FLL 10-K & 10-Q changes, risk factors and insider trading

The gaming industry is characterized by an increasingly high degree of competition among a large number of participants. Our casinos and contracted sport wagering businesses compete with other forms of gaming, such as casinos, racetracks, state-sponsored lotteries, sweepstakes, charitable gaming, video gaming terminals at bars, restaurants, taverns and truck stops, sports books at sports stadiums, illegal slot machines and skill games, predictive markets, fantasy sports and internet or mobile-based gaming platforms, including online gaming and sports betting. Certain statestates and other jurisdictions are considering expansion of such forms of gaming. Each of these could divert customers from our casinos and services, and thus materially and adversely affect our business.

Our revenues are highly dependent upon the volume and spending levels of customers at our properties and, as such, our business has been in the past, and could be in the future, adversely impacted by economic downturns. Decreases in discretionary consumer spending or changes in consumer preferences brought about by factors such as, but not limited to, lackluster recoveries from recessions; increases in interest rates; increases in costs of goods and services due to continued or increased inflationary pressures; changes in trade policies; pandemics, epidemics, widespread health emergencies, or outbreaks of infectious diseases; high unemployment levels; higher income taxes; low levels of consumer confidence; weakness or uncertainty in the housing market; cultural and demographic changes; the impact of high energy, fuel, food and healthcare costs; fears of war or actual conflicts, such as the Russian invasion of Ukraine, civil unrest, terrorism or violence; and increased stock market volatility may negatively impact our revenues and operating cash flow. This could lead to a reduction in discretionary spending by our guests on entertainment and leisure activities, which could have a material adverse effect on our revenues, cash flow and results of operations. Furthermore, during periods of economic contraction, our revenues may decrease while many of our costs remain fixed and some costs may increase, resulting in decreased earnings.

ThreeTwo of our seven permitted sports “skins” are currently active. Our contracted sports betting parties, through the use of our permitted website “skins,” compete in a rapidly evolving and highly competitive market. The success of their sports betting operations is dependent on a number of factors that are beyond their control, and ours, including the ultimate tax rates and license fees charged by jurisdictions across the United States; their ability to gain market share in a newly developing market; the timeliness and the technological and popular viability of their products; their ability to compete with new entrants in the market; marketing offerings of their competitors; changes in consumer demographics and public tastes and preferences; and the availability and popularity of other forms of entertainment. While our current agreements with our contracted sports betting parties provide us with contractual minimums for revenue upon their launch of operations, we cannot assure you that any of our contracted sports parties will be able to compete effectively or that they will have the ability or willingness to sustain sports betting operations for an extended period of unprofitability. Should any of our contracted sports betting parties cease operations, as has happened in the past, whether due to unprofitability or for other reasons, there can be no assurance that we will be able to replace them on similar terms as our existing agreements or at all, or that we will be able to successfully operate the skins ourselves.

Our Illinois casino operations and Mississippi casino hotel and Illinois casino operations currently generate a significant percentage of our revenues and Adjusted EBITDA. Our ability to meet our operating and debt service requirements is dependent, in part, upon the continued success of those properties.

For the year ended December 31, 2024,2025, we generated 37.5%41.0% of our revenues and 60.5%71.2% of our Adjusted EBITDA from our casino in Illinois. Similarly, we generated 25.1%23.2% of our revenues and 25.0%24.1% of our Adjusted EBITDA from our casino resort in Mississippi. Therefore, evenEven after our Chamonix casino hotel in Colorado has fully ramped up its operations, our results will still be dependent on the regional economies and competitive landscapes atof oura Illinoissmall andnumber Mississippiof properties.jurisdictions. Likewise, our ability to meet our operating and debt service requirements is dependent, in part, upon the continued success of these properties.

We lease certain parcels of land at our Silver Slipper Casino and Hotel in Mississippi, certain land and buildings at Bronco Billy’s Hotel and Casino inour Colorado operations (much of which is to be utilized for Chamonix Casino Hotel), one of the two hotels at our Rising Star Casino Resort in Indiana, and certain parcels at American Place in Illinois. We also lease casino space at our Grand Lodge Casino in Nevada. Unless we have a purchase option under such leases and exercise such option, we will have no interest in the improvements thereon at the expiration of the leases. We have purchase options on substantially all of our leased property, except for our corporate offices, the Grand Lodge Casino, and certain storage facilities. It is either currently more advantageous for us to continue to lease rather than exercise such buyout options, or we have certain restrictions which only allow us to exercise the purchase option during certain future time periods. Under certain circumstances and at the expirations of the underlying leases, we might be forced to exercise our buyout options in order to continue to operate those properties. There is no certainty that the funds could be raised at that time at a reasonable cost, or at all, to exercise some or all of the buyout options. The operating lease at the Grand Lodge Casino, which is set to expire on December 31, 2034, includes certain lessor buyout rights based upon a multiple of EBITDA that, if exercised, could result in the lessor purchasing our leasehold interest and the operating assets on terms that may be less than fair market value or financially unfavorable to us. The lease at Grand Lodge Casino also permits the lessor to terminate the lease early to renovatein the premises.event of a significant renovation of the property. If the lessor were to termination the lease early, then our results of operations and financial condition could be materially affected.

