenues due to contract terminations (2) ​ ​ 893 ​ ​ 5,794 ​ (84.6) % Illinois 5,894 ​ 2,247 162.3 % Contracted Sports Wagering total revenues $ 8,791 ​ $ 12,814 (31.4) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Contracted Sports Wagering same-store Adjusted Segment EBITDA (1) ​ $ 1,522 ​ $ 3,717 ​ (59.1) % Accelerated revenues due to contract terminations (2) ​ ​ 893 ​ ​ 5,794 ​ (84.6) % Recoveries from contract settlements and modifications (3) ​ ​ 1,408 ​ ​ — ​ N.M.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeItem 7A. Quantitative and Qualitative Disclosures about Market Risk. As a smaller reporting company during the year ended December 31, 2023, as defined by Rule 12b-2 of the Exchange Act, we are not required to provide the information required by this Item. ​ 54 Table of Contents
Biggest changeItem 7A. Quantitative and Qualitative Disclosures about Market Risk. As a smaller reporting company during the year ended December 31, 2024, as defined by Rule 12b-2 of the Exchange Act, we are not required to provide the information required by this Item. ​ 53 Table of Contents

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