Las Vegas-based Full House Resorts reported its Silver Slipper Casino Hotel in Bay St. Louis, Mississippi posted the best month in its 14 years in June. Although only half of its slots were operational due to Covid-19 regulations, revenue surged by 28 percent, said Chief Executive Officer and President Dan Lee. He added cutting costs in marketing, payroll and other amenities helped improve margins.
“At this point, we’re not only surviving, but thriving. The Covid-19 shutdowns were a good opportunity to take a fresh start, get rid of the sacred cows and reexamine everything. And we did that,” Lee said.
Full House operates five casinos and resorts in Nevada, Indiana, Colorado and Mississippi which produced a total of $14.5 million in revenue in the second quarter—a drop of 65.2 percent compared to 2019 with a net loss of $6.7 million. The venues closed in mid-March due to the pandemic; all had reopened by mid-June.
Lee said the properties are following strict new health and safety protocols. For example, table games remain closed in Colorado and limited in other markets. Restaurants have cut back hours and capacity and no live events are being offered.
In addition, the casinos are operating with about 1,650 slots, slightly more than half their usual number. But, Lee noted, “It was a bit of a wake-up call. We don’t actually need that many slot machines. Slot machines are expensive and the casino actually looks better and feels better if you remove some slot machines.”
Lee said Full Houses’ regional properties have benefited from their significant drive-in customer base and not having to rely on resort amenities like nightclubs or conventions. He said the properties are attracting new customers, including younger players.
Still, there are numerous constraints, Lee noted. For example, buffets—which can cost more than $2 million annually—and 49-cent breakfasts are unlikely to return. Also, Lee said construction has halted on a parking garage at Bronco Billy’s in Colorado.
In addition, Lee said, “We’ll remain cautious on the payroll, on the number of employees, the hours of operations because who knows, things could turn. It’s possible, with the Covid-19 spikes around the country, that we could end up closing again. I think it’s very possible we could end up closing one place.”