Since we do not completely control the land, buildings, hotel and space underlying our leased properties, a lessor could take certain actions to disrupt our rights under the long-term leases, which are beyond our control. If the entity owning any leased land, buildings, hotel or space were to disrupt our use either permanently or for a significant period of time, and we were not in a position to exercise our buyout rights at that time, then the value of our assets could be impaired and our business and operations could be adversely affected. If we were to default on the lease, then the lessor could terminate the affected lease and we could lose possession of the affected land, buildings, hotel or space and any improvements thereon. The loss of a lease could have a significant adverse effect on our business, financial condition and results of operationsoperations, and we may then be unable to operate all or portions of the affected facilities, which, in turn, may result in a default under our debt agreements.

Natural disasters and extreme weather conditions, potentially exacerbated by climate change, such as major hurricanes, tornadoes, typhoons, floods, fires and earthquakes, could adversely affect our business and operating results. Certain of our properties are located in areas that may be subject to extreme weather conditions. Hurricanes are common in the area in which our Mississippi property is located. The severity of such natural disasters is unpredictable. In October 2020, Hurricane Zeta caused the temporary closure of the Silver Slipper and caused approximately $5 million of damage, most of which was covered by insurance. In 2005, prior to the development of the Silver Slipper, Hurricanes Katrina and Rita caused significant damage in the Gulf Coast region. Additionally, our Indiana property is at risk of flooding due to its proximity to the Ohio River. Wildfires are a significant risk in the Colorado and Sierra Nevada regions. Chamonix, Chamonix/Bronco Billy’s and Grand Lodge can be adversely affected by nearby forest fires and the impacts therefrom, as well as significant snowfall events. Changes in federal, state, and local legislation and regulation based on concerns about climate change could result in increased regulatory costs, which may include capital expenditures at our existing properties to ensure compliance with any new or updated regulations. This may also adversely affect our operations. There can be no assurance that the potential impacts of climate change and severe weather will not have a material adverse effect on our properties, operations or business.

Catastrophic events, such as terrorist and war activities in the United States and elsewhere, when they occur, have had a negative effect on travel and leisure expenditures, including lodging, gaming and tourism. Gun violence has also occurred at casinos, including a mass shooting at a casino in Las Vegas in 2017. We cannot accurately predict the extent to which such events may affect us, directly or indirectly, in the future. There also can be no assurance that we will be able to obtain or choose to purchase any insurance coverage with respect to occurrences of terrorist and violent acts and any losses that could result from these acts. If there is a prolonged disruption at our properties due to natural disasters, terrorist attacks or other catastrophic events, our results of operations and financial condition could be materially adversely affected.

Several of our properties, including Silver Slipper, Chamonix,our Chamonix/Bronco Billy’s complex and Rising Star, are accessed by our customers via routes that have few alternatives.

The Silver Slipper is located at the end of a dead-end road, with no other access. Our Chamonix and /Bronco Billy’s arecomplex is accessed by most guests via a mountain pass; if that pass is closed for any reason, the alternative is longer. Rising Star’s primary access from Cincinnati is via a road alongside the Ohio River; if this road is closed, for example, by flooding, the alternative routes involve a ferry boat or more winding roads through the rolling hills inland from the river. If access to any of these roads is blocked for any significant period, our results of operations and financial condition could be materially affected.

Legislation in various forms to ban indoor tobacco smoking has been enacted or introduced in jurisdictions in which we operate. Except forWhile our casinos in Colorado and Illinois,Illinois are required to be smoke-free, the gaming areas of our properties in Nevada, Indiana, and Mississippi are not currently subject to tobacco restrictions. If additional restrictions on smoking are enacted in jurisdictions in which we operate, we could experience a decrease in gaming revenue. This is particularly the case if such restrictions are not applicable to all competitive facilities in that gaming market.

We recently completed the phased opening at Chamonix in Cripple Creek, Colorado, adjoining and connected to our existing Bronco Billy’s casino. We have begun the design work for the construction of the permanent American Place facility in Waukegan, Illinois, located adjacent to its current temporary facility.

