Full House Resorts : Quarterly Report for Quarter Ending March 31, 2026 (Form 10-Q)

About this update from Full House Resorts, Inc.

Management's Discussion and Analysis of Financial Condition and Results of Operations This management's discussion and analysis of financial condition and results of operations contains forward-looking statements that involve risks and uncertainties. Please see "Forward-Looking Statements" for a discussion of the uncertainties, risks and assumptions that may cause our actual results to differ materially from those discussed in the forward-looking statements. This discussion should be read in conjunction with our historical financial statements and related notes thereto and the other disclosures contained elsewhere in this Quarterly Report on Form 10-Q, and the audited consolidated financial statements and notes for the fiscal year ended December 31, 2025, which were included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission ("SEC") on March 16, 2026. The results of operations for the periods reflected herein are not necessarily indicative of results that may be expected for future periods. Full House Resorts, Inc., together with its subsidiaries, may be referred to as "Full House," the "Company," "we," "our" or "us," except where stated or the context otherwise indicates. Executive Overview Headquartered in Las Vegas, Nevada, we have gaming operations in Nevada, Colorado, Illinois, Indiana, and Mississippi. 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. The following table identifies our segments, along with properties and their locations: ​ ​ ​ Segments and Properties ​ Locations Midwest & South ​ ​ American Place Casino ("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* ​ ​ Chamonix Casino Hotel ("Chamonix") and Bronco Billy's Casino ("Bronco Billy's") 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) Contracted Sports Wagering ​ ​ Three idle sports wagering websites ("skins") ​ Colorado One active sports wagering website ("skin"), plus two others that are currently idle ​ Indiana One active sports wagering website ("skin") ​ Illinois __________ * On April 1, 2025, we completed our sale of Stockman's Casino. ​ ​ We currently operate six casinos: five on real estate that we own or lease, and one located within a hotel owned by a third party. Additionally, we currently benefit from two active sports wagering websites (referred to as skins), one in Indiana and one in Illinois. The sports skin in Illinois has significantly greater value than each of the sports skins in Indiana and Colorado due to the larger population of Illinois and fewer permitted sports skins. In February 2023, we opened our temporary American Place facility. We have begun the design work for the permanent gaming facility that we plan to build on adjoining land. In October 2024, we completed the phased opening of Chamonix, our newest property, located adjacent to our existing Bronco Billy's Casino. In April 2025, we completed the sale of Stockman's to a privately-owned company. In July 2025, we agreed with a third-party to extend its use of our sports wagering skin in Indiana through December 2031, and such operator fully prepaid its remaining term for the Indiana skin. Our financial results are dependent upon the number of patrons that we attract to our properties and the amounts those guests spend per visit. 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. 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 previously managed at Silver Slipper (through August 2025), and retail outlets and entertainment. We often provide hotel rooms, food and beverages, entertainment, ferry usage, and golf privileges to customers on a complimentary basis. Under GAAP, the value of such services is included as revenue in those categories, offset by contra-revenue in the casino revenue category. 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. 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 on-site sports book operations are in partnership with a company specializing in race and sports betting. At Rising Star, Chamonix/Bronco Billy's (through June 2025), 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 that utilizes our online sports skin in Illinois also operates our on-site sports book at American Place. 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. 