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1. 2 This presentation is not an offering of securities nor a solicitation for the sale or purchase of securities which can only be made by formal prospectus.

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Presentation on theme: "1. 2 This presentation is not an offering of securities nor a solicitation for the sale or purchase of securities which can only be made by formal prospectus."— Presentation transcript:

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2 2 This presentation is not an offering of securities nor a solicitation for the sale or purchase of securities which can only be made by formal prospectus.

3 3 The following statements are made pursuant to the safe harbor for forward-looking statements described in the Private Securities Litigation Reform Act of 1995. In these presentations, we may make certain statements that are forward-looking, such as statements regarding Full Houses future results and plans and anticipated trends in the industries and economies in which Full House operates. These forward-looking statements are the Companys current expectations and the Company will make no effort to update these expectations based on subsequent events or knowledge. These forward- looking statements are subject to a number of risks, uncertainties, and assumptions, including that our revenues may differ from that projected, that governmental and court approvals may not be forthcoming or may be delayed: · Our growth strategies may not be realized; · Our development and potential acquisition of new facilities may not occur; · Trends in the gaming industries may be negative; · We may not have access to capital, including the ability to finance future business requirements; ·There may be adverse changes in federal, state and local laws and regulations, including environmental and gaming license legislation and regulations; and ·Other risks detailed in our documents filed with the SEC. Should one or more of these risks or uncertainties materialize, or should our underlying assumptions prove incorrect, actual results may differ significantly from results expressed or implied in any forward- looking statements made by the Company in these communications.

4 Full House Resorts owns, develops and manages gaming facilities Through 50% joint venture – Gaming Entertainment Michigan (GEM) – managing the construction of FireKeepers Casino in Battle Creek, Michigan. Upon opening in summer 2009, GEM will manage the property – seven years, 26% of net income (50% interest in management fees) Own and operate Stockmans Casino in Fallon, Nevada 50% joint venture management agreement with Harrington Raceway & Casino in Delaware through August 2011 4

5 Successfully manage the construction and pre-opening activities of FireKeepers Casino, leading to an early August 2009 opening Actively pursuing additional accretive value-added acquisitions in regional gaming markets Continue to operate Stockmans as a profitable, market-leading casino in Fallon, Nevada 5

6 6 GEM acquired Green Acres Casino Managements 15% interest in the FireKeepers Casino management agreement for $10 million. May 6 – assisted the Authority in obtaining and closing on $340 million of Senior Secured Notes and a $35 million F&E facility under very difficult financing conditions. May 7 – gave notice to proceed to the contractor who immediately commenced site work. FireKeepers progress: Structure fully enclosed in November – ahead of schedule Indoor construction ongoing, parking garage construction on schedule Strong experienced management team being assembled Dealer school commenced operations on May 1, 2009 Slot bases and machines are currently being installed Opening is scheduled for early August 2009

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8 GEM – a 50% owned JV – has a seven-year management agreement with the Huron Potawatomi Tribe to develop and manage their casino for a fee equal to 26% of net income. Full House – through GEM – has been pursuing this development opportunity for over 10 years In first half of 2008, completed the design, negotiated the GMP and completed the financing Commenced construction on May 7, 2008 Fully enclosed structure in November 2008 Garage construction progressing on schedule Installation of gaming F&E has commenced Expect to open the facility in early August 2009 8

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10 Primary local market of 1.1 million adults within 50 miles and no competing casinos Key feeder markets include Battle Creek, Grand Rapids, Kalamazoo and Lansing Easily accessible from major highways: I-94, I-69 Mean household income of $61,951 as of 2006 (source: The Innovation Group) ____________________ Note: Circles represent 50 and 100 mile radius from FireKeepers Casino. 10

11 Secondary market of 5.1 million adults within 1-2 hour drive-time Includes Ann Arbor, Birmingham, Brighton, Flint, Grand Haven, Toledo and Fort Wayne Only two other competing gaming facilities (we will be the only casino within a 75- mile radius and a 100-mile driving radius) Seasonal and overnight market Over one million visitors a year to Calhoun County Approximately 1,300 hotel rooms within 15 miles ____________________ Note: Circles represent 50 and 100 mile radius from FireKeepers Casino. 11

12 2,680 Class III Slot Machines 78 Table Games 12 Poker Tables Five restaurants and three bars High Limit Gaming and VIP areas 2,078-space parking garage attached to the facility Scheduled to open August 2009 12