In addition to the construction and regulatory risks associated with the development of our growth projects, including Chamonix and American Place, we cannot assure you that the level of consumer demand for these projects will meet our expectations. The operating results of these projects may be materially different than expected due to, among other factors, consumer spending and preferences in the geographic areas, competition from other markets, or other developments that may be beyond our control. In addition, these projects may be more sensitive than anticipated by management to certain risks, including risks associated with downturns in the economy. Further, these projects may not generate cash flows on our anticipated timeline. We may not be able to successfully implement our growth strategy with respect to these projects, capital investments, and acquisitions. There is no assurance that these projects will result in a more successful business operation, or that these projects will increase clientele or revenues. With respect to Chamonix, there is no assurance that a more modern expansion will attract new visitors to a city with historic architecture. The occurrence of any of these issues could adversely affect our prospects, financial condition and results of operations.

We expect to continue pursuing expansion opportunities. We regularly evaluate opportunities for acquisition and development of new properties. We could face significant challenges in managing and integrating our expanded or combined operations and any other properties we may develop or acquire, particularly in new competitive markets. The integration of properties we may develop or acquire will require the dedication of management resources that may temporarily divert attention from our day-to-day business. The process of integrating properties that we may acquire could also interrupt the activities of those businesses, which could have a material adverse effect on our business, financial condition and results of operations. In addition, the development of new properties may involve construction, local opposition, regulatory, legal and competitive risks, as well as the risks attendant to partnership deals on these development opportunities. In projects where we may team up with a joint venture partner, if we cannot reach agreement with such partners, or our relationships otherwise deteriorate, we could face significant increased costs and delays. Local opposition can delay or increase the anticipated cost of a project. Finally, given the competitive nature of these types of limited license opportunities, litigation is possible.

As of December 31, 2024,2025, the total principal amount of our indebtedness, excluding unamortized debt issuance costs, was $450.0 million, consisting entirely of the Notes. Our Credit Facility remains outstanding for $27.0$30.0 million as of this reportsuch date. The Notes and the Credit Facility are summarized in Note 7 to the consolidated financial statements set forth in Part II, Item 8. “Financial Statements and Supplementary Data.” We also have a finance lease at our Rising Star Casino Resort with an outstanding balance of $1.7$1.1 million.million along with other finance lease obligations and a seller-backed mortgage.

Our information technology and other systems are subject to cybersecurity risk, misappropriation of customer information andinformation, other breaches of information security.security, and evolving state and federal privacy laws and regulations.

Various federal and state legislative or regulatory bodies may adopt new or additional laws and regulations concerning privacy, data retention, data transfer, and data protection. There may be risks and uncertainties associated with these privacy laws and regulations including their interpretation and implementation, as well as the potential extraterritorial effect of certain privacy laws and regulations. Compliance with applicable privacy laws and regulations may increase our operating costs and/or adversely impact our ability to market our products, properties and services to our customers. In addition, non-compliance with applicable privacy laws and regulations by us (or in some circumstances non-compliance by third party service providers engaged by us) may also result in damage of reputation, result in vulnerabilities that could be exploited to breach our systems and/or subject us to fines, payment of damages, lawsuits (including class actions) or restrictions on our use or transfer of personal information (including biometric information).

In addition, the stock market in general has experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to companies’ operating performance, for example, as a result of the coronavirus epidemicepidemic, changes in U.S. and global trade policies, or increaseschanges in the borrowing rates set by the Federal Reserve. Broad market and industry factors may materially harm the market price of our common stock, regardless of our operating performance. In the past, following periods of volatility in the market price of a company’s securities, stockholder derivative lawsuits and/or securities class-action litigation has sometimes been instituted against that company, sometimes irrespective of whether the company took any action contributing to such volatility. Such litigation, if instituted against us, could result in substantial costs and a diversion of management’s attention and resources.

Headquartered in Las Vegas, Nevada, we have gaming operations domestically in Nevada, Colorado, Illinois, Indiana, and Mississippi. Our primary business is the ownership and/or operation of casino and related hospitality and entertainment facilities, which includes offering, among other amenities, casino gambling, hotel accommodations, dining, golf, RV camping, sports betting, entertainment and retail outlets.

We currently operate sevensix casinos: sixfive on real estate that we own or lease, and one located within a hotel owned by a third party. Additionally, we currently benefit from seventwo permittedactive sports wagering websites (referred to as skins), – threeone in Colorado, three in Indiana,Indiana and one in Illinois. ThreeThe sports skin in Illinois has significantly greater value than each of thesethe sports skins are currently in use.Indiana and Colorado due to the larger population of Illinois and fewer permitted sports skins.

In February 2023, we opened our temporary American Place facility, which we are permitted to operate until August 2027.facility. We have begun the design work for the permanent gaming resort facility that we plan to build on adjoining land.

