Greetings, and welcome to the Full House Resorts Third Quarter 2026 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I would now like to turn the conference over to your host, Adam Campbell. Please go ahead.
Thank you, and good afternoon, everyone. Welcome to our third quarter earnings call. As always, before we begin, we remind you that today's conference call may contain forward-looking statements that we're making under the safe harbor provision of federal security laws. I'd also like to remind you that the company's actual results could differ materially from the anticipated results in these forward-looking statements. Please see today's press release under the caption "Forward-Looking Statements" for a discussion of risks that may affect our results. Also, we may reference non-GAAP measures such as Adjusted EBITDA. For a reconciliation of those measures, please see our website as well as the various press releases that we issue. Lastly, we are also broadcasting this conference call at fullhouseresorts.com, where you can find today's earnings release as well as all of our SEC filings. With that said, we're ready to go.
Thank you. Good afternoon, everyone. Thanks for joining us to discuss our third quarter results, and I know there's another call going on at the same time, so we'll be on the briefer side with you today. I'll start with the headlines. American Place had the best quarter in its history. Rising Star had its best third quarter in three years. Silver Slipper grew its Adjusted EBITDA by 13.6%. At Chamonix, we've already started on more than $7 million of cost improvements and are targeting more than $10 million of total bottom-line improvements in the near term. On a consolidated basis, revenue grew 4.9% to $81.8 million, compared with $78 million in the prior year period. Adjusted EBITDA was $14.6 million versus $14.8 million a year ago.
Last year's third quarter included the benefit of a gaming tax accrual adjustment at our Colorado operations. Our Midwest & South segment grew adjusted segment EBITDA by 18% to $13.6 million, with all three properties improving, and its margin expanded by 2.2 percentage points. Operating income rose 28.6% to $4.4 million. Let me walk through the properties really quick, starting with American Place. As I mentioned, the third quarter was the best quarter it's ever had. Since opening, American Place has increased both revenue and adjusted property EBITDA in every single quarter compared with the prior year period since opening. That's a consistent record, and that's as two casinos moved from riverboats into land-based facilities. Wind Creek opened, Bally's in downtown Chicago opened, the Potawatomi Casino in Milwaukee expanded, and the Hard Rock in Rockford opened its permanent casino.
In real time, American Place's revenues and Adjusted Property EBITDA continue to grow, while our overall penetration into the northern Chicagoland market remains low. More than ever, we believe that our permanent casino, which is designed to have roughly twice the square footage of our current temporary facility, can generate more than $100 million a year of EBITDA. That is before we pay any rent under our current existing lease with the city. At Rising Star, gaming revenue was up 9%, hotel revenue was up 6%, in part due to occupancies being five percentage points higher, and food and beverage revenue was up 24%. All of that helped us deliver our best third quarter in three years. At Silver Slipper, property EBITDA increased 13.6% versus the prior year period. A focus on efficiencies throughout its operations helped, as did a reduction in property insurance rates.
At Chamonix, the most important trend this quarter is growth at the top of our database. We saw gains in our two highest value segments. That is players worth $1,000 or more and players worth between $350 and $1,000. These are the guests who matter most to a property like Chamonix, and they are coming more often. In July of this year, a large wildfire burned near a few of our feeder market cities. I think it was the eighth-largest wildfire in Colorado's history, and residents in the region were told to stay indoors. That kept visitors away for a meaningful part of the month and also led to the quarter getting off to a slower-than-expected start. The quarter was helped by a strong September when room nights sold were up 10.4% year-over-year.
While revenues have grown at Chamonix and at Bronco Billy's, we expect them to continue to grow also. As revenues have grown, we have adjusted operations. Rather than operate the business for the revenues that we expect to have in the coming years, we are operating it for the business levels that we have today. As a result, we have already commenced on approximately $8 million of cost improvements at Chamonix. That is in addition to our focus on growing our midweek group business and continuing to grow revenues overall. We do not expect these changes to meaningfully affect customer service levels. A few examples: we eliminated little-used services like room service, which was rarely used and is not offered at any other casino in the state. We staff three casino cages because we operate under three casino licenses, which gives us a lower average gaming tax rate.
