Full House casino opening soon in Illinois
Full House Resorts (NASDAQ: FLL ) is rapidly rising in the rankings of the Illinois casino market, one of the largest in the U.S. outside of Nevada.
In February, the operator opened a temporary version of American Place in Waukegan, Illinois. Since then, The Temporary has become the third-largest venue in the state (in terms of attendance). The company ranks sixth in monthly adjusted gaming revenue, according to the Illinois Gaming Board (IGB).
The Waukegan Casino attracts an average of 70,107 visitors per month, 321 more than Hollywood Casino Aurora and 1,812 more than Queen's Draft Kings, an east St. Louis casino. Both opened in 1993,” Steve Sadin reports for the Chicago Tribune.
Rush Street Gaming's Rivers Casino in Des Plaines is the No. 1 casino in Illinois in terms of attendance and monthly adjusted gross gaming revenue. Still, The Temporary's adjusted gross monthly revenue averaged $7.5 million, according to IGB, marking a fast start for Full House's newest property.Game Balance from the temporary venue will be transferred to the permanent venue upon opening. America's Place will be the only casino in Lake County, Illinois, which has more than 700,000 residents.
American Places Matter
In the short term, attendance at The Temporary is likely to increase with football season approaching and Circa Sports preparing to launch in Illinois next month. This was accomplished in partnership with Full House.
Circa will operate a retail sportsbook at Plaza America when it opens at the venue, bringing one of the biggest names in Las Vegas sports betting to Illinois. Circa's presence could become an asset to the venue, bringing in more revenue for Full House alone than from the other properties in its portfolio combined.
At least one analyst believes visitors will be even more excited to visit an operating Plaza America once they're inside The Temporary.
Therefore, we assume that FLL can increase marketing spend to increase traffic. We expect the hotel will continue to attract above-average spend as guests arrive (we remain bullish on Waukegan, just extended the cap period)," B. Riley analyst David Bain said in a note earlier this week wrote. “Despite these changes, FLL valuations suggest that despite relatively high growth rates, multiple levels are almost always relatively low. "
Bain rates Full House a Buy with a price target of $13, which implies more than 100% upside potential from Thursday's closing price of $6.31.
Temporary provision of financial benefits
One of the main reasons Illinois agreed to gaming expansion was because the state needed cash. Temporary delivery.
Since opening, the Full House venue has brought in $3.5 million in new revenue to the state and $1.5 million in new revenue to North Chicago, Park City and Waukegan, the Tribune reports .
In the short term, those numbers are likely to increase with the addition of a Circa sportsbook and new restaurants. Those numbers are likely to increase significantly as Plaza America expands.
Read also:
- U.S. cities with the most Swifties per capita
- Blackjack Casino Advantage: How to Beat the Odds
- Football 101: What is relegation in football?
- Brazil names regulated sports betting official as key signatory
Source: www.casino.org
