Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 06, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | EMPIRE RESORTS INC | ||
Entity Central Index Key | 906780 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 46,683,231 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $107,070,031 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $6,435 | $7,526 |
Restricted cash | 1,710 | 1,070 |
Accounts receivable, net | 1,048 | 1,178 |
Prepaid expenses and other current assets | 4,297 | 3,023 |
Total current assets | 13,490 | 12,797 |
Property and equipment, net | 26,372 | 26,155 |
Other assets | 5 | 95 |
Total assets | 39,867 | 39,047 |
Current liabilities: | ||
Accounts payable | 2,205 | 2,555 |
Accrued expenses and other current liabilities | 8,098 | 6,041 |
Total current liabilities | 10,303 | 8,596 |
Long-term loan, related party | 17,426 | 17,426 |
Total liabilities | 56,968 | 48,822 |
Stockholders’ deficit: | ||
Common stock | 395 | 365 |
Additional paid-in capital | 175,801 | 159,027 |
Accumulated deficit | -193,297 | -169,167 |
Total stockholders’ deficit | -17,101 | -9,775 |
Total liabilities and stockholders’ deficit | 39,867 | 39,047 |
Series A [Member] | ||
Stockholders’ deficit: | ||
Preferred stock | 0 | 0 |
Series B [Member] | ||
Stockholders’ deficit: | ||
Preferred stock | 0 | 0 |
Series E [Member] | ||
Current liabilities: | ||
Series E preferred stock payable - 1,551 Shares as of December 31, 2014 | 29,239 | 22,800 |
Stockholders’ deficit: | ||
Preferred stock | $0 | $0 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
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, par value (usd per share) | $0.01 | $0.01 |
Preferred stock, per share liquidation value (usd per share) | $1,000 | $1,000 |
Preferred stock, shares authorized (shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Preferred stock, shares outstanding (shares) | 0 | 0 |
Series B [Member] | ||
Preferred stock, par value (usd per share) | $0.01 | $0.01 |
Preferred stock, per share liquidation value (usd per share) | $29 | $29 |
Preferred stock, shares authorized (shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (shares) | 44,258 | 44,258 |
Preferred stock, shares outstanding (shares) | 44,258 | 44,258 |
Series E [Member] | ||
Preferred stock, par value (usd per share) | $0.01 | $0.01 |
Preferred stock, shares authorized (shares) | 5,000,000 | 5,000,000 |
Preferred stock, per share redemption value (usd per share) | $10 | $10 |
Preferred stock, redemption shares (in shares) | 1,551,000 | |
Preferred stock, shares issued (shares) | 27,000 | 1,731,000 |
Preferred stock, shares outstanding (shares) | 27,000 | 1,731,000 |
Preferred stock, aggregate liquidation value | $524 | $504 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | |||
Gaming | $59,831 | $63,642 | $63,402 |
Food, beverage, racing and other | 9,683 | 12,776 | 12,220 |
Gross revenues | 69,514 | 76,418 | 75,622 |
Less: Promotional allowances | -4,288 | -5,457 | -3,649 |
Net revenues | 65,226 | 70,961 | 71,973 |
Costs and expenses: | |||
Gaming | 44,160 | 47,129 | 45,700 |
Food, beverage, racing and other | 9,986 | 11,470 | 10,959 |
Selling, general and administrative | 11,599 | 12,734 | 12,895 |
Development expenses | 12,207 | 18,009 | 0 |
Stock-based compensation | 636 | 385 | 647 |
Depreciation | 1,324 | 1,354 | 1,380 |
Total costs and expenses | 79,912 | 91,081 | 71,581 |
(Loss) / income from operations | -14,686 | -20,120 | 392 |
Amortization of deferred financing costs | -91 | -74 | -30 |
Interest expense | -9,128 | -1,331 | -1,063 |
Interest income | 0 | 0 | 4 |
Loss before income taxes | -23,905 | -21,525 | -697 |
Income tax provision | 7 | 17 | 16 |
Net loss | -23,912 | -21,542 | -713 |
Undeclared dividends on preferred stock | -188 | -5,508 | -1,551 |
Net loss applicable to common shares | ($24,100) | ($27,050) | ($2,264) |
Weighted average common shares outstanding, basic (shares) | 39,138 | 35,217 | 29,951 |
Weighted average common shares outstanding, diluted (shares) | 39,138 | 35,217 | 29,951 |
Loss per common share, basic (usd per share) | ($0.62) | ($0.77) | ($0.08) |
Loss per common share, diluted (usd per share) | ($0.62) | ($0.77) | ($0.08) |
Consolidated_Statements_Of_Sto
Consolidated Statements Of Stockholders' Equity (USD $) | Total | Preferred Stock [Member] | Preferred Stock [Member] | Preferred Stock [Member] | Common Stock | Additional Paid-In Capital [Member] | Accum Deficit [Member] |
In Thousands, except Share data, unless otherwise specified | Series B [Member] | Series E [Member] | |||||
Balances, beginning balance at Dec. 31, 2011 | $24,879 | $0 | $6,855 | $299 | $145,204 | ($127,479) | |
Balances, shares, beginning balance at Dec. 31, 2011 | 44,000 | 1,731,000 | 29,931,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Declared and paid dividends on preferred stock, shares | -92,000 | ||||||
Declared and paid dividends on preferred stock | 233 | -233 | |||||
Stock issuance, shares | 50,000 | ||||||
Stock issuance | 1 | -1 | |||||
Stock-based compensation | 647 | 647 | |||||
Net loss | -713 | -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] | |||||||
Redemption of Series E Preferred Shares, shares | -1,703,000 | ||||||
Redemption of Series E Preferred Shares | -25,619 | -6,854 | 268 | -19,033 | |||
Declared and paid dividends on preferred stock, shares | -76,000 | ||||||
Declared and paid dividends on preferred stock | -1 | 1 | 166 | -167 | |||
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 | ||||
Stock issuance | -222 | 1 | -223 | ||||
Options exercised, shares | 314,000 | 314,000 | |||||
Options exercised | 1,013 | 3 | 1,010 | ||||
Stock-based compensation | 385 | 385 | |||||
Net loss | -21,542 | -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 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Declared and paid dividends on preferred stock, shares | -31,000 | ||||||
Declared and paid dividends on preferred stock | 1 | 217 | -218 | ||||
Common stock issued from exercise of rights offering, shares | 2,139,000 | ||||||
Common stock issued from exercise of rights offering | 13,368 | 21 | 13,347 | ||||
Stock issuance, shares | 135,000 | ||||||
Stock issuance | -188 | 1 | -189 | ||||
Options exercised, shares | 768,000 | 706,000 | |||||
Options exercised | 2,770 | 7 | 2,763 | ||||
Stock-based compensation | 636 | 636 | |||||
Net loss | -23,912 | -23,912 | |||||
Balances, ending balance at Dec. 31, 2014 | ($17,101) | $0 | $1 | $395 | $175,801 | ($193,297) | |
Balances, shares, endings balance at Dec. 31, 2014 | 44,000 | 28,000 | 39,506,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net loss | ($23,912) | ($21,542) | ($713) |
Adjustments to reconcile net loss to net cash (used) /provided by operating activities: | |||
Depreciation | 1,324 | 1,354 | 1,380 |
(Recovery) / provision for doubtful accounts | -5 | -36 | 25 |
Non-cash interest expense | 7,680 | 0 | 0 |
Development costs write off | 0 | 16,003 | 0 |
Loss on disposal of property and equipment | 1 | 91 | 94 |
Stock - based compensation | 636 | 385 | 647 |
Changes in operating assets and liabilities: | |||
Restricted cash—NYSGC Lottery and Purse Accounts | -633 | 128 | -43 |
Accounts receivable | 135 | -136 | 447 |
Prepaid expenses and other current assets | -1,274 | -184 | -71 |
Other assets | 91 | 122 | 964 |
Accounts payable | -350 | -251 | 727 |
Accrued expenses and other current liabilities | 815 | -276 | -408 |
Net cash (used) / provided by operating activities | -15,492 | -4,342 | 3,049 |
Cash flows from investing activities: | |||
Purchase of property and equipment | -1,542 | -1,036 | -548 |
Restricted cash—Racing capital improvement | -7 | 43 | 157 |
Development costs | 0 | -5,574 | -8,197 |
Net cash used in investing activities | -1,549 | -6,567 | -8,588 |
Cash flows from financing activities: | |||
Proceeds from rights offering, net of expenses | 13,180 | 11,178 | 0 |
Series E preferred shares and dividend redemption | 0 | -2,819 | 0 |
Proceeds from exercise of stock options | 2,770 | 1,013 | 1 |
Net cash provided by financing activities | 15,950 | 9,372 | 1 |
Net decrease in cash and cash equivalents | -1,091 | -1,537 | -5,538 |
Cash and cash equivalents, beginning of period | 7,526 | 9,063 | 14,601 |
Cash and cash equivalents, end of period | 6,435 | 7,526 | 9,063 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 1,330 | 1,325 | 1,044 |
Income taxes paid | 0 | 17 | 15 |
Noncash investing and financing activities: | |||
Common stock issued in settlement of preferred stock dividends | 218 | 167 | 233 |
Development costs included in accrued expenses | $0 | $0 | $2,362 |
Organization_And_Nature_Of_Bus
Organization And Nature Of Business | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature Of Business | Organization and Nature of Business |
Empire Resorts, Inc. (“Empire,” and, together with its subsidiaries, the “Company,” “us,” “our” or “we”) was organized as a Delaware corporation on March 19, 1993, and since that time has served as a holding company for various subsidiaries engaged in the hospitality and gaming industries. | |
Through Empire’s wholly-owned subsidiary, MRMI, the Company currently owns and operates Monticello Casino and Raceway, a 45,000 square foot 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 VLTs and 20 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 a letter dated November 20, 2014, the NYSGC assigned to MRMI the race dates requested for December 2014. In a letter dated December 30, 2014, the NYSGC approved MRMI's racetrack and simulcast license renewal applications for calendar year 2015. Generally, the annual license renewal process requires the NYSGC to review the financial responsibility, experience, character and general fitness of MRMI and its management. | |
