Full House Resorts Announces Three and Nine Months Results for the Period Ended September 30, 2011

Full House Resorts (NYSE Amex US: FLL) announced results for the three and nine-month periods ended September 30, 2011. Net loss attributable to the Company for the three months ended September 30, 2010, including a non-cash impairment charge and one-time rebranding and acquisition costs, was $1.1 million, or $0.06 per common share, compared to net income of $2.2 million, or $0.12 per common share, in the prior-year period. Excluding non-cash impairment charges of $4.9 million and rebranding and acquisition costs of $0.2 million for the quarter, net income attributable to the Company per common share in the third quarter of 2011 would have been $0.11.

“Our results for the third quarter of 2011 reflect solid performance at our current properties, as we recorded a sequential increase in revenue at our Rising Star Casino Resort, and the addition of two new casinos – Grand Lodge and Buffalo Thunder – to the Full House family”

Third Quarter 2011 Highlights and Subsequent Events

• In August, the Grand Victoria Casino & Resort in Rising Sun, Indiana property was renamed the Rising Star Casino Resort. For the third quarter 2011, the Company recorded revenue of $24.1 million and EBITDA of $2.4 million (including $0.2 million of rebranding costs), bringing total EBITDA for the first six months of the Company’s ownership to $5.6 million.
• On September 1, the Company commenced its previously announced five-year lease agreement with an affiliate of Hyatt Hotels Corporation for the Grand Lodge Casino at Hyatt Regency Lake Tahoe Resort Spa and Casino in Incline Village, Nevada on the north shore of Lake Tahoe. In addition, the Company closed its agreement with HCC Corp., an affiliate of HGMI Gaming Inc., and acquired the operating assets and certain liabilities related to the Grand Lodge Casino for approximately $0.7 million, exclusive of operating cash and working capital. The Company, through a wholly-owned subsidiary, operates the Casino. The Grand Lodge Casino features approximately 260 slot machines, 25 table games and a sports book, and is integrated into Hyatt Regency Lake Tahoe Resort, Spa and Casino.
• In September, the National Indian Gaming Commission (NIGC) approved the Company for its three-year management agreement with the Pueblo of Pojoaque for the operations of the Buffalo Thunder Casino and Resort in Santa Fe, New Mexico along with the Pueblo’s Cities of Gold and Sports Bar casino facilities. The Company has commenced management of the facilities and, as previously announced, will receive a base fee of $100,000 per month, plus a success fee based on achieving financial targets.
• Management fees for Gaming Entertainment (Michigan), LLC (“GEM”), a 50%-owned joint venture that manages FireKeepers Casino, were $6.0 million in the third quarter of 2011, compared to management fees of $6.5 million for the third quarter 2010.
• EBITDA and other items, as defined below, for the third quarter of 2011 was $5.9 million versus $4.3 million in the prior-year period, notwithstanding the Delaware management contract terminating in August 2011.
• As of September 30, 2011, Full House Resorts had $16.5 million in cash, $30.3 million in outstanding debt (inclusive of swap agreement liability) and approximately $4.5 million of availability on its revolving credit facility. In October, the Company made its regularly scheduled December 31, 2011 debt amortization payment of $1.7 million.
• In October, the Rising Sun/Ohio County First, Inc. and the Rising Sun Regional Foundation, Inc. teamed up to develop a new 100-room hotel on land currently owned by the Company at its Rising Star Casino Resort. Construction is expected to start in the next few months and be completed approximately twelve months thereafter.

“Our results for the third quarter of 2011 reflect solid performance at our current properties, as we recorded a sequential increase in revenue at our Rising Star Casino Resort, and the addition of two new casinos – Grand Lodge and Buffalo Thunder – to the Full House family,” said Andre Hilliou, Chairman and Chief Executive Officer of Full House. “We are pleased to add the Grand Lodge, which is part of the first-class Hyatt Regency resort located in Incline Village on the north shore of Lake Tahoe, as well as to be working closely with the Pueblo of Pojoaque in New Mexico. At our other operations, despite increased competition, FireKeepers Casino continues to provide solid results for GEM, and construction of its hotel remains on schedule for a fourth quarter 2012 opening, which should result in an increase in revenue.”

