Financial Performance - Consolidated total revenues increased by 39.6% to $69.9 million for the three months ended March 31, 2024, compared to $50.1 million in the prior-year period[113] - Adjusted Segment EBITDA rose by 21.7% to $14.5 million for the three months ended March 31, 2024, compared to $11.9 million in the prior year[125] - Non-casino revenue increased by 14.8% (or $1.8 million) for the three months ended March 31, 2024, largely due to a 23.4% increase in food and beverage revenue[138] - Adjusted EBITDA for the three months ended March 31, 2024, was $12.4 million, up from $10.1 million in the same period of 2023, reflecting a growth of 22.7%[151] - The net loss for the three months ended March 31, 2024, was $11.3 million, a slight improvement from a net loss of $11.4 million in the prior-year period[113] Revenue Sources - Gaming revenues from the integrated Bronco Billy's/Chamonix facility increased by $3.6 million, or 115.6%, while other properties experienced a decline of $2.0 million, or 8.6%[116] - Slot coin-in increased by 34.2% to $724.8 million, while slot win rose by 29.1% to $53.1 million[114] - Table game drop surged by 80.8% to $46.9 million, with table game win increasing by 109.6% to $9.3 million[114] - Casino revenue in the Midwest & South segment increased by 41.8% (or $12.1 million) for the three months ended March 31, 2024, driven by the opening of American Place[137] - Contracted Sports Wagering revenues grew by 91.5% to $2.3 million, with Adjusted Segment EBITDA increasing by 66.7% to $1.9 million, reflecting the launch of the Illinois sports skin in August 2023[146] Operational Developments - The phased opening of Chamonix began on December 27, 2023, with approximately one-third of its 300 guestrooms operational[104] - American Place, opened in February 2023, includes approximately 940 slot machines and 48 table games[105] - The company operates seven casinos and has seven permitted sports wagering "skins" across three states[98] - The phased opening of Chamonix began on December 27, 2023, with a high-end steakhouse opening in April 2024[164] - The temporary American Place facility opened in February 2023, with plans for modest additional investments in 2024[165] Expenses and Financial Obligations - Operating expenses rose by 23.5% to $70.5 million, primarily due to the operations at American Place and Chamonix[117] - Interest expense for the three months ended March 31, 2024, increased to $10.2 million from $9.0 million in the prior year, primarily due to reduced capitalized interest[119] - Corporate expenses increased by 16.6% to $2.1 million for the three months ended March 31, 2024, compared to $1.8 million in the prior-year period[149] - Cash used in operations during the three months ended March 31, 2024, was $4.4 million, an improvement from $7.3 million in the prior-year period[157] - Long-term debt stood at $450.0 million under the Notes and $27.0 million under the Credit Facility as of March 31, 2024[162] Future Outlook and Strategic Plans - The company expects to need additional financing for the permanent American Place facility, with potential delays due to ongoing lawsuits[165] - The company anticipates significant growth in operational performance for the upcoming projects, including Chamonix and American Place, with expected construction budgets and timelines yet to be finalized[172] - The company expects to generate operating cash flow and secure debt financing on reasonable terms for the construction of the permanent American Place facility[172] - The company is focused on capital improvements and other projects, with investments planned that will impact financial results, although specific amounts and timelines are not disclosed[172] - The company is evaluating the adequacy of its financial resources to meet operating requirements and planned capital expenditures, as well as to fulfill debt obligations[173] Risk Factors and Disclosures - The company acknowledges potential risks that could cause actual results to differ materially from forward-looking statements, including economic conditions and competitive outlook[173] - The company does not undertake any obligation to publicly update forward-looking statements unless required by law, indicating a cautious approach to future projections[174] - The company emphasizes that reports from securities analysts are not endorsed and do not reflect the company's internal forecasts or confidential information[174] - The company has not disclosed any quantitative or qualitative disclosures about market risk in this report[176]