On December 17, 2014, through our wholly-owned subsidiary, Montreign Operating Company, LLC ("Montreign"), the New York State Gaming Facility Location Board (the “Siting Board”) unanimously selected the Company as the sole Catskill/Hudson Valley Region One (“Region One” or "our Area") casino applicant eligible to apply to the NYSGC for a license (a "Gaming Facility License") to operate a resort casino (the "Casino Project") to be located at the site of Adelaar, a four-season destination resort planned for the Town of Thompson in Sullivan County 90 miles from New York City (the "Adelaar Project"). The Adelaar Project is to be located on 1,500 acres (the "EPR Property") owned by EPT Concord II, LLC ("EPT") and EPR Concord II, LP, each a wholly-owned subsidiary of EPR Properties Trust ("EPR"). The Casino Project, to be called "Montreign Resort Casino", is part of the initial phase of Adelaar, which will also include an indoor Waterpark Lodge and adventure park, Rees Jones redesigned "Monster" Golf Course and an Entertainment Village, which will include retail, restaurant, shopping and entertainment. Together with the Casino Project, this initial phase of the Adelaar Project is referred to as the "Gaming Facility". The Company and EPR have entered into various agreements in connection with the Adelaar Project and Casino Project including the Master Development Agreement and Option Agreement as set forth below. Over the past three (3) years, the Company has expended substantial time and resources on designing the Casino Project and, in conjunction with EPR, working with local, state and federal agencies and officials to obtain the necessary permits and approvals to begin construction. | |
The Siting Board announced their selection of Montreign after having initiated a Request for Applications ("RFA") competitive process on March 31, 2014, as more fully discussed below. The Montreign proposal to build a Gaming Facility selected for recommendation to the NYSGC by the Siting Board anticipates a minimum capital investment, without the license fee, of approximately $452 million. In addition, pursuant to the RFA, a holder of a Gaming Facility License in our Area must pay a minimum licensing fee within thirty (30) days after the award of a Gaming Facility License, which in our case would be $51 million. The NYSGC will award such Gaming Facility Licenses upon confirmation of the applicants’ suitability and their respective ability to complete the Gaming Facility. The development of the Adelaar Project and the Casino Project is contingent upon various conditions, including obtaining all necessary governmental approvals and the Company's ability to obtain necessary financing. | |
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, together with the Third Amendment to the Loan Agreement discussed below, will be sufficient to meet 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 to develop the Casino Project, in the event we are awarded a Gaming Facility 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 us, or may not be available in amounts or on acceptable terms. | |
As of December 31, 2014, we had total current assets of approximately $13.5 million and current liabilities of approximately $10.3 million. We have had continuing net losses and negative cash flow from operating activities, including a loss from operations of $14.7 million for the twelve months ended December 31, 2014. Management believes the net losses in fiscal 2014 were primarily related to the Company’s on-going expenditures with respect to the Casino Project, which expenses will not be capitalized until the Company is awarded a Gaming Facility License, and the suspension of simulcasting other than intra-state simulcasting for nearly six months of the year, which simulcasting has now been restored. In particular, the twelve months ended December 31, 2014 were impacted by the: (i) $12.2 million of development expenses for the Casino Project (as defined below); (ii) reduced racing revenues due to the suspension of all simulcasting other than intra-state simulcasting from February 1, 2014 through July 20, 2014, because a horsemen's agreement was not in place with the Monticello Harness Horsemen’s Association ("MHHA") and delays in reinstating interstate simulcasting after such suspension was lifted; (iii) severe weather that caused a reduction in revenues in the first (1st) quarter; and (iv) economic and competitive landscape in the region. | |
As of February 20, 2015, the Company and Kien Huat entered into Amendment No. 3 (the "Third Amendment") to the Loan Agreement, dated November 17, 2010 and amended on August 8, 2012 and December 18, 2013 (the "Loan Agreement"). Pursuant to the Third Amendment, among other things, the maturity date of the Kien Huat Note was extended from March 15, 2015 to March 15, 2016. Additionally, pursuant to the Third Amendment, the Loan Agreement was amended to add the denial to issue a Gaming Facility License to the Company as an Event of Default. In addition, on January 5, 2015, we commenced a rights offering (the “January 2015 Rights Offering”) of non-transferable subscription rights to holders of record of our common stock and Series B Preferred Stock as of January 2, 2015 to purchase up to 7,042,254 shares of our common stock. In connection with the January 2015 Rights Offering, on January 2, 2015, we and Kien Huat entered into a standby purchase agreement (the “Standby Purchase Agreement”) pursuant to which Kien Huat agreed to exercise in full its basic subscription rights granted in the January 2015 Rights Offering within ten (10) days of its grant and to exercise all rights not otherwise exercised by the other holders in an aggregate amount not to exceed $50 million. The January 2015 Rights Offering closed on February 6, 2015. The Company issued a total of 7,042,254 shares of common stock at $7.10 per share. This includes 53,291 shares issued to holders upon exercise of their basic subscription and over-subscription rights and 4,321,798 shares issued to Kien Huat upon exercise of its basic subscription rights. Kien Huat also acquired the remaining 2,667,165 shares not sold in the January 2015 Rights Offering pursuant to the Standby Purchase Agreement. After giving effect to the January 2015 Rights Offering, Kien Huat owns approximately 67% of the outstanding shares of the Company’s common stock. The net proceeds of the January 2015 Rights Offering will be used for the expenses relating to the pursuit of the Gaming Facility License for the Casino Project and for development purposes. If the Company is not awarded a gaming facility license, the remaining portion of the proceeds of the January 2015 Rights Offering will be used in its on-going operations. The January 2015 Rights Offering forms part of the equity financing commitment made by Kien Huat related to the Casino Project, which is discussed in further detail below. | |
On December 17, 2014, Montreign was selected in a unanimous vote by the Siting Board as the sole casino applicant eligible to apply to the NYSGC for a Gaming Facility License in our Area. The Montreign proposal to build a Gaming Facility selected by the Siting Board anticipates that our minimum capital investment, without the license fee, would be approximately $452 million. In addition, pursuant to the RFA, a holder of a Gaming Facility License must pay a minimum licensing fee within thirty (30) days after the award of a Gaming Facility License, which in our case would be $51 million. In the event the Company is awarded a Gaming Facility License, it currently anticipates financing the associated costs and expenses of the license award and the development of the Casino Project with a combination of debt and equity financing. | |
We anticipate financing the associated costs and expenses of the license award and the development of the Casino Project with a combination of debt and equity financing. | |
For the debt portion of the financing, Credit Suisse AG has committed to provide a senior secured credit facility of up to a maximum amount of $478 million (the “CS Credit Facility”). The CS Credit Facility provides that Credit Suisse may change the terms of the credit facility to ensure successful syndication. In addition, the CS Credit Facility is subject to various conditions precedent, including the Company’s receipt of a Gaming Facility License and evidence of an equity investment in the Company of up to $150 million, $50 million of which has been raised in the January 2015 Rights Offering. | |
We may launch a rights offering to our existing equity holders in an amount necessary to meet the equity investment requirements of the CS Credit Facility and to redeem certain outstanding Series E preferred stock of the Company in accordance with an existing settlement agreement. On June 26, 2014, the Company and Kien Huat, entered into a letter agreement (the "Commitment Letter") pursuant to which Kien Huat committed to exercise its proportionate share of subscription rights if the Company commenced a rights offering on the terms described in the Commitment Letter to meet the requirements of the CS Credit Facility. In addition, in lieu of exercising any over-subscription rights in such a rights offering, Kien Huat agreed it would enter into a standby purchase agreement to exercise all subscription rights not otherwise exercised by other holders in the rights offering upon the same terms as the other holders. For such commitment, the Company agreed to pay Kien Huat a fee of 1.0% of the maximum amount that may be raised, of which 0.5% was paid upon execution of the Commitment Letter and the remaining 0.5% is due if a rights offering is launched. | |
