Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 13, 2014 | Jun. 29, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Registrant Name | 'EMPIRE RESORTS INC | ' | ' |
Entity Central Index Key | '0000906780 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 36,894,994 | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Public Float | ' | ' | $38,967,765 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $7,526 | $9,063 |
Restricted cash | 1,070 | 1,240 |
Accounts receivable, net | 1,178 | 1,006 |
Prepaid expenses and other current assets | 3,023 | 2,839 |
Total current assets | 12,797 | 14,148 |
Property and equipment, net | 26,155 | 26,568 |
Development costs | 0 | 11,516 |
Other assets | 95 | 217 |
Total assets | 39,047 | 52,449 |
Current liabilities: | ' | ' |
Accounts payable | 2,555 | 2,805 |
Accrued expenses and other current liabilities | 6,041 | 7,405 |
Total current liabilities | 8,596 | 10,210 |
Long-term loan, related party | 17,426 | 17,426 |
Total liabilities | 48,822 | 27,636 |
Stockholders’ (deficit) equity: | ' | ' |
Common stock, $0.01 par value, 150,000 shares authorized, 36,495 and 30,073 shares issued and outstanding in 2013 and 2012, respectively | 365 | 300 |
Additional paid-in capital | 159,027 | 146,083 |
Accumulated deficit | -169,167 | -128,425 |
Total stockholders’ (deficit) / equity | -9,775 | 24,813 |
Total liabilities and stockholders' equity | 39,047 | 52,449 |
Series A [Member] | ' | ' |
Stockholders’ (deficit) equity: | ' | ' |
Preferred stock, 5,000 shares authorized; $0.01 par value | 0 | 0 |
Series B [Member] | ' | ' |
Stockholders’ (deficit) equity: | ' | ' |
Preferred stock, 5,000 shares authorized; $0.01 par value | 0 | 0 |
Total stockholders’ (deficit) / equity | 0 | 0 |
Series E [Member] | ' | ' |
Current liabilities: | ' | ' |
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount, Noncurrent | 22,800 | ' |
Stockholders’ (deficit) equity: | ' | ' |
Preferred stock, 5,000 shares authorized; $0.01 par value | 0 | 6,855 |
Total stockholders’ (deficit) / equity | $1 | $6,855 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Preferred stock, par value (usd per share) | $0.01 | $0.01 |
Preferred stock, shares authorized (shares) | 5,000,000 | 5,000,000 |
Common stock, par value (usd per share) | $0.01 | $0.01 |
Common stock, shares authorized (shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (shares) | 36,495,000 | 29,931,000 |
Common stock, shares outstanding (shares) | 36,495,000 | 29,931,000 |
Series A [Member] | ' | ' |
Preferred stock, per share liquidation value (usd per share) | $1,000 | $1,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Series B [Member] | ' | ' |
Preferred stock, per share liquidation value (usd per share) | $29 | $29 |
Preferred stock, shares issued (shares) | 44,000 | 44,000 |
Preferred stock, shares outstanding (shares) | 44,000 | 44,000 |
Series E [Member] | ' | ' |
Preferred stock, per share redemption value (usd per share) | $10 | $10 |
Preferred stock, shares issued (shares) | 1,731,000 | 1,731,000 |
Preferred stock, shares outstanding (shares) | 1,731,000 | 1,731,000 |
Preferred Stock, Aggregate liquidation value | $31,237 | ' |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | ' | ' |
Gaming | $63,642 | $63,402 |
Food, beverage, racing & other | 12,776 | 12,220 |
Gross revenues | 76,418 | 75,622 |
Less: Promotional allowances | -5,457 | -3,649 |
Net revenues | 70,961 | 71,973 |
Costs and expenses: | ' | ' |
Gaming | 47,129 | 45,700 |
Food, beverage, racing and other | 11,470 | 10,959 |
Selling, general and administrative | 30,743 | 12,895 |
Stock-based compensation | 385 | 647 |
Depreciation | 1,354 | 1,380 |
Total costs and expenses | 91,081 | 71,581 |
Income from operations | -20,120 | 392 |
Amortization of deferred financing costs | -74 | -30 |
Interest expense | -1,331 | -1,063 |
Interest income | 0 | 4 |
(Loss)Income before income taxes | -21,525 | -697 |
Income tax provision | 17 | 16 |
Net loss | -21,542 | -713 |
Undeclared dividends on preferred stock | -5,508 | -1,551 |
Net loss applicable to common shares | ($27,050) | ($2,264) |
Weighted average common shares outstanding, basic (shares) | 35,217 | 29,951 |
Weighted average common shares outstanding, diluted (shares) | 35,217 | 29,951 |
Loss per common share, basic (usd per share) | ($0.77) | ($0.08) |
Loss per common share, diluted (usd per share) | ($0.77) | ($0.08) |
Consolidated_Statements_Of_Sto
Consolidated Statements Of Stockholders' Equity (USD $) | Total | Series B [Member] | Series E [Member] | Common Stock [Member] | Additional Paid-In Capital [Member] | Accum Deficit [Member] |
In Thousands, except Share data, unless otherwise specified | ||||||
Balances, beginning balance at Dec. 31, 2011 | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Declared and paid dividends on preferred stock, shares | ' | ' | ' | 92,000 | ' | ' |
Declared and paid dividends on preferred stock | $0 | $0 | $0 | $0 | $233 | ($233) |
Common stock issued from exercise of rights offering, shares | ' | 0 | 0 | 0 | ' | ' |
Common stock issued from exercise of rights offering | 0 | 0 | 0 | 0 | 0 | 0 |
Stock issuance costs | 0 | 0 | 0 | 1 | -1 | 0 |
Share based compensation, shares | ' | 0 | 0 | 0 | ' | ' |
Stock-based compensation | 647 | 0 | 0 | 0 | 647 | 0 |
Net loss | -713 | 0 | 0 | 0 | 0 | -713 |
Balances, ending balance at Dec. 31, 2012 | 24,813 | 0 | 6,855 | 300 | 146,083 | -128,425 |
Balances, shares, endings balance at Dec. 31, 2012 | ' | 44,000 | 1,731,000 | 30,073,000 | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' |
Stock Redeemed or Called During Period, Shares | ' | ' | -1,703,000 | ' | ' | ' |
Stock Redeemed or Called During Period, Value | -25,619 | ' | -6,854 | ' | 268 | -19,033 |
Declared and paid dividends on preferred stock, shares | ' | 0 | ' | 76,000 | ' | ' |
Declared and paid dividends on preferred stock | -1 | 0 | ' | 1 | 166 | -167 |
Common stock issued from exercise of rights offering, shares | -314,000 | 0 | 0 | 314,000 | ' | ' |
Common stock issued from exercise of rights offering | 1,013 | 0 | 0 | 3 | 1,010 | ' |
Common stock issued from exercise of rights offering, shares | ' | ' | ' | 6,032,000 | ' | ' |
Common stock issued from exercise of rights offering | 11,398 | ' | ' | 60 | 11,338 | 0 |
Stock issuance costs | -222 | 0 | 0 | 1 | -223 | 0 |
Share based compensation, shares | ' | 0 | 0 | 0 | ' | ' |
Stock-based compensation | 385 | 0 | 0 | 0 | 385 | 0 |
Net loss | -21,542 | 0 | 0 | 0 | 0 | -21,542 |
Balances, ending balance at Dec. 31, 2013 | ($9,775) | $0 | $1 | $365 | $159,027 | ($169,167) |
Balances, shares, endings balance at Dec. 31, 2013 | ' | 44,000 | 28,000 | 36,495,000 | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | ' | ' |
Net loss | ($21,542) | ($713) |
Adjustments to reconcile net loss to net cash (used) /provided by operating activities: | ' | ' |
Depreciation | 1,354 | 1,380 |
(Recovery) / provision for doubtful accounts | -36 | 25 |
Development costs write off | 16,003 | 0 |
Loss on disposal of property and equipment | 91 | 94 |
Stock-based compensation | 385 | 647 |
Changes in operating assets and liabilities: | ' | ' |
Restricted cash -NY Lottery and Purse Accounts | 128 | -43 |
Accounts receivable | -136 | 447 |
Prepaid expenses and other current assets | -184 | -71 |
Other assets | 122 | 964 |
Accounts payable | -251 | 727 |
Accrued expenses and other current liabilities | -276 | -408 |
Net cash (used) / provided by operating activities | -4,342 | 3,049 |
Net cash (used) / provided by operating activities | ' | ' |
Purchase of property and equipment | -1,036 | -548 |
Restricted cash - Racing capital improvement | 43 | 157 |
Project development costs | -5,574 | -8,197 |
Net cash used in investing activities | -6,567 | -8,588 |
Cash flows from financing activities: | ' | ' |
Proceeds from rights offering, net of expenses | 11,178 | 0 |
Series E preferred shares and dividend redemption | -2,819 | 0 |
Proceeds from exercise of stock options | 1,013 | 1 |
Net cash used in financing activities | 9,372 | 1 |
Net increase (decrease) in cash and cash equivalents | -1,537 | -5,538 |
Cash and cash equivalents, beginning of period | 9,063 | ' |
Cash and cash equivalents, end of period | 7,526 | 9,063 |
Supplemental disclosures of cash flow information: | ' | ' |
Interest paid | 1,325 | 1,044 |
Income taxes paid | 17 | 15 |
Non-cash investing and financing activities: | ' | ' |
Common stock issued in settlement of preferred stock dividends | 167 | 233 |
Deferred lease costs included in accrued expenses | $0 | $2,362 |
Organization_And_Nature_Of_Bus
Organization And Nature Of Business | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Organization and Nature Of Business | ' |
Organization and Nature of Business | |
The consolidated balance sheets as of December 31, 2013 and 2012, and the consolidated statements of operations, stockholders’ equity and cash flows for the years ended December 31, 2013 and 2012 include the accounts of Empire Resorts, Inc. (“Empire”) and subsidiaries (collectively the “Company”). | |
Liquidity | |
The accompanying consolidated financial statements have been prepared on a basis that contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The Company anticipates that its current cash and cash equivalents balances and cash generated from operations will be sufficient to meet its working capital requirements for at least the next twelve months. Whether these resources are adequate to meet the Company’s liquidity needs beyond that period will depend on its growth and operating results. We will require additional capital resources in the event we are granted a destination gaming resort license, for which purpose we may seek to enter into strategic agreements, joint ventures or similar agreements or we may sell additional debt or equity in public or private transactions. The sale of additional equity could result in additional dilution to the Company’s existing stockholders and financing arrangements may not be available to it, or may not be available in amounts or on terms acceptable to it. | |
Nature of Business | |
Through Empire’s wholly-owned subsidiary, Monticello Raceway Management, Inc. (“MRMI”), the Company currently owns and operates Monticello Casino and Raceway, a 45,000 square foot video gaming machine (“VGM”) and harness horseracing facility located in Monticello, New York, 90 miles northwest of New York City. Monticello Casino and Raceway operates 1,110 VGMs, which includes 1,090 video lottery terminals (“VLTs”) and 20 electronic table game positions (“ETGs”). VGMs are similar to slot machines, but they are connected to a central system and report financial information to the central system. The Company also generates racing revenues through pari-mutuel wagering on the running of live harness horse races, the import simulcasting of harness and thoroughbred horse races from racetracks across the country and internationally, and the export simulcasting of its races to offsite pari-mutuel wagering facilities. | |
In December 2012, MRMI entered into a master development agreement (the "MDA") with EPT Concord II, LLC ("EPT") to develop 1,500 acres located at the site of the former Concord Resort in Sullivan County, New York (the "EPT Property"), which is owned by EPT and EPR Concord II, LP, each a wholly-owned subsidiary of EPR Properties Trust ("EPR"). The parties envision developing a comprehensive resort destination that will provide year-round indoor and outdoor activities, including hotels, spas, salons, entertainment, dining, retail, golf, high tech meeting and convention spaces and casino gaming (the "Project"). The initial phase of the Project contemplates the development of a casino and hotel by MRMI (the "Casino Project"). Over the past three years, the Company has expended substantial energy on designing the Casino Project and, in conjunction with EPR, working with local and state agencies and officials to obtain the necessary permits and approvals to begin construction. The Company intends to apply for a destination gaming resort license, which is described in more detail below, which would allow the Casino Project to include a full-scale casino. The development of the Project and the Casino Project is contingent upon various conditions, including obtaining all necessary governmental approvals, as described in the MDA, and the Company's ability to obtain necessary financing. | |
Regulation | |
On February 1, 2013, the New York State Gaming Commission (“NYSGC”) became effective. The NYSGC was formally created via Chapter 60 of the Laws of 2012 as part of the 2012/2013 Enacted State Budget. The legislation merged the New York Racing and Wagering Board ("RWB") with the New York Lottery ("NYL") into a single state agency. The legislation that created the NYSGC provides that the Board of the NYSGC shall consist of seven members. As of March 12, 2014, five members have been appointed to the Board of the NYSGC. The NYSGC has the authority and responsibility to promulgate rules and regulations. The legislation specifies that all rules, regulations, acts, orders, determinations and decisions of the NYL and RWB shall continue as rules, regulations, acts, orders, determinations and decisions of the NYSGC until modified or abrogated by the NYSGC and all of the functions and powers and obligations and duties of the RWB and NYL were transferred to the NYSGC. Our VGM, harness horseracing and simulcast activities in the State of New York are overseen by the NYSGC. | |
On July 30, 2013, the Upstate New York Gaming Economic Development Act (“Gaming Act”) (as more fully discussed below) was enacted. On November 5, 2013, a constitutional amendment was passed in the general voter referendum to permit full-scale gambling in New York State. Pursuant to the Gaming Act, the NYSGC is authorized to award up to four (4) upstate destination gaming resort licenses. Up to two (2) destination gaming resorts could be located in the region in which we are located consisting of Columbia, Delaware, Dutchess, Greene, Orange, Sullivan and Ulster counties (“Hudson Valley-Catskill Area”). In accordance with the Gaming Act, a siting board selected by the NYSGC (the “Siting Board”) is charged with selecting applicants that are qualified to receive a destination gaming resort license and determining the location of such destination gaming resorts. The NYSGC is not required to issue a license if the Siting Board determines that there are no qualified applicants in a specific region. The NYSGC's website provides that casino siting and operators are expected to be formally announced in early Fall 2014. | |
If the Company were to be awarded a destination gaming resort license by the NYSGC, the Gaming Act | |
provides the tax rate on slot machines would be 39% and the tax rate on table games would be 10%. However, an applicant may agree to supplement the tax with a binding supplemental fee. The Gaming Act imposes a $500 annual fee on each slot machine and table game. In addition, the Gaming Act requires the maintenance of the horsemen and breeder payments at the 2013 dollar level to be adjusted annually pursuant to changes in the consumer price index. A racetrack location awarded a destination gaming resort license shall maintain racing activity and race dates. If the Company is not awarded a destination gaming resort license, and the Company were to continue its operations at Monticello Casino and Raceway, the Gaming Act provides that MRMI would receive its current NYL commission rate and would receive an additional commission from NYL based on a rate related to the effective tax rate on all gross gaming revenue at a destination gaming resort(s), if any, developed in the Hudson Valley-Catskill Area. | |
In a letter dated December 23, 2013, the NYSGC assigned to MRMI the race dates requested for the months of January through April of 2014. The NYSGC has not yet approved MRMI's racetrack and simulcast license renewal applications for calendar year 2014. Generally, the annual license renewal process requires the NYSGC to review the financial responsibility, experience, character and general fitness of MRMI and its management. | |
Future Development | |
EPT Concord II, LLC, ("EPT"), and EPR Concord II, LP, each a wholly owned subsidiary of EPR Properties are the sole owners of 1,500 acres located at the site of the former Concord Resort (the “EPT Property”). On December 14, 2012 (the "Effective Date"), EPT and MRMI entered into a master development agreement (the “MDA”) to develop the EPT Property. The MDA defines and governs the overall relationship between EPT and MRMI with respect to the development, construction, operation, management and disposition of the integrated destination resort and community (the "Project") to be developed by the parties on the EPT Property. The term of the MDA commenced on the Effective Date and shall expire on the earlier of (i) the earliest date on which the Casino Project, the Golf Course Project and the Initial Resort Project (as such terms are defined below and in the MDA) are all open to the general public for business and (ii) sooner termination pursuant to the terms of the MDA. The parties also agreed to continue to cooperate in good faith on the on-going development plans and have agreed to share certain mutually agreed upon expenses. Either party has the right to terminate the MDA prior to the execution of a lease. Following the payment of any additional amounts accrued pursuant to the MDA as the date of termination, neither party shall have any obligations under the MDA. | |