Some of these cages see very little activity midweek, so PBX calls will now roll into the cages instead of a separate operator team. This actually should improve customer service, as our cages are staffed 24 hours a day, whereas our PBX operations were not. We are bringing housekeeping and laundry operations in-house. We started to phase out our outsourced housekeeping company last month, and the transition is expected to be largely complete by the end of this month. Laundry is not expected to be in-house until the first half of next year. Combined, those in-housing efforts are expected to save us about $1 million per year, and that is net of costs to lease the laundry equipment. With marketing, we are shifting from broad TV and radio advertising to more targeted digital spend, which we expect to save about $1.5 million per year.
And then over at the steakhouse, we ended the consulting agreement for its operations. That will save about $300,000 per year, and it makes it easier and more efficient for us to use that space for dining periods beyond dinner. That is just a sampling of some of the changes that have either already been enacted or are expected to be enacted soon. Taken together, these steps lower Chamonix's cost base while we keep building the top line. It sets Chamonix up to generate meaningful positive cash flow in 2027. Those were the big points that I had, Dan. I do not know if you had anything else to add or
No, I think you covered it pretty well. In the interest of time, let us just go to Q&A.
All right.
Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. Our first question will come from Jordan Bender with Citizens.
Hey, everyone. Good afternoon, and thank you for the question. Just to start with the whole financing in Illinois conversation here. There's probably not much for you guys to say. I would obviously open if you are willing to talk about that process to the extent that you can. I don't think the CapEx bill in 2026 was all that large. I know you had started process of building that out in 2026. I mean, have you started, or have you stopped any work at the site, or just how do you explain what's going on currently there? Thank you.
Well, I'll address the site. Very little work at the site, but there is work going on behind the scenes. We've been working with the architects and the designers on refining the plans. The more refined the plans, the more certain you are on the cost and so on. We have spent a couple million dollars in the last couple months on that, and that's ongoing. The next chunk of work at the site is like a $5 million thing. Frankly, while we have $5 million, and at some point we might do that. I mean, as the press release shows, we have decent liquidity. We'd really like to have all the financing in place before we really launch things, because it's kind of expensive to start and stop. I'll let Lewis address the financing.
Yeah, not a whole lot to your point, Jordan, that we can say, but let me try to get a little bit out there for you. As we outlined in our recent 8-K, the envisioned refinancing has three parts. First, there was a new $100 million credit facility, which we expect to stay largely undrawn and which would give us plenty of liquidity. Four banks have agreed to that. Second, we had $315 million of funding from a third party to build the permanent American Place Casino. Importantly, that funding would be on a delayed draw basis with no ticking fee, which meaningfully reduces the amount of capital needed to be raised. Both of those agreements are essentially final and ready for signature.
The third piece is a new bond to replace our existing notes, slightly larger in size, primarily to accommodate legal and banking fees and the paydown of our existing revolver. Our timing was unfortunate as the Fed raised rates just as our process was starting, and that resulted in a weakening of the single-B credit markets and the triple-C market largely shutting down. We think we fall in between a single-B and triple-C rating, and we expect to grow back into a B rating as our American Place and Chamonix operations continue to improve. We've spoken to a handful of our largest bondholders and some potential new bondholders about our refinancing, and we remain in active construction, constructive, I should say, dialogue with them about completing that refinancing. So that's-
Yeah, I mean, listen, we're eager to get going. The permanent will make a lot more money than the temporary, so it's kind of a win-win. If you were to graph triple-C credits, they took a big spike in late September in yield, and they do that on occasion, but they usually only do it for a few weeks at a time. About every five years, there's a spike, and it has not been this high a spike in about five years, and the one before that was about five years before that. The one before that was 2008. So that makes it a little complicated because nobody wants to price a new bond that trades down. We all want a bond that trades well. So we're trying to figure out that conundrum.
The good news is these windows don't usually close for very long. I think if we have an improved market, the single-B market's not as bad as the triple-C, but it also backed up some. So we're optimistic we'll get there. It's in everybody's best interest to get there. It'll make more money. We will be a better credit. Of course, the state and the city want to see the thing get built as quickly as possible. Everybody wants this thing as quickly as possible. We have the overall financing, I'd say, is mostly done, but we have one very important key thing left, and that's refinancing the existing bonds.