Our financial results are dependent upon the number of patrons that we attract to our properties and the amounts those guests spend per visit. While we provide credit at some of our casinos where permitted by gaming regulations, most of our revenues are cash-based, through customers wagering with cash or paying for non-gaming services with cash or credit cards. Our revenues are primarily derived from slot machines, but also include other gaming activities, including table games, keno and sports betting. In addition, we derive a significant amount of revenue from our hotels and our food and beverage outlets. We also derive revenues from our golf course and ferry boat service at Rising Star, our RV parks owned at Rising Star and managed at Silver Slipper,Slipper (through August 2025), and retail outlets and entertainment. We often provide hotel rooms, food and beverages, entertainment, ferry usage, and golf privileges to customers on a complimentary basis; the value of such services is included as revenue in those categories, offset by contra-revenue in the casino revenue category. As a result, the casino revenues in our financial statements reflect patron gaming wins and losses, reduced by the retail value of complimentary services, the value of free play provided to customers, the value of points earned by casino customers that can be redeemed for services or free play, and adjustments for certain progressive jackpots offered by the Company.

We set minimum and maximum betting limits for our slot machines and table games based on market conditions, customer demand and other factors. Our gaming revenues are derived from a broad base of guests that includes both high- and low-stakes players. At Silver Slipper, our on-site sports book operations are in partnership with a company specializing in race and sports betting. At Rising Star, Chamonix/Bronco Billy’s,Billy’s (through June 2025), and American Place, we have contracted with other companies to operate our online sports wagering skins under their own brands in exchange for a percentage of revenues, as defined, subject to annual minimum amounts; the same company that utilizes our online sports skin in Illinois also operates our on-site sports book at American Place. Our operating results may also be affected by, among other things, overall economic conditions affecting the disposable income of our guests, weather conditions affecting access to our properties, achieving and maintaining cost efficiencies, taxation and other regulatory changes, and competitive factors, including but not limited to, additions and improvements to the competitive supply of gaming facilities, as well as pandemics and similar widespread health emergencies.

We may experience significant fluctuations in our quarterly operating results due to seasonality, variations in gaming hold percentagespercentages, and other factors. Consequently, our operating results for any quarterquarter, orespecially yearcontrasted with different seasonal quarters, are not necessarily comparablecomparable. andResults for any particular quarter or year may not be indicative of results in future periods.periods’ results.

Stockman’s Sale. On August 28, 2024, we entered into an agreement to sell the operating assets of Stockman’s for totalaggregate grosscash proceedsconsideration of $9.2 million, plus certain expected working capital adjustments at closing. The asset sale was designed to be completed in two phases: the sale of Stockman’s real property for $7.0 million, which closed onin Septemberthe 27,second half of 2024 at a $1.9 million gain; and the sale of certain remaining operating assets and related liabilities for $2.2 million, which closed on April 1, 2025 at a $0.2 million (excludingloss. anyAccordingly, adjustments for working capital), upon the receiptas of customaryApril gaming1, approvals.2025, we no longer own or operate Stockman’s Casino.

Same-store Adjusted Segment EBITDA is Adjusted Segment EBITDA further adjusted to exclude the Adjusted Property EBITDA of properties that have not been in operation for a full year. Adjusted Property EBITDA is defined as earnings before interest and other non-operating income (expense), taxes, depreciation and amortization, preopening expenses, impairment charges, asset write-offs, recoveries, gain (loss) from asset sales and disposals, project development and acquisition costs, non-cash share-based compensation expense, and corporate-related costs and expenses that are not allocated to each property.

Revenues. Consolidated total revenues increased by 21.2%3.5% (or $51.0$10.3 million) in 2024.2025. Such increase was primarily due to agrowth fullat yearour two newer properties, American Place and Chamonix, where operations continue to ramp up. This increase was partially offset by the sale of operationsStockman’s Casino in April 2025 and renovation-related disruptions at Americanthe Place,Hyatt Lake Tahoe, which openedhouses onour FebruaryGrand 17,Lodge 2023. Revenues during 2024 also benefited from the opening of Chamonix, which opened in phases between December 2023 and October 2024.Casino.

Operating expenses. Consolidated operating expenses increased by 19.4%3.4% (or $47.1$9.9 million) in 2024,2025, primarily due to the commencementramp-up of operations mentioned above at American Place in February 2023 and ChamonixChamonix, in December 2023. Both openingswhich resulted in increased casino, foodcasino and beverage, hotel, selling, general and administrative and depreciation expenses. Selling,At generalAmerican andPlace, administrativecasino expenses at American Place rose $5.1$6.6 million from 2023compared to 2024.the Forprior year, largely due to costs associated with increased volumes. At Chamonix, selling, general and administrative expenses increased $11.1$4.7 million from 2023due to 2024,its phased opening and depreciationfewer andoperating amortizationamenities expensefor rosemuch byof $14.9the million.prior year.