The parties envision MRMI developing a comprehensive resort destination that includes a casino and a harness racetrack and may also include one or more hotels, food and beverage outlets, a spa facility, retail venues, space for conferences, meetings, entertainment and special events in a multi-purpose conference space supported by separate meeting rooms and parking facilities (the “Casino Project”). In addition to the Casino Project, the Project is expected to include a golf course and a resort including a variety of amenities. | |
In accordance with the terms of the MDA, MRMI shall be responsible for the development and construction of the Casino Project. MRMI shall then be responsible for maintaining and operating the Casino Project in accordance with the operating standards contained in the Casino Lease (as defined in the MDA), to be entered into by and between EPT and MRMI prior to the commencement of construction on the Casino Project. MRMI and EPT agreed to cooperate with each other and appropriate governmental authorities and to provide such information as may be reasonably requested by such governmental authorities, in order to obtain and maintain all gaming licenses required to operate the Casino Project. The development of the Project is contingent upon various conditions, including obtaining necessary governmental approval, as fully set forth in the MDA, and the Company's ability to obtain necessary financing. | |
In addition, the parties have agreed that the Project will include an aggregate total “qualified capital investment” of $600 million on the development of the Project in accordance with statutory guidelines, the compliance with which the parties agree is essential to the success and viability of the Project. MRMI has agreed to invest a minimum of $300 million in the development and construction of the Casino Project. | |
On December 21, 2011 (the “Option Effective Date”), MRMI entered into an option agreement with EPT, which was last amended by a letter agreement dated November 22, 2013, between EPT and MRMI (as amended, the “Option Agreement”) . Pursuant to the Option Agreement, EPT granted us a sole and exclusive option (the “Option”) to lease certain portions of the EPT Property pursuant to the terms of a lease negotiated between the parties our rights and obligations pursuant to the Option Agreement are subject to certain existing EPT agreements. | |
In connection with the Option Agreement, we paid EPT option payments in the amount of $750,000 on December 21, 2011 and on March 8, 2013, MRMI paid EPT a pro-rated option payment in the amount of $472,603. On September 18, 2013, EPT’s Board of Directors provided an irrevocable notice to proceed with the development of the EPT Property in accordance with the terms of the MDA. MRMI provided EPT with a certificate of the MRMI Board of Directors which waives MRMI's right to terminate the MDA (as set forth above). Therefore, all payments made by MRMI to EPT pursuant to the Option Agreement as of that date, which total $1,222,603, have become non-refundable. In December 2013 MRMI made an option payment to EPT in the amount of $250,000. As of December 31, 2013 approximately $1.5 million has been expensed. | |
In the process of obtaining necessary governmental approval, on March 8, 2012, EPT and MRMI presented an overview of the master plan for redevelopment of the EPT Property to the Town of Thompson Town Board ("Town Board") and formally submitted the proposed redevelopment plan to the Town of Thompson for an assessment of its environmental impact as prescribed by the State Environmental Quality Review provisions of the New York Environmental Conservation Law ("SEQR"). The SEQR hearing was held on August 28, 2012. The SEQR process was continued by the Town Board on January 2, 2013, when the Town Board accepted a Final Environmental Impact Statement for the entire Project, including Phase I, namely, the Casino Project. On January 15, 2013, the Town Board, as Lead Agency, issued an Environmental Findings Statement for the entire development project and held public hearings on the proposed zoning amendments to the Planned Resort Development provisions of the zoning law of the Town of Thompson and regarding a new Comprehensive Development Plan ("CDP") for the entire project site. After the close of the public hearings, the Town Board unanimously approved the zoning amendments and also approved the CDP for the entire project site. | |
On February 13, 2013, EPT and MRMI filed a site plan application for Phase I and a subdivision application for the EPT Property with the Town of Thompson Planning Board ("Planning Board") and the Planning Board conducted an informal review of those applications with representatives of EPT and MRMI. The site plan application describes the facilities that will be developed during Phase I. On March 13, 2013, there was a joint public hearing before the Planning Board on the site plan application for Phase I and the subdivision application. On April 10, 2013, the Planning Board granted preliminary site plan approval for Phase I and preliminary subdivision approval for the EPT Property. On July 10, 2013 the Planning Board granted final site plan approval for Phase I. MRMI will be required to submit detailed construction plans to the Town, and receive other regulatory approvals, including approvals from the U.S. Army Corps of Engineers and the New York State departments of Environmental Conservation, Transportation, and Health, prior to the commencement of construction. | |
On March 19, 2013, the County of Sullivan Industrial Development Agency (“IDA”) approved a Resolution (1) taking official action authorizing the issuance of revenue bonds to enable MRMI to use the industrial development revenue bonds for the financing of the Casino Project; (2) describing the forms of financial assistance being contemplated by the IDA to include: (i) an exemption from New York State (“State”) and local sales and use taxes with respect to certain items used in, or for the acquisition, construction and equipping of, the Casino Project, estimated to be $15 million, (ii) the grant of one or more Mortgage liens on IDA's interest in the Casino Project to secure the bonds and/or any other indebtedness incurred by or for the benefit of MRMI in connection with the Casino Project, which Mortgages would be exempt from all mortgage recording taxes imposed in the State, estimated to be $1.1 million, and (iii) a partial (or full) real property tax abatement, estimated to be $126 million over sixteen (16) years; and (3) appointing MRMI as IDA's agent to undertake the Casino Project. Fees for the utilization of the bonds and other financial assistance would be paid by MRMI to the IDA. | |
Rights Offering | |
On April 30, 2013, the Company commenced a rights offering of common stock to holders of its common stock and Series B Preferred Stock (the "April 2013 Rights Offering") which expired on May 30, 2013. At the completion of the April 2013 Rights Offering, the Company issued a total of 6,032,153 shares of common stock, raised approximately $11.4 million in gross proceeds and incurred approximately $223,000 in expenses. The Company has used a portion of the net proceeds of the April 2013 Rights Offering to fund the expenses of the Company’s Casino Project (defined above), which includes permitting, | |
infrastructure and shared master planning costs and expenses, and for general working capital purposes. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Summary of Significant Accounting Policies | ' | |||||||
Summary of Significant Accounting Policies | ||||||||
Revenue recognition and Promotional allowances | ||||||||
Gaming revenue is the net difference between gaming wagers and payouts for prizes from VGMs, non-subsidized free play and accruals related to the anticipated payout of progressive jackpots. Progressive jackpots contain base jackpots that increase at a progressive rate based on the credits played and are charged to revenue as the amount of the jackpots increase. The Company recognizes gaming revenues before deductions of such related expenses as NYL’s share of VGM revenue and the Monticello Harness Horsemen’s Association (the “MHHA”) and Agriculture and New York State Horse Breeding Development Fund’s contractually required percentages. | ||||||||
Food, beverage, racing and other revenue, includes food and beverage sales, racing revenue earned from pari-mutuel wagering on live harness racing and simulcast signals to and from other tracks and miscellaneous income. The Company recognizes racing revenues before deductions of such related expenses as purses, stakes and awards. Some elements of the racing revenues from Off-Track Betting Corporations (“OTBs”) are recognized as collected, due to uncertainty of receipt of and timing of payments. | ||||||||
Net revenues are recognized net of certain sales incentives in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Certification (“ASC”) 605-50, “Revenue Recognition—Customer Payments and Incentives”. | ||||||||
The retail value of complimentary food, beverages and other items provided to the Company’s guests is included in gross revenues and then deducted as promotional allowances. The estimated cost of providing such food, beverage and other items as promotional allowances is included in food, beverage, racing and other expense. In addition, promotional allowances include non-subsidized free play offered to the Company’s guests based on their relative gaming worth and prizes included in certain promotional marketing programs. | ||||||||
The retail value amounts included in promotional allowances for the years ended December 31, 2013 and 2012 are as follows: | ||||||||
Year ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Food and beverage | $ | 1,835 | $ | 1,605 | ||||
Non-subsidized free play | 3,106 | 1,459 | ||||||
Players club awards | 516 | 585 | ||||||
Total retail value of promotional allowances | $ | 5,457 | $ | 3,649 | ||||
The estimated cost of providing complimentary food, beverages and other items for the years ended December 31, 2013 and 2012 are as follows: | ||||||||
Year ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Food and beverage | $ | 2,154 | $ | 1,605 | ||||
Non-subsidized free play | 1,832 | 861 | ||||||
Players club awards | 516 | 585 | ||||||
Total cost of promotional allowances | $ | 4,502 | $ | 3,051 | ||||
Principles of consolidation | ||||||||
The consolidated financial statements include Empire’s accounts and their wholly-owned subsidiaries. All significant inter-company balances and transactions are eliminated in consolidation. | ||||||||
Cash and cash equivalents | ||||||||
Cash and cash equivalents include cash on account, demand deposits and certificates of deposit with original maturities of three months or less at acquisition. The Company maintains significant cash balances with financial institutions, which are not covered by the Federal Deposit Insurance Corporation. The Company has not incurred any losses in such accounts and believes it is not exposed to any significant credit risk on cash. Approximately $841,000 of cash is held in reserve in accordance with NYSGC regulations. The Company granted the NYL a security interest in the segregated cash account used to deposit NYL’s share of net win in accordance with the NYSGC Rules and Regulations. | ||||||||
Restricted cash | ||||||||
The Company has four types of restricted cash accounts. | ||||||||
Under New York State Racing, Pari-Mutual Wagering and Breeding Law, MRMI is obliged to withhold a certain percentage of certain types of racing and pari-mutuel wagers towards the establishment of a pool of money, the use of which is restricted to the funding of approved capital improvements. Periodically during the year, MRMI petitions the NYSGC to certify that the noted expenditures are eligible for reimbursement from the capital improvement fund. The balance in this account was approximately $42,000 and $85,000 at December 31, 2013 and 2012, respectively. | ||||||||
Pursuant to its contract with the Monticello Harness Horsemen’s Association (the “MHHA”) the Company established an account to segregate amounts collected and payable to the MHHA as defined in that contract. The balance in this account was approximately $229,000 and $251,000 at December 31, 2013 and 2012, respectively. | ||||||||
In April 2005, the New York law governing VGM operations was modified to provide an increase in the revenues retained by the VGM operator. A portion of that increase was designated as a reimbursement of marketing expenses incurred by the VGM operator. The amount of revenues directed toward this reimbursement is deposited in a bank account under the control of the NYL (now NYSGC) and the VGM operator. The funds are transferred from this account to the VGM operator upon the approval by NYSGC officials of the reimbursement requests submitted by the VGM operator. The balance in this account was approximately $399,000 and $504,000 at December 31, 2013 and 2012, respectively. | ||||||||
In connection with the Company’s VGM operations, it agreed to maintain a restricted bank account with a balance of $400,000. The NYSGC can make withdrawals directly from this account if they have not received their share of net win when due. As of December 31, 2013, there were no withdrawals made from this account. | ||||||||
Accounts receivable | ||||||||
Accounts receivable, net of allowances, are stated at the amount the Company expects to collect. When required, an allowance for doubtful accounts is recorded based on information on the collectability of specific accounts. Accounts are considered past due or delinquent based on contractual terms, how recently payments have been received and the Company’s judgment of collectability. In the normal course of business, the Company settles wagers for other racetracks and is exposed to credit risk. These wagers are included in accounts receivable. Account balances are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. As of December 31, 2013 and December 31, 2012, the Company recorded an allowance for doubtful accounts of approximately $166,000 and $202,000, | ||||||||
Property and equipment | ||||||||
Property and equipment is stated at cost less accumulated depreciation. The Company provides for depreciation on property and equipment used by applying the straight-line method over the following estimated useful lives: | ||||||||
Assets | Estimated | |||||||
Useful | ||||||||
Lives | ||||||||
Vehicles | 5-10 years | |||||||
Furniture, fixtures and equipment | 5-10 years | |||||||
Land improvements | 20 years | |||||||
Building improvements | 40 years | |||||||
Buildings | 40 years | |||||||
Deferred financing costs | ||||||||
Deferred financing costs are amortized on the straight-line method over the term of the related debt. | ||||||||
Project Development Costs | ||||||||
Previously, we capitalized our development costs for the Casino Project because such development was to be a VGM facility. However, with the enactment of the Gaming Act in 2013 and the subsequent referendum approving a constitutional amendment in November 2013 to permit destination gaming resorts in New York, we will now apply, in a competitive environment, for a destination gaming resort license for the Casino Project, and we do not believe that it is probable that we will develop a VGM facility. As it is not certain that we will obtain a destination resort license necessary for the Casino Project, such expenditures cannot be capitalized; according, during the fourth quarter of 2013, we expensed approximately $16.0 million of previously capitalized costs. All costs incurred for the Casino Project as a destination gaming resort pursuant to the Gaming Act will now be expensed until we are awarded a destination gaming resort license for the Casino Project. | ||||||||
Through December 31, 2013, the total Project and Casino Project development costs incurred were approximately $17.9 million. The $17.9 million consisted of $10.4 million in architectural fees, $1.9 million for shared development expenses with EPR, $2.3 million in legal, $1.0 million in construction manager costs,$865,000 in consultants and other professional services, and $1.5 million of non-refundable payments pertaining to the Option Agreement with EPR. | ||||||||
Impairment of long-lived assets | ||||||||
The Company periodically reviews the carrying value of its long-lived assets in relation to historical results, as well as management’s best estimate of future trends, events and overall business climate. If such reviews indicate an issue as to whether that the carrying value of such assets may not be recoverable, the Company will then estimate the future cash flows generated by such assets (undiscounted and without interest charges). If such future cash flows are insufficient to recover the carrying amount of the assets, then impairment is triggered and the carrying value of any impaired assets would then be reduced to fair value. | ||||||||
Loss contingencies | ||||||||
