Full House Resorts, Inc. (FLL): Business Model Canvas [11-2024 Updated]
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Full House Resorts, Inc. (FLL) Bundle
In the competitive landscape of the gaming industry, understanding the business model of Full House Resorts, Inc. (FLL) unveils the strategic maneuvers that drive its success. This comprehensive analysis highlights how FLL leverages key partnerships, engages diverse customer segments, and generates multiple revenue streams. From innovative gaming experiences to robust customer loyalty programs, discover the elements that define FLL's unique approach in a bustling market.
Full House Resorts, Inc. (FLL) - Business Model: Key Partnerships
Third-party sports wagering operators
Full House Resorts has established partnerships with various third-party sports wagering operators to enhance its gaming offerings. The company operates on-site and online sports wagering skins in states such as Colorado, Indiana, and Illinois. For the three months ended September 30, 2024, revenues from the Contracted Sports Wagering segment decreased by 77.4% to $1.8 million, down from $7.9 million in the prior-year period. For the nine months ended September 30, 2024, revenues were $6.9 million, a 33.8% decline from $10.5 million in the previous year.
Local vendors for food and beverage supplies
Full House Resorts collaborates with local vendors to supply food and beverage products across its properties. For the three months ended September 30, 2024, food and beverage revenues increased by 22.2%, reaching $11.1 million, compared to $9.1 million in the same period of 2023. For the nine months ended September 30, 2024, food and beverage revenues totaled $31.3 million, reflecting a 23.0% increase from $25.4 million in the prior year.
Construction partners for new properties
Full House Resorts engages construction partners for the development of new properties, such as Chamonix and American Place. The company invested significant capital in construction activities, with cash used in investing activities amounting to $37.7 million for the nine months ended September 30, 2024. The Chamonix property, which opened in phases starting December 2023, represents a major investment aimed at expanding the company's operational capacity.
Marketing agencies for promotional activities
Full House Resorts partners with marketing agencies to enhance promotional activities aimed at attracting customers. For the three months ended September 30, 2024, the company's selling, general, and administrative expenses, which include marketing costs, rose to $26.7 million, compared to $22.0 million in the same quarter of 2023. This increase reflects the company's commitment to boosting its brand presence and customer engagement across its properties.
| Partnership Type | Revenue Impact (Q3 2024) | Revenue Impact (9M 2024) | Notes |
|---|---|---|---|
| Third-party sports wagering operators | $1.8 million | $6.9 million | 77.4% decline in Q3 2024 revenues |
| Local food and beverage vendors | $11.1 million | $31.3 million | 22.2% increase in Q3 2024 revenues |
| Construction partners | N/A | $37.7 million (invested) | Current investments for new properties |
| Marketing agencies | $26.7 million | N/A | Increase in marketing expenses in Q3 2024 |
Full House Resorts, Inc. (FLL) - Business Model: Key Activities
Managing casino operations
For the three months ended September 30, 2024, Full House Resorts reported casino revenues of $56.1 million, an increase from $50.2 million for the same period in 2023, representing an increase of 11.7%. For the nine months ended September 30, 2024, casino revenues reached $162.5 million, up from $131.6 million in the prior year, marking a 23.5% increase.
The breakdown of casino revenues includes:
- Slot revenues: $47.0 million for Q3 2024, up 14.1% from $41.2 million in Q3 2023
- Table games revenues: $9.0 million for Q3 2024, up 1.1% from $8.9 million in Q3 2023
Developing new gaming facilities
Full House Resorts is actively engaged in the construction and phased opening of new gaming facilities, notably the Chamonix Casino Hotel in Cripple Creek, Colorado. This facility began opening in December 2023 and aims to enhance the company's market presence. As of September 30, 2024, approximately $7.7 million remained in restricted cash dedicated to Chamonix’s construction.
The company invested $44.6 million in capital expenditures during the nine months ended September 30, 2024, which primarily went towards the construction of Chamonix.