Third Quarter 2011 Results

For the quarter ended September 30, 2011, Full House reported casino, food and beverage, hotel and other revenue of $27.4 million, up from $2.1 million in the prior-year period, primarily due to the addition of the Rising Star Casino Resort during the second quarter of this year. In addition, during the third quarter of 2011, Full House recorded GEM management fees of $6.0 million for FireKeepers Casino, compared to management fees of $6.5 million for the third quarter of 2010.

Full House recorded equity in net income and related guaranteed payments from its Delaware operation of $1.1 million, a decrease of 27% from the prior-year period, which included all three months of the quarter compared to only two this year, as the agreement between the Company and Harrington Raceway, Inc. terminated at the end of August 2011.

Operating expenses for the third quarter 2011 were $28.1 million compared to $3.6 million in the prior-year period, primarily due to the addition of the Rising Star Casino Resort. The Company also recorded $0.3 million of stock compensation expense during the third quarter of 2011, while there was no stock compensation expense during the prior-year period.

Operating income for the third quarter 2011 was $1.6 million, compared to operating income of $6.6 million in the prior-year period. For the third quarter 2011, the Company recorded a non-cash goodwill impairment charge of $4.5 million ($2.7 million on an after-tax basis) related to its Stockman’s Casino due to a decline of operating results at Stockman’s resulting from the ongoing weak economic conditions in Northern Nevada and slower than expected improvement from changes made in marketing programs. In addition, the Company recorded a valuation charge against its remaining tribal receivables in the amount of $0.4 million ($0.3 million on an after-tax basis) as a result of slower than expected progress by the Nambe Pueblo in securing financing for its proposed casino facility amid a weak credit environment. Exclusive of the impairment charges and $0.2 million in other one-time charges, operating income for the third quarter 2011 would have been $6.7 million. EBITDA and other items, as defined below, was $5.9 million versus $4.3 million in the prior-year period, notwithstanding the Delaware management contract terminating in August 2011.

Full House reported third quarter net loss attributable to the Company per common share of $0.06 for the three months ended September 30, 2011, as compared to $0.12 for the three months ended September 30, 2011. Exclusive of the aforementioned charges, net income per common share in the third quarter 2011 would have been $0.11.

Nine Month 2011 Results

For the nine months ended September 30, 2011, Full House reported casino, food and beverage, hotel and other revenue of $54.6 million, compared to revenue of $6.3 million in the prior-year period, primarily due to the addition of the Rising Star Casino Resort during the second quarter of 2011. In addition during the nine months ended September 30, 2011, Full House recorded GEM management fees of $18.3 million for FireKeepers Casino, compared to management fees of $18.7 million for the prior-year period.

The Company recorded equity in net income and related guaranteed payments from the Delaware operation of $3.3 million, a 9% decrease from the prior-year period, as the agreement between the Company and Harrington Raceway, Inc. terminated at the end of August 2011.

Operating expenses for the nine months ended September 30, 2011 were $57.1 million compared to $10.8 million in the prior-year period, primarily due to the addition of the Rising Star Casino Resort. The Company also recorded $0.4 million of stock compensation expense for the nine-month period ended September 30, 2011, compared to approximately $17,000 in the nine months ended September 30, 2010.

Operating income for the nine months ended September 30, 2011 was $14.2 million, compared to operating income of $17.8 million in the prior-year period. Absent $5.7 million in impairment and one-time charges, operating income for the nine months ended September 30, 2011 would have been $19.9 million. EBITDA was $16.0 million versus $11.3 million in the prior-year period.

The Company reported net income attributable to the Company per common share of $0.10 and $0.32 for the nine months ended September 30, 2011 and 2010, respectively. Exclusive of the impairment charges, acquisition costs and other unusual charges in 2011, net income attributable to the Company per common share for the nine months ended September 30, 2011 would have been $0.29.

Liquidity and Capital Resources

As of September 30, 2011, Full House had $16.5 million in cash, $30.3 million in outstanding debt (inclusive of swap agreement liability) and $4.5 million of availability on its revolving credit line with Wells Fargo.

About Full House Resorts, Inc.

Full House owns, develops and manages gaming facilities. The Company owns the Rising Star Casino Resort in Rising Sun, Indiana. The Rising Star Riverboat Casino has 40,000 square feet of gaming space with almost 1,300 slot and video poker machines and 37 table games. The property includes a 201-room hotel, a pavilion with five food and beverage

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