There are times when non-recurring events may occur that require management to consider whether an accrual for a loss contingency is appropriate. Accruals for loss contingencies typically relate to certain legal proceedings, customer and other claims and litigation. As required by generally accepted accounting principles in the United States of America (“GAAP”), the Company determines whether an accrual for a loss contingency is appropriate by assessing whether a loss is deemed probable and can be reasonably estimated. The Company analyzes its legal proceedings and other claims based on available information to assess potential liability. The Company develops its views on estimated losses in consultation with outside counsel handling its defense in these matters, which involves an analysis of potential results assuming a combination of litigation and settlement strategies. The Company recognized no loss contingencies for 2013 and 2012. | ||||||||
Earnings (loss) per common share | ||||||||
The Company computes basic earnings (loss) per share by dividing net income (loss) applicable to common shares by the weighted-average common shares outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution of earnings that could occur if securities or contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings (loss) of the entity. Since the effect of common stock equivalents is anti-dilutive with respect to losses, these common stock equivalents have been excluded from the Company’s computation of loss per common share. Therefore, basic and diluted loss per common share for the years ended December 31, 2013 and 2012 were the same. | ||||||||
The following table shows the approximate number of common stock equivalents outstanding at December 31, 2013 and 2012 that could potentially dilute basic earnings per share in the future, but were not included in the calculation of diluted loss per share for the years ended December 31, 2013 and 2012, because their inclusion would have been anti-dilutive. | ||||||||
Outstanding at December 31, | ||||||||
2013 | 2012 | |||||||
Options | 1,890,000 | 2,204,000 | ||||||
Warrants | 1,083,000 | 1,083,000 | ||||||
Option Matching Rights | 999,000 | 1,276,000 | ||||||
Restricted stock | 163,000 | 100,000 | ||||||
Shares to be issued upon conversion of long-term loan, related party | 6,575,000 | 6,575,000 | ||||||
Total | 10,710,000 | 11,238,000 | ||||||
Fair value | ||||||||
The Company follows the provisions of ASC 820, “Fair Value Measurement,” issued by the FASB for financial assets and liabilities. This standard defines fair value, provides guidance for measuring fair value, requires certain disclosures and discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost). The Company chose not to elect the fair value option as prescribed by FASB, for its financial assets and liabilities that had not been previously carried at fair value. The Company’s financial instruments are comprised of current assets, current liabilities and a long-term loan. Current assets and current liabilities approximate fair value due to their short-term nature. As of December 31, 2013 and 2012, the Company’s management was unable to estimate reasonably the fair value of the long-term loan due to the inability to obtain quotes for similar credit facilities. | ||||||||
Advertising | ||||||||
The Company records as current operating expense the costs of general advertising, promotion and marketing programs at the time those costs are incurred. Advertising expense was approximately $885,000 and $1.0 million for the years ended December 31, 2013 and 2012, respectively. | ||||||||
Stock-based compensation | ||||||||
The cost of all share-based awards to employees, including grants of employee stock options and restricted stock, is recognized in the financial statements based on the fair value of the awards at grant date. The fair value of stock option awards is determined using the Black-Scholes valuation model on the date of grant. The fair value of restricted stock awards is equal to the market price of Empire’s common stock on the date of grant. The fair value of share-based awards is recognized as stock-based compensation expense on a straight-line basis over the requisite service period from the date of grant. As of December 31, 2013, there was approximately $610,000 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Company’s equity compensation plan. That cost is expected to be recognized over a period of 3.00 years. This expected cost does not include the impact of any future stock-based compensation awards. | ||||||||
Income taxes | ||||||||
The Company applies the asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates for the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. | ||||||||
Estimates and assumptions | ||||||||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from estimates. | ||||||||
Reclassifications | ||||||||
Certain prior year amounts in the income statement have been reclassified to conform to the current year presentation. All reclassified amounts were between gaming expenses, food, beverage, racing and other costs and expenses and selling, general and administrative expenses. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and Equipment | ' | |||||||
Property and Equipment | ||||||||
Property and equipment at December 31 consists of: | ||||||||
(in thousands) | ||||||||
2013 | 2012 | |||||||
Land | $ | 770 | $ | 770 | ||||
Land improvements | 1,672 | 1,619 | ||||||
Buildings | 4,727 | 4,727 | ||||||
Building improvements | 25,571 | 24,875 | ||||||
Vehicles | 273 | 261 | ||||||
Furniture, fixtures and equipment | 3,357 | 3,712 | ||||||
Construction in Progress | 256 | 136 | ||||||
36,626 | 36,100 | |||||||
Less—Accumulated depreciation | (10,471 | ) | (9,532 | ) | ||||
$ | 26,155 | $ | 26,568 | |||||
Depreciation expense was approximately $1.4 million for years ended December 31, 2013 and 2012, respectively. | ||||||||
The VGMs in the Company’s facility are owned by the NYSGC and, accordingly, the Company's consolidated financial statements include neither the cost nor the depreciation of those devices. |
Project_Development_Costs
Project Development Costs | 12 Months Ended | |
Dec. 31, 2013 | ||
Project Development Costs [Abstract] | ' | |
Project Development Costs | ' | |
Project Development Costs | ||
On December 21, 2011 (the “Option Effective Date”), MRMI entered into an option agreement with EPT, which was last amended by a letter agreement dated November 22, 2013, between EPT and MRMI (as amended, the “Option Agreement”) . Pursuant to the Option Agreement, EPT granted us a sole and exclusive option (the “Option”) to lease certain portions of the EPT Property pursuant to the terms of a lease negotiated between the parties our rights and obligations pursuant to the Option Agreement are subject to certain existing EPT agreement. | ||
Pursuant to the Option Agreement, (i) MRMI may extend the Option Exercise Period End Date (as that term is defined in the Option Agreement) for up to twelve months (the “First Extended Option Exercise Period”) from November 30, 2013 to November 30, 2014 by making monthly option payments (each an “Option Payment”) and (ii) the Final Option Exercise Outside Date (as that term is defined in the Option Agreement) will be extended to a date that is 120 days from the earliest to occur of specified triggers relating to whether MRMI is chosen to receive a license to operate one of seven non-trial casinos authorized by the Gaming Act or 60 days from when affiliates of MRMI enter into an agreement to develop a non-tribal casino with someone other than MRMI (each a “Trigger Event”). If a Trigger Event occurs, EPT may, in its sole discretion, extend the Final Option Exercise Outside Date by a maximum of 90 days and, before the Final Option Exercise Outside Date, waive such Trigger Event in writing (in which case the Option Agreement would continue as if such Trigger Event had not occurred). If a Trigger Event has not occurred as of the end of the First Extended Option Exercise Period, (i) MRMI may extend the Option Exercise Period End Date by up to an additional twelve months (the “Second Extended Option Exercise Period”) from November 30, 2014 to November 30, 2015 by making monthly Option Payments at a higher amount. If a Trigger Event has not occurred as of the end of the Second Extended Option Exercise Period, MRMI may extend the Option Exercise Period End Date on a monthly basis until the occurrence of a Trigger Event by making monthly Option Payments at an even higher amount. If MRMI exercises the Option and the Casino Lease for the EPT Property is executed between the Parties, any additional amounts paid by MRMI as Option Payments shall constitute prepaid rent and shall be applied against amounts due to EPT as rent under the Casino Lease. | ||
If a Trigger Event occurs, EPT shall have the immediate right to discuss or negotiate with any other entity with respect to developing a casino or seeking a gaming license regarding the EPT Property and, if MRMI has not exercised the Option by the applicable Final Option Exercise Outside Date, EPT shall have the immediate right to enter into an agreement with another entity to develop a casino or seek a gaming license with respect to the EPT Property. Pursuant to the letter agreement that amended the Option Agreement dated August 30, 2013, between EPT and MRMI (the "Letter Agreement"), EPT granted to MRMI the option to purchase the EPT Property together with the other property owned by EPT at the site of the former Concord Resort, which option is exercisable upon the occurrence of a Trigger Event or any time between May 1, 2015 and June 30, 2015, at book value as of the date of the Letter Agreement plus capitalized expenses incurred by EPT after the date of the Letter Agreement through the purchase date and related to the development of the property. | ||
Pursuant to the terms of the Letter Agreement: | ||
1 | On the date EPT’s Board of Directors provided an irrevocable notice to proceed with the development of the EPT Property in accordance with the terms of the Master Development Agreement, executed by the parties on December 14, 2012, all payments made by MRMI to EPT pursuant to the Option Agreement to date, which total $1,222,603, became non-refundable. | |
2 | EPT entered into an agreement with Aquatic Development Group to be the water park developer and operator for the project at the EPT property (a “Second Tenant Commitment”). In connection with the receipt of a Second Tenant Commitment, MRMI agreed to reimburse certain out-of-pocket costs and expenses incurred by such tenant, subject to a cap. | |
3 | The Parties executed the Master Declaration. | |
4 | During the term of the Letter Agreement and other agreements of the Parties, MRMI will make good faith efforts to pursue a casino license. If MRMI fails to diligently pursue a casino license, MRMI shall notify EPT and the Final Option Exercise Outside Date shall be 60 days following the receipt of such notice by EPT. | |
5 | MRMI provided EPT a certificate of the MRMI Board of Directors which, in substance, waives MRMI’s right to terminate the MDA pursuant to Section 14.21 thereof and prohibits MRMI, unless the Option terminates due to the occurrence of a Trigger Event, so long as EPT has provided its notice to proceed, the Master Declaration has been executed and EPT is not in breach of the Option Agreement or any other agreements between the parties, from building or operating a full-scale non-tribal casino in its defined region under the Gaming Act anywhere other than at the EPT Property or building or operating a VGM facility anywhere other than at MRMI’s existing site or at the EPT Property for a period of five years following the termination of the Option Agreement.In connection with the Option Agreement, we paid EPT option payments in the amount of $750,000 on December 21, 2011 and on March 8, 2013, MRMI paid EPT a pro-rated option payment in the amount of $472,603. On September 18, 2013, EPT’s Board of Directors provided an irrevocable notice to proceed with the development of the EPT Property in accordance with the terms of the MDA. MRMI provided EPT with a certificate of the MRMI Board of Directors which waives MRMI's right to terminate the MDA (as set forth above). Therefore, all payments made by MRMI to EPT pursuant to the Option Agreement as of that date, which total $1,222,603, have become non-refundable. On December 30, 2013, MRMI made an option payment to EPT in the amount of $250,000. |
Accrued_Expenses_and_Other_Cur
Accrued Expenses and Other Current Liabilities | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accrued Expenses and Other Current Liabilities | ' | |||||||
Accrued Expenses and Other Current Liabilities | ||||||||
Accrued expenses and other current liabilities are comprised of the following at December 31, 2013 and 2012: | ||||||||
(in thousands) | ||||||||
2013 | 2012 | |||||||
Liability for horseracing purses | $ | 473 | $ | 950 | ||||
Accrued payroll | 1,300 | 1,143 | ||||||
Accrued redeemable points | 393 | 392 | ||||||
Liability to NYL | 521 | 404 | ||||||
Liability for local progressive jackpot | 768 | 556 | ||||||
Accrued professional fees | 1,406 | 3,172 | ||||||
Accrued other | 1,180 | 788 | ||||||
Total accrued expenses and other current liabilities | $ | 6,041 | $ | 7,405 | ||||
LongTerm_Loan_Related_Party
Long-Term Loan, Related Party | 12 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
Long-Term Loan, Related Party | ' |
Long-Term Loan, Related Party | |
On November 17, 2010, Empire entered into a loan agreement (the "Loan Agreement") with Kien Huat Realty III Limited ("Kien Huat"), our largest shareholder, pursuant to which Kien Huat made a loan (the "Kien Huat Loan") represented by a convertible promissory note (the "Kien Huat Note") in the principal amount of $35 million and which had an interest rate of 5%. The Company paid down the principle of the Kien Huat Note in the amount of approximately $17.6 million from the proceeds of the rights offering the Company consummated in May 2011. The maturity date for the Kien Huat Note was May 17, 2013. | |
On August 8, 2012, the Company and Kien Huat entered into Amendment No. 1 (the “Amendment”) to the Loan Agreement. Pursuant to the Amendment, the maturity date of the loan made pursuant to the Loan Agreement (the “Loan”) was extended from May 17, 2013 to December 31, 2014. In consideration of the extension of the maturity date of the Loan, effective as of the Amendment Date, the rate of interest was amended to be 7.5% per annum in place of 5% per annum. In addition, the Company agreed to pay Kien Huat upon execution a one-time fee of $174,261, or 1% of the outstanding principal | |
amount of the Loan as of the date of the Amendment. | |
On December 18, 2013, the Company and Kien Huat entered into Amendment No. 2 (the “Second Amendment”) to the Loan Agreement, dated November 17, 2010 and amended on August 8, 2012, by and between the Company and Kien Huat (as amended, the “Loan Agreement”). Pursuant to the Second Amendment, the maturity date of the loan made pursuant to the Loan Agreement (the “Loan”) was extended from December 31, 2014 to March 15, 2015. In consideration of the extension of the maturity date of the Loan, the Company agreed to pay Kien Huat a onetime fee of $25,000. In addition, the Company agreed to pay the out-of-pocket legal fees and expenses incurred by Kien Huat in an amount not to exceed $20,000. Except for these amendments, the Loan Agreement remains unchanged and in full force and effect. | |
Subject to and upon compliance with the provisions of the Loan Agreement, Kien Huat has the right to convert all or any portion of the principal sum evidenced by the Kien Huat Note such that the unconverted portion is $1,000 or a multiple of $1.00 in excess thereof into fully paid and non-assessable shares of Empire’s common stock at a conversion rate of initially 377 shares of common stock per $1,000 in principal amount, which represents a conversion price of approximately $2.65 per share, subject to adjustment in accordance with the Loan Agreement. | |
If, as of any date during the term (the “Measuring Date”), the average of the last reported bid prices of Empire’s common stock for the 20 days consecutive trading days as defined in the Loan Agreement, ending on the trading day prior to the Measuring Date exceeds 200% of the conversion price in effect on the Measuring Date, then Empire is entitled to elect that Kien Huat convert all of the principal sum evidenced by the Kien Huat Note into shares of its common stock in accordance with the terms and provisions of the Loan Agreement. If Empire does not elect to force conversion of the Kien Huat Note and there have been no events of default as defined in the Loan Agreement, Empire may voluntarily prepay the Loan in whole or in part, with all interest accrued through the applicable period, absent notice from Kien Huat of its election to convert the Kien Huat Note. | |
The Company consummated its rights offering on May 20, 2011 and the proceeds were used to satisfy approximately $17.6 million of the Loan. Pursuant to the Loan Agreement, the Company has satisfied the conditions to extend the maturity date of the Loan to May 17, 2013. The Company recognized approximately $1.3 million and $1.1 million in interest expense associated with the Loan during the years ended December 31, 2013 and 2012, respectively. |
Bryanston_Settlement_Notes
Bryanston Settlement (Notes) | 12 Months Ended |
Dec. 31, 2013 | |
Bryanston Settlement [Abstract] | ' |
Bryanston Settlement Agreement | ' |
Bryanston Settlement Agreement | |