In connection with the January 2015 Rights Offering, on January 2, 2015, we and Kien Huat also entered into an amendment (the “Amendment”) to the Commitment Letter, pursuant to which Kien Huat agreed to waive, solely with respect to the January 2015 Rights Offering, the condition precedent to the Casino Project Rights Offering that the Gaming Facility License shall have been awarded to Montreign. Moreover, we and Kien Huat agreed to revise the maximum amount of the Casino Project Rights Offering to take into account the January 2015 Rights Offering and the commitment fee payable pursuant to the January 2015 Standby Purchase Agreement. | |
The January 2015 Rights Offering closed on February 6, 2015. The Company issued a total of 7,042,254 shares of common stock at $7.10 per share. This includes 53,291 shares issued to holders upon exercise of their basic subscription and over-subscription rights and 4,321,798 shares issued to Kien Huat upon exercise of its basic subscription rights. Kien Huat also acquired the remaining 2,667,165 shares not sold in the January 2015 Rights Offering pursuant to the January 2015 Standby Purchase Agreement. After giving effect to the January 2015 Rights Offering, Kien Huat owns approximately 67% of the outstanding shares of the Company’s common stock. The net proceeds of the January 2015 Rights Offering were approximately $49.5 million following the deduction of expenses. The net proceeds of the January 2015 Rights Offering will be used for the expenses relating to the pursuit of the Gaming Facility License for the Casino Project and for development purposes. If the Company is not awarded a gaming facility license, the remaining portion of the proceeds of the January 2015 Rights Offering will be used in its on-going operations. | |
We may also seek to enter into other strategic agreements, joint ventures or similar agreements or we may sell additional debt or equity in public or private transactions in support of the Casino Project and our ongoing operations. On January 3, 2014, we filed the S-3, which was declared effective on February 12, 2014, covering the offer and sale of up to $250 million of our securities. As of March 6, 2015, we had up to $186.6 million available for future issuances under the S-3. The sale of additional equity will result in additional dilution to the Company’s existing stockholders and financing arrangements may not be available to the Company, or may not be available in amounts or on terms acceptable to the Company. | |
On April 2, 2014, the Company commenced a rights offering of common stock to holders of its common stock and Series B Preferred Stock (the "April 2014 Rights Offering"). The Company distributed to its common stock holders and Series B Preferred Stock holders one (1) non-transferable right to purchase one (1) share of common stock at a subscription price of $6.25 per share for each fifteen shares of common stock owned, or into which their Series B Preferred Stock was convertible on March 31, 2014, the record date for the April 2014 Rights Offering. In addition to being able to purchase their pro rata portion of the shares offered based on their ownership as of March 31, 2014, stockholders were able to oversubscribe for additional shares of common stock. | |
Upon completion of the April 2014 Rights Offering on May 6, 2014, the Company issued 2,138,881shares of common stock and raised approximately $13.4 million. This includes 453,165 shares issued to holders upon exercise of their basic subscription rights, 1,512,629 shares issued to Kien Huat upon exercise of its basic subscription rights and 173,087shares issued to holders upon exercise of their over-subscription rights in the April 2014 Rights Offering. The Company has and expects to utilize the net proceeds of approximately $13.2 million for certain expenses relating to (i) the Adelaar Project and Casino Project; (ii) maintaining our on-going operations and facilities; and (iii) support of our pursuit of a Gaming Facility License. | |
Recent Events | |
Definition of Video Lottery Gaming | |
The 2015-2016 Executive Budget, Revenue Article VII Legislation, expands the statutory definition of Video Lottery Gaming to include "any lottery game played on a video lottery terminal that issues electronic tickets, allows multiple players | |
to participate in the same game and determines winners to a material degree upon the element of chance, notwithstanding that the skill of a player may influence such player's chance of winning a game. Video lottery gaming may include elements of player interaction after a player receives an initial chance." If adopted, MRMI shall pursue adding these types of VGMs to its facility. | |
Regulation | |
VGM and Racing Operations | |
Our VGM and harness horseracing and simulcast operations are overseen by the NYSGC. The legislation that created the NYSGC provides that the Board of the NYSGC shall consist of seven members. As of March 6, 2015, six members have been appointed to the Board of the NYSGC. The NYSGC has the authority and responsibility to promulgate rules and regulations that affect the operations of our business. Prior to the creation of the NYSGC, our harness horseracing and simulcasting activities were overseen by the New York State Racing and Wagering Board ("RWB") and our VGM activities were overseen by the New York Lottery ("NYL"). Now, our VGM, harness horseracing and simulcast activities in the State of New York are overseen by the NYSGC, Division of Lottery and Division of Horse Racing, respectively. | |
In a letter dated November 20, 2014, NYSGC assigned to MRMI the race dates requested for December 2014. In a letter dated December 30, 2014, the NYSGC approved MRMI's racetrack and simulcast license renewal applications for calendar year 2015. Generally, the annual license renewal process requires the NYSGC to review the financial responsibility, experience, character and general fitness of MRMI and its management. | |
On July 22, 2014, the Governor signed legislation to amend the New York tax law, in relation to the authorized hours of conducting video lottery gaming and the amount of free play authorized. The law now permits VGM facilities to remain open until 6:00 am. After review, we have determined that it is unlikely that we will change our hours of operation to remain open until 6:00 am each day. The law also increases the non-subsidized free play allowance from 10% to 15%. | |
Casino Gaming | |
On July 30, 2013, the Upstate New York Gaming and Economic Development Act ("Gaming Act") was enacted. The Gaming Act, among other things, provides the statutory framework for the regulation of full-scale casino gaming, which was approved by New York State voters in November 2013 when they voted to approve a constitutional amendment to permit full-scale casino gaming. The Gaming Act amends the racing, pari-mutuel wagering and breeding law, the penal law, the tax law and the state finance law in relation to full-scale gaming. The Gaming Act authorizes the NYSGC to award up to four (4) upstate destination gaming resort licenses (each a "Gaming Facility License"). Gaming Facilities are authorized in three (3) regions of the state: the Columbia, Delaware, Dutchess, Greene, Orange, Sullivan and Ulster counties, which is referred to as the "Hudson Valley-Catskills Area" and in which we are located; the Albany, Fulton, Montgomery, Rensselaer, Saratoga, Schenectady, Schoharie and Washington counties (the "Capital Region"); and the Broome, Chemung (east of State Route 14), Schuyler (east of State Route 14), Seneca, Tioga, Tompkins, and Wayne (east of State Route 14) counties (the "Finger Lakes Region"). Up to two (2) Gaming Facilities can be located in any of the three (3) regions. No Gaming Facilities can be authorized in Putnam county, Westchester county, Rockland county, New York City or Long Island. | |
Further, the Gaming Act authorizes Nassau Off-Track Betting Corporation ("Nassau OTB") and Suffolk Regional Off-Track Betting Corporation ("Suffolk OTB") to file video lottery gaming license applications to establish one (1) VGM facility each, at an Off-Track Betting site operated by Nassau OTB and Suffolk OTB respectively, with a maximum of one thousand (1,000) VGMs at each site. | |
In accordance with the Gaming Act, the Siting Board is charged with selecting applicants that are qualified to receive a Gaming Facility License and determining the location of such Gaming Facilities. On December 17, 2014, the Siting Board selected one applicant in each region, but declined to select a second applicant for any of the regions. On January 13, 2015, the Siting Board authorized a new RFA for the Finger Lakes Region, but declined to issue a new RFA for our Area and the Capital Region. Once the Gaming Facility Licenses are awarded by the NYSGC, there will be a seven (7) year exclusivity period for holders of Gaming Facility Licenses, commencing with the awarding of the license, during which no further Gaming Facilities will be licensed by the NYSGC. If the Legislature authorizes additional Gaming Facility Licenses within this period, licensees shall have the right to recover a pro-rata portion of the license fee paid. | |