Revenue Growth - Revenues increased 39.6% to $69.9 million in Q1 2024, up from $50.1 million in the prior-year period[2] - American Place generated $25.8 million in revenue and $7.4 million in Adjusted Property EBITDA, representing increases of 147.7% and 106.6% respectively compared to Q1 2023[9] - Midwest & South segment revenues were $54.6 million, a 33.9% increase from $40.8 million in the prior-year period[9] - West segment revenues rose 60.4% to $13.0 million in Q1 2024, compared to $8.1 million in the prior-year period[9] - Contracted Sports Wagering segment revenues were $2.3 million in Q1 2024, up from $1.2 million in the prior-year period[9] - The company anticipates significant growth in revenues from Colorado operations, which have more than doubled compared to 2023[4] - American Place revenues increased by 147.7% to $25,808,000 from $10,420,000 year-over-year[18] - Contracted Sports Wagering total revenues rose by 91.5% to $2,260,000 compared to $1,180,000 in the same period last year[18] Adjusted EBITDA - Adjusted EBITDA rose 22.6% to $12.4 million in Q1 2024, compared to $10.1 million in the prior-year period[2] - Adjusted EBITDA for the three months ended March 31, 2024, was $12,409,000, an increase from $10,125,000 in the same period of 2023[20] Net Loss - Net loss for Q1 2024 was $11.3 million, or $(0.33) per diluted share, consistent with the prior-year period[2] - The net loss for the quarter was $11,272,000, slightly improved from a net loss of $11,415,000 in the previous year[20] Operational Costs - Preopening costs for the quarter were $1,663,000, down from $10,497,000 in the same period last year[20] - The company anticipates potential risks related to construction budgets and operational performance for its properties, including American Place and Chamonix[23] - The company is focused on managing expenses and completing construction projects on time and within budget, amidst various market challenges[23] Cash Position - As of March 31, 2024, the company had $46.3 million in cash and cash equivalents, including $20.6 million reserved for Chamonix construction[6] Property Developments - Chamonix Casino Hotel's phased opening began in late December 2023, with full operations expected to enhance revenue and profitability over time[4] - Full House Resorts operates multiple gaming facilities across the U.S., including American Place in Illinois and Silver Slipper Casino in Mississippi[24] Same-Store Performance - Midwest & South same-store total revenues decreased by 5.1% to $28,824,000 compared to $30,382,000 in the previous year[18] - Adjusted Segment EBITDA for Midwest & South decreased by 25.5% to $5,301,000 from $7,114,000 year-over-year[18]

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 unsu ...

Exhibit 99.1 FULL HOUSE RESORTS ANNOUNCES FOURTH QUARTER AND FULL-YEAR RESULTS - Revenues Increased 66.4% to $60.0 Million in the Fourth Quarter of 2023; Annual Revenues Grew 47.6% - Chamonix Casino Hotel Began Its Phased Opening on December 27, 2023 - Approvals Received to Operate American Place in Its Temporary Configuration Until August 2027 Las Vegas – March 5, 2024 – Full House Resorts, Inc. (Nasdaq: FLL) today announced results for the fourth quarter and year ended December 31, 2023. "After several ye ...

LAS VEGAS, Feb. 09, 2024 (GLOBE NEWSWIRE) -- Full House Resorts (NASDAQ:FLL) announced today that it will report its fourth quarter 2023 and full-year financial results on Tuesday, March 5, 2024, followed by a conference call at 4:30 p.m. ET (1:30 p.m. PT). Investors can access the live audio webcast from the Company's website at www.fullhouseresorts.com under the investor relations section. The conference call can also be accessed by dialing (201) 689-8470. A replay of the conference call will be available ...

Financial Performance Highlights - Total revenues increased by 72.8%, from $41.4 million to $71.5 million [34] - Adjusted EBITDA increased by 165.9%, from $7.8 million to $20.6 million [34] - The Temporary contributed $6.8 million to Adjusted EBITDA in 3Q23 [34] Segment Performance - Midwest & South revenues increased by 77.4% to $52.553 million for the three months ended September 30, 2023 [5, 23] - Midwest & South Adjusted Segment EBITDA increased by 110.6% to $11.750 million for the three months ended September 30, 2023 [5, 23] - Contracted Sports Wagering revenues increased by 619.9% to $7.905 million for the three months ended September 30, 2023 [5, 23] - Contracted Sports Wagering Adjusted Segment EBITDA increased by 625.0% to $7.852 million for the three months ended September 30, 2023 [5, 23] Project Updates - A $250 million project in Cripple Creek, Colorado, is slated to include a luxurious new casino [4] - The project in Cripple Creek, Colorado, is scheduled to open on December 26, 2023 [13]

Other The Temporary / American Place. We were selected by the IGB to develop and operate American Place in Waukegan, Illinois. While the larger permanent facility is under development, we are operating The Temporary by American Place, which opened in February 2023. During 2023, we expect to invest approximately $75 million into this project (excluding pre-opening expenses and capitalized interest), consisting largely of $50 million of upfront gaming license payments remitted in the first quarter of 2023 (se ...

