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<SEC-DOCUMENT>0001362310-09-000913.txt : 20090618
<SEC-HEADER>0001362310-09-000913.hdr.sgml : 20090617
<ACCEPTANCE-DATETIME>20090130212329
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001362310-09-000913
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20090130

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FULL HOUSE RESORTS INC
		CENTRAL INDEX KEY:			0000891482
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-MISCELLANEOUS AMUSEMENT & RECREATION [7990]
		IRS NUMBER:				133391527
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		4670 S. FORT APACHE ROAD
		STREET 2:		SUITE 190
		CITY:			LAS VEGAS
		STATE:			NV
		ZIP:			89147
		BUSINESS PHONE:		7022217800

	MAIL ADDRESS:	
		STREET 1:		4670 S. FORT APACHE ROAD
		STREET 2:		SUITE 190
		CITY:			LAS VEGAS
		STATE:			NV
		ZIP:			89147
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<HTML>
<HEAD>
<TITLE>Filed by Bowne Pure Compliance</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">January&nbsp;30, 2009
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><U>Via Fax &#038; U.S. Mail</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Heather Clark<BR>
Division of Corporation Finance<BR>
U.S. Securities and Exchange Commission<BR>
100 F Street, N.E.<BR>
Washington, D.C. 20549

</DIV>

<DIV align="left" style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="7%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>RE:</B></TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify"><B>Form&nbsp;10-KSB December&nbsp;31, 2007 and Form&nbsp;10-Q September&nbsp;31, 2008<br>
File No.&nbsp;001-32583</B></DIV></TD>
</TR>
</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Dear Ms.&nbsp;Heather Clark:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">For ease of reference, we have reproduced comments set forth in the Comment Letter, as
numbered, before each response below.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><U><B>Annual Report on </B><B>Form 10-KSB/A</B><B> for the year ended December&nbsp;31, 2007</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><U><B>Managements Discussion and Analysis of Financial Condition and Results of Operations page 21</B></U><br>
<U><B>Liquidity and Capital Resources, page 28</B></U><br>
<U><B>Contractual Obligations, page 31</B></U>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><B>In future filings, please revise the table to include your long-term debt and
any other long-term liabilities with contractual maturities. Refer to Regulation&nbsp;S-K,
Item&nbsp;303 (A)(5).</B></DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">RESPONSE: We understand that as an SB issuer, the Company was not required to include in
its prior annual reports information described in Regulation&nbsp;S-K, Item&nbsp;303 (A)(5). In
the future, the Company will be filing as a smaller reporting company. Item&nbsp;303 (D)
sets forth that smaller reporting companies are not required to include in its annual
report information described in Regulation&nbsp;S-K, Item&nbsp;303 (A)(5).</DIV></TD>
</TR>

</TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><U><B>Financial Statements, page F-1</B></U><BR>
<U><B>Consolidated Statement of Stockholders&#146; Equity, page F-4</B></U>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><B>We note the column &#147;Deferred Share-based Compensation&#148; on your Consolidated
Statement of Stockholders&#146; Equity. Please note that under SFAS 123R, paragraph 74,
deferred compensation accounts were to be eliminated against the appropriate equity
accounts, generally paid-in-capital, upon adoption of the standard. Please revise your
statement of stockholders&#146; equity in future filings to comply with paragraph 74 of SFAS
No.&nbsp;123R.</B></DIV></TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Securities and Exchange Commission<BR>
Attention: Heather Clark<BR>
Page 2