Effective as of June 30, 2013 (the “Closing Date”), the Company, Kien Huat, Colin Au Fook Yew (“Au”) and Joseph D'Amato (“D'Amato” and, together with the Company, Kien Huat and Au, the “Company Parties”) consummated the closing of a Settlement Agreement and Release (the “Settlement Agreement”) with Stanley Stephen Tollman (“Tollman”) and Bryanston Group, Inc. (“Bryanston Group” and, together with Tollman, the “Bryanston Parties”). Pursuant to the Settlement Agreement, the Company Parties and the Bryanston Parties agreed to the settlement of certain claims relating to shares of Series E Preferred Stock of the Company (the “Preferred Stock”) held by the Bryanston Parties and that certain Recapitalization Agreement, dated December 10, 2002, by and between, among others, the Bryanston Parties and a predecessor to the Company (the “Recapitalization Agreement”), pursuant to which the Bryanston Parties acquired the Preferred Stock. On the Closing Date, the Recapitalization Agreement terminated and ceased to have any further force and effect as between the Bryanston Parties and the Company. | |
In consideration for the mutual release of all claims, Empire shall redeem, purchase and acquire the Preferred Stock from the Bryanston Parties in accordance with the following timeline and payment schedule and based upon the closing by the Company of third party financing in an aggregate amount sufficient to enable the Company to complete the construction of its Casino Project (the “Concord Event”). | |
On June 30, 2013 all Preferred Stock held by Tollman was redeemed for approximately $1.5 million. | |
On December 31, 2013, a payment of all dividends accrued and unpaid since December 10, 2002 (the “Accrued Dividends”), of approximately $1.3 million, on Tollman's Preferred Stock, which was redeemed on June 30, 2013, was paid. | |
If the Concord Event had occurred on or before December 31, 2013, all Preferred Stock and Accrued Dividends held by Bryanston would have been redeemed at $22.8 million from funds legally available to the Company to effect such payment. | |
If the Concord Event occurs after December 31, 2013 and on or before June 30, 2014, all Preferred Stock and Accrued Dividends held by Bryanston redeemed for an amount between $22.8 million and $28.0 million from funds legally available to the Company to effect such payment pro-rated based upon the actual number of days after December 31, 2013 the date that the Preferred Stock is redeemed. | |
If the Concord Event occurs after June 30, 2014 and on or before December 31, 2014, all Preferred Stock held by Bryanston redeemed for an amount between $28.0 million and the $10 Liquidation Value of the Preferred Stock (as such term is defined in the Recapitalization Agreement) and all Accrued Dividends as of December 31, 2014 from funds legally available to the Company to effect such payment prorated based upon the actual number of days after December 31, 2013 the date that the Preferred Stock is redeemed. | |
If the Concord Event does not occur before December 31, 2014, the Annual Dividend for calendar year 2014 shall be paid to Bryanston in the amount of approximately $1.2 million prior to the thirtieth (30th) day following December 31, 2014 from funds legally available to the Company to effect such payment. | |
If the Concord Event occurs after December 31, 2014 and on or before June 30, 2015, all Preferred Stock held by Bryanston shall be redeemed for an amount equal to the Liquidation Value and Accrued Dividends as of the date of the Concord Event from funds legally available to the Company to effect such payment. | |
If the Concord Event does not occur by June 30, 2015, 150,000 shares of Bryanston's Preferred Stock shall be redeemed on June 30, 2016 for $1.5 million. An additional 150,000 shares of Preferred Stock shall be redeemed for $1.5 million on each June 30 for the next three years from funds legally available to the Company to effect such payment. The balance of the Preferred Stock shall be redeemed in an amount equal to the Liquidation Value and Accrued Dividends on June 30, 2020 from funds legally available to the Company to effect such payment. | |
As a result of the Settlement Agreement, and pursuant to ASC 480, the Series E Preferred Stock became contractually redeemable subject to the terms and conditions of the Settlement Agreement and has been classified as a liability on the accompanying balance sheet. The amount of the liability of $22.8 million is the amount at which it would be settled if the redemption occurred as of the balance sheet date. The difference between the carrying amount and the amount recorded in the balance sheet at December 31, 2013 pursuant to the Settlement Agreement has been reflected as a deemed dividend during the twelve months ended December 31, 2013. |
Stockholders_Equity
Stockholders Equity | 12 Months Ended |
Dec. 31, 2013 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholders' Equity | ' |
Stockholders’ Equity | |
Authorized Capital | |
On February 16, 2011, Empire filed an amended and restated certificate of incorporation (the “Amended Charter”) with the Secretary of State of the State of Delaware. The Amended Charter amended Empire’s prior Amended and Restated Certificate of Incorporation, by: (1) increasing Empire’s authorized capital stock from 100 million shares, consisting of 95 million shares of common stock and 5 million shares of preferred stock, to a total of 155 million shares, consisting of 150 million shares of common stock and 5 million shares of preferred stock (the “Authorized Capital Amendment”); and (2) eliminating the classified board provisions and providing for the annual election of all directors (the “Declassification Amendment”). The Authorized Capital Amendment and the Declassification Amendment were each approved by the requisite vote of Empire’s stockholders at a special meeting of stockholders held on February 16, 2011. | |
Common Stock | |
On March 28, 2011, Empire commenced its rights offering, which expired on May 20, 2011. All holders of Empire’s common stock were granted the non-transferrable right to purchase 0.18917 shares of Empire’s common stock at a price of $2.65 per share for each share they hold. | |
On May 20, 2011 the rights offering was consummated and Empire’s stockholders validly subscribed for 6,628,925 shares of common stock, resulting in total gross proceeds of approximately $17.6 million, which were used to repay the Kien Huat Loan (see Note G). Kien Huat exercised its entire allocation of basic subscription rights in the rights offering and acquired an additional 6,608,794 of Empire’s common shares. As of the date of the rights offering Kien Huat is the beneficial holder of 18,254,246 shares of Empire’s common stock, representing approximately 60% of its voting power. | |
On April 30, 2013, Empire commenced a rights offering (the "April 2013 Rights Offering") which expired on May 30, 2013. At the completion of the April 2013 Rights Offering, the Company issued a total of 6,032,153 shares of common stock and raised approximately $11.4 million in gross proceeds. The Company has used the net proceeds of the April 2013 Rights Offering, which was approximately $11.2 million following the deduction of expenses relating to the April 2013 Rights Offering, to fund the expenses of the Company’s Casino Project, which includes permitting, infrastructure and shared master planning costs and expenses, and for general working capital purposes. | |
On August 19, 2009, the Company entered into an investment agreement with Kien Huat (the “Investment Agreement”), pursuant to which Kien Huat purchased shares of Empire’s common stock for the aggregate proceeds of $55 million in two tranches during the year ended December 31, 2009. Under the Investment Agreement, if any options or warrants outstanding at the time of the final closing under the Investment Agreement are exercised, Kien Huat has the right to purchase an equal number of additional shares of common stock as are issued upon such exercise at the exercise price for the applicable option or warrant, which right the Company refers to herein as the “Option Matching Right”. During the year ended December 31, 2011, the Company granted approximately 27,000 Option Matching Rights at a weighted average exercise price of $5.20 and an aggregate fair value of $46,000 to Kien Huat, pursuant to the Investment Agreement. As of December 31, 2012, there were approximately $1.3 million Option Matching Rights issued to Kien Huat outstanding at a weighted average exercise price of $8.93. | |
Under the terms of the Investment Agreement, Kien Huat is entitled to recommend three directors whom the Company is required to cause to be elected or appointed to its Board of Directors (the “Board”) and approved by stockholders, subject to the satisfaction of all legal and governance requirements regarding service as a member of its Board and to the reasonable approval of the Governance Committee of the Board. Kien Huat will continue to be entitled to recommend three directors for so long as it owns at least 24% of the Company’s voting power outstanding at such time, after which the number of directors whom Kien Huat will be entitled to designate for election or appointment to the Board will be reduced proportionally to Kien Huat’s percentage of ownership. Under the Investment Agreement, for so long as Kien Huat is entitled to designate representatives to the Board, among other things, Kien Huat will have the right to nominate one of its director recommendations to serve as the Chairman of the Board. Until such time as Kien Huat ceases to own capital stock with at least 30% of the Company’s voting power outstanding at such time, the Board will be prohibited under the terms of the Investment Agreement from taking certain actions relating to fundamental transactions involving Empire and its subsidiaries and certain other matters without the affirmative vote of the directors recommended by Kien Huat. | |
The Company’s common stock is transferable only subject to the provisions of Section 303 of the Racing, Pari-Mutuel Wagering and Breeding Law, so long as it holds directly or indirectly, a racing license issued by the New York State Gaming Commission (formerly the New York Racing and Wagering Board), and may be subject to compliance with the requirements of other laws pertaining to licenses held directly or indirectly by it. The owners of common stock issued by the Company may be required by regulatory authorities to possess certain qualifications and may be required to dispose of their common stock if the owner does not possess such qualifications. | |
Preferred Stock and Dividends | |
The Company’s Series B Preferred Stock has voting rights of 0.8 votes per share and each share is convertible into 0.8 shares of its common stock. It has a liquidation value of $29 per share and is entitled to annual cumulative dividends of $2.90 per share payable quarterly in cash. The Company has the right to pay the dividends on an annual basis by issuing shares of its common stock at the rate of $3.77 per share. The value of common shares issued as payment is based upon the average closing price for the common shares for the 20 trading days preceding January 30 of the year following that for which the dividends are due. At December 31, 2013 and 2012, there were 44,258 shares of Series B Preferred Shares outstanding. | |
On February 19, 2014, our Board authorized the issuance of 30,833 shares of our common stock in payment of dividends due for the year ended December 31, 2013 on our Series B Preferred Stock. The recorded value of these shares was approximately $218,000. At December 31, 2013, the Company had undeclared dividends on the Series B Preferred Stock of approximately $218,000. | |
On February 12, 2013, our Board authorized the issuance of 75,530 shares of our common stock in payment of dividends due for the year ended December 31, 2012 on our Series B Preferred Stock. The recorded value of these shares was approximately $167,000. At December 31, 2012, the Company had undeclared dividends on the Series B Preferred Stock of approximately $167,000. | |
The Company’s Series E Preferred Stock is non-convertible and has no fixed date for redemption or liquidation. It has a redemption value of $10 per share plus accrued but unpaid dividends. It is entitled to cumulative dividends at the annual rate of 8% of redemption value and the holders of these shares are entitled to voting rights of 0.25 per share. Dividends on common stock and certain other uses of the Company’s cash are subject to restrictions for the benefit of holders of the Series E Preferred Stock. | |
On June 30, 2013 all Preferred Stock held by Stanley Tollman was redeemed for approximately $1.5 million. On December 31, 2013, the Company paid Stanley Tollman cumulative undeclared dividends on the Series E Preferred Stock of $1.3 million that he held prior to it being redeemed.. | |
At December 31, 2013, the Company had cumulative undeclared dividends on its Series E Preferred Stock of approximately $503,000. There can be no assurance that we will have, at any time, sufficient surplus under Delaware law to be able to pay any dividends. |
Stock_Options_and_Warrants
Stock Options and Warrants | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||
Stock Options And Warrants | ' | ||||||||||
Stock Options and Warrants | |||||||||||
On November 12, 2009, Kien Huat has, with the Company’s consent, assigned its Option Matching Rights to a director with respect to an existing option to purchase 83,333 shares of Empire’s common stock at an exercise price of $3.42 per share. The Option Matching rights expire on April 26, 2014 and were valued at approximately $673,000 using the Black-Scholes valuation model. As of December 31, 2013, all 83,333 Option Matching Rights granted to the director were outstanding. | |||||||||||
On November 9, 2010, the Compensation Committee of the Board approved the grant of the following options to the Company’s directors and certain executive officers in consideration of their continued service to the Company: (i) an option granted to each of the Company’s six non-employee directors to purchase 13,333 shares of Empire’s common stock at an exercise price of $2.79 per share, which vest in equal portions annually over a three year period from the grant date or upon the grantee’s involuntary dismissal from the Board, if earlier; (ii) an option granted to the Company’s Chief Executive Officer to purchase 160,000 shares of Empire’s common stock at an exercise price of $2.79 per share, which vest in equal portions annually over a three year period from the grant date; (iii) an option granted to the Chairman of the Board to purchase 466,667 shares of Empire’s common stock at an exercise price of $2.79 per share, which vest in equal portions annually over a three year period from the grant date; and (iv) an option granted to the Company’s Senior Vice President, Chief Counsel and Chief Compliance Officer (formerly VP of Legal Affairs) to purchase 26,667 shares of Empire’s common stock at an exercise price of $2.79 per share, which vest in equal portions annually over a three year period from the grant date. | |||||||||||
On May 11, 2010, as part of a legal settlement with the Company’s former CEO, it paid its former CEO consideration of $1.5 million, inclusive of legal fees, and issued warrants to purchase an aggregate of 1.1 million shares of Empire’s common stock at $6.00 per share, as follows: (i) 83,333 shares with an expiration date of May 10, 2015; (ii) 333,333 shares with an expiration date of May 10, 2015; and (iii) 666,667 shares with an expiration date of May 10, 2020, which may be exercised on a cashless basis and cannot be exercised until the warrants to purchase 416,666 shares described in clauses (i) and (ii) above have been exercised in full. The warrants were recorded as legal settlement expense and valued at approximately $5.6 million. | |||||||||||
As of December 31, 2013, the Company has 3.5 million shares reserved for issuance in connection with its Second Amended and Restated 2005 Equity Incentive Plan and there are approximately 1,368,000 securities remaining available for future issuance under this plan. | |||||||||||
Stock-based compensation expense is approximately $385,000 and $647,000 for the years ended December 31, 2013 and 2012, respectively. As of December 31, 2013, there was approximately $610,000 of total unrecognized compensation cost related to non-vested share-based compensation awards granted under the Company’s plan. That cost is expected to be recognized over the remaining vesting period of three years. This expected cost does not include the impact of any future stock-based compensation awards. | |||||||||||
In 2013 the Company received approximately $1.0 million in proceeds from shares of Common stock issued as a result of the exercise of stock options. The Company did not receive any proceeds from shares of Common stock issued as a result of the exercise of stock options in 2012. | |||||||||||
The following table sets forth the weighted average assumptions used in applying the Black Sholes option pricing model to the option grants in 2013 and 2012. | |||||||||||
2013 | 2012 | ||||||||||
Weighted average fair value of options granted | $ | 3.78 | $ | 1.24 | |||||||
Expected dividend yield | —% | —% | |||||||||
Expected volatility | 103.8 | % | 109.4 | % | |||||||
Risk—free interest rate | 1.47 | % | 0.67 | % | |||||||