Pursuant to the RFA issued by the Siting Board, each Applicant was required to pay to the NYSGC an application fee of $1 million ("Application Fee") by April 23, 2014 to help defray the costs associated with the processing of the application and investigation of the applicant. However, if the costs of processing, investigation and related costs exceed the Application Fee, the applicant shall be required to pay the additional amount to the NYSGC within thirty (30) days after notification of insufficient fees. If the investigation costs related to an applicant are below the amount of the Application Fee paid, any unexpended portion shall be returned to the applicant. On April 18, 2014, the NYSGC confirmed that it received our Application Fee. | |
On June 30, 2014, Montreign submitted an application for a Gaming Facility License in response to the RFA. There were eight (8) applicants that filed nine (9) applications in our Area which include, among others, Caesars Entertainment, a joint venture between the Cordish Companies and Penn National Gaming, Inc. and RW Orange County LLC, an affiliate of Genting Malaysia Berhad, for which K.T. Lim, a director and beneficiary of Kien Huat, serves as chairman and chief executive officer. | |
Oral presentations of applications were held by the Siting Board on September 8 and 9, 2014. The Company and EPR provided an oral presentation of the Gaming Facility to the Siting Board on September 9, 2014. On September 23, 2014, the Siting Board conducted public input hearings on the nine (9) applications in our Area. On December 17, 2014, we were selected by the Siting Board as the only applicant in our Area to apply to the NYSGC for a Gaming Facility License. | |
The proposal to build a Gaming Facility by Montreign that was selected by the Siting Board anticipates that our minimum capital investment, without the license fee, would be approximately $452 million. In addition, pursuant to the RFA, a holder of a Gaming Facility License must pay a minimum licensing fee within thirty (30) days after the award of a Gaming Facility License, which in our case would be $51 million. The Gaming Facility has an expected going-forward combined investment of approximately $1.1 billion and contemplates the following elements: | |
• Montreign Resort Casino (defined above as Casino Project): An 18-story casino, hotel and entertainment complex | |
featuring an 80,000 sq.ft. casino (with 61 table games and 2,150 state-of-the-art slot machines), 391 luxury rooms designed to meet the 4-star and 4-diamond standards of Forbes® and AAA®, multiple dining and entertainment options, and meeting and conference space. | |
• Indoor Waterpark Lodge: A 350 room, family-style, non-gaming resort featuring a wide range of amenities including the excitement of an 80,000 sq.ft. indoor water park, dining facilities and other recreational opportunities. The Indoor Waterpark Lodge will be the first resort hotel with an indoor waterpark in the Catskills region. | |
• Entertainment Village: A pedestrian-friendly, 200,000 sq.ft. Entertainment Village featuring multiple dining opportunities and specialty retail shops. | |
• Monster Golf Course: This famous course will be redesigned and improved by Rees Jones, “The Open Doctor”. It will be playable by golfers of every skill level and is yet another amenity to complement Montreign Resort Casino, which will lease and manage the course. | |
Pursuant to the RFA, a holder of a Gaming Facility License must pay a minimum licensing fee within thirty (30) days after the award of a Gaming Facility License. Our licensing fee will be $51 million.The duration of the initial licenses will be ten (10) years and the NYSGC will set the duration of, and fee for, renewal licenses. The NYSGC will oversee regulation of Gaming Facilities. | |
The tax rate on slot machines at Montreign Resort Casino will 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 tax rate on VGM operations at Monticello Casino and Raceway will remain at the existing NYSGC commission rates and is expected to include an additional commission from NYSGC based on a rate related to the effective tax rate on all gross gaming revenue at the Gaming Facility developed by Montreign. Existing payments to the racing industry for purses and breeding will be maintained. The minimum gambling age for Montreign will be 21, and no smoking will be authorized. As a condition of licensure, Montreign will be required to commence gaming operations no less than twenty-four months following the award of a Gaming Facility License by the NYSGC. | |
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. | |
Master Development Agreement | |
EPT and EPR Concord II, LP are the sole owners of the EPT Property on which the Company and EPR envision the development of a four-season destination resort to be named Adelaar. On December 14, 2012 (the "Effective Date"), EPT and the Company entered into the Master Development Agreement ("MDA") to develop the EPT Property. The MDA defines and governs the overall relationship between EPT and the Company with respect to the development, construction, operation, management and disposition of the Adelaar 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) the sooner termination pursuant to the terms of the MDA. The parties also agreed to continue to cooperate in good faith with the on-going development plans and have agreed to share certain mutually agreed upon expenses including expenses relating to common infrastructure work. Either party has the right to terminate the MDA prior to the execution of a lease between EPT and the Company with respect to the EPT Property prior to the commencement of construction on the Casino Project (the "Casino Lease"). Following the payment of any additional amounts accrued pursuant to the MDA as of the date of termination, neither party shall have any obligations under the MDA. | |
In accordance with the terms of the MDA, the Company shall be responsible for the development and construction of the Casino Project, in which the Company has agreed to invest a minimum of $300 million. Once the development of the Casino Project is completed, the Company shall then be responsible for maintaining and operating the Casino Project in accordance with the operating standards contained in the Casino Lease. | |
The Company 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 and related licenses required to operate the Casino Project. In accordance with the terms of the Option Agreement, which is discussed below, we waived our right to terminate the MDA pursuant to specified provisions therein and, unless the Option terminates due to the occurrence of a Trigger Event, which is defined below, 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, we are prohibited from building or operating a Gaming Facility in our Area 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. The development of the Adelaar Project, including the Casino 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. | |
Option Agreement | |
On December 21, 2011 (the “Option Effective Date”), the Company entered into an option agreement with EPT, which was last amended by a letter agreement dated June 20, 2014, between EPT and the Company (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 the form of Casino Lease negotiated between the parties. Our rights and obligations pursuant to the Option Agreement are subject to certain existing EPT agreements. | |
Among other things, the Option Agreement reflects the parties' agreement of when the Company must decide whether it will lease the EPT Property for purposes of constructing the Casino Project. Pursuant to the Option Agreement, on November 30, 2013, the Company exercised its right to extend the date by which it must make such determination (the "Option Exercise Period End Date") for up to a twelve (12) month period ending November 30, 2014 (the "First Extended Option Exercise Period"). In addition, the final date by which the Company must decide whether or not to execute the Casino Lease (the "Final Option Exercise Outside Date") was extended to a date that is (i) one hundred twenty (120) days from the earliest to occur of specified triggers relating to whether the Company is chosen to receive a Gaming Facility license or (ii) sixty (60) days from when affiliates of MRMI enter into an agreement to develop a gaming facility with someone other than MRMI (each a "Trigger Event"). In consideration of such extension, the Company made monthly option payments (each an “Option Payment”). If a Trigger Event occurs, EPT may, at its sole discretion, extend the Final Option Exercise Outside Date by a maximum of ninety (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). | |
Because a Trigger Event did not occur as of the end of the First Extended Option Exercise Period, (i) the Company has the ability to extend the Option Exercise Period End Date by up to an additional twelve (12) months (the “Second Extended Option Exercise Period”) from November 30, 2014 to November 30, 2015 by making monthly Option Payments of $375,000 per month. If a Trigger Event has not occurred as of the end of the Second Extended Option Exercise Period, the Company 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 the Company exercises the Option and the Casino Lease for the EPT Property is executed between the parties, any Option Payments made by the Company 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 Facility License regarding the EPT Property and, if the Company 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 Facility License with respect to the EPT Property. | |