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, especially contrasted with different seasonal quarters, are not necessarily comparable. Results for any particular quarter or year may not be indicative of future periods' results. Our market environment is highly competitive and capital-intensive. 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. 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 Progress Toward Construction of the Permanent American Place Facility. In September 2025, the Waukegan City Council unanimously approved our revised site plans. In April 2026, the City of Waukegan approved our earthmoving and foundation drawings. With these drawings, we intend to soon begin construction, pending approval from the Illinois Gaming Board. Foundation work, while not cost intensive, requires several months to complete. By starting construction now, funding it with internal sources, we believe we can accelerate the opening of the permanent casino, anticipated in approximately 18 to 24 months. A bill was also recently introduced in the Illinois legislature to extend the date that our temporary American Place casino is permitted to operate by 18 months beyond August 2027. This bill, if passed, will ensure that there will be no gap in tax revenue or employment prior to the opening of our permanent casino facility. While there can be no assurance of the bill's passage, we received a similar one-year extension in 2023 from the Illinois Gaming Board ("IGB") to operate the temporary facility when our project was delayed due to a lawsuit from a competitor. Such lawsuit was resolved in January 2025. Key Performance Indicators We use several key performance indicators to evaluate the operations of our properties. 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. 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. 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. 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. 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. Complimentary room sales, or the retail value of accommodations gratuitously furnished to customers, 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. For a description of Adjusted EBITDA, see "Non-GAAP Financial Measure." We utilize Adjusted Segment EBITDA, a financial measure in accordance with generally accepted accounting principles in the United States of America ("GAAP"), 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 10 . In addition, we use Adjusted Segment EBITDA Margin, which is calculated by dividing Adjusted Segment EBITDA by the segment's total revenues. 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. Results of Operations Consolidated operating results The following tables summarize our consolidated operating results for the three months ended March 31, 2026 and 2025: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ (In thousands, except percentages) ​ March 31, ​ Increase / ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ (Decrease) Revenues ​ $ 74,421 ​ $ 75,058 (0.8) % Operating expenses ​ 72,071 ​ 74,320 (3.0) % Operating income ​ 2,350 ​ 738 218.4 % Interest expense, net ​ ​ 10,380 ​ ​ 10,297 ​ 0.8 % Income tax provision ​ 120 ​ 206 (41.7) % Net loss ​ $ (8,150) ​ $ (9,765) 16.5 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ ​ (In thousands, except percentages) ​ March 31, ​ Increase / ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ (Decrease) Casino revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ Slots ​ $ 46,180 ​ $ 44,955 2.7 % Table games ​ 9,156 ​ 10,256 (10.7) % Other ​ 371 ​ 89 316.9 % ​ ​ 55,707 ​ 55,300 0.7 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Non-casino revenues, net ​ ​ ​ ​ ​ ​ ​ ​ ​ Food and beverage ​ 9,601 ​ 10,061 (4.6) % Hotel ​ 3,786 ​ 3,842 (1.5) % Other ​ 5,327 ​ 5,855 (9.0) % ​ ​ 18,714 ​ 19,758 (5.3) % Total revenues ​ $ 74,421 ​ $ 75,058 (0.8) % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended ​ ​ (In thousands, except percentages) March 31, ​ Increase / ​ 2026 ​ 2025 ​ (Decrease) Slot coin-in $ 773,722 ​ ​ $ 775,622 ​ ​ (0.2) % Slot win (1) $ 60,052 ​ ​ $ 57,897 ​ ​ 3.7 % Slot hold percentage (2) ​ 7.8 % ​ ​ 7.5 % ​ 0.3 pts Table game drop $ 53,140 ​ ​ $ 54,574 ​ ​ (2.6) % Table game win (1) $ 9,690 ​ ​ $ 10,368 ​ ​ (6.5) % Table game hold percentage (2) ​ 18.2 % ​ ​ 19.0 % ​ (0.8) pts __________ (1) Does not reflect reductions in casino revenues from discretionary complimentary goods and services that are provided by the Company. (2) The three-year averages for slot hold percentage and table game hold percentage were 7.5% and 18.1%, respectively. A significant portion of