Yep.
So
Perfect. Thank you. Switching gears, maybe to Chamonix, and just kind of following up on some of the cost-saving initiatives that are going on there. You're obviously heading to the seasonally slower period of the year. Maybe the results there will start to show up more in the spring and summer of next year. As we get to that point, I guess, what is the updated view on where you think you can get margins to with kind of the ongoing process of addressing some of these cost issues around the property?
Well, our revenues have been growing, and we've been gaining market share, but we're still a long way shy of where we think the revenues could be. We were operating this in a lot of ways as the property we hoped it to be, and we finally said, "Wait a minute. We need to make money." There are two other casinos in town whose revenues are not much different than ours, and they're both comfortably profitable, like $10 million-$20 million EBITDA. We can do that as well. When we started comparing, "What do we have to do?" you realize stuff like room service hardly ever gets used. Even Monarch does not offer room service.
We said, "Well, why are we the only casino in the state offering room service?" There were shifts where people would come in and work, and very few orders were given or were taken. Lewis mentioned the cages. We benefit from having three licenses. It's a little bit of a historic anomaly. We have to operate three different cages. The principal purpose of a cage these days is to redeem the gaming chips. We only have one table game pit, and so that cage sees most of the action. The other two cages, we have to keep open. It saves us on the tax rate. So we save like $4 million a year on gaming taxes, but we probably spend $800,000 or $900,000 of it funding having these other cages.
As we were looking for all sorts of ways to get more efficient, it suddenly occurred to us that the people who worked at our PBX desk, which was kind of hidden in the bowels of the building, these are the people who take phone calls for room reservations and stuff, they have gaming licenses because they have to access the gaming system to see if somebody qualifies for a comp, for example. There's no reason they can't be sitting in the cage. So we redid our phone system so that it rings in the least busy cage, and if that line happens to be busy, it goes to the second cage, and if that happens to be busy, it goes to the third cage. If all three are busy, then it goes to voicemail. But rarely are all three busy.
So we're not closing a cage, but we have figured out how to keep the people sitting in the cage gainfully employed, and we no longer have to operate a separate PBX. So that was a complete win, and we had a little rockiness at first because you had to train people right and you had to get the technology right, but it's pretty smooth now. I've been calling every morning pretending I'm a customer, and it goes smoothly. It saves us a significant amount of money. Housekeeping, we had an outside company doing it who primarily does hospitals, and we kept trying to get them to be more efficient, and we finally gave up on them. We operate, obviously, our own housekeeping at Rising Star and Silver Slipper, and so we gave them notice, discontinued them. We've been hiring housekeepers and training them.
We have a director of housekeeping, and that contract ends November 23rd and saves us about $600,000 a year. Our laundry goes down to Colorado Springs and goes to commercial laundry there. We operate our own laundry at Rising Star, which is a similar-sized hotel, and we do it at less than half of what we're paying in Colorado Springs. So we have a space in Cripple Creek where we can put laundry equipment and operate our own laundry. It's going to take us about six months to get that in place. The laundry equipment can be leased. Even net of the rent of the laundry equipment, that probably saves us $400,000 a year. Our restaurant operating hours, which Lewis didn't mention, we've reduced back.
There was no reason to operate three restaurants in the middle of the week when there is not enough customers to keep them all profitable. The high-end restaurant, which is quite successful, makes money on weekends, would lose it midweek. We decided there is no reason to operate it midweek. We have cut back on that. We had a consulting arrangement with a very good chef and restaurant manager in Las Vegas. It was kind of expensive, but they were very helpful. They trained the staff and did the menus and all of this stuff. The value they brought was primarily when it first opened, right? Because it helped establish it. I think the food and beverage team we had at that time would have stumbled over that restaurant. Now, the restaurant is well-established.
The people working there are well-trained. We have a food and beverage manager who has shown that he is very competent at it. There was just no reason to be paying a consulting fee to the guys in Las Vegas. We were allowed to cancel that contract and did. That ends in a week, I think.