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17 Opportunistic strategic buyer Criteria Market leading properties in local markets Near-term geographic preference in Nevada Size – Similar to Stockmans Casino Overlooked Asset – Conservative balance sheet $3.9 million cash, $7.9 million currently available on line of credit Free cash flow Free cash flow increases significantly with the opening of FireKeepers Casino in Michigan 17

18 18 Adult (+25) Population 25 Mile 25,569 50 Mile 50,297 Home of Fallon Naval Air Station Source: Microsoft MapPoint 2006

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20 20 December 2007/January 2008 - Renovation of coffee shop and Steakhouse completed February 2008 – Closed on sale of Holiday Inn Express – applied net proceeds of approximately $7.0 million to reduce indebtedness For 2008, generated net revenues of $9.7 million and EBITDA of $3.0 million Have repaid all but about $1.0 million of the original $17.25 million of acquisition debt

21 21 Adult (+25) Population 25 Mile 177,202 50 Mile 680,716 100 Mile 9,868,262 Source: Microsoft MapPoint 2006

22 50% JV with Harrington Raceway for the management of the facility Management agreement through August 2011 Guaranteed minimum annual increase of 5% Harrington Raceway and Casino has approximately 2,100 gaming positions following completion of major renovation and expansion in February 2008 450 seat buffet 50 seat diner Steakhouse and entertainment lounge 22

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31 Financial performance in Q1 was consistent with the prior year despite economic issues The Company is in a strong liquidity position We continue to pursue our key objectives Focused on a successful on-time and on-budget opening for the FireKeepers Casino in early August Pursue additional acquisitions that fit our identified criteria and current financial resources 31

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33 33 Stockmans Casino generated revenue of $9.7 million and EBITDA of $3.0 million. Earnings from Harrington Raceway and Casino were up 11.8% as a result of our restructured management contract and timing of payments. SG&A costs decreased mostly due to a reduction in employee-related expenses such as stock compensation. Unrealized gains on Tribal receivables increased as projects saw changes in the discount rates and estimated opening dates – primarily due to the Michigan project being on schedule for a third quarter 2009 opening and a one-time payment of $9.3 million related to financing for the FireKeepers Casino in first quarter 2008.

34 34 Net income of approximately $1.6 million is up approximately $0.7 million from last years results. Net Income applicable to common shares was approximately $1.6 million or $0.08 per diluted share. Weighted average diluted shares for 2008 were 19,116,311, slightly below last years count of 19,304,251 due to advent of share repurchase program in July 2008. The board of directors approved a $2 million share repurchase plan in 2008. From the initial approval date in July to the programs expiration on April 30, 2009, the Company repurchased 1.4 million shares at a total cost of approximately $1.7 million (weighted-average cost of $1.22 per share). For 2008, the Company reduced its debt by $18.7 million, including the $9.5 million Green Acres obligation. The Company has only about $225k of debt repayment requirements in 2009 and no refinancing requirements. Cash at year-end stood at approximately $5.3 million. In addition, the Company prepaid its NSB Revolving Credit Facility by $8.9 million and as a result had availability under the facility of $6.0 million.

35 35 First quarter operating results were consistent with the prior year, exclusive of a one-time gain of approximately $1.4 million related to the $9.3 million repayment on the FDA receivable. Stockmans revenue performance in the first quarter was down 10%, reflecting weakness in the food and beverage segment due to economic weakness in the Northern Nevada market as well as increased food and beverage competition. Operating expenses for first quarter 2009 were down 7%, primarily due to improved cost-control measures affecting nearly all aspects of the Companys operations. Equity in net income from our Delaware operation was up 8% from 2008; the Company is guaranteed a minimum 5% management fee increase in 2009 over 2008s cash flow of $4.4 million.

36 36 Unrealized gain on tribal receivables in the first quarter of 2008 included a one-time benefit of approximately $1.4 million due to the repayment by the tribe of $9.3 million related to financing for the FireKeepers Casino completed in May 2008. Excluding this item, the gain is comparable year-over-year. The Company has a fair market valuation allowance of $0.7 million against the remaining $5.0 million receivable. EBITDA of $1.0 million was up from the prior-year amount of $0.9 million. Net income for the quarter was approximately $0.5 million and earnings per share were $0.03. Excluding the one-time gain on the tribal receivable of $1.4 million, EPS in 2008 would also have been $0.03. Cash as of March 31 st stood at approximately $3.9 million, with availability on the Companys revolving credit line with Nevada State Bank at approximately $7.9 million. The Company paid down $2.3 million of debt during the first quarter, reducing its current debt outstanding, including current maturities, to $4.3 million.

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