Expected life of options | 5 years | 5 years | |||||||||
The following table reflects stock option activity in 2013 and 2012. | |||||||||||
Approximate | Range of exercise | Weighted | Weighted | ||||||||
number of | prices per share | average exercise | average remaining | ||||||||
shares | price per share | contractual life (years) | |||||||||
Options outstanding at January 1, 2012 | 2,676,000 | $ | 6.93 | 1.77 | |||||||
Granted in 2012 | 50,000 | 1.59 | $ | 1.59 | 4.85 | ||||||
Canceled in 2012 | (522,000 | ) | $ 4.71 - $26.22 | $ | 12.84 | ||||||
Options outstanding at December 31, 2012 | 2,204,000 | $ | 8.45 | 2.26 | |||||||
Granted in 2013 | 50,000 | $4.95 | $ | 4.95 | 4.87 | ||||||
Options exercised in 2013 | (314,000 | ) | $2.79 - $4.71 | $ | 3.23 | ||||||
Canceled in 2013 | (50,000 | ) | $4.71 - $42.75 | $ | 12.84 | ||||||
Options outstanding at December 31, 2013 | 1,890,000 | $ | 6.63 | 1.46 | |||||||
Options exercisable at December 31, 2013 | 1,891,000 | $ | 5.7 | 1.39 | |||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Income Taxes | ' | |||||||
Income Taxes | ||||||||
Empire and all of its subsidiaries file a consolidated income tax return. At December 31, 2013 and 2012, the estimated deferred income tax assets and liability were comprised of the following: | ||||||||
(in thousands) | ||||||||
2013 | 2012 | |||||||
Deferred tax assets: | ||||||||
Net operating loss carry forwards | $ | 55,171 | $ | 48,727 | ||||
Other | 10,962 | 8,158 | ||||||
66,133 | 56,885 | |||||||
Deferred tax liability: | ||||||||
Depreciation | (301 | ) | (311 | ) | ||||
Net deferred tax assets | 65,832 | 56,574 | ||||||
Valuation allowance | (65,832 | ) | (56,574 | ) | ||||
Deferred tax assets, net | $ | — | $ | — | ||||
The valuation allowance increased approximately $9.3 million during the year ended December 31, 2013 and the valuation allowance decreased approximately $7.4 million during the year ended December 31, 2012. Of the $139.3 million approximately $39.5 million is readily available as of December 31, 2013. | ||||||||
The following is a reconciliation of the federal statutory tax rate to the Company’s effective tax rate: | ||||||||
Year ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Tax provision at federal statutory tax rate | 35 | % | 35 | % | ||||
State income taxes, net | (0.1 | )% | (1.4 | )% | ||||
Permanent items | (0.3 | )% | (17.2 | )% | ||||
Expiration of net operating loss carry forwards | — | % | (141.1 | )% | ||||
Change in valuation allowance | (34.7 | )% | 122.4 | % | ||||
Other taxes | — | % | — | % | ||||
Non-includable (income) expenses | — | % | — | % | ||||
Effective tax rate | (0.1 | )% | (2.3 | )% | ||||
There are limits on the Company’s ability to use its current net operating loss carry forwards, potentially increasing future tax liability. As of December 31, 2013, the Company had net operating loss carry forwards of approximately $139.3 million that expire between 2013 and 2033. The 2004 merger of the Company’s operations with Catskills Development LLC and the investment by Kien Huat in 2009 will limit the amount usable in any year of its net operating losses due to the change in control of the Company within the meaning of the tax laws. | ||||||||
As of December 31, 2013, the Company does not have any uncertain tax positions. As a result, there are no unrecognized tax benefits as of December 31, 2013. If the Company was to incur any interest and penalties in connection with income tax deficiencies, the Company would classify interest in the “interest expense” category and classify penalties in the “non-interest expense” category within the consolidated statements of operations. | ||||||||
The Company files tax returns in the U.S. federal jurisdiction and in various states. All of its federal and state tax filings as of December 31, 2012 have been timely filed. The Company is subject to U.S. federal or state income tax examinations by tax authorities for years after 2008. During the periods open to examination, the Company has net operating loss and tax credit carry forwards that have attributes from closed periods. Since these net operating loss and tax credit carry forwards may be utilized in future periods, they remain subject to examination. |
Concentration
Concentration | 12 Months Ended |
Dec. 31, 2013 | |
Risks and Uncertainties [Abstract] | ' |
Concentration | ' |
Concentration | |
The Company has two debtors, before Accounts Receivable allowances that consist of, Western OTB which represents 9% and Suffolk OTB representing approximately 17% of the total outstanding accounts receivable as of December 31, 2013. The Company has two debtors, before Accounts Receivable allowances that consist of, Hawthorne OTB which represents 19% and Suffolk OTB representing approximately 15% of the total outstanding accounts receivable as of December 31, 2012. |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Employee Benefit Plan | ' |
Employee Benefit Plan | |
Our eligible employees may participate in a Company-sponsored 401(k) benefit plan (the “Plan”). The Plan covers substantially all employees not eligible for plans resulting from collective bargaining agreements and permits employees to defer up to 15% of their salary up to statutory maximums. Effective May 2011 the Company makes matching contributions for eligible, other than salaried, employees as follows: 100% matching contribution for an employee contribution of up to 3% of compensation, a matching contribution of 3% of compensation for an employee contribution of 3% to 3.99%, a matching contribution of 3.5% of compensation for an employee contribution of 4% to 4.99% and a matching contribution of 4% of compensation for an employee contribution of 5% or more. Eligible, other than salaried, employees shall be 100% vested in the portion of their accounts derived from the Company’s matching contributions. Matching contributions for the years ended December 31, 2013 and 2012 were approximately $94,000 and $81,000, respectively. As of December 31, 2013, the Plan had 146 participants. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Commitments and Contingencies | ' | |||
Commitments and Contingencies | ||||
Legal Proceedings | ||||
Bryanston Group v. Empire Resorts, Inc. and Bryanston Group v. Kien Huat Realty III, Limited | ||||
Effective as of June 30, 2013 (the “Closing Date”), the Company, Kien Huat, Colin Au Fook Yew (“Au”) and Joseph D’Amato (“D’Amato” and, together with the Company, Kien Huat and Au, the “Company Parties”) entered into a Settlement Agreement and Release (the “Settlement Agreement”) with Stanley Stephen Tollman (“Tollman”) and Bryanston Group, Inc. (“Bryanston Group” and, together with Tollman, the “Bryanston Parties”). Pursuant to the Settlement Agreement, the Company Parties and the Bryanston Parties agreed to the settlement of certain claims relating to shares of Series E Preferred Stock of the Company (the “Preferred Stock”) held by the Bryanston Parties and that certain Recapitalization Agreement, dated December 10, 2002, by and between, among others, the Bryanston Parties and a predecessor to the Company (the “Recapitalization Agreement”), pursuant to which the Bryanston Parties acquired the Preferred Stock. On the Closing Date, the Recapitalization Agreement terminated and ceased to have any further force and effect. | ||||
Monticello Raceway Management, Inc. v. Concord Associates L.P. | ||||
On January 25, 2011, Empire’s subsidiary, MRMI, filed a complaint in the Sullivan County Court against Concord, an affiliate of Louis R. Cappelli who was a significant stockholder. The lawsuit seeks amounts that MRMI believes is owed to it under an agreement between Concord, MRMI and the MHHA (the “2008 MHHA Agreement”). Pursuant to the 2008 MHHA Agreement, until the earlier to occur of the commencement of operations at the gaming facilities to be developed by Concord at the site of the former Concord hotel and former Concord resort or July 31, 2011, MRMI was to continue to pay to the MHHA 8.75% of the net win from VGM activities at Monticello Casino and Raceway, and Concord was to pay the difference, if any, between $5 million per year and 8.75% of the net win from VGM activities (“VGM Shortfall”) during such period. As of December 31, 2010, MRMI believes Concord owed it approximately $300,000 for the VGM Shortfall. Concord has contested its responsibility to make such VGM Shortfall payments to MRMI. In its Decision and Order, dated January 15, 2014, the Sullivan County Supreme Court awarded damages to MRMI in the approximate amount of $308,000 plus interest and costs. On February 4, 2014, Concord filed a Notice of Appeal with the Appellate Division of the New York Supreme Court, Third Division ("Third Division"). We will continue to aggressively pursue our claims in this lawsuit. | ||||
Concord Associates, L.P. v. Entertainment Properties Trust | ||||
On September 18, 2013, the United States District Court for the Southern District of New York (“SDNY”) granted Motions to Dismiss filed by us and all other defendants. This lawsuit was filed in March 2012, by Concord and various affiliates in the United States District Court for the Southern District of New York ("SDNY") and asserted in an amended complaint various federal antitrust claims against us, EPR, EPT, Genting NY LLC and Kien Huat. The lawsuit arises out of our exclusivity agreement and option agreement with EPT to develop the site of the EPT Property located in Sullivan County, New York. Concord brought federal antitrust claims alleging conspiracy in restraint of trade, conspiracy to monopolize and monopolization. Concord also brought state law claims for tortious interference with contract and business relations. Concord sought damages in an amount to be determined at trial but not less than subject to automatic trebling under federal antitrust laws), unspecified punitive damages and permanent injunctive relief. In its decision, the SDNY dismissed Concord’s federal antitrust claims with prejudice and dismissed Concord's state law claims without prejudice. On October 2, 2013, Concord filed a Motion for Reconsideration and on October 18, 2013, Concord filed a Notice of Appeal. On October 22, 2013, the United States Court of Appeals for the Second Circuit issued a Notice of Stay of Appeal pending the outcome of the Motion for Reconsideration. We believe this lawsuit is without merit and we will aggressively defend our interests. | ||||
Concord Associates, L.P. v. Town of Thompson | ||||
On October 2, 2013, the New York Supreme Court in Sullivan County (the “Court”) denied in its entirety the Article 78 petition (the “Petition”) filed by Concord on or about May 14, 2013. The Petition named the Town of Thompson and its Town Board and Planning Board, and EPT as respondents. The proceeding challenged the actions and determinations made by the Town Board and the Planning Board regarding the Project in Sullivan County. MRMI was not named as a respondent. However, an Order was entered permitting intervention by MRMI as an intervenor respondent. On or about October 30, 2013, Concord filed a Notice of Appeal on the Third Department. On March 7, 2014, MRMI filed in the Third Department a motion to dismiss Concord's appeal. In response to the motion, Concord, by letter dated March 13, 2014, notified the Third Department that it was withdrawing its appeal and requested an Order be entered to that effect. As a result, the Court’s decision denying Concord’s Petition is now final and binding. | ||||
Other Proceedings | ||||
The Company is a party from time to time to various other legal actions that arise in the normal course of business. In the opinion of management, the resolution of these other matters will not have a material and adverse effect on its consolidated financial position, results of operations or cash flows. | ||||
Employment Agreements | ||||
Future minimum payments applicable to employment contracts with the Company’s chief executive officer (“CEO”) and other executive officers are as follows (Dollars in thousands): | ||||
2014 | $ | 1,070 | ||
2015 | 375 | |||
2016 | — | |||
$ | 1,445 | |||
Prepaid_Expenses_and_Other_Ass
Prepaid Expenses and Other Assets | 12 Months Ended |
Dec. 31, 2013 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' |
Prepaid Expenses and Other Assets | ' |
Prepaid Expenses and Other Assets | |
The Company participates in a real estate tax program called Empire Zone. The Company receives a refund for real estate taxes paid at the end of State of New York's fiscal year. The amount of the real estate tax credit included in prepaid expenses and other current assets on the accompanying consolidated balance sheet at December 31, 2013 and 2012 was approximately $1.3 million and $1.2 million, respectively. |
Related_Party_Transactions_Not
Related Party Transactions (Notes) | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Related Party Transactions | |
On December 9, 2013, the Company executed a letter agreement (the "Moelis Letter Agreement") pursuant to which it engaged Moelis & Company LLC ("Moelis") to act as its financial advisor in connection with the Project and the Casino Project. Pursuant to the Moelis Letter Agreement, we agreed to pay Moelis a retainer fee in the aggregate amount of $250,000, of which $150,000 was payable upon execution and $100,000 of which was payable 90 days after execution. In the event a financing is consummated, the Moelis Letter Agreement contemplates additional transaction-based fees would be earned by Moelis. | |
Gregg Polle, a director of the Company, is a Managing Director of Moelis. Mr. Polle refrained from participating in the discussion of the Moelis Letter Agreement and the determination of whether to enter into such agreement. |
Subsequent_Events_Notes
Subsequent Events (Notes) | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
Subsequent Events | |
MRMI and the Monticello Harness Horsemen's Association ("MHHA") had an agreement (the "MHHA Agreement")that governed the conduct of MRMI and MHHA relating to horseracing purse payments, the simulcasting of horse races and certain other payments. The MHHA Agreement expired on January 31, 2014. MRMI and MHHA were attempting to negotiate a new agreement and engaged in several mediation sessions in an attempt to reach an agreement. Absent an agreement, MRMI will continue to run live harness races. MRMI races will be simulcast to New York racetracks and Off Track Betting facilities and MRMI will accept simulcast races from New York racetracks. However, because of the federal Interstate Horseracing Act, without a written agreement with the MHHA, which includes permission to simulcast into and out of New York, MRMI has suspended all simulcasting other than intra-state simulcasting. In 2013 and 2012, we generated $4.0 million and $3.6 million, respectively, of revenues from the import and export simulcasting of out-of-state racing, of which $2.0 million and $1.8 million, respectively, were due to the horsemen. | |
On February 28, 2014, Mr. Au Fook Yew resigned from his positions as a member of the Board of Directors of the | |
Company and its subsidiaries, effective immediately. Mr. Au’s resignation was not a result of any disagreement with the Company or its executive officers, or any matter relating to the Company’s operations, policies or practices. | |
On March 1, 2014, Kien Huat Realty III, Ltd. ("Kien Huat") exercised its nomination right pursuant to the Investment Agreement and identified Edmund Marinucci as its nominee to stand for election as a director of the Company to fill the vacancy created by Mr. Au’s resignation. The Nominating Committee reviewed Mr. Marinucci’s qualifications and the needs of the Company and has determined to recommend to the Board that Mr. Marinucci be appointed to the board of directors of the | |
Company and each subsidiary to fill the vacancies resulting from the resignation of Mr. Au. On March 11, 2014, the Board appointed Mr. Marinucci to serve as a director of the Company and each subsidiary. | |
On March 12, 2014, the NYSGC appointed the first three individuals to serve on the Resort Gaming Facility Location Board (“Siting Board”), the body that will be responsible for evaluating casino applications and making selections of who is eligible to apply for a destination gaming resort license in New York State. Pursuant to the Upstate New York Gaming and Economic Development Act (the "Gaming Act"), the NYSGC is responsible for appointing five members to the Siting Board. | |
Also on March 12, 2014, the NYSGC announced that the Siting Board will issue a Request for Applications for destination casino resort applicants by the end of March and that the statutorily mandated outside consultant to provide the Siting Board members with analysis of the gaming industry and assist with the comprehensive review and evaluation of the applications will be selected by the Board in the very near future. | |
On March 13, 2014, EPR Properties ("EPR") held a series of events at which it introduced its ADELAAR development project (see Project in Development section below) in which we participated for which we filed an 8-K on March 13, 2014. |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Acconts (Notes) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | |||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | ' | |||||||||||||||||||
Schedule II—Valuation and Qualifying Accounts | ||||||||||||||||||||
