Full House Resorts Announces Three Month and Full Year Results for the Period Ended December 31, 2008

Full House Resorts (NYSE Amex US: FLL) announced results for the three month and full year periods ended December 31, 2008. Net income for the three months ended December 31, 2008 was $6,380, or flat earnings per share, compared to $8,596, or flat earnings per share, in the prior-year period. Net income for the year was $1.6 million, or $0.08 per share, as compared to $0.9 million, or $0.05 per share, in 2007. Fourth quarter and full year 2008 results included the previously announced settlement related to our Gaming Entertainment (California), LLC subsidiary of $500,000. Net income exclusive of this one-time settlement cost for fourth quarter 2008 was $0.3 million, or $0.02 per share. Excluding all one-time costs in the full year, net income for 2008 was $2.0 million or $0.10 per share.

Fourth Quarter 2008 Highlights and Subsequent Events

* Stockman's Casino revenue for the quarter declined by 5% compared to the prior-year quarter - in line with recent general weakness in the economy. Casino revenue declines were offset by strong food and beverage sales from having both restaurants fully open in the quarter versus the prior-year quarter when the Café was closed for renovations.

* Equity in net income of unconsolidated joint venture and related guaranteed payments from the Company's 50% interest in Gaming Entertainment (Delaware), LLC was $1.2 million, an increase of 3% from the prior-year period. Quarterly results differ from the minimum 8% guaranteed growth for 2008 due to timing differences in cash payments in the prior year.

* Construction at FireKeepers Casino has progressed on schedule and garage construction has been completed. In addition, the FireKeepers Development Authority has approved an increase in slot machines to approximately 2,680 from 2,500. Table games units will be reduced from 90 to 78 and poker units will decrease from the planned 20 to 12. The new configuration will allow for approximately 3,200 gaming positions in the casino. The project remains on budget and FireKeepers Casino is still expected to open in the summer of 2009.

* In 2008, the Company's Board of Directors authorized a program to repurchase up to $2 million worth of shares of the Company's common stock. As of March 25, 2009, the Company has purchased approximately 1.36 million shares on the open market at an average price of $1.19, for a total cost of $1.7 million.

'We are pleased with the significant progress being made at the FireKeepers Casino,' said Andre Hilliou, Chief Executive Officer of Full House. 'Construction remains on schedule and we remain on budget as we prepare for an opening this summer. We are especially excited about and encouraged by the strong management team being put in place under the leadership of Bruce McKee, our property GM at FireKeepers.'

Fourth Quarter 2008 Results

For the quarter ended December 31, 2008, Full House reported casino, food and beverage, and other revenue of $2.3 million, down 5% compared to revenue of $2.4 million in the prior-year period, primarily as a result of lower slot revenue at Stockman's Casino due to general weakness in the economy.

The Company recorded equity in net income of unconsolidated joint venture and related guaranteed payments of $1.2 million, an increase of 3% from the prior-year period. The equity in net income of unconsolidated joint venture represents Full House's 50% ownership interest in Gaming Entertainment (Delaware), LLC ('GED'), a joint venture between the Company and Harrington Raceway, Inc. Quarterly results differ from the minimum 8% guaranteed growth for 2008 due to timing differences in cash payments in the prior year.

Operating expenses for fourth quarter 2008 were $2.9 million, an increase of 1% from the prior-year period, primarily due to higher food and beverage costs during the quarter and increases related to the Gaming Entertainment (Michigan), LLC ('GEM') management agreement for FireKeepers, partially offset by lower expenses in the casino segment and SG&A.

Income from continuing operations before income taxes for fourth quarter 2008 was $278,197 compared to $126,464 in the prior-year period. The 2008 results include an unrealized gain on notes receivable from tribal governments of $129,590 compared to a gain of $120,554 in 2007.

During the fourth quarter 2008, the Company incurred a one-time charge of $500,000, of which $225,000 was paid in the quarter, related to the settlement of litigation filed by RAM Entertainment, LLC and Robert A. Mathewson related to the distribution of an award previously obtained by Gaming Entertainment (California), LLC ('GEC'), a consolidated investee of the Company. In addition, in the fourth quarter of 2007, the Company incurred a one-time impairment charge of $407,534 related to discontinued projects in New Mexico. Excluding both the 2008 and 2007 one-time charges, income from continuing operations before income taxes for fourth quarter 2008 was $778,197 compared to $533,998 in the prior-year period.

The Company reported net income per common share of $0.00 for the three months ended December 31, 2008 and 2007, respectively. Excluding the one-time charges in both fourth quarter 2008 and 2007, the Company would have reported net income per common share of $0.02 and $0.01 for the three months ended December 31, 2008 and 2007, respectively.

Full Year 2008 Results

For the full year ended December 31, 2008, Full House reported casino, food and beverage, and other revenue of $9.7 million, compared to revenue of $9.6 million in the prior year, primarily as a result of a full year's contribution from Stockman's operations in 2008 as opposed to only eleven months of operations in 2007. The 2007 results included a $0.3 million one-time Hard Rock Casino settlement payment received in the second quarter of 2007.

The Company recorded equity in net income of unconsolidated joint venture and related guarantee payments of $4.8 million, a 12% increase from the prior year. Management expects that 2009 full-year results for GED will be lower than the 5% guaranteed increase due to payment timing variances which resulted in greater than an 8% increase in 2008.

Operating expenses for the full year ended December 31, 2008 were $12.3 million compared to $12.4 million in the prior year, as lower stock compensation and a decrease in project development costs during 2008 were offset by an extra month of Stockman's operating expenses.

Income from continuing operations before other income (expense) and income taxes for the full year ended December 31, 2008 was $3.6 million compared to $1.8 million in the prior-year period. The 2008 figure includes $2.1 million of unrealized gains on notes receivable from tribal governments compared to $0.8 million in the prior-year period, with the year-over-year increase primarily due to the repayment of $9.3 million of notes receivable related to the FireKeepers Casino, in connection with the FireKeepers Development Authority obtaining financing for the project.

During 2008, as discussed previously, the Company incurred a one-time charge of $500,000 related to the settlement of litigation filed by RAM Entertainment, LLC and Robert A. Mathewson, as well as an $85,000 impairment loss related to assets held for sale. In addition, in 2007, the Company incurred a one-time impairment charge of $407,534 related to discontinued projects in New Mexico. Excluding both the 2008 and 2007 one-time charges, income from continuing operations before other income (expense) and income taxes for the full year ended December 31, 2008 was $4.2 million compared to $1.9 million in the prior-year period.

The Company reported earnings per share of $0.08 and $0.05 for the full year ended December 31, 2008 and 2007, respectively. Excluding all one-time charges in 2008 and 2007, the Company would have reported net income per common share of $0.10 and $0.05 for the full year ended December 31, 2008 and 2007, respectively.

Liquidity and Capital Resources

As of December 31, 2008, the company had $5.3 million in cash and approximately $6.0 million of availability on its revolving credit line with Nevada State Bank. Long-term debt outstanding including current maturities at the end of the year was $6.4 million. Full House repaid $0.7 million of debt during the quarter, bringing the total amount of debt reduction during 2008 to $18.7 million. Subsequent to December 31, 2008, Full House has used approximately $0.2 million of cash to purchase common stock and has made additional voluntary payments on its revolving credit line of $2.3 million. As of March 25, 2009, the Company had approximately $3.7 million in cash and $7.9 million of availability on its revolving credit line.

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