Conducting marketing and promotional events
Marketing efforts have contributed to increased revenues, with non-casino revenues rising by 331.9% (or $3.9 million) for the three months ended September 30, 2024, and 242.4% (or $7.7 million) for the nine months ended September 30, 2024. This growth can be attributed to marketing campaigns surrounding the new Chamonix facility.
In Q3 2024, the company conducted various promotional events, which successfully attracted higher guest volumes, benefiting food and beverage revenues, which increased by 22.2% for Q3 2024.
Offering customer loyalty programs
Full House Resorts has implemented customer loyalty programs that have shown positive results in retaining and attracting customers. For the nine months ended September 30, 2024, hotel revenues increased significantly by 83.3%, reaching $11.3 million compared to $7.1 million in the same period of 2023.
The company’s loyalty initiatives are reflected in the enhanced guest experiences and increased spending per guest, contributing to the overall growth in both casino and non-casino revenues.
| Key Activities | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Casino Operations | 56.1 | 50.2 | 11.7 |
| Slot Revenues | 47.0 | 41.2 | 14.1 |
| Table Games Revenues | 9.0 | 8.9 | 1.1 |
| Food and Beverage Revenues | 11.1 | 9.1 | 22.2 |
| Hotel Revenues | 4.7 | 2.6 | 83.3 |
Full House Resorts, Inc. (FLL) - Business Model: Key Resources
Casino properties (Silver Slipper, Rising Star, American Place)
Full House Resorts operates several casino properties, including:
- Silver Slipper Casino
- Rising Star Casino Resort
- American Place
As of September 30, 2024, the casino revenues from these properties were:
| Property | Casino Revenue (3 Months Ended Sept 30, 2024) | Casino Revenue (9 Months Ended Sept 30, 2024) |
|---|---|---|
| Silver Slipper | $41,855,000 | $125,815,000 |
| Rising Star | $14,261,000 | $36,659,000 |
| American Place | Included in totals | $162,474,000 |
Overall, the casino revenues increased by 3.7% (or $2.0 million) for the three months and 14.9% (or $21.3 million) for the nine months ended September 30, 2024, primarily due to the ramp-up of operations at American Place.
Human resources (trained staff and management)
Human resources are vital for Full House Resorts, with an emphasis on skilled workers and management. As of September 30, 2024, the company reported:
- Corporate expenses increased by 36.1% (or $0.5 million) and 55.0% (or $1.9 million) compared to the prior-year periods, largely due to increases in accrued bonus compensation.
- Training expenses related to new employees at Chamonix and other properties contributed to elevated operational costs.
Financial capital for operations and expansion
As of September 30, 2024, Full House Resorts held:
- $33.6 million in cash and equivalents, including $7.7 million of restricted cash for Chamonix's construction.
- Long-term debt of $450 million under the Notes and $27 million under the Credit Facility.
- Net cash used in operations during the nine months was $(993,000), compared to $3.2 million in the prior-year period.
The company anticipates that current cash balances and available borrowing capacity will meet liquidity needs for the next 12 months.
Brand reputation in the gaming industry
Full House Resorts has cultivated a strong brand reputation in the gaming industry, which is essential for attracting customers and retaining loyalty. As of September 30, 2024:
- Adjusted Segment EBITDA was $13.5 million, a decline from $21.9 million.
- Casino revenues from the Midwest and South segment increased by 3.7% for the three months and 14.9% for the nine months.
The company's operations and brand reputation are affected by external factors, including competition and regulatory environments, which require ongoing strategic management.
Full House Resorts, Inc. (FLL) - Business Model: Value Propositions
Unique gaming experiences with diverse offerings
Full House Resorts offers a variety of gaming options, including slots and table games. For the three months ended September 30, 2024, casino revenues amounted to $56.1 million, a 11.7% increase from $50.2 million in the same period of 2023. This includes slot revenue of $47.0 million and table games revenue of $9.0 million. The phased opening of their new facility, Chamonix, has contributed significantly to this growth.