During the term of the Option Agreement, the Company agreed to make a good faith effort to pursue a Gaming Facility License. If the Company fails to diligently pursue the Gaming Facility License, the Company shall notify EPT and the Final Option Exercise Outside Date shall be sixty (60) days following the receipt of such notice by EPT. In furtherance of the Adelaar Project and the Casino Project, EPT and the Company negotiated the terms of a Master Declaration which was executed by EPT on December 6, 2013, which addresses the covenants, conditions, easements and restrictions of the Concord Resorts Master Association, LLC for the Adelaar Project. | |
EPT has also granted the Company 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 August 30, 2013 plus capitalized expenses incurred by EPT after such date through the purchase date and related to the development of the EPT Property. | |
Pursuant to the Option Agreement, we made option payments to EPT in the amount of $750,000 and $472,603, on December 21, 2011 and March 8, 2013, respectively. 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 MDA. In addition, on September 30, 2013, we provided a certificate waiving our right to terminate the MDA. As a result, on September 30, 2013, the aggregate option payments of $1,222,603 made by us to EPT, became non-refundable. In addition to the monthly Option Payments, as of December 31, 2014, we have made $3.1 million of cumulative non-refundable payments pertaining to the Option Agreement with EPR. | |
Pursuant to the June 20, 2014 letter agreement, the Company and EPT agreed to amend the terms of the Casino Lease to expire on the earlier of: (i) the last day of the calendar month that is seventy (70) years after the commencement of the Casino Lease, and (ii) upon the Company giving EPT written notice of its election to terminate the Casino Lease (the “Termination Option”) at least twelve (12) months prior to any one of five (5) Option Dates (as defined below). The Option Dates under the letter agreement mean each of the twentieth (20th), thirtieth (30th), fortieth (40th), fiftieth (50th) and sixtieth (60th) anniversary of the commencement of the ground lease. Upon the Company's timely notice of exercise of its Termination Option, the Casino Lease shall be automatically terminated effective as of the applicable Option Date. Additionally, within sixty (60) days after a Gaming Facility License has been awarded to Montreign, MRMI will assign, and Montreign will assume, the Option and Casino Lease to own or acquire the land through a tenancy for a term of seventy (70) years. The remaining terms and conditions of the Option Agreement remain unchanged. | |
Regulatory Permits and Approvals | |
In January, 2013, the Town Board (the "Town Board") of the Town of Thompson, in which the EPT Property is located, unanimously approved certain zoning amendments necessary for the development of the Adelaar Project and the Comprehensive Development Plan for the entire project site. Moreover, in July 2013, the Planning Board of the Town of Thompson granted final site plan approval for the Casino Project. On April 17, 2014, an application for a Minor Amendment to the Site Development Plan Approval for the Casino Project was made to the Planning Board. The Minor Site Plan Amendment included a minor design change, and an increase in the number of hotel rooms and additional parking for the Casino Project. By Resolution dated June 3, 2014, the Town Board determined that no further environmental review under the State Environmental Quality Review Act ("SEQRA") was required in connection with the proposed Minor Site Plan Amendment and issued a Negative Declaration of Environmental Significance. The Planning Board approved the Minor Site Plan Amendment by Resolution dated June 11, 2014. On August 13, 2014, the Planning Board adopted a resolution approving the Final Subdivision Plat for the Adelaar Project and the Casino Project parcels. On January 5, 2015, the New York State Department of Environmental Conservation issued a Freshwater Wetlands Permit, Stream Disturbance Permit and Water Quality Certification authorizing disturbances to certain state regulated wetlands and stream corridors necessary to facilitate the development. On January 6, 2015, the Town issued a local building department permit authorizing the removal of certain trees necessary to facilitate the development. On February 20, 2015, the U.S. Army Corps of Engineers issued a Wetlands Permit authorizing discharges to certain federally regulated wetlands on the EPT Property. | |
The Company will need to submit detailed construction plans to the Town of Thompson and receive other regulatory approvals, including approvals from the New York State departments of Environmental Conservation, Transportation and Health prior to the commencement of construction on the Casino Project. Moreover, additional design changes may require further review and approvals by the Town Board and other responsible governmental bodies and agencies. | |
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 the Company 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 the Company 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 the Company as IDA's agent to undertake the Casino Project. Fees for the utilization of the bonds and other financial assistance would be paid by the Company to the IDA. In September 2014, MRMI, Montreign, and the IDA entered into agreements providing certain financial benefits for the acquisition, construction and financing of the Casino Project consistent with the IDA’s Destination Resort Program policy. The IDA authorized the execution of these agreements pursuant to a resolution adopted on September 3, 2014. Consistent with the IDA resolution, the IDA, MRMI and Montreign executed an Agent Agreement, Lease Agreement, Leaseback Agreement, PILOT Agreement, and related documents, which will become effective upon the awarding of a Gaming License to Montreign. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
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 NYSGC’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, 2014, 2013 and 2012 are as follows: | |||||||||||
Year ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(in thousands) | |||||||||||
Food and beverage | $ | 1,656 | $ | 1,835 | $ | 1,605 | |||||
Non-subsidized free play | 2,476 | 3,106 | 1,459 | ||||||||
Players club awards | 156 | 516 | 585 | ||||||||
Total retail value of promotional allowances | $ | 4,288 | $ | 5,457 | $ | 3,649 | |||||
The estimated cost of providing complimentary food, beverages and other items for the years ended December 31, 2014, 2013 and 2012 are as follows: | |||||||||||
Year ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(in thousands) | |||||||||||
Food and beverage | $ | 2,206 | $ | 2,154 | $ | 1,605 | |||||
Non-subsidized free play | 1,461 | 1,832 | 861 | ||||||||
Players club awards | 156 | 516 | 585 | ||||||||
Total cost of promotional allowances | $ | 3,823 | $ | 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. | |||||||||||
Restricted cash | |||||||||||
The Company has four types of restricted cash accounts. | |||||||||||
Approximately $904,000 of cash is held in reserve in accordance with NYSGC regulations as of December 31, 2014 as listed below. The Company granted the NYSGC a security interest in the segregated cash account used to deposit NYSGC’s share of net win in accordance with the NYSGC Rules and Regulations. | |||||||||||
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 $49,000 and $42,000 at December 31, 2014 and 2013, 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 $405,000 and $399,000 at December 31, 2014 and 2013, respectively. | |||||||||||
In connection with the Company’s VGM operations, it agreed to maintain a restricted bank account. The balance in this account was $450,000 and $400,000, at December 31, 2014 and 2013, respectively. The NYSGC can make withdrawals directly from this account if they have not received their share of net win when due. For the year ended December 31, 2014, there were no withdrawals made from this account. | |||||||||||
In addition to the NYSGC restricted cash balances listed above, the Company established an account to segregate amounts collected and payable to Monticello Harness Horsemen’s Association (the “MHHA”) and pursuant to its contract. The balance in this account was approximately $806,000 and $229,000 at December 31, 2014 and 2013, respectively. | |||||||||||
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. The Company recorded an allowance for doubtful accounts of approximately $161,000 and $166,000, as of December 31, 2014 and 2013. | |||||||||||
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 | |||||||||||
Prior to the enactment of the Gaming Act (defined below) in 2013 and the subsequent referendum approving a constitutional amendment in November 2013 to permit Gaming Facilities in New York, we capitalized our development costs for the Casino Project as a VGM facility because we would have transferred our current VGM license to the Casino Project as a VGM facility. However, subsequent to the enactment of the Gaming Act, Montreign submitted an application to the Siting Board for a Gaming Facility License to operate the Casino Project in a competitive environment. Because of the uncertainty of the awarding of a Gaming Facility License in such a competitive environment, we are not capitalizing the expenditures relating to the Casino Project. Therefore, during the fourth quarter of 2013, we expensed approximately $16.0 million of previously capitalized costs relating to the Casino Project, and, since that time, all costs incurred for the Casino Project as part of the proposed Gaming Facility will be expensed until we are awarded a Gaming Facility License. Although we were selected on December 17, 2014 by the Siting Board to apply to the NYSGC for a Gaming Facility License, it is not certain that we will obtain a Gaming Facility License necessary for the Casino Project. | |||||||||||
