Full House Resorts, Inc., a casino gaming company, was incorporated in Delaware on January 5, 1987.
The new management team, which joined in the mid 2004, revitalized and reorganized the company following our two prong business approach:
- The ownership of local casinos with a market leadership and the development, and
- The management of casinos on behalf of Native American tribes and commercial clients.
Our Board of Directors, which includes Lee Iacocca, brings a history of success. Our management team has tremendous depth of experience in casino gaming and its own track record of success. The first phase of our vision has already been implemented by the disciplined purchase of Stockman’s Casino, a very successful local casino.
The first prong of our approach has been started with the January 2007 acquisition of Stockman's Casino in Fallon, Nevada, The property is without doubt the market leader, which we acquired at a reasonable price. We are actively seeking acquisitions of additional local casinos at moderate multiples.
The second prong of our business strategy is well-represented by our long-standing management of Harrington Casino in Delaware. The “Racino” was developed and opened in 1996 and is managed by Gaming Entertainment Delaware with Full House as a 50% stakeholder. The facility completed its $40 million expansion and remodeling in February 2008. Our management agreement runs throught 2011 and provides FHR with a guaranteed increase of 8% in 2008 and 5% each year thereafter.
Our development and management strategy is being furthered by Firekeepers Casino in Battle Creek, Michigan, which is being developed and will be managed by another joint venture in which we maintain a fifty percent stake. The casino developed on behalf of the Nottawaseppi Huron Band of Potawatomi will be located between Chicago and Detroit on 78 acres of land, right at Exit 103 on I 94. The casino will cater to over six million adults within 100 miles of its location and features over 3,000 Las Vegas style gaming positions.
The Tongue River casino, being developed and managed on behalf of the Northern Cheyenne Tribe, will be located on the banks of the Tongue River Reservoir near the Montana, Wyoming border and only 25 miles from Sheridan, Wyoming. With easy accessibility and the only casino within a 100 mile radius it will cater to a solid customer base as well as the strong tourism draw of the area.
Those properties, though geographically diverse, have several factors in common: they all cater to a local customer base, they have good to great demographics and they have easy accessibility, together a recipe for success.
With our two prong strategy, our approach to business is simple and disciplined. Our income from management fees is almost entirely accretive to earnings, which can be applied to our first strategy of the purchase of local casinos at reasonable multiples.
