Full House Rallies as Silver Slipper Reopening Surpasses Expectations

Posted on: May 27, 2020, 01:08h. 

Last updated on: May 27, 2020, 01:39h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Shares of Full House Resorts (NASDAQ:FLL) participated in a modest rally for the gaming space Wednesday. The rally extended a better than 13 percent gain over the past week after the company said its Mississippi reopening topped expectations.

Last week, the operator unveiled the reopening of the Silver Slipper Casino & Hotel in Hancock County, Miss. It was a vital step in the company’s plans to get back to business as usual in the wake of the coronavirus, because that venue accounted for 44 percent of Full House’s 2019 revenue.

Casino Stocks Continue To Rally
Full House’s Silver Slipper delivered strong performance in its reopening weekend. (Image: LinkedIn)

Despite the implementation of a variety of social distancing measures and a guest count that was almost 16 percent below normal, Full House said Silver Slipper’s casino win jumped 12.3 percent last weekend.

As a result of social distancing and other cautionary measures due to COVID-19, Silver Slipper’s reopened operations were limited in several ways, as required by state and local officials, including: only operating 392 slot machines of 855 total slot machines, only permitting three active positions at table games that normally accommodate six or more persons, and an approximately 50% capacity limitation in restaurants,” said the operator in a statement.

Full House runs five properties – Silver Slipper, two in Nevada, and one each in Colorado and Indiana. Silver State casinos will reopen on June 4.

Good Timing

Full House noted that Silver Slipper’s restart came on Memorial Day weekend, historically a busy time for gaming operators and accompanied by above-average revenue. As such, the operator acknowledged the pace set in the venue’s first weekend following a more than two months closure forced by COVID-19 may not be sustainable over the long-term.

“Silver Slipper’s reopening happened to coincide with the Memorial Day holiday weekend, which typically has higher revenues,” said the operator. “The Company cautions that these results from the first five days of Silver Slipper’s reopening may not be indicative of results for future periods, nor are they necessarily indicative of results that may be expected from the future reopenings of the Company’s other properties.”

Still, Silver Slipper’s casino win was more than 12 percent higher year-over-year for the May 21-25 period (May 23-27 in 2019), while its keno area and sportsbook were closed this year.

Full House added that it’s unlikely it will provide similar updates as its other venues come back online. It merely did so with Silver Slipper because the Mississippi property was the first in the company’s portfolio to resume operations.

Other Reopenings

There’s enthusiasm for Nevada casino reopenings. But how that affects Full House remains to be seen, and the company at least has a date for when its Rising Star property in Indiana is slated to get back to business on June 14.

That leaves Bronco Billy’s in Cripple Creek, Colo. as the remaining Full House property. All casinos in the Centennial State remain shuttered, with limited visibility as to when the venues can reopen.

On May 22, officials there said, “The State of Colorado will be issuing guidance around casinos soon.”