</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">RESPONSE: In future filings, the Company will eliminate deferred share-based
compensation against additional paid-in-capital in its Consolidated Balance Sheets and
Statements of Stockholders&#146; Equity.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><U><B>Notes to Consolidated Financial Statements, page F-6</B></U><br>
<U><B>Note 2. Summary of Significant Accounting Policies, page F-8</B></U><br>
<U><B>Share-Based Compensation, page F-10</B></U>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><B>We note the disclosure that the company uses actual forfeitures to adjust
amortization as necessary. Please note that under SFAS No.&nbsp;123R forfeitures are
required to be estimated rather than accounting for them as they occur. Please refer
to paragraph 80 of SFAS No.&nbsp;123R and advise us of your basis or rationale for the
treatment used for forfeitures. To the extent your policy differs from the treatment
of forfeitures required in SFAS No.&nbsp;123R, please advise us of the difference in
compensation expense that would have been recognized during the periods presented in
your financial statements under the method required by SFAS No.&nbsp;123R. We may have
further comment upon receipt of your response.</B></DIV></TD>
</TR>

</TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">RESPONSE: The Company grants shares of restricted stock, rather than options, to key
members of management and the Board of Directors. Since SFAS 123R was implemented,
there have been no forfeitures of restricted shares granted. Currently, there are only
unvested stock grants to director, Lee Iacocca, and the Company&#146;s Chief Financial
Officer, which fully vest in May&nbsp;2009 and February&nbsp;2010, respectively. The total
expense associated with these grants, over the remaining vesting periods is
approximately $305,000. Based on this historical pattern and the holders of the
unvested stock grants, management continues to believe the probability of forfeitures by
these individuals to be extremely remote and, therefore, currently estimates zero
forfeitures in future periods. In future filings, the accounting policy for share-based
compensation and attendant circumstances will be clarified and updated accordingly.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><U><B>Note 3. Acquisition of Stockman&#146;s Casino, page F-11</B></U>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><B>We note that goodwill recognized in the amount of $10.3&nbsp;million represents
approximately 37% of the total purchase price. Please revise future filings to include
a description of the factors that contributed to a purchase price that resulted in
recognition of goodwill. Refer to the disclosure requirements outlined in paragraph
51b of SFAS No.&nbsp;141. Also, please explain why no other intangible assets such as trade
names, customer or vendor relationships, favorable or unfavorable contracts, or any
other identifiable intangible assets were recognized in connection with this
acquisition. Your response should explain in detail what consideration was given to
the existence and valuation of any other intangible assets as part of the purchase
price allocation and should also explain how the fair values assigned to the various categories of assets and
liabilities acquired were determined.</B></DIV></TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Securities and Exchange Commission<BR>
Attention: Heather Clark<BR>
Page 3

</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">RESPONSE: In future filings, the Company will include a description of the principal
factors that contributed to the recognition of goodwill. Specifically, the Company
acquired older fixed assets via a stock purchase based on a modest earnings multiple,
which took into account Stockman&#146;s stable historical cash flow.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">Regarding other intangible assets, Stockman&#146;s is an otherwise unaffiliated, small casino
in northern Nevada with patrons coming from the local community, travelers and military
personnel temporarily working at a nearby naval base. Based on due diligence performed
during the process of acquiring Stockmans, no trade names, relationships, contracts or
other material intangible assets were identified. The only identifiable intangible asset
acquired was the Holiday Inn franchise fee, which was nominally valued at $18,239. The
Company engaged an independent appraiser located in northern Nevada who is familiar with
values in that area to assist in its allocation of estimated fair value to the various
assets and liabilities acquired.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><U><B>Note 6. Contract rights, page F-13</B></U>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>5.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><B>Please tell us and revise Note 6 to explain the nature and terms of the
transaction which resulted in the $10,000,000 increase in &#147;Michigan project, additional&#148;
contract rights during 2007. Also, please tell us and disclose in the future filings
the period over which these additional contract costs are being amortized to
expense and explain how this period was determined.</B></DIV></TD>
</TR>

</TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">RESPONSE: In future filings, the Company will include the requested additional
disclosures regarding the additional Michigan contract rights, including the following.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">During 2007, the Company executed an agreement to purchase contractual rights related to
the Michigan casino from Green Acres (&#147;Green&#148;) for $10&nbsp;million, which was contingent upon
the opening of the Michigan casino project. At the time the agreement was entered into,
there were two main contingencies regarding the Michigan project. Firstly, the amended
management agreement had not yet been approved by the NIGC, and secondly, the
construction financing had not been obtained. The management agreement was approved by
the NIGC in December&nbsp;2007, and at the time of the Company&#146;s 10-KSB filing, the Michigan
project financing was likely to be obtained (the financing was obtained early in May
2008). Accordingly, with the two primary contingencies likely to be overcome, the
obligation to pay Green Acres was triggered, and a liability was recognized per SFAS No.
5. The offset to the liability was recorded as additional contract rights since the
Company effectively purchased Green&#146;s contractual rights to participate in the project.
The additional contract rights will be amortized over the management contract period (7
years) commencing upon the opening of the casino, which is expected in the summer of 2009.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Securities and Exchange Commission<BR>
Attention: Heather Clark<BR>
Page 4

</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>6.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><B>In a related matter, please explain why the obligation related to the acquired
contract rights as discussed in Note 9 on page F-16 has been recorded as a long-term liability in the company&#146;s financial statements. Explain in detail the
payment terms associated with the balance due of $9.5&nbsp;million on the contract rights
acquired from Green Acres and supplementally provide us with a copy of the related
acquisition agreement. Also, please explain why you believe it was appropriate to
recognize this additional $9.5&nbsp;million of contract rights and the related long-term
obligation in December&nbsp;2007 when the management agreement between GEM and the Michigan
tribe was approved. In this regard, we note from the disclosures in Note 9 that GEM has
been in discussion with lenders to arrange an add-on financing security as part of the
overall project financing to fund the balance of the Green Acres purchase price but
based on your disclosures, it does not appear that this financing was in place December
31, 2007. We may have further comment upon receipt of your response.</B></DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">RESPONSE: The Green Acres (&#147;Green&#148;) liability was recorded as a long-term liability
since non-current assets were to be used to satisfy the obligation (<I>i.e.</I>, long-term
assets related to Tribal casino projects). FASB <I>Current Text</I>, Section&nbsp;B05.108 defines
current liabilities as follows: &#147;...principally obligations whose liquidation is
reasonably expected to require the use of existing resources properly classifiable as
current assets, or the creation of other current liabilities.&#148; The payment terms called
for $500,000 (previously paid upon execution of the purchase agreement with Green) and
the remainder due when funding was obtained for the construction of the Michigan casino
project and the management agreement was approved by the NIGC. The liability was
recorded since the management agreement was approved in December&nbsp;2007, and the
construction financing was likely to be obtained at the time our 10-KSB was filed.
Although the financing had not been obtained as of December&nbsp;31, 2007, management
concluded that it was likely to be obtained and therefore, it was probable that the
Company would have to pay Green the remaining obligation. In fact, the financing was
subsequently obtained in May&nbsp;2008, and the obligation to Green was paid in full with
proceeds from the collection of long-term notes receivable.</DIV></TD>
</TR>

</TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><U><B>Note 16. Segment Reporting, page F-20</B></U>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>7.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><B>Please reconcile the 2007 consolidated total assets of $56,163,015 with the
total assets on the balance sheet of $63,123,777. To the extent you have reconciling items
between total assets for the segments and total assets on the balance sheet, please
revise future filings to disclose the differences. Refer to the disclosure requirements
outlined in paragraph 32c of SFAS No.&nbsp;131.</B></DIV></TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Securities and Exchange Commission<BR>
Attention: Heather Clark<BR>
Page 5

</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">RESPONSE: The apparent discrepancy relates to discontinued operations whereas the chart
related to continuing operations data for the years ended December&nbsp;31. Future filings
will more clearly disclose the reconciling items.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="77%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">2007</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Total assets</TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance sheet</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">63,123,777</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Discontinued operations &#151; hotel</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(6,960,762</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Segment table</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">56,163,015</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>