Interest expense, net. Interest expense, net, consists of the following:

Our Midwest & South segment includes Silver Slipper, Rising Star and American Place. Compared to 2023,2024, total revenues in 20242025 increased by 14.2%5.4% (or $27.3$11.8 million), primarily due to the continued ramp-up of operations at American Place. ExcludingThis resultsmore fromthan Americanoffset Place, same-store revenues declined by 4.7% (or $5.4 million), primarily due to lower casinomodest revenue duringdeclines at Silver Slipper, where the year.property’s new management team has focused on eliminating unprofitable business, and Rising Star.

Non-casino revenue increaseddeclined by 7.6%5.7% (or $3.6$2.9 million), largely due to increasesdecreases in food and beverage revenue.revenue at Silver Slipper. Food and beverage revenue rosedeclined 11.9%by 5.1% (or $3.6$1.8 million), includingprimarily $3.3due millionto generatedthe bydiscontinuation Americanof Place,unprofitable reflectingpromotional increased operating hoursprograms at itsSilver diningSlipper. outlets and the February 2024 opening of its high-end steak and seafood restaurant. Non-casino revenue also benefited from $1.7 million in ATM and related surcharge income at American Place during 2024, compared to $1.4 million in 2023. As American Place does not currently have a hotel, hotelHotel revenues for the segment declined in 20242025 by 6.0%14.6% (or $0.5$1.2 million) due to lower guest volumes at Silver Slipper and Rising Star.Star, as American Place does not currently have a hotel.

Our West segment includes Chamonix, Bronco Billy’s, Chamonix, Grand Lodge, and Stockman’s,Stockman’s which(until isthe currentlycompletion heldof forits sale (see Note 3 to the consolidated financial statements set forth in PartApril II, Item 8. “Financial Statements and Supplementary Data”2025). The market in Cripple Creek, Colorado, is typically seasonal, favoring the summer months. Our Nevada operations have historically been seasonal, with the summer months accounting for a disproportionate share of annual revenues. Additionally, snowfall levels during the winter months can often affect operations, as Grand Lodge is located near several major ski resorts. While Grand Lodge typically benefits from a “good” snow year, resulting in extended periods of operation at the nearby ski areas, excessive snow levels can also result in challenging driving conditions or the closure of roads leading to the property.

Casino revenue increaseddecreased by 51.5%2.8% (or $16.2$1.3 million), reflectingas contributionsthe declines mentioned above in our Nevada operations offset increases from a fully-open Chamonix andin the dissipation of construction-related disruption at our adjacent Bronco Billy’s.2025. Slot revenue accounted for most of the increases in 2024; it increaseddeclined by 54.6%3.9% (or $14.8$1.6 million), offsettingduring modest2025, decreasescompared into slot2024. andHowever, table games volumes at Grand Lodge. Table games revenue improved by 31.3%5.8% (or $1.4$0.3 million), attributable entirelymostly to our Colorado operations from higherexpanded table games drop.operations at Chamonix/Bronco Billy’s.

Corporate expenses were $5.3$5.5 million and $4.5$5.3 million in 20242025 and 2023,2024, respectively, reflecting growth in the Company’s operations. This includes the addition of our Chief Marketing Officer in May 2025, among other new hires to our corporate team during the year.

As of December 31, 2024,2025, we had $40.2$40.7 million of cash and equivalents. Over the lastpast several years, we invested in two largenew constructioncasinos projects(one of which has a hotel) that are now open to the public: the temporary facility at American Place, which opened in February 2023, and Chamonix, which opened in phases between December 2023 and October 2024. Such construction activity is now substantially complete and theirboth operations are in their ramp-up periods. We estimate that between $10 million and $15 million of cash is used in our day-to-day operations, including on-site cash in our slot machines, change and redemption kiosks, and cages. We believe that current cash balances, together with the available borrowing capacity under our revolving credit facility and cash flows from operating activities, will be sufficient to meet our liquidity and capital resource needs for the next 12 months of operations.

Cash flows – operating activities. On a consolidated basis, cash provided by operations during 20242025 was $13.8$10.0 million, compared to $22.3$13.8 million in 2023.2024. Trends in our operating cash flows tend to follow trends in operating income, excluding non-cash charges, but are also affected by changes in working capital.capital Duringaccounts 2024,such weas benefitedreceivables, fromprepaid aexpenses, fulland yearpayables. ofThe operations at American Place, which openeddecrease in Februaryour 2023.operating Netcash interestflows expenseduring also rose in 2024 when2025 compared to the2024 priorwas year,primarily thedue resultto ofworking declinescapital intiming both interest income and capitalized interest, as we began the phased opening of Chamonix in December 2023.differences.