High-quality food and beverage services
The company's food and beverage segment has also seen substantial growth, recording revenues of $11.1 million for the three months ended September 30, 2024, compared to $9.1 million in the same period of 2023, representing a 22.2% increase. This increase is attributed to improved operating hours and the opening of a new restaurant at American Place in February 2024. Additionally, non-casino revenues rose significantly by 331.9% for the three months ended September 30, 2024, driven largely by increased guest volume from Chamonix's new hotel.
Attractive loyalty programs for repeat customers
Full House Resorts has developed comprehensive loyalty programs that allow customers to earn points redeemable for various rewards. As of September 30, 2024, the liability related to these loyalty points was approximately $0.9 million. The loyalty programs are designed to enhance customer retention and repeat visits, offering benefits that include complimentary dining and hotel stays.
Comprehensive entertainment options beyond gaming
The company aims to provide a holistic entertainment experience that includes not just gaming but also various entertainment options. The total revenues from non-casino operations, which include sports wagering and other activities, totaled $19.6 million for the three months ended September 30, 2024. The entertainment offerings are designed to attract a broader audience and enhance the overall customer experience at their resorts.
| Category | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Percentage Change |
|---|---|---|---|
| Casino Revenues | $56.1 | $50.2 | 11.7% |
| Food and Beverage | $11.1 | $9.1 | 22.2% |
| Hotel Revenues | $4.7 | $2.6 | 83.3% |
| Non-Casino Operations | $19.6 | $21.3 | -8.1% |
Full House Resorts, Inc. (FLL) - Business Model: Customer Relationships
Personalized customer service at properties
Full House Resorts emphasizes personalized customer service across its properties, including Chamonix and Bronco Billy's. As of September 30, 2024, the company reported a significant increase in guest volume due to the phased opening of Chamonix, which features approximately 300 hotel rooms. This influx has positively impacted food and beverage revenues, which rose by $1.4 million for the three months ended September 30, 2024.
Loyalty programs to enhance customer engagement
The company operates loyalty programs that allow customers to accumulate points redeemable for various benefits, including complimentary dining and hotel stays. As of September 30, 2024, liabilities related to these loyalty points were approximately $0.9 million. This structured approach to loyalty helps drive repeat business and customer retention.
Regular communication through promotional offers
Full House Resorts engages customers through regular promotional offers communicated via email and other channels. The company reported total revenues of $75.7 million for the three months ended September 30, 2024, a 5.8% increase from $71.5 million in the prior year, partly driven by effective promotional strategies. This strategy is crucial for maintaining customer interest and driving traffic to their properties.
Customer feedback mechanisms to improve services
The company utilizes various mechanisms to gather customer feedback, which informs service improvements. For example, the Adjusted Segment EBITDA across its properties was $13.5 million for the three months ended September 30, 2024, down from $21.9 million in the previous year, indicating a need for enhanced customer service strategies to address recent operational challenges. Feedback from guests is essential for refining the offerings and improving overall satisfaction.
| Customer Engagement Metrics | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenues | $75.7 million | $71.5 million | 5.8% |
| Food and Beverage Revenue | $11.1 million | $9.1 million | 22.2% |
| Hotel Revenue | $4.7 million | $2.6 million | 83.3% |
| Loyalty Program Liabilities | $0.9 million | $0.8 million | 12.5% |
Full House Resorts, Inc. (FLL) - Business Model: Channels
Direct sales through casino properties
Full House Resorts operates several casino properties that generate significant revenue through direct sales. As of September 30, 2024, the total casino revenue reported was $162.5 million for the nine months ending that date, reflecting a 23.5% increase compared to $131.6 million during the same period in 2023. This revenue is predominantly driven by slot machines and table games, with slot revenues alone contributing approximately $135.6 million.