<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><U><B>Quarterly Report on </B><B>Form 10-Q</B><B> for the quarter ended September&nbsp;20, 2008</B></U><BR>
<U><B>Consolidated Statements of Cash Flows, page 5</B></U>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>8.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><B>We note your presentation of &#147;Net cash provided by operating activities&#148; as a single line item. We refer to prior comments 18 and 15 from SEC letters dated
August&nbsp;29, 2006 and October&nbsp;10, 2006 respectively. As it appears as though you
have several significant changes in working capital line items on your balance
sheet, please expand your statement of cash flows in all future filings to disclose
these significant changes. Refer to the guidance outlined in paragraphs 28 and 29 on SFAS No.&nbsp;95.</B></DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">RESPONSE: Regulation&nbsp;S-X, Rule&nbsp;10-01(a)(4), states for interim periods, that &#147;the
statement of cash flows may be abbreviated starting with a single figure of net cash
flows from operating activities.&#148; Although Regulation&nbsp;S-X, Rule&nbsp;8-03(a)(3), does not
contain similarly clear language for smaller reporting companies, there is nothing in
the SEC&#146;s release adopting the smaller reporting company rules to indicate that more is
required or recommended of smaller reporting companies in the statement of cash flows
than that which is required of other reporting companies, nor is there any reason to
believe anything more should be required.</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">We do recognize that Rule&nbsp;8-03 (a)(4) states that &#147;&#091;a&#093;dditional line items may be
presented to facilitate the usefulness of the interim financial statements,&#148; but we see
no reason to believe the information requested would likely accomplish that objective in
any meaningful way. We do not believe the purpose of the statement of cash flows is to
explain &#147;significant changes in working capital line items,&#148; as suggested by the staff&#146;s
request but rather to show significant cash inflows and outflows. In the future, the
Company will consider whether additional detail is warranted in its MD&#038;A regarding any
significant changes in working capital discussed pursuant to the guidance in Regulation
S-K, <FONT style="white-space: nowrap">Item&nbsp;303(b).</FONT></DIV></TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Securities and Exchange Commission<BR>
Attention: Heather Clark<BR>
Page 6

</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><U><B>Notes to Condensed Consolidated Financial Statements (unaudited), page 6</B></U><BR>
<U><B>Note 6. Contract Rights, page 9</B></U>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>9.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><B>We note that an additional $2.1&nbsp;million of financing costs on behalf of the Authority were paid by GEM during the second quarter of 2008. Please tell us why you believe this $2&nbsp;million is appropriately classified as additional contract
rights rather than a note receivable. Please specifically tell us what contractual
rights GEM received as a condition to advancing the funds. We may have further comment
upon receipt of your response.</B></DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">RESPONSE: The Company agreed to pay a portion of the closing costs related to the
construction financing as part of the negotiation to originally obtain the management
agreement. Therefore, management believes that the additional payment is appropriately
classified as part of the cost of acquiring the management agreement, which will be
amortized over the 7-year term of the management agreement. The Company is not entitled
to be reimbursed for the additional payment of closing costs and accordingly, no
receivable was created or recorded. This will be more clearly disclosed in future
filings.</DIV></TD>
</TR>

</TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><U><B>Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations, page 15</B></U><br>
<U><B>Results of continuing operations, page 22</B></U><br>
<U><B>Three Months Ended September&nbsp;30, 2008 Compared to Three Months Ended September&nbsp;30, 2007, page 22</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><U><B>Other Income (expense), page 22</B></U>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>10.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><B>We note the disclosure on page 22 indicating that other income for the three months ended September&nbsp;30, 2007, includes non-recurring revenues of $272,138
of income related to a release of a payment guarantee for the Michigan project&#146;s
architects. Please tell us and revise future filing to explain in further detail the
nature of the $272,138 of income related to the release of payment guarantee.
We may have further comment upon receipt of your response.</B></DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">RESPONSE: Future filings will disclose that the non-recurring revenue relates to the
transfer of an obligation to pay an architectural firm related to the Michigan project.
Originally, the Company (via a consolidated subsidiary) had guaranteed the tribe&#146;s
obligation to pay the architectural firm. However, as part of the revised management
agreement negotiated during the third quarter of 2007, the obligation was transferred to
the Michigan tribe without recourse to the Company and, therefore, the liability was
eliminated, as provided in SFAS No.&nbsp;140.</DIV></TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Securities and Exchange Commission<BR>
Attention: Heather Clark<BR>
Page 7