Empire Resorts, Inc. and Subsidiaries | ||||||||||||||||||||
Valuation and Qualifying Accounts | ||||||||||||||||||||
December 31, 2013 and 2012 | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Description | Balance at | Addition | Other | Less | Balance at | |||||||||||||||
beginning of | charged to | additions | deductions | end of year | ||||||||||||||||
year | costs and | (deductions) | ||||||||||||||||||
expenses | ||||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||
Allowance for doubtful accounts | $ | 202 | $ | (36 | ) | $ | — | $ | 166 | |||||||||||
Deferred tax asset valuation allowance | $ | 56,574 | $ | — | $ | 9,258 | $ | — | $ | 65,832 | ||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||
Allowance for doubtful accounts | $ | 177 | $ | 25 | $ | — | $ | — | $ | 202 | ||||||||||
Deferred tax asset valuation allowance | $ | 63,931 | $ | — | $ | (7,357 | ) | $ | — | $ | 56,574 | |||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Revenue recognition and Promotional allowances | ' | |
Revenue recognition and Promotional allowances | ||
Gaming revenue is the net difference between gaming wagers and payouts for prizes from VGMs, non-subsidized free play and accruals related to the anticipated payout of progressive jackpots. Progressive jackpots contain base jackpots that increase at a progressive rate based on the credits played and are charged to revenue as the amount of the jackpots increase. The Company recognizes gaming revenues before deductions of such related expenses as NYL’s share of VGM revenue and the Monticello Harness Horsemen’s Association (the “MHHA”) and Agriculture and New York State Horse Breeding Development Fund’s contractually required percentages. | ||
Food, beverage, racing and other revenue, includes food and beverage sales, racing revenue earned from pari-mutuel wagering on live harness racing and simulcast signals to and from other tracks and miscellaneous income. The Company recognizes racing revenues before deductions of such related expenses as purses, stakes and awards. Some elements of the racing revenues from Off-Track Betting Corporations (“OTBs”) are recognized as collected, due to uncertainty of receipt of and timing of payments. | ||
Net revenues are recognized net of certain sales incentives in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Certification (“ASC”) 605-50, “Revenue Recognition—Customer Payments and Incentives”. | ||
The retail value of complimentary food, beverages and other items provided to the Company’s guests is included in gross revenues and then deducted as promotional allowances. The estimated cost of providing such food, beverage and other items as promotional allowances is included in food, beverage, racing and other expense. In addition, promotional allowances include non-subsidized free play offered to the Company’s guests based on their relative gaming worth and prizes included in certain promotional marketing programs. | ||
Principles of consolidation | ' | |
Principles of consolidation | ||
The consolidated financial statements include Empire’s accounts and their wholly-owned subsidiaries. All significant inter-company balances and transactions are eliminated in consolidation. | ||
Cash and cash equivalents | ' | |
Cash and cash equivalents | ||
Cash and cash equivalents include cash on account, demand deposits and certificates of deposit with original maturities of three months or less at acquisition. The Company maintains significant cash balances with financial institutions, which are not covered by the Federal Deposit Insurance Corporation. The Company has not incurred any losses in such accounts and believes it is not exposed to any significant credit risk on cash. Approximately $841,000 of cash is held in reserve in accordance with NYSGC regulations. The Company granted the NYL a security interest in the segregated cash account used to deposit NYL’s share of net win in accordance with the NYSGC Rules and Regulations. | ||
Restricted cash | ' | |
Restricted cash | ||
The Company has four types of restricted cash accounts. | ||
Accounts receivable | ' | |
Accounts receivable | ||
Accounts receivable, net of allowances, are stated at the amount the Company expects to collect. When required, an allowance for doubtful accounts is recorded based on information on the collectability of specific accounts. Accounts are considered past due or delinquent based on contractual terms, how recently payments have been received and the Company’s judgment of collectability. In the normal course of business, the Company settles wagers for other racetracks and is exposed to credit risk. These wagers are included in accounts receivable. Account balances are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. | ||
Property and equipment | ' | |
Property and equipment | ||
Property and equipment is stated at cost less accumulated depreciation. The Company provides for depreciation on property and equipment used by applying the straight-line method over the following estimated useful lives: | ||
Assets | Estimated | |
Useful | ||
Lives | ||
Vehicles | 5-10 years | |
Furniture, fixtures and equipment | 5-10 years | |
Land improvements | 20 years | |
Building improvements | 40 years | |
Buildings | 40 years | |
Deferred financing costs | ' | |
Deferred financing costs | ||
Deferred financing costs are amortized on the straight-line method over the term of the related debt. | ||
Deferred lease costs | ' | |
Project Development Costs | ||
Previously, we capitalized our development costs for the Casino Project because such development was to be a VGM facility. However, with the enactment of the Gaming Act in 2013 and the subsequent referendum approving a constitutional amendment in November 2013 to permit destination gaming resorts in New York, we will now apply, in a competitive environment, for a destination gaming resort license for the Casino Project, and we do not believe that it is probable that we will develop a VGM facility. As it is not certain that we will obtain a destination resort license necessary for the Casino Project, such expenditures cannot be capitalized; according, during the fourth quarter of 2013, we expensed approximately $16.0 million of previously capitalized costs. All costs incurred for the Casino Project as a destination gaming resort pursuant to the Gaming Act will now be expensed until we are awarded a destination gaming resort license for the Casino Project. | ||
Through December 31, 2013, the total Project and Casino Project development costs incurred were approximately $17.9 million. The $17.9 million consisted of $10.4 million in architectural fees, $1.9 million for shared development expenses with EPR, $2.3 million in legal, $1.0 million in construction manager costs,$865,000 in consultants and other professional services, and $1.5 million of non-refundable payments pertaining to the Option Agreement with EPR. | ||
Impairment of long-lived assets | ' | |
Impairment of long-lived assets | ||
The Company periodically reviews the carrying value of its long-lived assets in relation to historical results, as well as management’s best estimate of future trends, events and overall business climate. If such reviews indicate an issue as to whether that the carrying value of such assets may not be recoverable, the Company will then estimate the future cash flows generated by such assets (undiscounted and without interest charges). If such future cash flows are insufficient to recover the carrying amount of the assets, then impairment is triggered and the carrying value of any impaired assets would then be reduced to fair value. | ||
Loss contingencies | ' | |
Loss contingencies | ||
There are times when non-recurring events may occur that require management to consider whether an accrual for a loss contingency is appropriate. Accruals for loss contingencies typically relate to certain legal proceedings, customer and other claims and litigation. As required by generally accepted accounting principles in the United States of America (“GAAP”), the Company determines whether an accrual for a loss contingency is appropriate by assessing whether a loss is deemed probable and can be reasonably estimated. The Company analyzes its legal proceedings and other claims based on available information to assess potential liability. The Company develops its views on estimated losses in consultation with outside counsel handling its defense in these matters, which involves an analysis of potential results assuming a combination of litigation and settlement strategies. The Company recognized no loss contingencies for 2013 and 2012. | ||
Earnings (loss) per common share | ' | |
Earnings (loss) per common share | ||
The Company computes basic earnings (loss) per share by dividing net income (loss) applicable to common shares by the weighted-average common shares outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution of earnings that could occur if securities or contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings (loss) of the entity. Since the effect of common stock equivalents is anti-dilutive with respect to losses, these common stock equivalents have been excluded from the Company’s computation of loss per common share. Therefore, basic and diluted loss per common share for the years ended December 31, 2013 and 2012 were the same. | ||
Fair value | ' | |
Fair value | ||
The Company follows the provisions of ASC 820, “Fair Value Measurement,” issued by the FASB for financial assets and liabilities. This standard defines fair value, provides guidance for measuring fair value, requires certain disclosures and discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost). The Company chose not to elect the fair value option as prescribed by FASB, for its financial assets and liabilities that had not been previously carried at fair value. The Company’s financial instruments are comprised of current assets, current liabilities and a long-term loan. Current assets and current liabilities approximate fair value due to their short-term nature. As of December 31, 2013 and 2012, the Company’s management was unable to estimate reasonably the fair value of the long-term loan due to the inability to obtain quotes for similar credit facilities. | ||
Advertising | ' | |
Advertising | ||
The Company records as current operating expense the costs of general advertising, promotion and marketing programs at the time those costs are incurred. Advertising expense was approximately $885,000 and $1.0 million for the years ended December 31, 2013 and 2012, respectively. | ||
Stock-based compensation | ' | |
Stock-based compensation | ||
The cost of all share-based awards to employees, including grants of employee stock options and restricted stock, is recognized in the financial statements based on the fair value of the awards at grant date. The fair value of stock option awards is determined using the Black-Scholes valuation model on the date of grant. The fair value of restricted stock awards is equal to the market price of Empire’s common stock on the date of grant. The fair value of share-based awards is recognized as stock-based compensation expense on a straight-line basis over the requisite service period from the date of grant. As of December 31, 2013, there was approximately $610,000 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Company’s equity compensation plan. That cost is expected to be recognized over a period of 3.00 years. This expected cost does not include the impact of any future stock-based compensation awards. | ||
Income taxes | ' | |
Income taxes | ||
The Company applies the asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates for the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. | ||
Estimates and assumptions | ' | |
Estimates and assumptions | ||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from estimates. | ||
Reclassifications | ' | |
Reclassifications | ||
Certain prior year amounts in the income statement have been reclassified to conform to the current year presentation. All reclassified amounts were between gaming expenses, food, beverage, racing and other costs and expenses and selling, general and administrative expenses. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Summary of retail value amounts included in promotional allowances | ' | |||||||
The retail value amounts included in promotional allowances for the years ended December 31, 2013 and 2012 are as follows: | ||||||||
Year ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Food and beverage | $ | 1,835 | $ | 1,605 | ||||
Non-subsidized free play | 3,106 | 1,459 | ||||||
Players club awards | 516 | 585 | ||||||
Total retail value of promotional allowances | $ | 5,457 | $ | 3,649 | ||||
Summary of estimated cost of providing complimentary food, beverages and other items | ' | |||||||
The estimated cost of providing complimentary food, beverages and other items for the years ended December 31, 2013 and 2012 are as follows: | ||||||||
Year ended December 31, | ||||||||
2013 | 2012 | |||||||
(in thousands) | ||||||||
Food and beverage | $ | 2,154 | $ | 1,605 | ||||
Non-subsidized free play | 1,832 | 861 | ||||||
Players club awards | 516 | 585 | ||||||
Total cost of promotional allowances | $ | 4,502 | $ | 3,051 | ||||
Summary of useful lives for property, plant and equipment | ' | |||||||
The Company provides for depreciation on property and equipment used by applying the straight-line method over the following estimated useful lives: | ||||||||
Assets | Estimated | |||||||
Useful | ||||||||
Lives | ||||||||
Vehicles | 5-10 years | |||||||
Furniture, fixtures and equipment | 5-10 years | |||||||
Land improvements | 20 years | |||||||
Building improvements | 40 years | |||||||
Buildings | 40 years | |||||||
Property and equipment at December 31 consists of: | ||||||||
(in thousands) | ||||||||
2013 | 2012 | |||||||
Land | $ | 770 | $ | 770 | ||||
Land improvements | 1,672 | 1,619 | ||||||
Buildings | 4,727 | 4,727 | ||||||
Building improvements | 25,571 | 24,875 | ||||||
Vehicles | 273 | 261 | ||||||
Furniture, fixtures and equipment | 3,357 | 3,712 | ||||||
Construction in Progress | 256 | 136 | ||||||
36,626 | 36,100 | |||||||
Less—Accumulated depreciation | (10,471 | ) | (9,532 | ) | ||||
$ | 26,155 | $ | 26,568 | |||||
Summary of the approximate number of common stock equivalents outstanding | ' | |||||||
The following table shows the approximate number of common stock equivalents outstanding at December 31, 2013 and 2012 that could potentially dilute basic earnings per share in the future, but were not included in the calculation of diluted loss per share for the years ended December 31, 2013 and 2012, because their inclusion would have been anti-dilutive. | ||||||||
Outstanding at December 31, | ||||||||
2013 | 2012 | |||||||
Options | 1,890,000 | 2,204,000 | ||||||
Warrants | 1,083,000 | 1,083,000 | ||||||
Option Matching Rights | 999,000 | 1,276,000 | ||||||
Restricted stock | 163,000 | 100,000 | ||||||
Shares to be issued upon conversion of long-term loan, related party | 6,575,000 | 6,575,000 | ||||||
Total | 10,710,000 | 11,238,000 | ||||||
Property_and_Equipment_Propert
Property and Equipment Property and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and Equipment | ' | |||||||
The Company provides for depreciation on property and equipment used by applying the straight-line method over the following estimated useful lives: | ||||||||
Assets | Estimated | |||||||
Useful | ||||||||
Lives | ||||||||
Vehicles | 5-10 years | |||||||
Furniture, fixtures and equipment | 5-10 years | |||||||
Land improvements | 20 years | |||||||
Building improvements | 40 years | |||||||
Buildings | 40 years | |||||||
Property and equipment at December 31 consists of: | ||||||||
(in thousands) | ||||||||
2013 | 2012 | |||||||
Land | $ | 770 | $ | 770 | ||||
Land improvements | 1,672 | 1,619 | ||||||
Buildings | 4,727 | 4,727 | ||||||
Building improvements | 25,571 | 24,875 | ||||||
Vehicles | 273 | 261 | ||||||
Furniture, fixtures and equipment | 3,357 | 3,712 | ||||||
Construction in Progress | 256 | 136 | ||||||
36,626 | 36,100 | |||||||
Less—Accumulated depreciation | (10,471 | ) | (9,532 | ) | ||||
$ | 26,155 | $ | 26,568 | |||||
Accrued_Expenses_and_Other_Cur1
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accrued expenses and other current liabilities | ' | |||||||
Accrued expenses and other current liabilities are comprised of the following at December 31, 2013 and 2012: | ||||||||
(in thousands) | ||||||||
2013 | 2012 | |||||||
Liability for horseracing purses | $ | 473 | $ | 950 | ||||
Accrued payroll | 1,300 | 1,143 | ||||||
Accrued redeemable points | 393 | 392 | ||||||
Liability to NYL | 521 | 404 | ||||||
Liability for local progressive jackpot | 768 | 556 | ||||||
Accrued professional fees | 1,406 | 3,172 | ||||||
Accrued other | 1,180 | 788 | ||||||
Total accrued expenses and other current liabilities | $ | 6,041 | $ | 7,405 | ||||
Stock_Options_and_Warrants_Tab
Stock Options and Warrants (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||
Schedule of Fair Value Assumptions | ' | ||||||||||
The following table sets forth the weighted average assumptions used in applying the Black Sholes option pricing model to the option grants in 2013 and 2012. | |||||||||||
2013 | 2012 | ||||||||||
Weighted average fair value of options granted | $ | 3.78 | $ | 1.24 | |||||||
Expected dividend yield | —% | —% | |||||||||