We are still developing our plans related to the permanent facility for American Place. Such plans will be subject to regulatory approval. While Illinois regulationslegislation allowpassed in mid-2026 allows us to operate the temporary American Place facility until AugustFebruary 2027,2029, the design and construction of the permanent American Place facility may require several years and may not be completed within this timeframe. We intend to avoid having an extended period of time between the closing of the temporary and the opening of the permanent American Place facilities, as it could be detrimental to our business, but there is no certainty that this can be achieved. A bill was recently introduced in the Illinois legislature to extend the date that our temporary American Place casino is permitted to operate by 18 months beyond August 2027. While there can be no assurance of the bill’s passage, the bill, if passed, will ensure that there will be no gap in tax revenue or employment prior to the opening of our permanent casino facility. Completion of the permanent American Place facility could also be delayed by weather, labor shortages, supply chain issues or other construction delays. There is no assurance that construction projects such as the permanent American Place facility will not be subject to additional restrictions, delays, or challenges which would negatively impact us.

This management’s discussion and analysis of financial condition and results of operations contains forward-looking statements that involve risks and uncertainties. Please see “Forward-Looking Statements” for a discussion of the uncertainties, risks and assumptions that may cause our actual results to differ materially from those discussed in the forward-looking statements. This discussion should be read in conjunction with our historical financial statements and related notes thereto and the other disclosures contained elsewhere in this Quarterly Report on Form 10-Q, and the audited consolidated financial statements and notes for the fiscal year ended December 31, 2025, which were included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on March 16, 2026.2026 (the “Annual Report”). The results of operations for the periods reflected herein are not necessarily indicative of results that may be expected for future periods. Full House Resorts, Inc., together with its subsidiaries, may be referred to as “Full House,” the “Company,” “we,” “our” or “us,” except where stated or the context otherwise indicates.

In February 2023, we opened our temporary American Place facility. We have begun the design worksitework for the permanent gaming facility that we plan to build on adjoining land. In June 2026, the Illinois Gaming Board (“IGB”) approved the extension for our temporary American Place casino to operate through February 17, 2029.

The following tables summarize our consolidated operating results for the three and six months ended MarchJune 31,30, 2026 and 2025:

The following discussion is based on our condensed consolidated financial statements for the three and six months ended MarchJune 31,30, 2026 and 2025.

Revenues. Consolidated total revenues declinedincreased by 0.8%5.6% (or $0.6$4.1 million) and 2.3% (or $3.5 million) for the three and six months ended MarchJune 31,30, 2026, compared to the prior-year period,periods. reflectingThese increases reflect growth at our two newest properties, American Place Casino and RisingChamonix, Starwhich Casino Resort,were offset by the sale of Stockman’s Casino in April 2025 and the termination of an agreement with one of our contracted sports wagering providers in 2025. Excluding Stockman’s, revenues would have increased by 0.9%.3.3% (or $4.8 million) for the six months ended June 30, 2026.

Operating Expenses. Consolidated operating expenses declinedincreased by 3.0%2.4% (or $2.2$1.8 million) for the three months ended MarchJune 31,30, 2026, compared to the prior-year period,period. This was primarily due to the growth mentioned above at American Place and Chamonix, which included operating costs to run Stockman’s. Additionally, declinesresulted in selling,increased generalcasino expenses of $1.5 million and administrative$0.5 expensesmillion, for the current quarter reflect a continued focus on reducing inefficiencies at Chamonix, led by a new property management team that arrived throughout 2025 and early 2026.respectively.

NetThe increases in net interest expense for the three and six months ended MarchJune 31,30, 2026 remainedwere relativelyprimarily flat at $10.4 million, compareddue to $10.3higher millionaverage balances on the revolving credit facility than in the prior-year period.periods During the current quarter, there waswith less capitalized interest to offset interest expense, as Chamonix’s parking lot resurfacing projects were completed in mid-2025.

For the three months ended March 31, 2026 and 2025, weWe recognized income tax provisions of $0.1 million and $0.2 million,million respectively.for Thisthe respective three and six months ended June 30, 2026, which resulted in effective income tax rates of (1.5%1.4%) and (2.2%1.5%), respectively,respectively. For the respective three and six months ended June 30, 2025, we recognized an income tax benefit of $0.1 million and an income tax provision of $0.1 million, which resulted in effective income tax rates of 0.9% and (0.6%), respectively. The changes in the effective income tax rates were primarily due to our projections for pre‑tax book income in each of those years.years and changes in our valuation allowances.

Our Midwest & South segment includes Silver Slipper, Rising Star and American Place. Total revenues for the three and six months ended MarchJune 31,30, 2026 increased by 3.8%5.6% (or $2.2$3.2 million). Revenuesand 4.7% (or $5.4 million), respectively. Continued growth at American Place and Rising Star more than offset slight revenue declines at Silver Slipper.Slipper and Rising Star.