our results in the recent quarters reflect the opening of two new casinos. Their win percentages may differ from historical averages. The following discussion is based on our condensed consolidated financial statements for the three months ended March 31, 2026 and 2025. ​ Revenues. Consolidated total revenues declined by 0.8% (or $0.6 million) for the three months ended March 31, 2026, compared to the prior-year period, reflecting growth at American Place Casino and Rising Star Casino Resort, offset by the sale of Stockman's Casino in April 2025 and the termination of an agreement with one of our contracted sports wagering providers in 2025. Excluding Stockman's, revenues would have increased by 0.9%. Operating Expenses. Consolidated operating expenses declined by 3.0% (or $2.2 million) for the three months ended March 31, 2026, compared to the prior-year period, which included operating costs to run Stockman's. Additionally, declines in selling, general and administrative expenses for the current quarter reflect a continued focus on reducing inefficiencies at Chamonix, led by a new property management team that arrived throughout 2025 and early 2026. See further information within our reportable segments described below. Interest Expense. Interest expense, net, consists of the following: ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended (In thousands) ​ March 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Interest expense (excluding bond fee amortization and discounts/premiums) ​ $ 9,792 ​ $ 9,946 Amortization of debt issuance costs and discounts/premiums ​ 735 ​ 739 Capitalized interest ​ (87) ​ (302) Interest income and other ​ ​ (60) ​ ​ (86) ​ ​ $ 10,380 ​ $ 10,297 ​ Net interest expense for the three months ended March 31, 2026 remained relatively flat at $10.4 million, compared to $10.3 million in the prior-year period. During the current quarter, there was less capitalized interest to offset interest expense, as Chamonix's parking lot resurfacing projects were completed in mid-2025. Income Tax Expense. For the three months ended March 31, 2026 and 2025, we recognized income tax provisions of $0.1 million and $0.2 million, respectively. This resulted in effective income tax rates of (1.5%) and (2.2%), respectively, primarily due to our projections for pre-tax book income in each of those years. We do not expect to pay any federal income taxes or receive any federal tax refunds related to our 2026 results, as we anticipate an overall taxable loss for the period. We continue to evaluate, on a quarterly basis, the ability to realize our deferred tax assets and the need for a valuation allowance. The valuation allowance, and the potential reversal of such allowance, have no bearing on the taxes actually paid by the Company. As of December 31, 2025, we had gross federal net operating loss carryforwards totaling $95.1 million and state tax carryforwards of $267.6 million. 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 "Executive Overview" above. The following table presents detail by segment of our consolidated revenues and Adjusted EBITDA; see "Non-GAAP Financial Measure" for additional information. Additionally, management uses Adjusted Segment EBITDA as the measure of segment profitability in accordance with GAAP. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ (In thousands, except percentages) ​ Three Months Ended ​ ​ ​ ​ ​ March 31, ​ Increase / ​ ​ ​ ​ 2026 ​ ​ ​ 2025 ​ ​ ​ (Decrease) Revenues ​ ​ ​ ​ ​ ​ ​ ​ ​ Midwest & South $ 59,353 ​ $ 57,172 3.8 % West 13,577 ​ 15,606 (13.0) % Contracted Sports Wagering ​ ​ 1,491 ​ ​ 2,280 ​ (34.6) % ​ $ 74,421 ​ $ 75,058 (0.8) % Adjusted Segment EBITDA and Adjusted EBITDA ​ ​ ​ ​ ​ ​ ​ ​ ​ Midwest & South $ 14,827 ​ $ 13,107 13.1 % West (1,768) ​ (2,467) 28.3 % Contracted Sports Wagering ​ ​ 1,436 ​ ​ 2,180 ​ (34.1) % Adjusted Segment EBITDA 14,495 ​ 12,820 13.1 % Corporate (1,325) ​ (1,333) 0.6 % Adjusted EBITDA $ 13,170 ​ $ 11,487 14.7 % ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Adjusted Segment EBITDA Margin ​ ​ ​ ​ ​ ​ ​ ​ ​ Midwest & South ​ ​ 25.0 % ​ 22.9 % 2.1 pts West ​ ​ (13.0) % ​ (15.8) % 2.8 pts Contracted Sports Wagering ​ ​ 96.3 % ​ 95.6 % 0.7 pts ​ Midwest & South Our Midwest & South segment includes Silver Slipper, Rising Star and American Place. Total revenues for the three months ended March 31, 2026 increased by 3.8% (or $2.2 million). Revenues at American Place and Rising Star more than offset slight revenue declines at Silver