Expected volatility | 103.8 | % | 109.4 | % | |||||||
Risk—free interest rate | 1.47 | % | 0.67 | % | |||||||
Expected life of options | 5 years | 5 years | |||||||||
Schedule of Stock Option Activity | ' | ||||||||||
The following table reflects stock option activity in 2013 and 2012. | |||||||||||
Approximate | Range of exercise | Weighted | Weighted | ||||||||
number of | prices per share | average exercise | average remaining | ||||||||
shares | price per share | contractual life (years) | |||||||||
Options outstanding at January 1, 2012 | 2,676,000 | $ | 6.93 | 1.77 | |||||||
Granted in 2012 | 50,000 | 1.59 | $ | 1.59 | 4.85 | ||||||
Canceled in 2012 | (522,000 | ) | $ 4.71 - $26.22 | $ | 12.84 | ||||||
Options outstanding at December 31, 2012 | 2,204,000 | $ | 8.45 | 2.26 | |||||||
Granted in 2013 | 50,000 | $4.95 | $ | 4.95 | 4.87 | ||||||
Options exercised in 2013 | (314,000 | ) | $2.79 - $4.71 | $ | 3.23 | ||||||
Canceled in 2013 | (50,000 | ) | $4.71 - $42.75 | $ | 12.84 | ||||||
Options outstanding at December 31, 2013 | 1,890,000 | $ | 6.63 | 1.46 | |||||||
Options exercisable at December 31, 2013 | 1,891,000 | $ | 5.7 | 1.39 | |||||||
Income_Taxes_Income_Taxes_Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Schedule of Deferred Tax Assets and Liabilities | ' | |||||||
At December 31, 2013 and 2012, the estimated deferred income tax assets and liability were comprised of the following: | ||||||||
(in thousands) | ||||||||
2013 | 2012 | |||||||
Deferred tax assets: | ||||||||
Net operating loss carry forwards | $ | 55,171 | $ | 48,727 | ||||
Other | 10,962 | 8,158 | ||||||
66,133 | 56,885 | |||||||
Deferred tax liability: | ||||||||
Depreciation | (301 | ) | (311 | ) | ||||
Net deferred tax assets | 65,832 | 56,574 | ||||||
Valuation allowance | (65,832 | ) | (56,574 | ) | ||||
Deferred tax assets, net | $ | — | $ | — | ||||
Schedule of Effective Income Tax Rate Reconciliation | ' | |||||||
The following is a reconciliation of the federal statutory tax rate to the Company’s effective tax rate: | ||||||||
Year ended | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Tax provision at federal statutory tax rate | 35 | % | 35 | % | ||||
State income taxes, net | (0.1 | )% | (1.4 | )% | ||||
Permanent items | (0.3 | )% | (17.2 | )% | ||||
Expiration of net operating loss carry forwards | — | % | (141.1 | )% | ||||
Change in valuation allowance | (34.7 | )% | 122.4 | % | ||||
Other taxes | — | % | — | % | ||||
Non-includable (income) expenses | — | % | — | % | ||||
Effective tax rate | (0.1 | )% | (2.3 | )% |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Contractual Obligation, Fiscal Year Maturity Schedule | ' | |||
Future minimum payments applicable to employment contracts with the Company’s chief executive officer (“CEO”) and other executive officers are as follows (Dollars in thousands): | ||||
2014 | $ | 1,070 | ||
2015 | 375 | |||
2016 | — | |||
$ | 1,445 | |||
Organization_And_Nature_Of_Bus1
Organization And Nature Of Business (Details Textual) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | |||||
Apr. 30, 2013 | Mar. 08, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 18, 2013 | Mar. 19, 2013 | Dec. 14, 2012 | Dec. 21, 2011 | |
sqft | agent | |||||||
mi | ||||||||
electronic_table_game | ||||||||
video_gaming_machine | ||||||||
Organization And Nature Of Business (Textual) | ' | ' | ' | ' | ' | ' | ' | ' |
Size of video gaming machine and harness horse racing facility | ' | ' | ' | 45,000 | ' | ' | ' | ' |
Distance northwest of New York City | ' | ' | ' | 90 | ' | ' | ' | ' |
Number of video gaming machines | ' | ' | ' | 1,110 | ' | ' | ' | ' |
Number of electronic table games | ' | ' | ' | 20 | ' | ' | ' | ' |
Tax Rate On Slot Machines | ' | ' | ' | 39.00% | ' | ' | ' | ' |
Tax Rate On Tables | ' | ' | ' | 10.00% | ' | ' | ' | ' |
Annual Binding Supplemental Fee | ' | ' | ' | $500 | ' | ' | ' | ' |
Future minimum payment due on project development project | ' | ' | 600,000,000 | 600,000,000 | ' | ' | ' | ' |
Future minimum payment due on project development project by counterparty | ' | ' | 300,000,000 | 300,000,000 | ' | ' | ' | ' |
Option payment deferred lease costs | ' | ' | 750,000 | 750,000 | ' | ' | ' | 750,000 |
Project developments costs agreement payments | ' | 472,603 | 250,000 | ' | ' | ' | ' | ' |
Amount becoming non-refundable | ' | ' | ' | ' | 1,222,603 | ' | 1,222,603 | ' |
Estimated capital tax allowable | ' | ' | ' | ' | ' | 15,000,000 | ' | ' |
Estimated tax credit allowable for mortgages | ' | ' | ' | ' | ' | 1,100,000 | ' | ' |
Estimated tax abatement | ' | ' | ' | ' | ' | 126,000,000 | ' | ' |
Estimated tax abatement period | ' | ' | ' | ' | ' | '16 years | ' | ' |
Number of agents | ' | ' | ' | ' | ' | 3 | ' | ' |
Common stock issued from exercise of rights offering, shares | 6,032,153 | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of stock, rights issue, gross | 11,400,000 | ' | ' | ' | ' | ' | ' | ' |
Issuance Costs | $223,000 | ' | ' | ' | ' | ' | ' | ' |
EPT Concord II, LLC [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Organization And Nature Of Business (Textual) | ' | ' | ' | ' | ' | ' | ' | ' |
Real estate property (acres) | ' | ' | 1,500 | 1,500 | ' | ' | ' | ' |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Promotional Allowances (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of retail value amounts included in promotional allowances and estimated cost of providing complimentary food, beverages and other items | ' | ' |
Total retail value of promotional allowances | $5,457 | $3,649 |
Total cost of promotional allowances | 4,502 | 3,051 |
Food and beverage [Member] | ' | ' |
Summary of retail value amounts included in promotional allowances and estimated cost of providing complimentary food, beverages and other items | ' | ' |
Total retail value of promotional allowances | 1,835 | 1,605 |
Total cost of promotional allowances | 2,154 | 1,605 |
Non-subsidized free play [Member] | ' | ' |
Summary of retail value amounts included in promotional allowances and estimated cost of providing complimentary food, beverages and other items | ' | ' |
Total retail value of promotional allowances | 3,106 | 1,459 |
Total cost of promotional allowances | 1,832 | 861 |
Players club awards [Member] | ' | ' |
Summary of retail value amounts included in promotional allowances and estimated cost of providing complimentary food, beverages and other items | ' | ' |
Total retail value of promotional allowances | 516 | 585 |
Total cost of promotional allowances | $516 | $585 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Vehicles [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Useful life of property and equipment | '5 years |
Vehicles [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Useful life of property and equipment | '10 years |
Furniture, fixtures and equipment [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Useful life of property and equipment | '5 years |
Furniture, fixtures and equipment [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Useful life of property and equipment | '10 years |
Land Improvements [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Useful life of property and equipment | '20 years |
Building Improvements [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Useful life of property and equipment | '40 years |
Building [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Useful life of property and equipment | '40 years |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Stock option equivalents (Details) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Summary of the approximate number of common stock equivalents outstanding | ' | ' |
Total number of common stock equivalents outstanding | 10,710 | 11,238 |
Options [Member] | ' | ' |
Summary of the approximate number of common stock equivalents outstanding | ' | ' |
Total number of common stock equivalents outstanding | 1,890 | 2,204 |
Warrants [Member] | ' | ' |
Summary of the approximate number of common stock equivalents outstanding | ' | ' |
Total number of common stock equivalents outstanding | 1,083 | 1,083 |
Option matching rights [Member] | ' | ' |
Summary of the approximate number of common stock equivalents outstanding | ' | ' |
Total number of common stock equivalents outstanding | 999 | 1,276 |
Shares to be issued upon conversion of convertible of long-term loan, related party [Member] | ' | ' |
Summary of the approximate number of common stock equivalents outstanding | ' | ' |
Total number of common stock equivalents outstanding | 6,575 | 6,575 |
Restricted stock [Member] | ' | ' |
Summary of the approximate number of common stock equivalents outstanding | ' | ' |
Total number of common stock equivalents outstanding | 163 | 100 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Cash and Restricted Cash (Details) (USD $) | 12 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | |
restricted_cash_account | New York State Racing, Pari-Mutual Wagering And Breeding Law [Member] | New York State Racing, Pari-Mutual Wagering And Breeding Law [Member] | Monticello Harness Horsemens Association [Member] | Monticello Harness Horsemens Association [Member] | VGM New York Governing Law [Member] | VGM New York Governing Law [Member] | VGM New York Governing Law [Member] | |
Minimum [Member] | ||||||||
Restricted Cash and Cash Equivalents Items [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Uninsured cash amounts | $841,000,000 | ' | ' | ' | ' | ' | ' | ' |
Number of restricted cash accounts | 4 | ' | ' | ' | ' | ' | ' | ' |
Restricted cash and cash equivalents | ' | 42,000,000 | 85,000,000 | 229,000 | 251,000 | 399,000 | 504,000 | ' |
Minimum reserve balance | ' | ' | ' | ' | ' | ' | ' | $400,000 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Accounting Policies [Abstract] | ' | ' |
Allowance for doubtful accounts | $166,000 | $202,000 |
Advertising expense | 900,000 | 1,000,000 |
Total unrecognized compensation | $610,000 | ' |
Vesting period for unrecognized compensation cost to be recognized | '3 years | ' |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies Summary of Significant Accounting Policies - Development Costs (Details) (USD $) | 3 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 |
Development Costs [Line Items] | ' | ' |
Project Development Expenses | $16 | ' |
Project development costs incurred | ' | 17.9 |
Architectural Fees [Member] | ' | ' |
Development Costs [Line Items] | ' | ' |
Project development costs incurred | ' | 10.4 |
Shared Development Expenses [Member] | ' | ' |
Development Costs [Line Items] | ' | ' |
Project development costs incurred | ' | 1.9 |
Legal Expense [Member] | ' | ' |
Development Costs [Line Items] | ' | ' |
Project development costs incurred | ' | 2.3 |
Construction Manager Costs [Member] | ' | ' |
Development Costs [Line Items] | ' | ' |
Project development costs incurred | ' | 1 |
Professional Services [Member] | ' | ' |
Development Costs [Line Items] | ' | ' |
Project development costs incurred | ' | 0.9 |
Agreement Payments [Member] | ' | ' |
Development Costs [Line Items] | ' | ' |
Project development costs incurred | ' | $1.50 |
Property_and_Equipment_Propert1
Property and Equipment Property and Equipment (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $36,626 | $36,100 |
Less—Accumulated depreciation | -10,471 | -9,532 |
Property and equipment, net | 26,155 | 26,568 |
Depreciation | 1,354 | 1,380 |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 770 | 770 |
Land Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 1,672 | 1,619 |
Building [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 4,727 | 4,727 |
Building Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 25,571 | 24,875 |
Vehicles [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 273 | 261 |
Furniture, fixtures and equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 3,357 | 3,712 |
Construction in Progress [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $256 | $136 |
Project_Development_Costs_Proj
Project Development Costs Project Development Costs (Details Textual) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | |||||
Mar. 08, 2013 | Dec. 31, 2013 | Sep. 18, 2013 | Dec. 14, 2012 | Dec. 21, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Trigger One [Member] | Trigger Two [Member] | Maximum [Member] | ||||||
Development Costs [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Option exercise period end date, extension, period | ' | ' | ' | ' | ' | '120 days | '60 days | '90 days |
Amount becoming non-refundable | ' | ' | $1,222,603 | $1,222,603 | ' | ' | ' | ' |
Option payment deferred lease costs | ' | 750,000 | ' | ' | 750,000 | ' | ' | ' |
Project developments costs agreement payments | $472,603 | $250,000 | ' | ' | ' | ' | ' | ' |
Accrued_Expenses_and_Other_Cur2
Accrued Expenses and Other Current Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Accounts Payable and Accrued Liabilities, Current | ' | ' |
Liability for horseracing purses | $473 | $950 |
Accrued payroll | 1,300 | 1,143 |
Accrued redeemable points | 393 | 392 |
Liability to NYL | 521 | 404 |
Liability for local progressive jackpot | 768 | 556 |
Accrued professional fees | 1,406 | 3,172 |
Accrued other | 1,180 | 788 |
Total accrued expenses and other current liabilities | $6,041 | $7,405 |
LongTerm_Loan_Related_Party_De
Long-Term Loan, Related Party (Details Textual) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||
Dec. 18, 2013 | Aug. 08, 2012 | 31-May-11 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 17, 2010 | Aug. 08, 2012 | Dec. 18, 2013 | Nov. 17, 2010 | 20-May-11 | 20-May-11 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 17, 2010 | |
Amendment One [Member] | Amendment Two [Member] | Kien Huat Realty Limited [Member] | Kien Huat Realty Limited [Member] | Bridge Loan [Member] | Bridge Loan [Member] | Bridge Loan [Member] | Bridge Loan [Member] | |||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount of promissory note | ' | ' | ' | ' | ' | ' | ' | ' | $1,000 | ' | ' | ' | ' | $35,000,000 |
Bridge Loan bears interest rate | ' | ' | ' | ' | ' | ' | 7.50% | ' | ' | ' | ' | ' | ' | 5.00% |
Debt Instrument, Periodic Payment, Principal | ' | ' | 17,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extend maturity date of Bridge loan | 15-Mar-15 | 31-Dec-14 | ' | ' | ' | ' | ' | ' | ' | ' | 17-May-13 | ' | ' | ' |
Debt instrument loan agreement one-time fee | ' | ' | ' | ' | ' | ' | 174,261 | 25,000 | ' | ' | ' | ' | ' | ' |
Legal fees and expenses paid | ' | ' | ' | ' | ' | ' | ' | 20,000 | ' | ' | ' | ' | ' | ' |
Percentage of fees as of outstanding principal amount | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' |
Provisions for Loan Agreement | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' | ' | ' | ' |
Principal sum evidenced by the Note such that the unconverted portion multiple | ' | ' | ' | ' | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' |
Non-assessable shares of Empire's common stock at a conversion rate (shares) | ' | ' | ' | ' | ' | ' | ' | ' | 377 | ' | ' | ' | ' | ' |
Principal amount, which represents a conversion price (usd per share) | ' | ' | ' | ' | ' | ' | ' | ' | $2.65 | ' | ' | ' | ' | ' |
Average of last reported bid prices common stock for consecutive trading days | ' | ' | ' | ' | ' | ' | ' | ' | '20 days | ' | ' | ' | ' | ' |
Conversion Price in Effect on Measuring Date | ' | ' | ' | ' | ' | ' | ' | ' | 200.00% | ' | ' | ' | ' | ' |
Short-term bridge loan in the principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,600,000 | ' | ' | ' | ' |
Interest expense | ' | ' | ' | $1,331,000 | $1,063,000 | ' | ' | ' | ' | ' | ' | $1,300,000 | $1,100,000 | ' |
Bryanston_Settlement_Details
Bryanston Settlement (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 9 Months Ended | ||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |
Preferred Stock [Member] | Series E [Member] | Series E [Member] | Event Occurs on or Before December 31, 2013 [Member] | Event Occurs after June 30, 2013 and on or Before December 31, 2014 [Member] | Event Occurs After June 30, 2014 and on or Before December 31, 2014 [Member] | Event Does not Occur by June 30, 2015 [Member] | Event Does not Occur by June 30, 2015 [Member] | Minimum [Member] | Maximum [Member] | |||
Mandatorily Redeemable Preferred Stock [Member] | Mandatorily Redeemable Preferred Stock [Member] | Mandatorily Redeemable Preferred Stock [Member] | Mandatorily Redeemable Preferred Stock [Member] | Mandatorily Redeemable Preferred Stock Redeemable Over Three Year Period [Member] | Event Occurs After December 31, 2013 and on or Before December, 31 2014 | Event Occurs After December 31, 2013 and on or Before December, 31 2014 | ||||||
Mandatorily Redeemable Preferred Stock [Member] | Mandatorily Redeemable Preferred Stock [Member] | |||||||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares redeemed | ($25,619,000) | ' | $1,500,000 | ($6,854,000) | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends payable | ' | 1,291,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock payable | ' | ' | ' | 22,800,000 | 22,800,000 | 22,800,000 | 28,000,000 | ' | ' | ' | 22,800,000 | 28,000,000 |
Preferred stock, per share liquidation value (usd per share) | ' | ' | ' | ' | ' | ' | $10 | ' | ' | ' | ' | ' |
Dividends payable upon settlement event | ' | ' | ' | ' | ' | ' | ' | 1,200,000 | ' | ' | ' | ' |