Online platforms for sports wagering
The company has expanded its business model to include online sports wagering, which consists of both on-site and online betting platforms across multiple states. For the three months ended September 30, 2024, revenues from the contracted sports wagering segment totaled $1.8 million, a decline of 77.4% compared to the prior-year period. This decline was attributed to the termination of contracts and the overall competitive landscape in sports betting. The overall nine-month revenue for this segment was $6.9 million, down from $10.5 million in 2023.
Social media and digital marketing
Full House Resorts utilizes social media and digital marketing to enhance brand awareness and drive customer engagement. The company has invested in various digital marketing initiatives, although specific financial figures for these campaigns are not disclosed. However, increased marketing costs related to the launching of new properties, such as Chamonix, have been noted, contributing to a rise in overall selling, general, and administrative expenses.
Partnerships with travel and entertainment agencies
Partnerships with travel and entertainment agencies play a crucial role in Full House Resorts' distribution strategy. These alliances facilitate promotional packages and special offers that attract tourists and locals alike. The company has not disclosed specific revenue contributions from these partnerships; however, they are essential for driving foot traffic to their casino properties and enhancing the guest experience.
| Channel | Revenue (2024) | Revenue Change YoY | Notes |
|---|---|---|---|
| Direct sales through casino properties | $162.5 million | +23.5% | Includes revenue from slots and table games |
| Online platforms for sports wagering | $6.9 million | -33.8% | Includes on-site and online betting revenue |
| Social media and digital marketing | N/A | N/A | Increased marketing expenses noted |
| Partnerships with travel and entertainment agencies | N/A | N/A | Essential for attracting tourists |
Full House Resorts, Inc. (FLL) - Business Model: Customer Segments
Local casino patrons
Full House Resorts targets local casino patrons who frequent their establishments for gaming and entertainment. As of September 30, 2024, casino revenues contributed $56.1 million, a 11.7% increase from $50.2 million in the same quarter of 2023. Slot revenues specifically rose by 14.1%, totaling $47 million. This reflects a growing local customer base that appreciates the gaming options available at their casinos.
Tourists seeking gaming and entertainment
Tourists represent a significant customer segment for Full House Resorts, particularly in areas with high tourist traffic. The phased opening of Chamonix, a 300-room hotel, began in December 2023 and has contributed to increased guest volumes and overall revenue. Hotel revenues surged by 83.3% to $4.7 million for the three months ended September 30, 2024, compared to $2.6 million in the prior year.
| Revenue Type | Q3 2024 (in millions) | Q3 2023 (in millions) | Percentage Increase |
|---|---|---|---|
| Hotel | $4.7 | $2.6 | 83.3% |
| Food and Beverage | $11.1 | $9.1 | 22.2% |
Sports betting enthusiasts
With the growing popularity of sports betting, Full House Resorts caters to sports betting enthusiasts through its Contracted Sports Wagering segment. For the three months ended September 30, 2024, this segment generated $1.8 million in revenue, down from $7.9 million the previous year, reflecting recent contract terminations. However, the Illinois sports wagering agreement contributed $1.5 million to revenues during the same period, indicating potential growth in this area moving forward.
Families looking for leisure activities
Families seeking leisure activities form another key customer segment for Full House Resorts. The company’s facilities offer a range of activities beyond gaming, appealing to families. The increase in hotel capacity and additional amenities at Chamonix are designed to attract family groups, providing a comprehensive leisure experience. The overall guest volume increase at Chamonix has positively influenced food and beverage revenues, which rose by 22.2% to $11.1 million.
| Customer Segment | Revenue Contribution (Q3 2024) | Key Offering |
|---|---|---|
| Local Casino Patrons | $56.1 million | Gaming |
| Tourists | $4.7 million (Hotel) | Accommodation & Entertainment |
| Sports Betting Enthusiasts | $1.8 million | Sports Wagering |
| Families | $11.1 million (Food & Beverage) | Leisure Activities |
Full House Resorts, Inc. (FLL) - Business Model: Cost Structure
Operational costs (staff salaries, utilities)
For the nine months ended September 30, 2024, operational costs totaled approximately $214.9 million, reflecting a 21.4% increase compared to the same period in 2023, where costs were $177.1 million. This increase is attributed to the commencement of operations at American Place and Chamonix, leading to heightened staff salaries and utility expenses.