Casino revenue increased by 5.1%6.8% (or $2.3$3.1 million) and 6.0% (or $5.4 million) for the three and six months ended MarchJune 31,30, 2026. SlotFor the three and six months ended June 30, 2026, slot revenue increased by 8.5%3.5% (or $3.0$1.4 million) and 5.9% (or $4.4 million), whilerespectively. For the corresponding periods, table games revenue declinedincreased by 11.7%20.7% (or $1.0$1.5 million). and 3.1% (or $0.5 million), respectively.

Non-casino revenue declinedremained byrelatively 0.6%flat (orat $0.1$11.7 million) and $24.8 million for the respective three and six months ended MarchJune 31,30, 2026, primarily due to the discontinuation of unprofitable promotional programs at Silver Slipper. Food and beverage revenue improved by 3.3% (or $0.3 million) and 1.0% (or $0.2 million) for the respective three and six months ended June 30, 2026, with American Place offsetting declines within the segment. Hotel revenue declined by 1.3%3.2% (or $0.1 million) and 4.2% (or $0.1 million) for the current-yearcorresponding period,periods whileduring hotelthe revenue declined by 5.3% (or $0.1 million).year.

Adjusted Segment EBITDA roseimproved by 13.1%4.7% (or $1.7$0.6 million) and 9.0% (or $2.3 million) for the respective three and six months ended MarchJune 31,30, 2026, benefiting from revenue growth at American Place and Rising Star as mentioned above, as well as Silver Slipper’s focus on operational efficiencies.

Total revenues declinedrose by 13.0%7.3% (or $2.0$1.1 million) for the three months ended MarchJune 31,30, 2026, but declined by 3.2% (or $1.0 million) for the six months ended June 30, 2026. These results reflect growth at our Colorado casinos, as Chamonix continues to ramp up its operations. Such growth was offset by the sale of Stockman’s in April 2025 and renovation-related disruptions at the Hyatt Lake Tahoe, which houses our Grand Lodge Casino.

Casino revenue declinedimproved by 16.5%1.8% (or $1.9$0.2 million) for the three months ended MarchJune 31,30, 2026, reflecting growth from Chamonix, but declined by 7.5% (or $1.7 million) for the six months ended June 30, 2026, primarily reflecting the sale of Stockman’s in April 2025. SlotFor the three and six months ended June 30, 2026, slot revenue remained flat at $9.5 million and declined by 18.3%9.3% (or $1.8 million), whilerespectively. For the corresponding periods, table games revenue declinedincreased by 5.0%14.1% (or $0.2 million) and 3.9% (or $0.1 million), for the three months ended March 31, 2026 due to renovation disruptions at Grand Lodge.respectively.

Non-casino revenue declinedrose by 4.0%23.6% (or $0.9 million) and 8.6% (or $0.7 million) for the respective three and six months ended June 30, 2026, as Chamonix continues to ramp its overall operations. For the corresponding periods, food and beverage revenue rose by 14.2% (or $0.2 million) for the three months ended March 31, 2026. Food and beverage revenue declined by 18.7%4.5% (or $0.4$0.1 million) due to the sale of Stockman’s. Hotel revenue rose by 1.6%26.3% (or less$0.5 thanmillion) $0.1and 13.1% (or $0.5 million), due to Chamonix’sincreases continuingat ramp-up of operations.Chamonix.

For the three and six months ended June 30, 2026, Adjusted Segment EBITDA improvedrose by 28.3%91.8% (or $0.7$1.0 million), despiteand the48.4% renovation(or at$1.7 themillion). Hyatt.These This improvementimprovements in Adjusted Segment EBITDA wasresulted led byfrom Chamonix/Bronco Billy’s,Billy’s increased revenue and operating expense efficiencies, which reducedimproved itsthe operatingAdjusted expenses,Segment excludingEBITDA depreciationmargin during both the three and amortization,six bymonth 9.6%periods (orin $1.3 million).2026. As the Company’s newest property, Chamonix is early in its expected ramp, with operations expected to continue improving in the coming quarters and years.

The following table presents a reconciliation of net loss and operating income (loss) to Adjusted EBITDA:

At MarchJune 31,30, 2026, we had $31.4$33.4 million of cash and equivalents. Over the past several years, we invested in two new casinos (one of which has a hotel) that are now open to the public: the temporary facility at American Place, which opened in February 2023, and Chamonix, which opened in phases between December 2023 and October 2024. Such construction activity is now complete and both operations are in their ramp-up periods.

Cash flows – operating activities. On a consolidated basis, cash used in operations during the threesix months ended MarchJune 31,30, 2026 was $3.8$1.4 million, compared to cash used in operations of $7.1$5.9 million in the prior-year period. Trends in our operating cash flows tend to follow trends in operating income, excluding non-cash charges, but are also affected by changes in working capital. The change in operating cash flows for the threesix months ended MarchJune 31,30, 2026, as compared to the prior-year period, was primarily related to an increase in operating income, as well as the timing of our spending and its impact on working capital, as well as an increase in operating income.capital.