Number of shares redeemable upon settlement event (shares) | ' | ' | ' | ' | ' | ' | ' | ' | 150,000 | 150,000 | ' | ' |
Share value redeemable upon settlement event | ' | ' | ' | ' | ' | ' | ' | ' | $1,500,000 | $1,500,000 | ' | ' |
Redeemable period upon settlement event | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' |
Stockholders_Equity_Authorized
Stockholders Equity - Authorized Capital (Details) | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 16, 2011 | Feb. 15, 2011 |
Stockholders' Equity Note [Abstract] | ' | ' | ' | ' |
Preferred stock, shares authorized (shares) | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 |
Common stock, shares authorized (shares) | 150,000,000 | 150,000,000 | 150,000,000 | 95,000,000 |
Capital stock, shares authorized (shares) | ' | ' | 155,000,000 | 100,000,000 |
Stocholders_Equity_Common_Stoc
Stocholders' Equity - Common Stock (Details) (USD $) | 0 Months Ended | 4 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||||
Apr. 30, 2013 | Aug. 19, 2009 | Dec. 31, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 28, 2011 | Aug. 19, 2009 | 20-May-11 | Dec. 31, 2012 | Nov. 12, 2009 | 20-May-11 | 20-May-11 | Mar. 28, 2011 | |
director | tranche | Minimum [Member] | May 20, 2011 [Member] | Options Matching Right [Member] | Options Matching Right [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | |||||
Kien Huat Realty Limited [Member] | Kien Huat Realty Limited [Member] | ||||||||||||
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock called by each right (shares) | ' | ' | ' | ' | ' | 0.18917 | ' | ' | ' | ' | ' | ' | ' |
Exercise price of right (usd per right) | ' | ' | ' | ' | ' | 2.65 | ' | ' | ' | 3.42 | ' | ' | ' |
Conversion of common stock (shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,628,925 | ' | ' |
Stock issued during the period | ' | ' | ' | ' | ' | ' | ' | $17,600,000 | ' | ' | ' | ' | ' |
Proceeds from issuance of common stock | ' | ' | 55,000,000 | 11,178,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Additional shares puchased by shareholder (shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,608,794 | ' |
Shares owned by shareholder (shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,254,246 |
Percentage of shares owned by shareholder | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% |
Number of trenches proceeds were received in | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rights granted (shares) | ' | ' | ' | ' | ' | ' | ' | ' | 27,000 | ' | ' | ' | ' |
Rights granted, weighted average exercise price (usd per right) | ' | ' | ' | ' | ' | ' | ' | ' | 5.2 | ' | ' | ' | ' |
Aggregate fair value of rights | ' | ' | ' | ' | ' | ' | ' | ' | 46,000 | 673,000 | ' | ' | ' |
Rights outstanding (shares) | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000 | ' | ' | ' | ' |
Rights outstanding, weighted average share price (usd per right) | ' | ' | ' | ' | ' | ' | ' | ' | 8.93 | ' | ' | ' | ' |
Number of director shareholder may recommend | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum ownerhip requirement for recommendation of directors | ' | ' | ' | ' | ' | ' | 24.00% | ' | ' | ' | ' | ' | ' |
Number of directors shareholder may nominate as chairman of board | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum ownership requirement for nomination of Chairman of Board (director) | ' | ' | ' | ' | ' | ' | 30.00% | ' | ' | ' | ' | ' | ' |
Common stock issued from exercise of rights offering, shares | 6,032,153 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from issuance of stock, rights issue, gross | 11,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Issuance of Stock, Rights Issue, Net | $11,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stockholders_Equity_Preferred_
Stockholders' Equity - Preferred Stock (Details) (USD $) | Jun. 30, 2013 | Feb. 12, 2013 | Feb. 19, 2014 | Dec. 31, 2013 | Feb. 19, 2014 | Jun. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 |
Subsequent Event [Member] | Series B [Member] | Series B [Member] | Series B [Member] | Series B [Member] | Common Stock [Member] | Series E [Member] | |||
vote_per_stock | vote_per_stock | ||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Voting rights per stock (vote per stock) | ' | ' | ' | 0.8 | ' | ' | ' | ' | 0.25 |
Shares convertible for each stock (shares) | ' | ' | ' | 0.8 | ' | ' | ' | ' | ' |
Preferred stock, per share liquidation value (usd per share) | ' | ' | ' | $29 | ' | ' | ' | ' | ' |
Dividends declared per share (usd per share) | ' | ' | ' | $2.90 | ' | ' | ' | ' | ' |
Price per share on issuable shares (usd per share) | ' | ' | ' | ' | ' | ' | ' | $3.77 | ' |
Number of trading dates used to calculated price per share | ' | ' | ' | ' | ' | ' | ' | '20 days | ' |
Preferred stock, shares outstanding (shares) | ' | ' | ' | 44,258 | ' | ' | 44,258 | ' | ' |
Common stock dividends (shares) | ' | 75,530 | 30,833 | ' | ' | ' | ' | ' | ' |
Common stock dividends, declared and undeclared | ' | ' | ' | $167,000 | $218,000 | ' | ' | ' | ' |
Common stock dividends, undeclared | ' | ' | ' | 218,000 | ' | 1,300,000 | 167,000 | ' | ' |
Preferred stock, per share redemption value (usd per share) | ' | ' | ' | ' | ' | ' | ' | ' | $10 |
Preferred stock, dividend rate | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% |
Redemption of preferred stock | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Cumulative dividends undeclared | ' | ' | ' | ' | ' | ' | ' | ' | $500,000 |
Stock_Options_and_Warrants_Det
Stock Options and Warrants (Details) (USD $) | 0 Months Ended | 12 Months Ended | |
Nov. 09, 2010 | Dec. 31, 2013 | Dec. 31, 2012 | |
nonemployee_director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of non-employee directors allowed options | 6 | ' | ' |
Shares granted (shares) | ' | 50,000 | 50,000 |
Exercise price (usd per share) | ' | $4,950 | $1,590 |
Total unrecognized compensation | ' | $610,000 | ' |
Vesting period for unrecognized compensation cost to be recognized | ' | '3 years | ' |
Proceeds from stock options exercised | ' | 1,013,000 | 1,000 |
Non-Employee Directors [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Shares granted (shares) | 13,333 | ' | ' |
Exercise price (usd per share) | 2.79 | ' | ' |
Vesting period | '3 years | ' | ' |
Chief Executive Officer [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Shares granted (shares) | 160,000 | ' | ' |
Exercise price (usd per share) | 2.79 | ' | ' |
Vesting period | '3 years | ' | ' |
Board of Directors Chairman [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Shares granted (shares) | 466,667 | ' | ' |
Exercise price (usd per share) | 2.79 | ' | ' |
Vesting period | '3 years | ' | ' |
Senior Vice President, Chief Counsel, Chief Compliance Officer [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Shares granted (shares) | 26,667 | ' | ' |
Exercise price (usd per share) | 2.79 | ' | ' |
Vesting period | '3 years | ' | ' |
Second Amended And Restated 2005 Equity Incentive Plan [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Shares reserved for future issuance (shares) | ' | ' | 3,500,000 |
Securities reserved for future issuance (shares) | ' | ' | 1,368,000 |
Stock-based compensation expense | ' | 400,000 | 600,000 |
Total unrecognized compensation | ' | $610,000 | ' |
Vesting period for unrecognized compensation cost to be recognized | ' | '3 years | ' |
Stock_Options_and_Warrants_Rig
Stock Options and Warrants - Rights and Warrants (Details) (USD $) | Mar. 28, 2011 | 11-May-10 | 11-May-10 | 11-May-10 | 11-May-10 | 11-May-10 | Dec. 31, 2012 | Nov. 12, 2009 | Dec. 31, 2013 | Nov. 12, 2009 |
Former Chief Executive Officer [Member] | Former Chief Executive Officer [Member] | Former Chief Executive Officer [Member] | Former Chief Executive Officer [Member] | Former Chief Executive Officer [Member] | Options Matching Right [Member] | Options Matching Right [Member] | Options Matching Right [Member] | Options Matching Right [Member] | ||
May 10, 2015 [Member] | May 10, 2015 [Member] | May 10, 2020 [Member] | Clause One and Two [Member] | Director [Member] | Director [Member] | |||||
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation settlement | ' | $1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares that may be purchased by warrants (shares) | ' | 1,100,000 | 83,333 | 333,333 | 666,667 | 416,666 | ' | ' | ' | ' |
Exercise price of right (usd per right) | 2.65 | 6 | ' | ' | ' | ' | ' | 3.42 | ' | ' |
Litigation expense | ' | 5,600,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Assigned rights (usd per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 83,333 |
Aggregate fair value of rights | ' | ' | ' | ' | ' | ' | $46,000 | $673,000 | ' | ' |
Rights outstanding (shares) | ' | ' | ' | ' | ' | ' | 1,300,000 | ' | 83,333 | ' |
Stock_Options_and_Warrants_Sch
Stock Options and Warrants - Schedule of Fair Value Assumptions (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' |
Weighted average fair value of options granted | $3.78 | $1.24 |
Expected dividend yield | 0.00% | 0.00% |
Expected volatility | 103.80% | 109.40% |
Risk—free interest rate | 1.47% | 0.67% |
Expected life of options | '5 years | '5 years |
Stock_Options_and_Warrants_Sch1
Stock Options and Warrants - Schedule of Stock Option Activity (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' |
Options outstanding, beginning balance (shares) | 2,204,000 | ' | ' |
Granted (shares) | 50,000 | 50,000 | ' |
Exercised (shares) | -314,000 | ' | ' |
Cancelled (shares) | -50,000 | -522,000 | ' |
Options outstanding, ending balance (shares) | 1,890,000 | 2,204,000 | 2,676,000 |
Options exercisable at December 31, 2013 (shares) | 1,891,000 | ' | ' |
Range of exercise prices Granted (usd per share) | $4,950 | $1,590 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' | ' | ' |
Options outstanding, Weighted average exercise price per share, beginning balance (usd per share) | $8.45 | ' | ' |
Options exercised, weighted average exercise price | $3.23 | ' | ' |
Granted, Weighted average exercise price per share (usd per share) | $4.95 | $1.59 | ' |
Cancelled, Weighted average exercise price per share (usd per share) | $12.84 | $12.84 | ' |
Options outstanding, Weighted average exercise price per share, ending balance (usd per share) | $6.63 | $8.45 | $6.93 |
Options exercisable at December 31, 2012, Weighted average exercise price per share (usd per share) | $5.70 | ' | ' |
Options outstanding, Weighted average remaining contractual life | '1 year 5 months 16 days | '2 years 3 months 4 days | '1 year 9 months 7 days |
Granted, Weighted average remaining contractual life | '4 years 10 months 13 days | '4 years 10 months 6 days | ' |
Options exercisable, Weighted average remaining contractual life | '1 year 4 months 21 days | ' | ' |
Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' |
Range of exercise prices Cancelled (usd per share) | $4.71 | $4.71 | ' |
Range of exercise prices exercised (usd per share) | $2.79 | ' | ' |
Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' |
Range of exercise prices Cancelled (usd per share) | $42.75 | $26.22 | ' |
Range of exercise prices exercised (usd per share) | $4.71 | ' | ' |
Income_Taxes_Income_Taxes_Sche
Income Taxes Income Taxes - Schedule of Deferred Income Tax Assets and Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Net operating loss carry forwards | $55,171 | $48,727 |
Development Costs | 10,962 | 8,158 |
Total deferred tax assets, gross | 66,133 | 56,885 |
Deferred tax liability: | ' | ' |
Depreciation | -301 | -311 |
Net deferred tax assets | 65,832 | 56,574 |
Valuation allowance | -65,832 | -56,574 |
Deferred tax assets, net | $0 | $0 |
Income_Taxes_Income_Taxes_Sche1
Income Taxes Income Taxes - Schedule of Effective Income Tax Reconciliation (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' |
Tax provision at federal statutory tax rate | 35.00% | 35.00% |
State income taxes, net | -0.10% | -1.40% |
Permanent items | -0.30% | -17.20% |
Expiration of net operating loss carry forwards | 0.00% | -141.10% |
Change in valuation allowance | -34.70% | 122.40% |
Other taxes | 0.00% | 0.00% |
Non-includable (income) expenses | 0.00% | 0.00% |
Effective tax rate | -0.10% | -2.30% |
Income_Taxes_Income_Taxes_Narr
Income Taxes Income Taxes - Narrative (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' |
Increase (Decrease) in valuation allowance | $9,258,000 | ($7,357,000) |
Net operating loss carryforwards | 139,300,000 | ' |
Operating Loss Carryforwards, Readily Available | $39,500,000 | ' |
Concentration_Narrative_Detail
Concentration - Narrative (Details) (Accounts Receivable [Member], Credit Concentration Risk [Member]) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Concentration Risk [Line Items] | ' | ' |
Number of debtors | 2 | ' |
Hawthorne OTB [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration of risk | 9.00% | 19.00% |
Suffolk [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration of risk | 17.00% | 15.00% |
Employee_Benefit_Plan_Employee
Employee Benefit Plan Employee Benefit Plan (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2009 |
employee | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Maximum annual contribution | ' | ' | 15.00% |
Vesting percentage of employer contribution | 100.00% | ' | ' |
Costs recognized | $94 | $81 | ' |
Number of participants | 146 | ' | ' |
Up To 3% [Member] | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Employer contribution, percent match on employee contribution | 100.00% | ' | ' |
Employer matching contribution on salary of employee | 3.00% | ' | ' |
3% to 3.99% [Member] | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Employer contribution, percent match on employee contribution | 3.00% | ' | ' |
3% to 3.99% [Member] | Minimum [Member] | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Employer matching contribution on salary of employee | 3.00% | ' | ' |
3% to 3.99% [Member] | Maximum [Member] | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Employer matching contribution on salary of employee | 3.99% | ' | ' |
4% to 4.99% [Member] | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Employer contribution, percent match on employee contribution | 3.50% | ' | ' |
4% to 4.99% [Member] | Minimum [Member] | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Employer matching contribution on salary of employee | 4.00% | ' | ' |
4% to 4.99% [Member] | Maximum [Member] | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Employer matching contribution on salary of employee | 4.99% | ' | ' |
5% Or More [Member] | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' |
Employer contribution, percent match on employee contribution | 4.00% | ' | ' |
Employer matching contribution on salary of employee | 5.00% | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies - Narrative (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended |
Jul. 31, 2011 | Dec. 31, 2010 | Jan. 15, 2014 | |
Empire [Member] | Concord [Member] | Subsequent Event [Member] | |
Concord [Member] | |||
Commitments and Contingencies (Textual) [Abstract] | ' | ' | ' |
Percent of net win payable from VGM activities | 8.75% | ' | ' |
Amount of net win from VGM activities | $5,000,000 | ' | ' |
VGM Shortfall | ' | 300,000 | ' |
Damages in an amount | ' | ' | $308,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies Commitments and Contingencies - Contractual Obligations, Future Minimum Payments Due (Details) (Employment Compensation Contracts [Member], Chief Executive Officer [Member], USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Employment Compensation Contracts [Member] | Chief Executive Officer [Member] | ' |
Schedule of Contractual Obligations [Line Items] | ' |
2014 | $1,070 |
2015 | 375 |
2016 | 0 |
Total future minimum payments | $1,445 |
Prepaid_Expenses_and_Other_Ass1
Prepaid Expenses and Other Assets Prepaid Expenses and Other Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ' | ' |
Prepaid taxes | $1,300 | $1,200 |
Related_Party_Transactions_Tex
Related Party Transactions (Textual Details) (Director [Member], USD $) | 0 Months Ended |
Dec. 09, 2013 | |
Related Party Transaction [Line Items] | ' |
Professional fees expensed | $250,000 |
On Execution [Member] | ' |
Related Party Transaction [Line Items] | ' |
Professional fees expensed | 150,000 |
Ninety Days Post Execution [Member] | ' |
Related Party Transaction [Line Items] | ' |
Professional fees expensed | $100,000 |
Subsequent_Events_Details_Text
Subsequent Events (Details Textual) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Subsequent Events [Abstract] | ' | ' |
Simulcasting and out-of-state racing revenue | $3.60 | $4 |
Amount payable to horsemen | $1.80 | $2 |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Acconts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 |
Allowance for doubtful accounts | ' | ' | ' |
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' |
Balance at beginning of year | $166 | $202 | $177 |
Addition charged to costs and expenses | ' | 25 | ' |
Other additions (deductions) | -36 | 0 | ' |
Less deductions | 0 | 0 | ' |
Balance at end of year | 202 | ' | 177 |
Deferred tax asset valuation allowance | ' | ' | ' |
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' |
Balance at beginning of year | 65,832 | 56,574 | 63,931 |
Addition charged to costs and expenses | 0 | 0 | ' |
Other additions (deductions) | 9,258 | -7,357 | ' |
Less deductions | 0 | 0 | ' |
Balance at end of year | $56,574 | ' | $63,931 |