Marketing and promotional expenses
In the nine months ended September 30, 2024, selling, general, and administrative expenses reached $76.96 million, a 24.5% increase from $61.82 million in the same period in 2023. This includes marketing and promotional expenses aimed at driving traffic to casinos and hotels.
Maintenance and development costs for properties
Total maintenance and development costs included in operational expenses were approximately $10.8 million for the nine months ended September 30, 2024. This reflects ongoing investments in property improvements and the phased opening of Chamonix, which required substantial capital expenditures.
Regulatory compliance and licensing fees
Regulatory compliance and licensing fees incurred were approximately $2.5 million for the nine months ended September 30, 2024. This includes costs associated with maintaining gaming licenses across different states, which is critical for operational continuity.
| Cost Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change (%) |
|---|---|---|---|
| Operational Costs | $73,238 | $61,186 | 19.7% |
| Marketing and Promotional Expenses | $26,738 | $22,017 | 21.8% |
| Maintenance and Development Costs | $10,493 | $8,468 | 24.0% |
| Regulatory Compliance Fees | $2,500 | $2,200 | 13.6% |
Full House Resorts, Inc. (FLL) - Business Model: Revenue Streams
Casino gaming revenues (slots, table games)
The casino gaming revenues for Full House Resorts, Inc. for the three months ended September 30, 2024, were $56,116,000, representing an increase from $50,240,000 in the same period of 2023. For the nine months ended September 30, 2024, casino revenues totaled $162,474,000, up from $131,586,000 for the corresponding period in 2023. Breakdown of casino revenues includes:
| Revenue Source | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | 9M 2024 Revenue (in thousands) | 9M 2023 Revenue (in thousands) |
|---|---|---|---|---|
| Slots | $47,007 | $41,215 | $135,609 | $110,764 |
| Table Games | $8,997 | $8,898 | $26,539 | $20,497 |
| Other | $112 | $127 | $326 | $325 |
Food and beverage sales
Food and beverage sales for the third quarter of 2024 reached $11,100,000, an increase from $9,086,000 in Q3 2023. For the nine-month period ending September 30, 2024, food and beverage revenues were $31,272,000, compared to $25,419,000 in the prior year. The increase is attributed to higher guest volumes and expanded operating hours.
Hotel accommodations and services
Hotel revenues experienced significant growth, reaching $4,693,000 for the three months ended September 30, 2024, compared to $2,560,000 for the same period in 2023. For the nine-month period, hotel revenues were $11,287,000, up from $7,052,000 in 2023. This growth is primarily driven by the phased opening of the Chamonix hotel, which added approximately 300 rooms in early 2024.
Sports wagering revenues from partnerships
The sports wagering segment showed a decline in revenues, with $1,790,000 reported for the three months ended September 30, 2024, down from $7,905,000 in Q3 2023. For the nine-month period, revenues were $6,933,000, decreasing from $10,467,000 in the prior year. The decrease is attributed to contract terminations and the impact of early terminations of sports wagering agreements.
| Revenue Source | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | 9M 2024 Revenue (in thousands) | 9M 2023 Revenue (in thousands) |
|---|---|---|---|---|
| Sports Wagering | $1,790 | $7,905 | $6,933 | $10,467 |
Overall, Full House Resorts, Inc. has diversified its revenue streams across casino gaming, food and beverage, hotel services, and sports wagering, with varying degrees of performance across these segments as of 2024.
Updated on 16 Nov 2024
Resources:
- Full House Resorts, Inc. (FLL) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Full House Resorts, Inc. (FLL)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Full House Resorts, Inc. (FLL)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.