Financial Data and Key Metrics Changes - The company reported a 34% increase in revenues, primarily driven by the performance of the temporary casino in Illinois [78] - Adjusted EBITDA declined, but the temporary casino generated $4.1 million despite accounting charges, indicating a respectable performance for its first full quarter of operations [67][68] - The gaming revenue in July reached approximately $7.8 million, up about $1 million from the previous month, showing positive trends [104] Business Line Data and Key Metrics Changes - The temporary casino is ramping up operations and has become the third in the state for table games, indicating strong market penetration [51][80] - The company is focusing on increasing the number of table games and has expanded from 28 to 48 tables, although staffing limitations currently allow for only 30 to be operational on weekends [72][71] - The Silver Slipper property faced cost issues, with payroll rising significantly without a corresponding increase in revenue, which the company is working to control [68] Market Data and Key Metrics Changes - The company is experiencing competitive pressures in Indiana due to a new casino opening, impacting revenue performance [106] - In Illinois, the company is preparing for the opening of the Chamonix casino, which is expected to enhance market presence and revenue generation [57][60] Company Strategy and Development Direction - The company is actively designing the permanent American Place casino, incorporating lessons learned from the temporary operations, although construction has not yet started due to legal challenges [61] - The Chamonix casino is set to open on December 26, 2023, with significant investments in high-end amenities and marketing strategies to attract customers [58][82] - The company plans to enhance its marketing efforts to build a customer database, which is crucial for long-term revenue growth [105][81] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upward trends in admissions and gaming revenue, indicating a positive outlook for the temporary casino's performance [79][104] - The company is facing challenges with rising construction costs and competitive pressures but remains focused on long-term growth and profitability [106][108] - Management highlighted the importance of building a strong customer database to improve marketing efficiency and drive future revenue [81][105] Other Important Information - The company is not considering equity issuance for financing, indicating a preference for other funding sources [8] - The sports book operation is expected to start generating revenue in mid-August, contributing to overall financial performance [65] Q&A Session Summary Question: What are the expected margins for the Colorado property as it ramps up? - Management indicated that current EBITDA margins are in the high teens, with expectations that they will exceed 20% as operations stabilize and marketing efforts drive more traffic [100][104] Question: How is the Silver Slipper property performing amid competition? - Management noted that while competitive pressures exist, the primary issue has been rising internal costs, which they are working to control [106] Question: What is the timeline for financing the permanent casino? - Management stated that refinancing existing bonds will become cheaper starting in February, allowing for more favorable financing conditions [49][108]

[PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited consolidated financial statements detail the company's recent financial performance and position [Consolidated Statements of Operations](index=3&type=section&id=Consolidated%20Statements%20of%20Operations%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202023%20and%202022) Consolidated Statements of Operations | Metric (in thousands) | 3 Months Ended June 30, 2023 | 3 Months Ended June 30, 2022 | 6 Months Ended June 30, 2023 | 6 Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $59,382 | $44,383 | $109,488 | $85,806 | | Operating Income (Loss) | $594 | $8,219 | $(6,392) | $13,522 | | Net Loss | $(5,600) | $(4,355) | $(17,015) | $(4,245) | | Basic Loss Per Share | $(0.16) | $(0.13) | $(0.49) | $(0.12) | | Diluted Loss Per Share | $(0.16) | $(0.13) | $(0.49) | $(0.12) | [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets%20at%20June%2030%2C%202023%20and%20December%2031%2C%202022) Consolidated Balance Sheets | Metric (in thousands) | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total Assets | $671,134 | $595,329 | | Total Liabilities | $586,801 | $495,538 | | Stockholders' Equity | $84,333 | $99,791 | | Cash and Equivalents | $35,501 | $56,589 | | Restricted Cash | $78,078 | $134,587 | | Long-term Debt, net | $463,654 | $401,852 | [Consolidated Statements of Changes in