Full House targets $8m in Chamonix cost savings

The third-quarter conference call of Full House Resorts centred mainly on its underperforming Chamonix Casino Resort in Colorado. A cost-savings initiative worth $8 million was announced for the property.

Lewis Fanger, the company president, disclosed that room service had been eliminated, with housekeeping and laundry services to be insourced soon. The Chamonix steakhouse's consulting relationship with a Las Vegas-based firm would be severed. Fanger said Chamonix marketing would be primarily digital from now on. Chamonix's PBX lines were now rolling over to its three casino cages, one for each of the property's trio of gaming licenses. Fanger predicted that the steps would set Chamonix up for "positive, meaningful, cash flow in 2027."

Lee said Chamonix revenue and market share were rising but remained a long way from where Full House wanted them. He raised the idea of selling the Cripple Creek resort and said: "It would probably make sense to do that at some point." Lee also said: "It’s not for sale. Don’t anybody panic." He added that he was not actively trying to sell Chamonix but had a fiscal responsibility to entertain offers. Lee said he would sell at the right price, which would probably mean a $300m loss. Lee predicted a Chamonix profit of $10m to $20m in 2027.

Fanger highlighted what he described as the best quarter to date for The Temporary at American Place. Since opening, the Waukegan casino had increased its revenue and cash flow each quarter. Fanger elaborated that American Place held $315 million in third-party financing and a $100 million line of credit, plus a new bond to supersede the existing one of Full House. Regarding the permanent successor, Lee explained that there was very little work at the site, though work continued behind the scenes. Full House was currently focused on American Place and Chamonix and, he said, was "not interested in taking on anything else in the near future."