Full House Resorts, which operate five casinos in four states, reported that it has sufficient liquidity to survive the nationwide shutdown of the casino industry due to the Covid-19 pandemic.
According to a report on the Casino.org news site, the operator said it has sufficient cash to survive several more months of the shutdown, after making company-wide furloughs that included all but 30 of the 1,600-member team at its flagship casino in Cripple Creek, Colorado.
“Looking forward, we estimate our ‘burn rate’ of minimal expenses with operations closed is in the neighborhood of $3 million per month, including debt service,” the operator said in a message to investors. “Based on this, we believe the company has sufficient liquidity to endure this temporary shutdown for several months.
“We believe that we have excellent relationships with our lenders. They recently agreed to waive the relevant March 31 covenants in our loan agreements in recognition of the circumstances. We expect to have that agreement executed imminently. We have also been discussing amended covenant levels for quarters beyond the first quarter.”
The statement also gave a positive spin on expected results of sports betting partnerships the operator has signed in Colorado and Indiana. “Contractually, these six sports betting agreements in Colorado and Indiana should result in a combined minimum of $7 million per year in revenues for us after their launch of operations, with minimal expected related costs,” the company said.