Stockholders' Equity](index=5&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders'%20Equity%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030%2C%202023%20and%202022) Consolidated Statements of Changes in Stockholders' Equity | Metric (in thousands) | January 1, 2023 | March 31, 2023 | June 30, 2023 | | :--- | :--- | :--- | :--- | | Total Stockholders' Equity | $99,791 | $89,141 | $84,333 | | Net Loss (Q1 2023) | N/A | $(11,415) | N/A | | Net Loss (Q2 2023) | N/A | N/A | $(5,600) | | Stock-based compensation | N/A | $748 | $655 | [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202023%20and%202022) Consolidated Statements of Cash Flows | Metric (in thousands) | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $1,702 | $4,188 | | Net Cash Used in Investing Activities | $(139,204) | $(65,026) | | Net Cash Provided by Financing Activities | $59,905 | $93,936 | | Net (Decrease) Increase in Cash, Cash Equivalents and Restricted Cash | $(77,597) | $33,098 | - Cash used in investing activities for H1 2023 included a **$50.3 million gaming license payment** for The Temporary/American Place and capital expenditures for Chamonix and The Temporary/American Place[217](index=217&type=chunk) [Condensed Notes to Consolidated Financial Statements](index=8&type=section&id=Condensed%20Notes%20to%20Consolidated%20Financial%20Statements) [Note 1 — Organization](index=8&type=section&id=Note%201%20%E2%80%94%20Organization) - Full House Resorts, Inc owns, leases, operates, develops, manages, and/or invests in casinos and related hospitality and entertainment facilities[33](index=33&type=chunk) - The Company operates six casinos and is constructing Chamonix Casino Hotel and designing the permanent American Place casino destination, operating The Temporary by American Place in the interim[39](index=39&type=chunk) - The Company benefits from **seven permitted sports wagering "skins"** – three in Colorado, three in Indiana, and one in Illinois[39](index=39&type=chunk) [Note 2 — Basis of Presentation and Significant Accounting Policies](index=8&type=section&id=Note%202%20%E2%80%94%20Basis%20of%20Presentation%20and%20Significant%20Accounting%20Policies) - The Company updated its reportable segments to Midwest & South, West, and Contracted Sports Wagering, effective Q1 2023, reflecting continued growth and realignment[34](index=34&type=chunk)[40](index=40&type=chunk) - In March 2023, the Company paid **$50.3 million** to the Illinois Gaming Board for required gaming license fees for The Temporary and American Place, which is deemed to have an indefinite economic life[50](index=50&type=chunk) - Revenue recognition for contracted sports wagering includes one-time "market access" fees recorded as long-term liabilities and recognized ratably over contract terms, plus a percentage of revenues subject to annual minimums[57](index=57&type=chunk) Deferred Revenue | Deferred Revenue (in thousands) | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Current | $2,000 | $1,651 | | Net of Current Portion | $8,524 | $8,856 | | Total | $10,524 | $10,507 | [Note 3 — Leases](index=12&type=section&id=Note%203%20%E2%80%94%20Leases) - The Company entered into a **99-year ground lease** for American Place in Waukegan, Illinois, with annual rent being the greater of $3.0 million or 2.5% of gross gaming revenue[82](index=82&type=chunk) - The Silver Slipper Casino Land Lease extends to 2058 with annual minimum rent of $0.9 million plus contingent rents of 3% of gross gaming revenue above $3.65 million per month[84](index=84&type=chunk) Lease Costs | Lease Costs (in thousands) | 3 Months Ended June 30, 2023 | 3 Months Ended June 30, 2022 | 6 Months Ended June 30, 2023 | 6 Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Total Lease Costs | $2,976 | $1,631 | $5,559 | $3,295 | Lease Balances | Lease Balances (in thousands) | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total Lease Assets | $53,759 | $24,145 | | Total Lease Liabilities | $51,851 | $22,211 | [Note 4 — Long-Term Debt](index=15&type=section&id=Note%204%20%E2%80%94%20Long-Term%20Debt) - In February 2023, the Company issued an additional **$40.0 million of senior secured notes**, increasing the total outstanding under the 2028 Notes to $450.0 million. Proceeds were used for The Temporary's opening (including Illinois gaming license fees) and general corporate purposes[96](index=96&type=chunk) - The Revolving Credit Facility due 2026 was amended in February 2023, increasing permitted additional indebtedness to $40.0 million and allowing for the issuance of the Additional Notes[5](index=5&type=chunk)[103](index=103&type=chunk) Long-Term Debt | Long-Term Debt (in thousands) | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Revolving Credit Facility due 2026 | $27,000 | $0 | | 8.25% Senior Secured Notes due 2028 | $450,000 | $410,000 | | Less: Unamortized debt issuance costs and discounts/premiums, net | $(13,346) | $(8,148) | | Total