Yeah.
It ends in November and saves us between $250,000 and $300,000 a year. I think we will speed. In fact, it is almost the opposite. The only ramification of doing that is we have to alter the menu some, so we are not using the recipes and stuff that are tied to them. Frankly, it was time to make some changes in the menu anyway. Our food and beverage team, who is very good, will now come up with their own spins on different things. That gives us a marketing opportunity to invite people in to the new menus. There is a lot of just blocking and tackling that we are doing that will make sure this place is profitable next year, comfortably profitable next year. We should be able to make between $10 million and $20 million in 2027 and growth from there.
Now, it is disappointing because we are in at $300 million. People have asked us, "Would you sell it?" Yes, we would sell it if somebody offered us the right price. It would probably be at a loss of the $300 million investment we have. Given how expensive our debt is, it would probably make sense to do that at some point. You want to get it trending profitably and go in the right direction and evaluate it at the time. That is kind of where it is.
Yeah, I think the only real other
By the way, just to be clear, because I know employees listen in on this, it's not for sale. Don't anybody panic. It's just people ask that question, "Would you sell it?" Listen, we're a public company. Anything's always for sale. That doesn't mean we're actively trying to sell it. But the question came up from investors, "Would you sell it?" Of course we would under the right circumstances, and that would be true of any asset we have. We have a financial obligation to our shareholders to do that, but at the same time, I don't want our customers or employees to panic. There is no sale imminently contemplated.
The only other thing I had to add there was, a lot of the things that Dan described are actively moving, so either implemented in October or about to launch in November or very shortly thereafter. Dan walked through the cage savings and restaurant hour changes and that sort of stuff. When you look at that piece, that efficiency piece, I didn't really quantify it for you, but that's about, when all is said and done, about $4.5 million of savings. At this point, we're maybe about $2 million into that $4.5. The other pieces that Dan described are largely in place for savings sometime in the fourth quarter, except for that laundry piece, which as Dan mentioned, is probably six months away. The last piece we didn't really talk about was continuing to try and push a group business a little further.
If you look at where the group business sat last year, it was 1% point of occupancy, and that number will, of course, trend higher. The stretch goal is something like 10% points of occupancy in the coming year, but that's kind of the stretch. Realistically, can you be somewhere kind of mid to high single digits? I think the answer is probably yes.
Well, some of this, like getting rid of the outside housekeeping and bringing it in-house, will probably hurt us a little bit in November. Not a lot, but a little bit, because we are training housekeepers to replace the outside company. So you have a little bit of a cost associated with that, but there should be pretty significant savings going forward. Another one that is a good example of a win-win, we have a pretty good sales team now in sales and marketing, seven people. When the property opened, there was only one. They are putting stuff on the books in future years. The head of that mentioned to me that they would really like to have an additional breakout room. We have very good meeting room space.
I thought we had plenty of meeting room space, and she said, "No, actually, we could use more." We were thinking about, "What do we do? What do we do?" Literally right across the elevator lobby from the convention area, there was a reception area for the spa, and it had a kind of a retail venue and all this stuff. Very seldom is there anybody hanging out in that reception area, and the retail sales of spa goods was minimal. It makes a perfect breakout room, and all we have to do is remove the retail stands that are in it and buy some folding chairs, and we have an additional breakout room that is bigger than any of the three breakout rooms we have now.
The spa doesn't miss a beat because people go to the spa to get a massage, to use the exercise room, to get to the pool, all of which can be accessed through different routes in the building. So we are changing the signage to tell people, "Well, if you get a massage, this is where you go. If you want to use the exercise room, this is where you go. If you need the locker room, this is where you go." We can take the lobby of the spa and redeploy it as a meeting room space. The only CapEx is some folding chairs. I mean, it is nothing. It actually saves us money because we have historically had a receptionist there who got paid, and there really isn't a reason to have a receptionist there. So we are looking for ways like that.
