Bronco Billy’s Casino had just installed a new slot system.
Full House Resorts, the Las Vegas-based company with casinos and properties all over the country, was excited to see how guests responded to it at the Cripple Creek casino.
Then the COVID-19 pandemic hit in mid-March and casinos across the country had to close.
From that point on, business and life has been put on hold.
The company recently released results of the first quarter that ended on March 31.
According to the release, as a result – on a consolidated basis – net revenues in the first quarter of 2020 decreased 23.8 percent from $40.5 million to $30.9 million in the prior-year period. Net loss for the first quarter of 2020 was $(4.4) million, or $(0.22) per diluted common share, compared to a net loss of $(1.6) million, or $(0.06) per diluted common share, in the prior-year period.
“We are now approximately two months into the shutdown of our properties,” Daniel R. Lee, President and CEO of Full House Resorts, said in the release. “These and other government-mandated closures appear to have helped slow the spread of the coronavirus. With the worst days of the pandemic hopefully behind us, we are now beginning to look forward to reopening our properties and safely welcoming back our customers and employees.”
Impact on Broncos Billy’s
As for the impact on Bronco Billy’s, the release said the net revenues for the first quarter of 2020 declined to $5 million from $6.4 million in 2019.
While it’s still unclear when Colorado casinos will reopen to the public, the release did say that the company expects Bronco Billy’s to do so in early June.
Since the current “safer-at-home” policy by Colorado Gov. Jared Polis remains in effect, there is still no clear date as to when casinos could reopen.
However, Polis did say at a recent news conference that the next steps for when restaurants will reopen could come on May 25.
If that goes forward and restaurants do welcome back guests in early June, one would think that casinos could follow shortly after.
When Could Bronco Billy’s reopen?
When Colorado casinos reopen to the public, Full House and Bronco Billy’s are prepared.
“We have spent the last several weeks of the shutdown examining many aspects of our business, from how we sanitize our properties to how we interact with and entertain our guests,” Lee said in the release. “We began using infrared devices to test employee temperatures prior to our casino shutdowns. We now also intend to screen guest temperatures when we reopen. “We also intend to allow customers to block adjoining slot machines to ensure social distancing, and we will provide gloves, masks and hand sanitizer to our employees and guests. In some locations, we are installing dividers between our most popular slot machines.
“We will also continuously wipe and disinfect our slot machines, paying particular attention to high-touch surfaces, such as buttons and screens. In our restaurants, we are spacing our tables more widely apart and, where appropriate, installing separating screens.”
Colorado sports betting
One area that could offer some relief to Full House and Bronco Billy’s is sports betting.
The company currently has an agreement with BetAmerica and expects to have some of those operations to commence before the end of the second quarter.
It also expects all of the sports betting operations to be running before the end of the third quarter.
There are currently five apps for Colorado sports bettors to use. That is out of 17 that will launch in the future.
- DraftKings: Partner with Golden Mardi Gras
- FanDuel: Partner with Golden Gates Casino
- BetMGM: Partner with Midnight Rose Hotel and Casino
- BetRivers: Partner with J.P. McGill’s Hotel and Casino
In terms of the revenue it will bring, the release notes that it will receive one-time market access fees for Colorado totaling $3 million, all of which was received in the fourth quarter of 2019.
The release adds that it will receive a share of net sports wagering revenues, with Full House’s portion of the revenues expected to total at least $3.5 million annually for Colorado.
The release continues that if any one of the company’s contracting businesses exceeds the minimum amount on a percentage share basis, its revenues from sports wagering in Colorado should exceed $3.5 million. The Company expects to have minimal ongoing expenses related to these revenues.
“As mobile sports wagering ramps up, we believe it should contribute a significant portion of the company’s income,” Lee said in the release.