In fiscal year 2014, total Casino Project development costs incurred were approximately $12.2 million and consisted of $5.1 million in legal, construction manager costs, consultants and other professional services, $3.1 million of non-refundable payments pertaining to the Option Agreement with EPR, $2.1 million in architectural fees, $1.0 million in payment for the RFA application fee, and a $900,000 payment to Kien Huat for a commitment fee pursuant to the Commitment Let | |||||||||||
In fiscal year 2013, total Project and Casino Project development costs expensed were approximately $18.0 million and 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, $900,000 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. No liability was accrued for loss contingencies at December 31, 2014 and 2013. | |||||||||||
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, 2014, 2013 and 2012 were the same. | |||||||||||
The following table shows the approximate number of common stock equivalents outstanding at December 31, 2014 and 2013 that could potentially dilute basic loss per share in the future, but were not included in the calculation of diluted loss per share for the years ended December 31, 2014 and 2013, because their inclusion would have been anti-dilutive. | |||||||||||
Outstanding at December 31, | |||||||||||
2014 | 2013 | ||||||||||
Options | 781,000 | 1,890,000 | |||||||||
Warrants | 1,083,000 | 1,083,000 | |||||||||
Option Matching Rights | 901,000 | 999,000 | |||||||||
Restricted stock | 185,000 | 163,000 | |||||||||
Shares to be issued upon conversion of long-term loan, related party | 6,575,000 | 6,575,000 | |||||||||
Total | 9,525,000 | 10,710,000 | |||||||||
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, 2014 and 2013, 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 $977,000, $885,000 and $1.0 million for the years ended December 31, 2014, 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, 2014, there was approximately $617,000 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 2.00 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. | |||||||||||
Recent accounting pronouncements | |||||||||||
In May 2014, the FASB issued new revenue recognition guidance, which will supersede nearly all existing revenue recognition guidance. The core principle of the guidance is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve the core principle, the new guidance implements a five-step process for customer contract revenue recognition. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows arising from contracts with customers. The new guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and early adoption is prohibited. Entities can transition to the new guidance either retrospectively or as a cumulative-effect adjustment as of the date of adoption. Management assessed the impact the new revenue recognition guidance had on the consolidated financial statements and does not believe it will have a significant impact. | |||||||||||
Reclassifications | |||||||||||
In our prior year financial statements, the Company included development expenses in selling, general, and administrative expenses on the statement of operations and disclosed the amount of development expenses in the notes to the financial statements. In the current year, the Company has presented development costs as a separate line on the statement of operations; accordingly, the prior year financial statements have been reclassified to conform to this presentation. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ||||||||
Property and Equipment | Property and Equipment | |||||||
Property and equipment at December 31 consists of: | ||||||||
(in thousands) | ||||||||
2014 | 2013 | |||||||
Land | $ | 770 | $ | 770 | ||||
Land improvements | 1,681 | 1,672 | ||||||
Buildings | 4,727 | 4,727 | ||||||
Building improvements | 27,062 | 25,571 | ||||||
Vehicles | 282 | 273 | ||||||
Furniture, fixtures and equipment | 3,540 | 3,357 | ||||||
Construction in Progress | 85 | 256 | ||||||
38,147 | 36,626 | |||||||
Less—Accumulated depreciation | (11,775 | ) | (10,471 | ) | ||||
$ | 26,372 | $ | 26,155 | |||||
Depreciation expense was approximately $1.3 million, $1.4 million and $1.4 million for years ended December 31, 2014, 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, 2014 | |
Project Development Costs [Abstract] | |
Project Development Costs | Project Development Costs |
On December 21, 2011 (the “Option Effective Date”), the Company entered into an option agreement with EPT, which was last amended by a letter agreement dated June 20, 2014, between EPT and the Company (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 the form of Casino Lease negotiated between the parties. Our rights and obligations pursuant to the Option Agreement are subject to certain existing EPT agreements. | |
Among other things, the Option Agreement reflects the parties' agreement of when the Company must decide whether it will lease the EPT Property for purposes of constructing the Casino Project. Pursuant to the Option Agreement, on November 30, 2013, the Company exercised its right to extend the date by which it must make such determination (the "Option Exercise Period End Date") for up to a twelve (12) month period ending November 30, 2014 (the "First Extended Option Exercise Period"). In addition, the final date by which the Company must decide whether or not to execute the Casino Lease (the "Final Option Exercise Outside Date") was extended to a date that is (i) one hundred twenty (120) days from the earliest to occur of specified triggers relating to whether the Company is chosen to receive a Gaming Facility license or (ii) sixty (60) days from when affiliates of MRMI enter into an agreement to develop a gaming facility with someone other than MRMI (each a "Trigger Event"). In consideration of such extension, the Company made monthly option payments (each an “Option Payment”). If a Trigger Event occurs, EPT may, at its sole discretion, extend the Final Option Exercise Outside Date by a maximum of ninety (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). | |
Because a Trigger Event did not occur as of the end of the First Extended Option Exercise Period, (i) the Company has the ability to extend the Option Exercise Period End Date by up to an additional twelve (12) months (the “Second Extended Option Exercise Period”) from November 30, 2014 to November 30, 2015 by making monthly Option Payments of $375,000 per month. If a Trigger Event has not occurred as of the end of the Second Extended Option Exercise Period, the Company 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 the Company exercises the Option and the Casino Lease for the EPT Property is executed between the parties, any Option Payments made by the Company 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 Facility License regarding the EPT Property and, if the Company 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 Facility License with respect to the EPT Property. | |
During the term of the Option Agreement, the Company agreed to make a good faith effort to pursue a Gaming Facility License. If MRMI fails to diligently pursue the Gaming Facility License, the Company shall notify EPT and the Final Option Exercise Outside Date shall be sixty (60) days following the receipt of such notice by EPT. In furtherance of the Adelaar Project and the Casino Project, EPT and the Company negotiated the terms of a Master Declaration which was executed by EPT on December 6, 2013, which addresses the covenants, conditions, easements and restrictions of the Concord Resorts Master Association, LLC for the Adelaar Project. | |
EPT has also granted the Company 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 August 30, 2013 plus capitalized expenses incurred by EPT after such date through the purchase date and related to the development of the EPT Property. | |
Pursuant to the Option Agreement, we made option payments to EPT in the amount of $750,000 and $472,603, on December 21, 2011 and March 8, 2013, respectively. 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 MDA. In addition, on September 30, 2013, we provided a certificate waiving our right to terminate the MDA. As a result, on September 30, 2013, the aggregate option payments of $1,222,603 made by us to EPT, became non-refundable. In addition to the monthly Option Payments, as of December 31, 2014, we have made $3.7 million of cumulative non-refundable payments pertaining to the Option Agreement with EPT. | |
Pursuant to the June 20, 2014 letter agreement, the Company and EPT have agreed to amend the terms of the Casino Lease to expire on the earlier of: (i) the last day of the calendar month that is seventy (70) years after the commencement of the Casino Lease, and (ii) upon the Company giving EPT written notice of its election to terminate the Casino Lease (the “Termination Option”) at least twelve (12) months prior to any one of five (5) Option Dates (as defined below). The Option Dates under the letter agreement mean each of the twentieth (20th), thirtieth (30th), fortieth (40th), fiftieth (50th) and sixtieth (60th) anniversary of the commencement of the ground lease. Upon the Company's timely notice of exercise of its Termination Option, the Casino Lease shall be automatically terminated effective as of the applicable Option Date. Additionally, within sixty (60) days after a Gaming Facility License has been awarded to Montreign, MRMI will assign, and Montreign will assume, the Option and Casino Lease to own or acquire the land through a tenancy for a term of seventy (70) years. The remaining terms and conditions of the Option Agreement remain unchanged. | |
