FLL

• Consolidated Company Performance

  • Consolidated revenues grew 5.6% YoY, adjusted EBITDA increased 19.5% YoY, with growth led by the company's two newest properties, American Place and Chamonix
  • Management noted segment-level reporting masks overall strength due to temporary headwinds at Rising Star and Grand Lodge

• American Place (Waukegan, IL) Permanent Casino Development

  • Received required state legislative approval for an extended temporary facility operating permit through February 2029, which exceeds the projected completion date for the permanent casino, eliminating expected transition downtime
  • Secured an amended development agreement with the City of Waukegan allowing retention of the current temporary sprung structure for 5 years after the permanent casino opens, to be used as a large-scale event/trade show and entertainment venue
  • Pre-construction work is underway: completed soil testing, finalized 75% of architectural plans, approved civil engineering drawings, with approximately $1.5 million in pre-construction spending authorized ahead of financing close
  • Final design has been refined based on operating experience at the temporary facility and industry benchmarking of recent new casino builds in Northern Illinois, including adding a high-quality food hall and separate under-21 accessible restaurant access

• Chamonix (Blackhawk, CO) Strategic Improvements

  • New marketing strategy implemented by a new agency, paired with two additional casino hosts and a new casino director with 15+ years of high-end casino experience at Wynn and Fontainebleau, to grow high-margin VIP play
  • Current win per position per day is $175 (half of the Blackhawk market average), with a long-term target to reach at least the market average, which would generate ~$30 million annual EBITDA, with upside to ~$40 million EBITDA if the company hits a 15% premium to the market average
  • Operational blocking and tackling includes a revamped food and beverage offering (a previously underperforming Mexican restaurant was rebranded and re-launched with a new homemade menu, and it is now consistently sold out on weekends) and a dedicated 7-person sales team to grow hotel meeting and convention bookings for 2027 and beyond

• Financing Update

  • The combined transaction (refinancing existing bonds, financing permanent casino construction, and closing a new revolving credit facility) is well progressed, with the revolving credit facility already fully committed from four banks and documentation nearly complete
  • Management expects the full transaction to close in the third quarter of 2026, with all necessary regulatory and agreement milestones completed to clear the way for final legal closing

• The permanent casino in Waukegan is expected to open in the third quarter of 2028, with a total construction timeline of 18 to 24 months from the start of hard construction, leaning closer to the 24-month timeline due to sequential construction planning
  • Chamonix is expected to deliver massive improvement in win per position per day and EBITDA over the next 18 months, though it is not expected to reach full target EBITDA this year or next year
  • American Place's steady monthly revenue growth is expected to continue in the temporary facility; after permanent casino completion, adjusted EBITDA margins are expected to reach the mid-30s, up from ~29% in the temporary facility
  • The three-part financing transaction is expected to close in the third quarter of 2026, with blended financing costs falling within management's original expectations (high single-digit to low double-digit for individual components, blending to high single digits overall)
  • M&A activity is not a near-term priority, but would be a more feasible option three years from now after the permanent casino opens and leverage improves

Midwest Segment: Revenue grew 4.7% overall. American Place (the segment's largest property) posted 13.4% YoY revenue growth to $34.8 million, with adjusted property EBITDA rising 13.8% YoY to $10.1 million; this was American Place's best ever quarter, with May 2026 gaming revenue hitting a record $12.7 million. Rising Star (Indiana) was impacted by a 42-hour unplanned power outage, shifting from a $0.5 million EBITDA profit in Q2 2025 to a $0.1 million loss in Q2 2026. Silver Slipper (Mississippi) held steady at $3.4 million in adjusted EBITDA YoY, acting as a stable cash cow with slight revenue decline paired with modest EBITDA improvement from ongoing efficiency efforts. West Segment: Overall results were masked by temporary disruption at Grand Lodge Casino, with Chamonix (Colorado) driving $1.1 million in operating improvement, going from a $1.2 million loss in Q2 2025 to near breakeven in Q2 2026; Chamonix revenue grew almost 12% YoY following new targeted marketing initiatives. Grand Lodge Casino (Lake Tahoe) is facing ongoing near-term disruption from the owner Larry Ellison's multi-year Hyatt resort renovation, which has removed high-end suites, the top-grossing restaurant, and beach access, pushing projected completion of the renovation to late 2027.

• The 42-hour unplanned power outage at Rising Star resulted in a quarterly loss, with no business interruption insurance proceeds available because there was no on-property property damage
  • Ongoing renovation at the Hyatt Lake Tahoe (owner of the Grand Lodge Casino site) continues to disrupt Grand Lodge's business, with completion pushed from first half 2027 to late 2027
  • The multi-part financing transaction is legally complex (over 1,500 pages of documentation with inter-creditor agreement negotiations), creating execution risk for the third quarter 2026 closing timeline, though management has backup options if issues arise
  • Chamonix is currently underperforming market averages for win per position, and growth of high-end VIP play depends on successful operational and marketing execution over the next 18 months
  • Construction timelines for the Waukegan permanent casino are subject to weather-related delays that could push back opening
  • The company's current leverage profile limits the ability to pursue acquisitions, and management is unwilling to issue new equity at current valuations

Q: Has operating the temporary American Place casino changed plans for the size and scope of the permanent facility? / A: The core project size is largely unchanged, limited by state law. Management has refined small design elements based on operating experience and industry benchmarking of recent casino builds across Northern Illinois. Key changes include adding a high-quality food hall, separate non-gaming access for restaurant guests (to accommodate those under 21), and adopting cost-efficient construction design that reduces back-of-house space. The temporary facility has also confirmed that American Place is growing local per-capita gambling without materially cannibalizing nearby competitors, matching original projections.

Q: What is management's confidence in closing the financing in Q3 2026, and what pre-construction work is ongoing? / A: All parties are committed to closing, and the transaction only requires final resolution of detailed legal wording for inter-creditor agreements. Pre-construction work including soil testing, 75% completion of architectural schematics, and civil engineering drawing approval is already underway, with $1.5 million in pre-development spending authorized. Management expects closing in September 2026 after working through details through August, with backup options available if unexpected issues arise.

Q: What is management's current appetite for M&A? / A: M&A is not a near-term priority, as the company is focused on completing the Waukegan permanent casino and improving Chamonix performance. Organizational capacity is limited, and current leverage and valuation (management believes equity is undervalued, so issuing equity for acquisitions is unattractive) rule out most deals. If an unusually low-priced, low-risk opportunity emerged, management would explore creative structures like a REIT purchase with Full House operating, but this is very unlikely. Three years from now, after deleveraging post-opening, M&A would be a more realistic option.

Q: Assuming financing closes in Q3 2026, when can hard construction start and when will the permanent casino open? / A: Hard construction can start very quickly after financing closes, as all pre-construction planning is largely complete. The total construction timeline remains 18-24 months, with management leaning toward the 24-month timeline, putting projected opening in Q3 2028. The low-rise, single-story design (no parking garage or basement) allows for relatively fast construction, but timelines are subject to weather-related delays that are common for outdoor work. Major $3 million earthmoving contracts will not be issued until financing is finalized, per existing debt constraints.