Cash flows – investing activities. On a consolidated basis, cash used in investing activities during the respective threesix months ended MarchJune 31,30, 2026 and 2025 was $2.7$4.1 million and $2.9$3.8 million. During 2026, such costs were primarily related to refurbishments at Bronco Billy’s and designing the permanent American Place casino. During the prior-year period, such costs were primarily related to the construction of Chamonix.Chamonix, which were partially offset by the sale of Stockman’s in April 2025.

Cash flows – financing activities. On a consolidated basis, cash used in financing activities during the threesix months ended MarchJune 31,30, 2026 was $2.8$1.8 million, compared to cash provided by financing activities of $0.5$1.6 million in the prior-year period. During 2025,2026, we increasedpaid down net borrowings from the Credit Facility by $3.0$5.0 million.million, compared to $2.0 million in the prior-year period.

Long-term Debt. At MarchJune 31,30, 2026, we had $450.0 million of principal indebtedness outstanding under the Notes and $30.0$25.0 million outstanding under the Credit Facility. We also owe $0.9$0.8 million related to our finance lease of a hotel at Rising Star. With the exception of the Credit Facility, all of our debt is at fixed interest rates. See Note 5 for details on our debt obligations.

We describe our critical accounting estimates and policies in Note 2, Basis of Presentation and Summary of Significant Accounting Policies, of the Notes to Consolidated Financial Statements included in our FormAnnual 10-K for the year ended December 31, 2025.Report. We also discuss our critical accounting estimates and policies in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, in our FormAnnual 10-K for the year ended December 31, 2025.Report. There has been no significant change in our estimation methods since the end of 2025.

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) for which the Private Securities Litigation Reform Act of 1995 provides a safe harbor. These forward-looking statements can be identified by use of terms such as “believes,” “expects,” “anticipates,” “estimates,” “plans,” “intends,” “objectives,” “goals,” “aims,” “projects,” “forecasts,” “future,” “possible,” “seeks,” “may,” “could,” “should,” “will,” “might,” “likely,” “enable,” or similar words or expressions, as well as statements containing phrases such as “in our view,” “we cannot assure you,” “although no assurance can be given,” or “there is no way to anticipate with certainty.” Examples of forward-looking statements include, among others, statements we make regarding our plans, beliefs or expectations regarding our growth strategies; our expectations regarding the Illinois legislature passing a bill to extend the timeframe of our operation of the temporary American Place facility; our expected construction budgets, estimated commencement and completion dates, expected amenities, and our expected operational performance for the American Place permanent facility; our expectations regarding our ability to generate operating cash flow and to obtain debt financing on reasonable terms and conditions for the construction of the permanent American Place facility; our expectations regarding our ability to refinance our outstanding debt; our investments in capital improvements and other projects, including the amounts of such investments, the timing of commencement or completion of such capital improvements and projects, and the resulting impact on our financial results; our expectations regarding the effect of management changes and operational improvements at our properties, including Chamonix; beliefs in connection with our marketing efforts, including our revamped marketing strategy at Chamonix and our ability to access the Colorado Springs and southern Denver markets; our expectations regarding the renovation-related disruptions at the Hyatt Lake Tahoe complex that houses our Grand Lodge Casino; our sports wagering contracts with third-party providers, including the expected revenues and expenses and our expectations regarding the operation and usage of our available idle sports wagering contracts, our ability to replace any terminated sports wagering contracts or our ability to operate sports wagering contracts ourselves; adequacy of our financial resources to fund operating requirements and planned capital expenditures and to meet our debt and contractual obligations; expected sources of revenue; anticipated sources of funds; anticipated or potential legislative actions; factors that affect the financial performance of our properties; adequacy of our insurance; competitive outlook; outcome of legal and litigation matters; impact of recently issued accounting standards; and estimates regarding certain accounting and tax matters, among others.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, those risks discussed in Part I, Item 1A—Risk Factors and throughout Part II, Item 7—Management’s Discussion and Analysis of Financial Condition and Results of our Annual Report on Form 10-K for the year ended December 31, 2025,Report, and in Part II, Item 1A—Risk Factors and elsewhere of this Form 10-Q. In addition, you should consult other disclosures made by us (such as in our other filings with the SEC or in company press releases) for other factors that may cause actual results to differ materially from those projected by us. You should read this Form 10-Q, and the documents that we reference in this Form 10-Q and have filed with the SEC, and our Annual Report on Form 10-K for the year ended December 31, 2025,Report, with the understanding that our actual future results, levels of activity, performance, and events and circumstances may be materially different from what we expect.