Full House Resorts of Spring Valley, Nevada recently purchased Bronco Billy’s Casino and Hotel in Cripple Creek, Colorado for million from the privately held Pioneer Group. Full House Resorts President and Chief Executive Officer Daniel Lee said, “Bronco Billy’s is well-run and well-maintained and a stable leader within its market. We expect the management team will remain at the property and we look forward to welcoming them and all of the Bronco Billy’s employees to the Full House family.” The transaction will be completed in fourth quarter 2015 or early in 2016, Lee said.
Located on Cripple Creek’s prime “casino strip,” the casino was expanded in May, and offers a 24-room hotel, outdoor amphitheater, steakhouse, four casual dining restaurants, and a gaming floor with 830 slots and 13 table games. Lee stated, “We see potential for growth at Bronco Billy’s as the property benefits from a full year of its recently completed expansion. Over the long term, there may be opportunities to develop the property’s excess surrounding acreage.”
Cripple Creek, 44 miles southwest of Colorado Springs, has offered gaming for more than 20 years; other Colorado towns where gambling is legal are Central City and Black Hawk. As recently as last year, voters have rejected efforts to expand gambling beyond these three historic mining towns.
Lee said Full House is acquiring Bronco Billy’s at about six times the property’s cash flow, and noted the purchase will be funded through a refinance of Full House’s first and second lien debt. The acquisition will be Full House’s fifth casino in a fourth regional gaming market. “This transaction significantly increases the scope and diversity of Full House,” Lee said. Chad Beynon, a gaming analyst at Macquarie Securities, said “Full House is clearly looking for beneficial opportunities to expand, and has found another potentially great addition to its current holdings. If Full House continues acquiring a number of these similar-sized properties, it could lead to them taking a much more pronounced position in the regional gaming space.”
Full House owns Stockman’s Casino in Fallon and operates Grand Lodge Casino at the Hyatt Regency Lake Tahoe under a management contract. The company also owns Rising Sun Casino in Indiana and Silver Slipper Casino in Bay St. Louis, Mississippi.