For the twelve months ended December 31, 2014 we made option payments to EPT totaling $3.1 million. |
Accrued_Expenses_and_Other_Cur
Accrued Expenses and Other Current Liabilities | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities | |||||||
Accrued expenses and other current liabilities, as presented on the balance sheet are comprised of the following at December 31, 2014 and 2013: | ||||||||
(in thousands) | ||||||||
2014 | 2013 | |||||||
Liability for horseracing purses | $ | 1,568 | $ | 473 | ||||
Accrued payroll | 1,424 | 1,300 | ||||||
Series E payable | 1,241 | — | ||||||
Accrued redeemable points | 187 | 393 | ||||||
Liability to NYSGC | 436 | 521 | ||||||
Liability for local progressive jackpot | 776 | 768 | ||||||
Accrued professional fees | 1,000 | 1,406 | ||||||
Federal tax withholding payable | 114 | — | ||||||
Accrued other | 1,352 | 1,180 | ||||||
Total accrued expenses and other current liabilities | $ | 8,098 | $ | 6,041 | ||||
LongTerm_Loan_Related_Party
Long-Term Loan, Related Party | 12 Months Ended |
Dec. 31, 2014 | |
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. | |
On March 3, 2015, the Company and Kien Huat entered into Amendment No. 3 (the "Third Amendment") to the Loan Agreement. Pursuant to the Third Amendment, the maturity date of the Loan was extended from March 15, 2015 to March 15, 2016. Additionally, if the Company is denied a Gaming Facility License for the Gaming Facility, it shall be deemed an Event of Default under the Loan Agreement. The Company does not believe that such denial is probable at this time; accordingly, the Loan has been classified as a long-term obligation on the balance sheet as of December 31, 2014, pursuant to its stated maturity date. 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 and 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. | |
In the event the Conversion Conditions are met, the Kien Huat Note will be converted into shares of the Company's common stock upon the earlier of (i) the consummation of a rights offering pursuant to the terms of that certain Commitment Letter (which is discussed in Note A above) and (ii) the maturity date of March 15, 2016. In the event the Kien Huat Note is converted in common stock pursuant to the Commitment Letter, the Kien Huat Note would be convertible into shares of common stock of the Company at a conversion rate of 382.202837 shares of common stock per $1,000 in principal amount, which represents a conversion price of approximately $2.6164 per share. Such conversion rate and conversion price reflect adjustments to these terms that are required by the terms of the Loan Agreement as a result of the April 2013 Rights Offering (as defined below) and the April 2014 Rights Offering. The conversion rate and conversion price are subject to further adjustment pursuant to the Loan Agreement in the event of certain dilutive issuances by the Company. | |
In the event the Conversion Conditions are not met, we will need to renegotiate the terms of the Kien Huat Note prior to its maturity date of March 15, 2016. However, there can be no assurance that the Company will be successful in renegotiating the Kien Huat Note to extend its maturity and potentially revising other terms. If the Company is unable to amend the Kien Huat Note prior to its maturity, it could have a material adverse effect on the Company, including a default pursuant to the terms of the Kien Huat Note. | |
On July 18, 2014, the holders of a majority of the voting power of the Company's voting securities acted by written consent to approve the issuance of shares of the Company's common stock upon the conversion of the Kien Huat Note. Pursuant to the Delaware General Corporation Law and the Securities Exchange Act of 1934, as amended, such Shareholder Approval became effective on September 11, 2014. | |
The Company recognized approximately$1.3 million, $1.3 million and $1.1 million in interest expense associated with the Loan during the years ended December 31, 2014, 2013 and 2012, respectively. | |
We paid interest to Kien Huat pursuant to the Loan Agreement totaling approximately $4.1 million from November 2010 through March 31, 2014. Due to an inadvertent oversight, the Company did not withhold taxes due on interest payments from November 2010 through March 31, 2014, to Kien Huat, which is a foreign entity affiliate of ours, as required by the Internal Revenue Code of 1986, as amended. Kien Huat has reimbursed the Company for the taxes that were due on such interest payments, which are equal to 30% of the interest paid to Kien Huat, or approximately $1.2 million (the “Taxes Payable”). The total of the Taxes Payable and anticipated interest charges thereon is approximately $1.3 million. | |
The Taxes Payable amount has been remitted to the Internal Revenue Service (the "IRS") and was accepted by the IRS in the second quarter of fiscal year 2014. The interest on the Taxes Payable for fiscal year ending December 31, 2010 was paid and accepted by the IRS in the third quarter of fiscal year 2014 and no penalties were assessed. | |
The interest on the Taxes Payable for 2011-2013, which is estimated in the amount of $114,000, will be remitted to the IRS upon the IRS's request therefor. Based on the Company’s actions to correct such oversight, the Company believes that it is not probable that penalties would be due for the period of 2011-2013; however, if penalties were to be due to the IRS, the amount could be up to approximately $400,000. The Company has not adjusted its historical financial statements for any period prior to March 31, 2014 as the Company believes that the impact to previously issued financial statements is not material. |
Bryanston_Settlement
Bryanston Settlement | 12 Months Ended |
Dec. 31, 2014 | |
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 (the "Redeemed Tollman Preferred Stock"). | |
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 had occurred after December 31, 2013 and on or before June 30, 2014, all Preferred Stock and Accrued Dividends held by Bryanston would have been 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 had occurred after June 30, 2014 and on or before December 31, 2014, all Preferred Stock held by Bryanston would have been 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. | |
The Concord Event did not occur before December 31, 2014, therefore, 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) business day following December 31, 2014 from funds legally available to the Company to effect such payment. This payment was made on February 12, 2015. | |
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. | |
Effective May 29, 2014, the Settlement Parties entered into a side letter amendment to the Settlement Agreement (the “Settlement Amendment”), pursuant to which the Redemption Schedule was revised. Pursuant to the Settlement Amendment, the Company may, at its sole discretion redeem the Preferred Stock prior to the occurrence of the Concord Event at a purchase price consistent with the Redemption Schedule notwithstanding whether a Concord Event has occurred (“Early Redemption”). Moreover, the Company shall be required to redeem the Preferred Stock upon being awarded a Gaming Facility License by the NYSGC and paying the required license fee at a purchase price consistent with the Redemption Schedule notwithstanding whether a Concord Event has occurred (“Mandatory Redemption”). Unless and until an Early Redemption or Mandatory Redemption occurs, the existing terms and conditions of the Settlement Agreement remain unaffected and the obligations unmodified. | |
As a result of the Settlement Agreement on June 30, 2013, 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 recorded on the balance sheet is the amount at which it would be settled if the redemption occurred as of the balance sheet date. The difference between the redemption amount and the amount recorded in the balance sheet as of the date of the Settlement Agreement has been reflected as a deemed dividend on that date. Changes in the redemption value of the liability subsequent to the date of the Settlement Agreement are recorded as interest expense. At December 31, 2014, the liability has been reflected in the amount of $30.5 million in the accompanying consolidated balance sheet of which $1.2 million is reflected as a current liability in accrued expenses and other current liabilities. Interest expense associated with the change in the redemption amount of the liability were $7.7 million and $0 for the year ended December 31, 2014 and 2013, respectively. |
Stockholders_Equity
Stockholders Equity | 12 Months Ended |
Dec. 31, 2014 | |
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 F). 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 April 2, 2014, the Company commenced the April 2014 Rights Offering. The Company distributed to its common stock holders and Series B Preferred Stock holders one (1) non-transferable right to purchase one (1) share of common stock at a subscription price of $6.25 per share for each fifteen shares of common stock owned, or into which their Series B Preferred Stock was convertible, on March 31, 2014, the record date for the April 2014 Rights Offering. In addition to being able to purchase their pro rata portion of the shares offered based on their ownership as of March 31, 2014, stockholders were able to oversubscribe for additional shares of common stock. | |