Slipper. Casino revenue increased by 5.1% (or $2.3 million) for the three months ended March 31, 2026. Slot revenue increased by 8.5% (or $3.0 million), while table games revenue declined by 11.7% (or $1.0 million). Non-casino revenue declined by 0.6% (or $0.1 million) for the three months ended March 31, 2026, primarily due to the discontinuation of unprofitable promotional programs at Silver Slipper. Food and beverage revenue declined by 1.3% (or $0.1 million) for the current-year period, while hotel revenue declined by 5.3% (or $0.1 million). Adjusted Segment EBITDA rose by 13.1% (or $1.7 million) for the three months ended March 31, 2026, benefiting from revenue growth at American Place and Rising Star as mentioned above, as well as Silver Slipper's focus on operational efficiencies. West Our West segment includes Chamonix, Bronco Billy's, Grand Lodge, and Stockman's (until the completion of its sale in April 2025). The market in Cripple Creek, Colorado, is typically seasonal, favoring the summer months. Our Nevada operations have also historically been seasonal, with the summer months accounting for a disproportionate share of annual revenues. Total revenues declined by 13.0% (or $2.0 million) for the three months ended March 31, 2026. These results reflect the sale of Stockman's in April 2025 and renovation-related disruptions at the Hyatt Lake Tahoe, which houses our Grand Lodge Casino. Casino revenue declined by 16.5% (or $1.9 million) for the three months ended March 31, 2026, primarily reflecting the sale of Stockman's in April 2025. Slot revenue declined by 18.3% (or $1.8 million), while table games revenue declined by 5.0% (or $0.1 million) for the three months ended March 31, 2026 due to renovation disruptions at Grand Lodge. Non-casino revenue declined by 4.0% (or $0.2 million) for the three months ended March 31, 2026. Food and beverage revenue declined by 18.7% (or $0.4 million) due to the sale of Stockman's. Hotel revenue rose by 1.6% (or less than $0.1 million), due to Chamonix's continuing ramp-up of operations. Adjusted Segment EBITDA improved by 28.3% (or $0.7 million), despite the renovation at the Hyatt. This improvement in Adjusted Segment EBITDA was led by Chamonix/Bronco Billy's, which reduced its operating expenses, excluding depreciation and amortization, by 9.6% (or $1.3 million). As the Company's newest property, Chamonix is early in its expected ramp, with operations expected to continue improving in the coming quarters and years. Contracted Sports Wagering The Contracted Sports Wagering segment consists of our on-site and online sports wagering skins in Colorado, Indiana and Illinois. ​ Revenues and Adjusted Segment EBITDA were $1.5 million and $1.4 million, respectively, in the first quarter of 2026. In the prior-year period, revenues and Adjusted Segment EBITDA benefited from an additional active sports skin. Such amounts in the first quarter of 2025 were $2.3 million and $2.2 million, respectively. ​ Corporate Corporate expenses for the three months ended March 31, 2026 was $1.3 million, flat when compared to the prior-year period. ​ Non-GAAP Financial Measure "Adjusted EBITDA" is 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, and non-cash share-based compensation expense. Adjusted EBITDA information is presented solely as supplemental disclosure to measures reported in accordance with generally accepted accounting principles in the United States of America ("GAAP") because management believes this measure is (i) a widely used measure of operating performance in the gaming and hospitality industries and (ii) a principal basis for valuation of gaming and hospitality companies. In addition, a version of Adjusted EBITDA (known as Consolidated Cash Flow) is utilized in the covenants within the Credit Facility, although not necessarily defined in the same way as above. Adjusted EBITDA is not, however, a measure of financial performance or liquidity under GAAP. Accordingly, this measure should be considered supplemental and not a substitute for net income (loss) or cash flows as an indicator of the Company's operating performance or liquidity. The following table presents a reconciliation of net loss and operating income to Adjusted EBITDA: ​ ​ ​ ​ ​ ​ ​ (In thousands) ​ Three Months Ended ​ ​ March 31, ​ ​ ​ ​ 2026 ​ ​ ​ 2025 Net loss ​ $ (8,150) ​ $ (9,765) Income tax provision ​ ​ 120 ​ ​ 206 Interest expense, net ​ ​ 10,380 ​ ​ 10,297 Operating income ​ ​ 2,350 ​ ​ 738 Project development costs ​ ​ 55 ​ ​ 141 Depreciation and amortization ​ ​ 10,560 ​ ​ 10,607 Loss on disposal of assets ​ ​ - ​ ​ 6 Impairment of assets held for sale at Stockman's ​ ​ - ​ ​ 212 Stock-based compensation, net ​ ​ 205 ​ ​ (217) Adjusted EBITDA ​ $ 13,170 ​ $ 11,487 ​ The following tables present reconciliations of operating income (loss) to Adjusted Segment EBITDA and Adjusted EBITDA. ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2026 (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Adjusted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Stock- ​ Segment ​ ​ Operating ​ Depreciation ​ Project ​ Based ​ EBITDA and ​ ​ Income ​ and ​ Development ​ Compensation, ​ Adjusted ​ ​ ​ ​ (Loss) ​ ​ ​ Amortization ​ ​ ​ Costs ​ ​ ​ net ​ ​ ​ EBITDA Reporting segments ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Midwest & South ​ $ 8,887 ​ $ 5,940 ​ $ - ​ $ - ​ $ 14,827 West ​ (6,375) ​ 4,607 ​ - ​ - ​ (1,768) Contracted Sports Wagering ​ ​ 1,436 ​ ​ - ​ ​ - ​ ​ - ​ ​ 1,436 ​ ​ 3,948 ​ 10,547 ​ - ​ - ​ 14,495 Other operations ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate ​ (1,598) ​ 13 ​ 55 ​ 205 ​ (1,325) ​ ​ $ 2,350 ​ $ 10,560 ​ $ 55 ​ $ 205 ​ $ 13,170 ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Three Months Ended March 31, 2025 (In thousands) ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Adjusted ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Impairment ​ ​ ​ ​ Stock- ​ Segment ​ ​ Operating ​ Depreciation ​ Loss on ​ of assets held ​ Project ​ Based ​ EBITDA and ​ ​ Income ​ and ​ Disposal ​ for sale at ​ Development ​ Compensation, ​ Adjusted ​ ​ (Loss) ​ Amortization ​ of Assets ​ ​ ​ Stockman's ​ Costs ​ net EBITDA Reporting segments ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Midwest & South ​ $ 6,892 ​ $ 6,209 ​ $ 6 ​ $ - ​ $ - ​ $ - ​ $ 13,107 West ​ (7,056) ​ 4,377 ​ - ​ 212 ​ - ​ - ​ (2,467) Contracted Sports Wagering ​ ​ 2,180 ​ ​ - ​ ​ - ​ ​ - ​ ​ - ​ ​ - ​ ​ 2,180 ​ ​ 2,016 ​ 10,586 ​ 6 ​ 212 ​ - ​ - ​ 12,820 Other operations ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Corporate ​ (1,278) ​ ​ 21 ​ ​ - ​ ​ - ​ ​ 141 ​ ​ (217) ​ ​ (1,333) ​ ​ $ 738 ​ $ 10,607 ​ $ 6 ​ $ 212 ​ $ 141 ​ $ (217) ​ $ 11,487 Liquidity and Capital Resources Cash Flows At March 31, 2026, we had $31.4 million of cash and equivalents. Over the past several years, we invested in two new casinos (one of which has a hotel) that are now open to the public: the temporary facility at American Place, which opened in February 2023, and Chamonix, which opened in phases between December 2023 and October 2024. Such construction activity is now complete and both operations are in their ramp-up periods. We estimate that between $10 million and $15 million of cash is used in our day-to-day operations. We believe that current cash balances, together with the available borrowing capacity under our revolving credit facility and cash flows from operating activities, will be sufficient to meet our liquidity and capital resource needs for the next 12 months of operations. Cash flows - operating activities. On a consolidated basis, cash used in operations during the three months ended March 31, 2026 was $3.8 million, compared to cash used in operations of $7.1 million in the prior-year period. Trends in our operating cash flows tend to follow trends in operating income, excluding non-cash charges, but are also affected by changes in working capital. The change in operating cash flows for the three months ended March 31, 2026, as compared to the prior-year period, was primarily related to the timing of our spending and its impact on working capital, as well as an increase in operating income. Cash flows - investing activities. On a consolidated basis, cash used in investing activities during the respective three months ended March 31, 2026 and 2025 was $2.7 million and $2.9 million. During 2026, such costs were primarily related to refurbishments at Bronco Billy's and designing the permanent American Place casino. During the prior-year period, such costs were primarily related to the construction of Chamonix. Cash flows - financing activities. On a consolidated basis, cash used in financing activities during the three months ended March 31, 2026 was $2.8 million, compared to cash provided by financing activities of $0.5 million in the prior-year period. During 2025, we increased net borrowings from the Credit Facility by $3.0 million. Other Factors Affecting Liquidity We have significant outstanding debt and