</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><U><B>Income Taxes page 22</B></U>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>11.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><B>We note the disclosure on page 22 of MD&#038;A indicating that during the third quarter of 2007, a $380,516 adjustment was made to reduce income tax expense
related to a change in estimate of the annual estimated tax provision for 2007.
Please tell us in further detail the specific nature and timing of the changes in
facts or circumstances that resulted in this change in estimate during the third
quarter of 2007.</B></DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">RESPONSE: In connection with the filing of the 2006 tax returns in September&nbsp;2007, the
Company adjusted its tax provision resulting in the recognition of $380,516 of
additional income tax receivables and a corresponding reduction of the income tax
provision. The adjustment related to matters that were discovered after the Company
changed tax preparers during the second quarter of 2007 which included the estimated tax
impact of certain income items related to tribal gaming, changes in estimated taxable
income from flow-through entities, and other estimates (generally tax deductible equity
compensation) relating to the income tax return for December&nbsp;31, 2006.</DIV></TD>
</TR>

</TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><U><B>Liquidity and Capital Resources, page 24</B></U><BR>
<U><B>Other projects, page 26</B></U>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>12.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><B>We note that you expect to receive advances to the Nambe Pueblo in the amount
of $661,600 related to the project that was discontinued in March&nbsp;2008. We further
note that you expect to receive cash advances, but have yet to negotiate terms. Please
tell us, and revise to disclose, the status of you negotiations to receive such
advances. Furthermore, please tell us why you expect to receive the full amount of the
advances given that the project has been discontinued and you have no negotiated
agreement on repayment terms. We may have further comment upon receipt of your
response.</B></DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">RESPONSE: In future filings, the Company will disclose additional details of the status
of its negotiations with the Nambe tribe regarding repayment of advances. The
development agreement between the Company and the Nambe tribe provides that the Company
is entitled to recoup its advances from future gaming development, even if the Company
does not ultimately develop the project. The Nambe tribe has confirmed in writing that
it is obligated to repay the reimbursable advances. In addition, the Nambe tribe has
informed management that it intends to develop a small gaming facility with another
developer. Accordingly, management believes that the Nambe tribe has the intent and will
likely have the ability to repay the advances, either using a portion of the project
financing or future cash flows of the project once open.</DIV></TD>
</TR>

</TABLE>
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="left" style="font-size: 10pt; margin-top: 10pt">Securities and Exchange Commission<BR>
Attention: Heather Clark<BR>
Page 8

</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">********
</DIV>



<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">Full House Resorts acknowledges that the Company is responsible for the adequacy and
accuracy of the disclosure in this filing; staff comments or changes to disclosure in
response to staff comments do not foreclose the Commission from taking any action with
respect to the filing; and the Company may not assert staff comments as a defense in any
proceeding initiated by the Commission or any person under the federal securities laws of
the United States.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">Please call the undersigned with any questions or comments you may have regarding this
letter. In addition, please send all written correspondence directly to Mark Miller at 4670
S. Fort Apache Road, Suite&nbsp;190, Las Vegas, Nevada 89147, telecopy (702)&nbsp;221-8101.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 50%">Very truly yours,

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 50%"><U>/s/ Mark Miller</U><BR>
Mark Miller

</DIV>

<DIV align="left" style="margin-top: 10pt">
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<TR>
    <TD width="7%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">cc:</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Full House Resorts, Inc.<br>
Piercy Bowler Taylor &#038; Kern<br>
KKBR&#038;F</DIV></TD>
</TR>
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