On the marketing, we are also, and it is a big focus, to try to do more with less. We are spending quite a bit on marketing. We are trying to make sure that we can reduce our marketing spend, but continue the pretty steady growth it has had in revenues, and even accelerate the growth in revenues. Because eventually, when people experience it, when they are there, they come back. We had a very big meeting of, I forget the exact name, but they are business execs from throughout Colorado that filled the town, but principally us, we are the major hotel in town, for the third week of September.
Most of whom had not been to Cripple Creek before.
90% had not been to Cripple Creek.
Yeah, this is the sort of thing, you bring them up there because they are meeting planners who may come back. That week went very nicely, and we got a lot of nice comments, and that's the sort of thing you do to build the business in the future.
Great. Thank you very much.
You got it. Thanks, Jordan.
Our next question will come from Ryan Sigdahl with Craig-Hallum Capital Group.
All right.
Hey, good afternoon, Dan, Lewis. I do not think I am going to ask both my questions up front here, and then I will turn it over to the others. Did you quantify the weather impact in the quarter, or can you? Secondly, you have tried several different marketing strategies at Chamonix. A targeted digital strategy certainly seems obvious from where I sit. I guess, why have you not tried that earlier? What gives you confidence this will work and work better than the prior approaches? Thanks. Good luck, guys.
Don't disappear yet, Ryan. First question, you said weather impact. We did have a hurricane event in Mississippi in October, which may be what you're referring to, but otherwise, what we refer to was wildfires in Colorado in the early part of the third quarter. We did not quantify that impact, for what it's worth, but it wasn't small.
Revenues were running up 10% to 12% in the months leading into July, and July was down a little bit or flat.
Yeah.
You can guesstimate it from there. Then September went back to the growth trend. The hurricane in Mississippi in October did not impact us. It did not hit us.
Not create any damage.
Our road coming in got flooded for a short while, so there was a day or two where we had very little business, but there was no property damage to the property whatsoever.
Yeah, you always get an impact as people prepare for the event, then an impact after the event as people clean up. We had an impact on both sides, but otherwise, no damage.
It wasn't that serious. I mean-
Yeah
October might be a little weak compared to October last year, but it's okay.
Apologies, Ryan, your second question, just run that by us one more time.
Yeah. I was talking about the wildfires that you guys called out specifically in the quarter, but helpful on the hurricane. On the marketing strategy, moving to a targeted digital strategy, I guess you guys have tried buying different databases, tried different marketing teams. There have been several different iterations of the strategy in Chamonix. I guess, why did you wait until now to do a digital, more efficient strategy? What gives you confidence this will work better than the previous approaches?
We've been moving that way steadily. We're getting more and more that way. We also had hired a new VP of marketing a year and a half ago, or 15 months ago, and he opted to retire. We're now in the market for a new director of marketing, which I think is an opportunity for us. We do have a corporate marketing person, which we hired a year and a half ago, who's spending a lot of his time there. We've asked the team from American Place, who have been in regional casinos for a long time, and the number two person at American Place is one of the sharpest marketing guys in the business, in my opinion. They're both helping out to try to figure out the Rubik's Cube of Colorado, I guess is the word I'm looking for.
What's a little mystifying is, people will argue, "Well, they don't like to drive up into the mountains." It's like, well, they certainly do to go to Breckenridge or to go to Vail. They drive right by us to get to Breckenridge, and lots of people do that, both winter and summer. It's not an easy drive to Black Hawk either. By the way, lots of people from Los Angeles drive all the way across the Mojave Desert to get to Las Vegas. So, I don't think it's that. I get mystified that our market share is not higher. We are by far the best casino in Cripple Creek, and we have by far the biggest hotel. We should be having a bigger market share.
That leads us to think, we are spending more on advertising than anyone else, and we do not have a commanding market share. There is something there. We are looking at it and saying, "Obviously, we are not being very effective on marketing. Let us figure out why." We have actually already cut our marketing back 20%, and we are not having an impact on our revenues. Our revenues are growing as much as they were last spring. We are trying to make that more efficient. Ultimately, it is much easier to cut costs than to grow revenues. Ultimately, we need to do both or want to do both. To get to what this place should be able to earn, we need to do both.