Long-Term Debt, net | $463,654 | $401,852 | [Note 5 — Income Taxes](index=18&type=section&id=Note%205%20%E2%80%94%20Income%20Taxes) - The Company continues to assess the realizability of deferred tax assets and maintains a valuation allowance against those that cannot be offset by existing deferred tax liabilities[109](index=109&type=chunk) Effective Income Tax Rate | Effective Income Tax Rate | 3 Months Ended June 30, 2023 | 3 Months Ended June 30, 2022 | 6 Months Ended June 30, 2023 | 6 Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Rate | (11.1)% | 459.3% | (3.2)% | 1.0% | [Note 6 — Commitments and Contingencies](index=19&type=section&id=Note%206%20%E2%80%94%20Commitments%20and%20Contingencies) - Management does not expect the outcome of pending legal proceedings to have a material adverse effect on the Company's financial position, results of operations, and cash flows[111](index=111&type=chunk) - The Company entered an agreement with Circa Sports for on-site and online sports wagering in Illinois, receiving a **$5 million market access fee** and expecting revenue payments (subject to a $5 million annual minimum) to begin in August 2023[112](index=112&type=chunk) - A potential "Reconciliation Payment" for Illinois gaming licensure, calculated three years after operations, may be required, equal to 75% of the most lucrative trailing 12-month adjusted gross receipts, offset by prior licensing fees[113](index=113&type=chunk) [Note 7 — Earnings (Loss) Per Share](index=19&type=section&id=Note%207%20%E2%80%94%20Earnings%20(Loss)%20Per%20Share) - Anti-dilutive share-based awards were excluded from the calculation of diluted loss per share due to the net loss[120](index=120&type=chunk) Earnings (Loss) Per Share | Metric | 3 Months Ended June 30, 2023 | 3 Months Ended June 30, 2022 | 6 Months Ended June 30, 2023 | 6 Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Basic Loss Per Share | $(0.16) | $(0.13) | $(0.49) | $(0.12) | | Diluted Loss Per Share | $(0.16) | $(0.13) | $(0.49) | $(0.12) | [Note 8 — Share-Based Compensation](index=20&type=section&id=Note%208%20%E2%80%94%20Share-Based%20Compensation) - In January and Q2 2023, the Company issued performance-based shares to executives, vesting based on compounded annual growth rates of Adjusted EBITDA and Free Cash Flow Per Share for three-year periods ending 2023, 2024, and 2025[121](index=121&type=chunk) - As of June 30, 2023, there was approximately **$2.9 million of unrecognized compensation cost** for unvested stock options (expected over 2.2 years) and **$2.0 million** for unvested restricted/performance-based shares (expected over 1.4 years)[118](index=118&type=chunk) Compensation Expense | Compensation Expense (in thousands) | 3 Months Ended June 30, 2023 | 3 Months Ended June 30, 2022 | 6 Months Ended June 30, 2023 | 6 Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Stock options | $372 | $302 | $702 | $520 | | Restricted and performance-based shares | $283 | $185 | $701 | $310 | | Total | $655 | $487 | $1,403 | $830 | [Note 9 — Segment Reporting and Disaggregated Revenue](index=22&type=section&id=Note%209%20%E2%80%94%20Segment%20Reporting%20and%20Disaggregated%20Revenue) - The Company changed its reportable segments to Midwest & South, West, and Contracted Sports Wagering in Q1 2023, based on geographic regions and income type[125](index=125&type=chunk) - Adjusted Segment EBITDA is the measure of segment profit, defined as earnings before interest, taxes, depreciation, amortization, preopening, impairment, asset write-offs, disposals, development costs, and non-cash share-based compensation[126](index=126&type=chunk) Segment Revenues | Segment Revenues (in thousands) | 3 Months Ended June 30, 2023 | 3 Months Ended June 30, 2022 | 6 Months Ended June 30, 2023 | 6 Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Midwest & South | $49,911 | $32,936 | $90,713 | $62,882 | | West | $8,089 | $9,278 | $16,213 | $17,924 | | Contracted Sports Wagering | $1,382 | $2,169 | $2,562 | $5,000 | | Total Revenues | $59,382 | $44,383 | $109,488 | $85,806 | Adjusted Segment EBITDA | Adjusted Segment EBITDA (in thousands) | 3 Months Ended June 30, 2023 | 3 Months Ended June 30, 2022 | 6 Months Ended June 30, 2023 | 6 Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Midwest & South | $9,391 | $9,149 | $20,077 | $16,239 | | West | $177 | $1,684 | $234 | $2,191 | | Contracted Sports Wagering | $1,361 | $2,196 | $2,522 | $4,964 | | Total Adjusted Segment EBITDA | $10,929 | $13,029 | $22,833 | $23,394 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, condition, and future outlook [Executive Overview](index=26&type=section&id=Executive%20Overview) - The Company's primary business involves ownership and/or operation of casino and related hospitality and entertainment facilities, including six operating casinos and two under development (Chamonix and