contractual obligations. Our principal debt matures in February 2028. Certain planned capital expenditures designed to grow the Company, such as the permanent American Place facility, are likely to require additional financing and/or temporarily reduce the Company's ability to repay debt. Our operations are subject to financial, economic, competitive, regulatory and other factors, many of which are beyond our control. Such future developments are highly uncertain and cannot be accurately predicted at this time. Debt Long-term Debt. At March 31, 2026, we had $450.0 million of principal indebtedness outstanding under the Notes and $30.0 million outstanding under the Credit Facility. We also owe $0.9 million related to our finance lease of a hotel at Rising Star. With the exception of the Credit Facility, all of our debt is at fixed interest rates. See Note 5 for details on our debt obligations. Other Long-term Obligation. As required for our gaming licensure at American Place, we have accrued for an interest-free "Reconciliation Payment" that will be due to the IGB over a long-term basis (see Note 8 ). We currently estimate that a total of $56.8 million will be due to the IGB over the course of six years. Of the total amount, a discounted value of $48.4 million has been added to the valuation of our Illinois gaming license, while the remaining $8.4 million is expected to be expensed as imputed interest through the maturity of this obligation. Capital Investments. In addition to normal maintenance capital expenditures, we expect to make significant capital investments once we commence construction of the permanent American Place facility. While we may begin some of the foundation work on the project so as to expedite the opening date, most of the construction of the permanent American Place facility is not expected to begin until funding for such construction is secured. 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 American Place facility, which opened in February 2023. We expect to internally generate a portion of the needed funds to complete American Place, but we will likely need additional financing. While there is no certainty that we will be able to do so, we intend to arrange such additional funding concurrent with the refinancing of our existing debt. Our existing bonds are currently callable at par and otherwise scheduled to mature in February 2028. The construction budget for the permanent American Place facility, excluding capitalized interest, is approximately $302 million. Other Capital Expenditures. Additionally, we may fund various other capital expenditure projects, depending on our financial resources. Our capital expenditures may fluctuate due to decisions regarding strategic capital investments in new or existing facilities, and the timing of capital investments to maintain the quality of our properties. No assurance can be given that any of our planned capital expenditure projects will be completed or that any completed projects will be successful. Our annual capital expenditures typically include some number of new slot machines and related equipment; to some extent, we can coordinate such purchases to match our resources. We evaluate projects based on a number of factors, including profitability forecasts, length of the development period, the regulatory and political environment, and the ability to secure the funding necessary to complete the development or acquisition, among other considerations. No assurance can be given that any additional projects will be pursued or completed or that any completed projects will be successful. Hyatt Owner's Option to Purchase our Leasehold Interest and Related Assets. Our lease with the owner of the Hyatt Lake Tahoe to operate Grand Lodge currently expires on December 31, 2034. 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 the ability to purchase our leasehold interest and related casino operating assets at any time prior to lease expiration. See Note 4 for more information. Off-balance Sheet Arrangements We have no off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of Regulation S-K, that have, or are reasonably likely to have, a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures, or capital resources that are material to investors. Critical Accounting Estimates and Policies We describe our critical accounting estimates and policies in Note 2, Basis of Presentation and Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements included in our Form 10-K