Yeah. Some of it was by design too, if you think about it, Ryan. Whenever you open a brand-new property, especially when you are trying to draw a market that historically had not been in Cripple Creek, you purposely go out with more in advertising, just generally, right? You want people to be aware that you opened, it is something new and different, and so you purposely go out a little broader. Then as time goes by, you would naturally cycle that down anyway. There is some of that going on. There is some of just the transitioning into more targeted digital, as Dan went through. Part of that is, look, we have got very specific zip codes that we want to target both in South Denver as well as in the Colorado Springs market.
You can layer on top of that people that have historically shown an interest in gaming. Ultimately, I think these efforts are going to be quite fruitful and result in lower marketing spend. So, there is some logic behind why it was higher at first. Nonetheless, now is the time to reduce it, and we are actively reducing it and feeling good about where it is all going.
Yeah, I happened to have a conversation about a week ago with somebody who is affiliated with a different casino in Colorado that is pretty successful, and we were comparing notes. He said he figured out early on that the real key to their success was filling the hotel midweek, and they were very focused on that from the very first day. We are very focused on that now. We should have been more focused on it when we were under construction, and we were not. But we are focused on it now. I will also say, Boyd just announced a deal with Sonesta Hotels, where you tie into their frequent player program and so on. That is the sort of thing that can help your midweek a lot.
These big hotel chains have big sales organizations that keep track of where is Microsoft having their next meeting and so on and so forth, and gives your sales force leads to help fill midweek. In addition, you get just the exposure from people can redeem their points with you and earn points in their program and so on. Cosmopolitan was the first major hotel in Las Vegas that I recall doing it, and it was part of what turned their results around. Then MGM acquired them, and now MGM has a big program like that with Marriott. We are talking to the major hotel chains about doing something similar to that for Chamonix. We don't have a deal yet, but it's something we're looking at. There's always a cost involved with those deals, but I think the benefits outweigh the cost.
Thanks, guys. Good luck.
You're welcome. Maybe time for one more, Dan.
Okay.
All right, we'll go next to Chad Beynon with Macquarie.
Hey, Dan and Lewis. This is Sam on for Chad. Thanks for taking our questions. First question, last quarter, you guys discussed about $175 of win per position per day versus $330 for the broader Black Hawk market. As you implement the cost savings, how should we think about the balance between EBITDA growth coming from the expense reduction versus win per day over the next couple of years?
I think the expense reduction gets us to $10 million-$20 million of EBITDA a year. To grow beyond that, we probably need to grow revenues. Does that help you?
Yeah, fair enough.
Based on our existing revenues, with a normal margin for a regional casino, we should be $10 million-$20 million. That's what we're doing. Before, we were doing some stuff to We were incurring operating expenses to help build the revenues. For example, we had valet parking and bell service pretty much 24 hours a day, seven days a week. If you were there midweek and looked in the valet parking lot, there might be six cars there. I was like, "Wait a minute. Nobody's using our valet parking midweek. Why are we paying a valet parker to stand there and park your car?" Let's just cut it back to in the afternoon and when people are arriving, and maybe midweek, if the anticipated occupancy that night is low, maybe you only need one person.
If somebody shows up in a car and they want to valet park and have help with their bags, you can park their car in the porte-cochère, you are not busy, to help them with their bags, and then go park in a valet parking. We are looking at every single thing and trying to do it in ways that we still provide good service to our customers, that they do not really realize it. For example, I mentioned you do not have to go to the spa, to the receptionist to go to the exercise room. That is actually better service. You could go right to the exercise room. Do not have to go through the spa and through the locker room. As it happens, the geography of the building, there is a public corridor that is quite pleasant that leads right to the exercise room.
It is finding ways where we do not diminish the guest experience. Why would we run room service when nobody orders it, right? We may eventually try to figure out a way that if somebody wants room service, we can do it out of one of our restaurants, so we do not have to staff a separate room service area. That might be important, for example, to get into one of these hotel. If you are trying to join a national high-end hotel affiliation, they will have a set of things on it, and it might be that you have to offer room service at least at the breakfast hours. If it is midweek, I do not want to staff a room service kitchen, but you could call down to room service, it goes to the casino cage where we already have a person sitting at a PBX phone.