American Place)[136](index=136&type=chunk) - The Temporary by American Place opened in February 2023 and will operate until the permanent American Place facility is completed[136](index=136&type=chunk) - The Company benefits from **seven permitted sports wagering "skins"** – three in Colorado, three in Indiana, and one in Illinois[136](index=136&type=chunk) [Recent Developments](index=27&type=section&id=Recent%20Developments) - The Temporary by American Place opened in February 2023, featuring 940 slot machines, 48 table games, and two restaurants, with a fine-dining restaurant and sportsbook expected later in the year[142](index=142&type=chunk) - A new 10-year mobile sports wagering agreement in Colorado began in March 2023, replacing a previous operator, bringing the total active Colorado sports wagering agreements to three with **annual minimums of $3 million**[143](index=143&type=chunk) - The Illinois retail and mobile sports wagering contract, signed in May 2022, includes a **$5 million upfront fee** and a minimum of **$5 million annual revenue**, with payments commencing in August 2023[144](index=144&type=chunk) - In February 2023, the Company issued an additional **$40 million in senior secured notes** and amended its credit facility to fund The Temporary's opening (including Illinois gaming license fees) and for general corporate purposes[146](index=146&type=chunk)[147](index=147&type=chunk) [Key Performance Indicators](index=28&type=section&id=Key%20Performance%20Indicators) - Key performance indicators include slot coin-in and table game drop (volume), slot win and table game hold percentages (win rates), hotel occupancy rate, and Adjusted EBITDA/Adjusted Segment EBITDA (profitability)[149](index=149&type=chunk)[150](index=150&type=chunk)[151](index=151&type=chunk) - Adjusted Segment EBITDA is a GAAP measure of segment profitability, while Adjusted EBITDA is a non-GAAP measure used for overall performance evaluation and debt covenant compliance[151](index=151&type=chunk)[228](index=228&type=chunk) [Results of Operations](index=29&type=section&id=Results%20of%20Operations) [Consolidated operating results](index=29&type=section&id=Consolidated%20operating%20results) - The Temporary contributed approximately **$20.3 million** and **$30.7 million** to revenues for the three and six months ended June 30, 2023, respectively[241](index=241&type=chunk) - Operating expenses increased primarily due to The Temporary's operations, including $6.9 million in SG&A and $6.3 million in D&A for the three months, and $9.1 million in SG&A, $10.3 million in D&A, and $10.1 million in preopening costs for the six months[156](index=156&type=chunk) Consolidated Operating Results | Metric (in thousands) | 3 Months Ended June 30, 2023 | 3 Months Ended June 30, 2022 | 6 Months Ended June 30, 2023 | 6 Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $59,382 | $44,383 | $109,488 | $85,806 | | Operating Expenses | $58,788 | $36,164 | $115,880 | $72,284 | | Operating Income (Loss) | $594 | $8,219 | $(6,392) | $13,522 | | Net Loss | $(5,600) | $(4,355) | $(17,015) | $(4,245) | [Interest and Other Non-Operating Expenses](index=31&type=section&id=Interest%20and%20Other%20Non-Operating%20Expenses) - Other non-operating income for the six months ended June 30, 2023, included **$0.4 million from insurance settlement proceeds** related to hurricane damage[256](index=256&type=chunk) Interest Expense, Net | Interest Expense, Net (in thousands) | 3 Months Ended June 30, 2023 | 3 Months Ended June 30, 2022 | 6 Months Ended June 30, 2023 | 6 Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Interest expense (excluding bond fee amortization and discounts/premiums) | $10,062 | $8,660 | $19,082 | $16,051 | | Capitalized interest | $(4,097) | $(2,083) | $(7,569) | $(3,461) | | Interest income and other | $(1,076) | $0 | $(2,352) | $0 | | Total Interest Expense, Net | $5,633 | $6,988 | $10,452 | $13,387 | [Income Tax Expense](index=33&type=section&id=Income%20Tax%20Expense) - The Company does not expect to pay federal income taxes or receive refunds for 2023 due to anticipated taxable losses and continues to evaluate the need for a valuation allowance on deferred tax assets[245](index=245&type=chunk) Income Tax Provision (Benefit) | Income Tax Provision (Benefit) (in thousands) | 3 Months Ended June 30, 2023 | 3 Months Ended June 30, 2022 | 6 Months Ended June 30, 2023 | 6 Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Income Tax Provision (Benefit) | $561 | $5,567 | $526 | $(45) | | Effective Income Tax Rate | (11.1)% | 459.3% | (3.2)% | 1.0% | [Operating Results – Reportable Segments](index=33&type=section&id=Operating%20Results%20%E2%80%93%20Reportable%20Segments) Segment Performance | Segment Performance | 3 Months Ended June 30, 2023 | 3 Months Ended June 30, 2022 | 6 Months Ended June 30, 2023 | 6 Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Midwest & South Revenues | $49,911 | $32,936 | $90,713 | $62,882 | | Midwest & South Adjusted Segment EBITDA | $9,391 | $9,149 | $20,077 | $16,239 | | West Revenues | $8,089 | $9,278 | $16,213 | $17,924 | | West Adjusted Segment EBITDA | $177 | $1,684 | $234 | $2,191 | | Contracted Sports Wagering Revenues | $1,382 | $2,169 | $2,562 | $5,000 | | Contracted Sports Wagering Adjusted Segment EBITDA | $1,361 | $2,196 | $2,522 | $4,964 | [Midwest & South](index=34&type=section&id=Midwest%20%26%20South) - Midwest & South total revenues increased by **51.5% (QoQ)** and **44.3% (YoY)** for the three and six months ended June 30, 2023, primarily due to The Temporary's opening[262](index=262&type=chunk) - Same-store revenues (excluding The Temporary) declined by **10.2% (QoQ)** and **4.6% (YoY)** due to lower casino revenue and a timing difference in the $2.1 million "free play" sale at Rising Star[262](index=262&type=chunk)[201](index=201&type=chunk) - The Temporary contributed **$4.1 million** and **$7.7 million** to Adjusted Property EBITDA for the three and six months ended June 30, 2023, respectively, offsetting same-store Adjusted Segment EBITDA declines[174](index=174&type=chunk) - The Temporary is not yet at full capacity due to regulatory restrictions (e.g., operating hours, table game wagers) and staffing constraints, with plans to open a third restaurant and on-site sportsbook in H2 2023[202](index=202&type=chunk) [West](index=35&type=section&id=West) - Total revenues for the West segment decreased by **12.8% (QoQ)** and **9.5% (YoY)** due to planned business disruptions from Chamonix construction, including reduced capacity and temporary absence of hotel rooms and self-parking[176](index=176&type=chunk) - Adverse weather, particularly heavy snowfall in Nevada, impacted Grand Lodge Casino's results in Q1 and Q2 2023, delaying seasonal residents' return[178](index=178&type=chunk) - Adjusted Segment EBITDA decreased to **$0.2 million** for both the three and six months ended June 30, 2023, due to Chamonix construction disruptions, additional operating expenses for valet/shuttle services, and maintained payroll despite reduced activity[179](index=179&type=chunk) [Contracted Sports Wagering](index=37&type=section&id=Contracted%20Sports%20Wagering) - Revenues and Adjusted Segment EBITDA decreased for both periods, primarily because the prior-year periods included accelerated revenue recognition from two agreements that ceased operations in May 2022[208](index=208&type=chunk) - The Company is evaluating options for its remaining idle skin in Indiana (utilize itself or find a replacement operator)[208](index=208&type=chunk) - Revenue payments for the Illinois sports skin are contractually due to begin in August 2023, with an **annualized minimum of $5 million**[226](index=226&type=chunk) [Corporate](index=37&type=section&id=Corporate) - Corporate expenses declined by **55.2% (QoQ)** and **24.4% (YoY)** for the three and six months ended June 30, 2023, mainly due to decreased accrued bonus compensation, partially offset by increased third-party professional services[209](index=209&type=chunk) [Non-GAAP Financial Measure](index=38&type=section&id=Non-GAAP%20Financial%20Measure) - Adjusted EBITDA is a non-GAAP measure defined as earnings before interest, taxes, depreciation, amortization, preopening expenses, impairment, asset write-offs, disposals, project development/acquisition costs, and non-cash share-based compensation[228](index=228&type=chunk) - Adjusted EBITDA is used as a supplemental disclosure to GAAP measures, widely used in the gaming and hospitality industries for performance evaluation and as a basis for valuation[228](index=228&type=chunk) Adjusted EBITDA Reconciliation | Adjusted EBITDA (in thousands) | 3 Months Ended June 30, 2023 | 3 Months Ended June 30, 2022 | 6 Months Ended June 30, 2023 | 6 Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Loss | $(5,600) | $(4,355) | $(17,015) | $(4,245) | | Operating Income (Loss) | $594 | $8,219 | $(6,392) | $13,522 | | Adjusted EBITDA | $10,507 | $12,086 | $20,632 | $20,483 | [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 30, 2023, the Company had **$113.6 million in cash and equivalents**, including $78.1 million of restricted cash for Chamonix construction[216](index=216&type=chunk) - Management believes current cash balances, available borrowing capacity under the Credit Facility, and operating cash flows will be sufficient to meet liquidity and capital needs for the next 12 months[216](index=216&type=chunk) - The Company expects to invest approximately **$75 million** in The Temporary/American Place project in 2023 (excluding pre-opening and capitalized interest), including $50 million for gaming license payments, and will likely need additional financing for the permanent American Place