for the year ended December 31, 2025. We also discuss our critical accounting estimates and policies in Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, in our Form 10-K for the year ended December 31, 2025. There has been no significant change in our estimation methods since the end of 2025. Forward-Looking Statements This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act") for which the Private Securities Litigation Reform Act of 1995 provides a safe harbor. These forward-looking statements can be identified by use of terms such as "believes," "expects," "anticipates," "estimates," "plans," "intends," "objectives," "goals," "aims," "projects," "forecasts," "future," "possible," "seeks," "may," "could," "should," "will," "might," "likely," "enable," or similar words or expressions, as well as statements containing phrases such as "in our view," "we cannot assure you," "although no assurance can be given," or "there is no way to anticipate with certainty." Examples of forward-looking statements include, among others, statements we make regarding our plans, beliefs or expectations regarding our growth strategies; our expectations regarding the Illinois legislature passing a bill to extend the timeframe of our operation of the temporary American Place facility; our expected construction budgets, estimated commencement and completion dates, expected amenities, and our expected operational performance for the American Place permanent facility; our expectations regarding our ability to generate operating cash flow and to obtain debt financing on reasonable terms and conditions for the construction of the permanent American Place facility; our expectations regarding our ability to refinance our outstanding debt; our investments in capital improvements and other projects, including the amounts of such investments, the timing of commencement or completion of such capital improvements and projects, and the resulting impact on our financial results; our expectations regarding the effect of management changes and operational improvements at our properties, including Chamonix; beliefs in connection with our marketing efforts, including our revamped marketing strategy at Chamonix and our ability to access the Colorado Springs and southern Denver markets; our expectations regarding the renovation-related disruptions at the Hyatt Lake Tahoe complex that houses our Grand Lodge Casino; our sports wagering contracts with third-party providers, including the expected revenues and expenses and our expectations regarding the operation and usage of our available idle sports wagering contracts, our ability to replace any terminated sports wagering contracts or our ability to operate sports wagering contracts ourselves; adequacy of our financial resources to fund operating requirements and planned capital expenditures and to meet our debt and contractual obligations; expected sources of revenue; anticipated sources of funds; anticipated or potential legislative actions; factors that affect the financial performance of our properties; adequacy of our insurance; competitive outlook; outcome of legal and litigation matters; impact of recently issued accounting standards; and estimates regarding certain accounting and tax matters, among others. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, those risks discussed in Part I, Item 1A-Risk Factors and throughout Part II, Item 7-Management's Discussion and Analysis of Financial Condition and Results of our Annual Report on Form 10-K for the year ended December 31, 2025, and in Part II, Item 1A-Risk Factors and elsewhere of this Form 10-Q. In addition, you should consult other disclosures made by us (such as in our other filings with the SEC or in company press releases) for other factors that may cause actual results to differ materially from those projected by us. You should read this Form 10-Q, and the documents that we reference in this Form 10-Q and have filed with the SEC, and our Annual Report on Form 10-K for the year ended December 31, 2025, with the understanding that our actual future results, levels of activity, performance, and events and circumstances may be materially different from what we expect. We undertake 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. 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. 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. 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. ​

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