Full House Resorts is to ramp-up its planned expansion of Cripple Creek’s Bronco Billy’s Casino and Hotel after Colorado voters approved a number of changes to the state’s gaming laws.
Detailing its intentions during a preliminary Q4 update, approval for the increased size has been offered by the group’s board of directors after the elimination of betting limits and the green-light issued for the region’s casinos to offer new table games, such as baccarat and pai gow poker.
To reflect the new opportunity created by those changes, the company has increased the size of its planned Cripple Creek expansion by 67 per cent to approximately 300 luxury guest rooms and suites, from its previously planned 180 guest rooms.
Approval for the plans have been approved by the Cripple Creek Historic Preservation Commission and Cripple Creek City Council, with final approval requiring a second reading by the latter, which is scheduled for consideration on February 3.
Other planned amenities for the expansion, including a new parking garage, meeting and entertainment space, outdoor rooftop pool, spa, and fine-dining restaurant, remain largely unchanged.
The expected investment to complete the Cripple Creek expansion is $180m, which the developer and operator believes can be financed with debt. Assuming timely completion of such fundraising, the company intends to build the Cripple Creek expansion in one phase, with completion expected in the fourth quarter of 2022.
Alongside this update Full House Resorts has also detailed its expectations from 2020’s fourth quarter, with consolidated net revenues anticipated to be in the range of $37.8m to $38.5m, compared to $39m for the same period in 2019.
Consolidated operating income for the fourth quarter of 2020 is expected to be $7.1m to $8m, contrasted to an operating loss of $400,000 a year earlier, with net income to fall between $1.2m to $4m, which would represent an improvement from a net loss of $4.1m in 2019.
Adjusted EBITDA is expected to be in the range of $9.3m to $10m for the fourth quarter of 2020, versus $2.3m for the fourth quarter of 2019.