facility[222](index=222&type=chunk) - For Chamonix, the Company expects to invest **$115 million in 2023** and the remaining balance in 2024, with an expected opening on December 26, 2023[237](index=237&type=chunk) [Off-balance Sheet Arrangements](index=42&type=section&id=Off-balance%20Sheet%20Arrangements) - The Company has no off-balance sheet arrangements that are material to its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources[188](index=188&type=chunk) [Critical Accounting Estimates and Policies](index=42&type=section&id=Critical%20Accounting%20Estimates%20and%20Policies) - Critical accounting estimates and policies are described in Note 2 of the 2022 Form 10-K, and there have been no significant changes in estimation methods since the end of 2022[189](index=189&type=chunk) [Forward-Looking Statements](index=43&type=section&id=Forward-Looking%20Statements) - The report contains forward-looking statements regarding growth strategies, construction budgets, operational performance, capital investments, sports wagering contracts, and financial resources, among others[191](index=191&type=chunk) - Forward-looking statements are subject to inherent uncertainties, risks, and changes in circumstances that are difficult to predict and many of which are outside of the Company's control, potentially causing actual results to differ materially[192](index=192&type=chunk) - The Company undertakes no obligation to publicly update or revise any forward-looking statements as a result of future developments, events, or conditions, except as required by law[193](index=193&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=43&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material quantitative or qualitative disclosures about market risk are reported - This section is marked "Not applicable," indicating no material quantitative or qualitative disclosures about market risk[194](index=194&type=chunk) [Item 4. Controls and Procedures](index=44&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirms the effectiveness of disclosure controls and procedures as of the reporting date - As of June 30, 2023, the CEO and CFO concluded that the Company's disclosure controls and procedures were **effective at a reasonable assurance level**[196](index=196&type=chunk) - There have been **no changes in internal control over financial reporting** during the last fiscal quarter that materially affected, or are reasonably likely to materially affect, internal control over financial reporting[198](index=198&type=chunk) [PART II OTHER INFORMATION](index=44&type=section&id=PART%20II%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) Ongoing legal proceedings are not expected to materially impact the company's financial position - The Company is subject to various legal and administrative proceedings in the normal course of business[159](index=159&type=chunk) - Management does not believe that the final outcome of these matters will have a **material adverse effect** on the Company's consolidated financial position or results of operations[159](index=159&type=chunk) [Item 1A. Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) Key risks include regulatory challenges for growth projects and litigation concerning casino licenses - Growth projects, including Chamonix and American Place, may be subject to additional regulatory restrictions, delays, or challenges[160](index=160&type=chunk) - Lawsuits filed by an unsuccessful bidder for the Waukegan casino license could negatively impact the Company's ability to secure financing for American Place, delay its opening, or affect licensing[165](index=165&type=chunk) - The Illinois Gaming Board approved The Temporary to operate for a third year, but there's a risk of an operations gap between its closing and the permanent American Place opening if construction is delayed further by lawsuits or other factors[166](index=166&type=chunk) [Item 6. Exhibits](index=46&type=section&id=Item%206.%20Exhibits) A list of exhibits filed with the report includes agreements and officer certifications - Exhibits include employment agreements, certifications of principal executive and financial officers (pursuant to Exchange Act Rule 13a-14(a)/15(d)-14(a) and 18 U.S.C. section 1350), and Inline XBRL documents[168](index=168&type=chunk) [Signatures](index=47&type=section&id=Signatures) The report is certified and signed by the Chief Executive Officer and Chief Financial Officer - The report was signed on August 8, 2023, by Daniel R. Lee (CEO) and Lewis A. Fanger (CFO), certifying compliance with the Securities Exchange Act of 1934[171](index=171&type=chunk)[172](index=172&type=chunk)

Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Delaware (State or other jurisdiction of incorporation or organization) FULL HOUSE RESORTS, INC. (702) 221-7800 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: (E ...