You do not know they went to the casino cage, but the person answers and says, "Room service." They type the order in, and it pops up at the quick order cook in the Home Café, and they have a waiter to bring your food up to your room, and you are offering room service. If there is only a couple orders a day, it is hardly a distraction in the Home Café. You look for ways, but at the moment, we just eliminated room service, but if we needed to bring it back in some fashion in order to join the right hotel affiliation, we have ways to do it.
Appreciate it, Dan.
I think the only other thing to add to your question there is flow-through should be very, very high. Outside of gaming taxes and a little bit of reinvestment dollars from a marketing point of view, it is extremely high.
As Lewis mentioned gaming tax, I will mention something. There was a proposal came out, or an idea came out the other day of increasing the gaming tax rate at the highest tiers in Colorado. That is a long ways from done. It would take a public referendum to pass in order to happen. But if it did happen, the impact on us would be minimal, if maybe none. Because of the fact that we have three different licenses, our revenues, which are growing and not as high as they should be, but whatever our revenues are split three ways. It is not equally split three ways because the Chamonix license does more revenue than either of the other two licenses, but it is spread over three licenses, and so we are not in the highest tax tier.
In fact, I think our blended tax rate is like 12%, and the highest tax tier is 20%. I do not think that becomes At any given time, somebody is talking about raising gaming taxes somewhere. I think this is a long ways from happening, but even if it did happen, I do not think it would have much impact on us.
Yeah.
Thank you. Just for a quick follow-up, switching to the election results, can you discuss whether they helped reduce the risk of new supply in any of your markets, particularly Indiana or Illinois, and if they potentially created opportunities for you down the road?
Well, let me address the second one first. We are pretty focused on getting American Place, the permanent American Place built, and getting Colorado fixed, and not very interested in taking on anything else in the foreseeable future. We get phone calls all the time about casinos for sale, and sometimes we will listen just to see what we can learn, but we are very unlikely to take on anything else until we get those two things fixed. In Indiana, I thought it exactly happened what I thought would happen. Somebody funded the opposition in those three referendums. It was probably an Indian tribe out of Michigan, and it was structured in a way that it incentivized nobody to fund the pro side. All three referendums failed solidly, which politically means that nobody is going to get a casino into the Fort Wayne area anytime soon.
There were a few people in the legislature that were not our friends, and they lost election, and that is kind of nice. I will leave it at that. At the moment, we make money in Rising Star, and it is not a huge cash cow for us, but it is a consistent cash cow for us, and that will just continue to be the case. In Wisconsin, the man who was elected governor is the Democrat, and he had been on the city council, I believe, in
Milwaukee
Milwaukee, which is where the Potawatomi Casino is. The efforts to get a casino in Southeast Wisconsin is a very underserved market. I think if there is a small Indian tribe that is trying to get a casino there, and they have been trying for 20 years. I do not think they are any closer than they have been at any other time. If they ever did get it on, I think their revenue would primarily come from increased gaming by people who live in Southeast Wisconsin.
But I think the governor's race makes it less likely than ever that they are going to get a casino there. I have not talked to that governor. I do not know exactly where he stands, but I would expect somebody who comes from Milwaukee, where the Potawatomis are a political force and it is very important, and he is on the Democrat side, I just think that puts that further off.
Anywhere else, I do not think it changes much.
Good to hear. Good luck, guys.
Okay, thanks.
This now concludes our question and answer session. I would like to turn the floor back over to Lewis Fanger, President and CFO, for closing comments.
Dan, I think-
Oh, actually, I am reflecting on that. This doesn't affect us very much because we're not a big player in sports betting, but the Kalshi and Polymarket's What are they called?
Prediction markets.
Prediction markets. I mean, those companies came out of nowhere. They're unregulated, they don't pay any taxes, and they've gotten big fast. And I think after this election, there's going to be a lot of investigation into what they're doing, and I think they'll end up being constrained. That's not a very big positive for us, but for some of the other casino companies out there, that could be pretty important. That's it.
Yeah.
Okay.
Well, thank you, guys.
Thank you very much.
Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may disconnect your lines and have a wonderful day.