Upon completion of the April 2014 Rights Offering, the Company issued 2,138,881 shares of common stock and raised approximately $13.4 million. This includes 453,165 shares issued to holders upon exercise of their basic subscription rights, 1,512,629 shares issued to Kien Huat upon exercise of its basic subscription rights and 173,087 shares issued to holders upon exercise of their over-subscription rights in the April 2014 Rights Offering. The Company utilized the net proceeds of the April 2014 Rights Offering, which was approximately $13.2 million for certain expenses relating to the the Adelaar Project and Casino Project and maintaining our on-going operations and facilities in support of our pursuit of a Gaming Facility License. | |
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 0.27 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, 2014 and 2013, there were 44,258 shares of Series B Preferred Shares outstanding. | |
On February 9, 2015, our Board authorized the issuance of 25,509 shares of our common stock in payment of dividends due for the year ended December 31, 2014 on our Series B Preferred Stock. The recorded value of these shares was approximately $159,000. At December 31, 2014, the Company had undeclared dividends on the Series B Preferred Stock of approximately $159,000. | |
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, 2014, the Company had cumulative undeclared dividends on its Series E Preferred Stock of approximately $256,000. 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, 2014 | |||||||||||||
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 expired 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. | |||||||||||||
As of December 31, 2014, the Company has outstanding the following 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, 2014, 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 2,534,000 securities remaining available for future issuance under this plan. | |||||||||||||
Stock-based compensation expense is approximately $636,000, $385,000 and $647,000 for the years ended December 31, 2014, 2013 and 2012, respectively. As of December 31, 2014, there was approximately $617,000 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 two years. This expected cost does not include the impact of any future stock-based compensation awards. | |||||||||||||
In 2014 and 2013 the Company received approximately $2.8 million and $1.0 million, respectively, 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 2014, 2013 and 2012. | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted average fair value of options granted | $ | 5.65 | $ | 3.78 | $ | 1.24 | |||||||
Expected dividend yield | —% | —% | —% | ||||||||||
Expected volatility | 101.6 | % | 103.8 | % | 109.4 | % | |||||||
Risk—free interest rate | 1.64 | % | 1.47 | % | 0.67 | % | |||||||
Expected life of options | 5 years | 5 years | 5 years | ||||||||||
The following table reflects stock option activity in 2014, 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 | |||||||||
Granted in 2014 | 8,000 | $ | 7.17 | $ | 7.17 | 3.87 | |||||||
Options exercised in 2014 | (768,000 | ) | $2.79 - $6.90 | $ | 4.67 | ||||||||
Forfeited in 2014 | (5,000 | ) | $ | 4.95 | $ | 3.87 | |||||||
Canceled in 2014 | (344,000 | ) | $3.00 - $42.75 | $ | 14.46 | ||||||||
Options outstanding at December 31, 2014 | 781,000 | $ | 6.65 | 1.47 | |||||||||
Options exercisable at December 31, 2014 | 781,000 | $ | 6.65 | 1.47 | |||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Income Taxes | Income Taxes | ||||||||
Empire and all of its subsidiaries file a consolidated income tax return. At December 31, 2014, 2013 and 2012, the estimated deferred income tax assets and liability were comprised of the following: | |||||||||
(in thousands) | |||||||||
2014 | 2013 | ||||||||
Deferred tax assets: | |||||||||
Net operating loss carry forwards | $ | 56,942 | $ | 55,171 | |||||
Other | 15,713 | 10,962 | |||||||
72,655 | 66,133 | ||||||||
Deferred tax liability: | |||||||||
Depreciation | (551 | ) | (301 | ) | |||||
Net deferred tax assets | 72,104 | 65,832 | |||||||
Valuation allowance | (72,104 | ) | (65,832 | ) | |||||
Deferred tax assets, net | $ | — | $ | — | |||||
The valuation allowance increased approximately $6.3 million and $9.3 million during the years ended December 31, 2014 and 2013, respectively. Of the $143.7 million in net operating loss carry forwards approximately $50.8 million is readily available as of December 31, 2014. | |||||||||
The following is a reconciliation of the federal statutory tax rate to the Company’s effective tax rate: | |||||||||
Year ended | |||||||||
December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Tax provision at federal statutory tax rate | 35 | % | 35 | % | 35 | % | |||
State income taxes, net | — | % | (0.1 | )% | (1.4 | )% | |||
Non-deductible interest | (11.3 | )% | — | % | — | % | |||
Permanent items | 1.8 | % | (0.3 | )% | (17.2 | )% | |||
Expiration of net operating loss carry forwards | — | % | — | % | (141.1 | )% | |||
Change in valuation allowance | (25.5 | )% | (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, 2014, the Company had net operating loss carry forwards of approximately $143.7 million that expire between 2015 and 2034. 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, 2014, the Company does not have any uncertain tax positions. As a result, there are no unrecognized tax benefits as of December 31, 2014. 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, 2014 have been timely filed. The Company is subject to U.S. federal or state income tax examinations by tax authorities for years after 2010. 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, 2014 | |
Risks and Uncertainties [Abstract] | |
Concentration | Concentration |
As of December 31, 2014, the Company has one debtor, that consist of Hawthorn OTB which represented 14.5% of the total net outstanding racing related accounts receivable. | |
As of December 31, 2013, the Company had one debtor, that consist of Western OTB which represented 10% of the total net outstanding racing related accounts receivable. |
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2014 | |
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, 2014, 2013 and 2012 were approximately $92,000, $94,000 and $81,000, respectively. As of December 31, 2014, the Plan had 154 participants. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies | Commitments and Contingencies | |||
Legal Proceedings | ||||
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"). The appeal has been fully briefed. However, the Third Division has not yet scheduled the oral argument. MRMI will continue to aggressively pursue its 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 the Company and all other defendants. This lawsuit was filed in March 2012, by Concord and various affiliates in the SDNY and asserted in an amended complaint various federal antitrust claims against the Company, EPR, EPT, Genting NY LLC and Kien Huat. The lawsuit arises out of the Company's 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 ("2nd Circuit Court") issued a Notice of Stay of Appeal pending the outcome of the Motion for Reconsideration. On November 3, 2014, SDNY denied Concord's Motion for Reconsideration. The 2nd Circuit Court lifted the Stay of Appeal and the Appeal has been fully briefed. The 2nd Circuit Court has scheduled oral argument for April 29, 2015. The Company believes this lawsuit is without merit and it will aggressively defend its interests. | ||||
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): | ||||
2015 | $ | 1,097 | ||
2016 | — | |||
2017 | — | |||
$ | 1,097 | |||
Prepaid_Expenses_and_Other_Ass
Prepaid Expenses and Other Assets | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
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, 2014 and 2013 was approximately $2.4 million and $1.3 million, respectively. Subsequent to December 31, 2014, the Company received approximately$1.3 million in cash from the State of New York. The Company anticipates the remaining receivable of $1.1 million being received from the State of New York by December 31, 2015. | |||||||||
Prepaid expenses and other current assets, as presented on the balance sheet are comprised of the following at December 31, 2014 and 2013: | |||||||||
(in thousands) | |||||||||
2014 | 2013 | ||||||||
Empire zone real estate tax credit | $ | 2,407 | $ | 1,264 | |||||
Prepaid real estate taxes | 551 | 535 | |||||||
Prepaid insurance | 335 | 300 | |||||||
Prepaid rent payment | 375 | 250 | |||||||
Inventory | 200 | 193 | |||||||
Prepaid gaming expenses | 118 | 83 | |||||||
Prepaid other | 311 | 398 | |||||||
Total prepaid expenses and other current assets | $ | 4,297 | $ | 3,023 | |||||
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
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 Adelaar 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. | |
During 2014, we paid Moelis approximately $44,000 for professional services and travel. | |
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. |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Acconts (Notes) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
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, 2014, 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, 2014 | ||||||||||||||||||||
Allowance for doubtful accounts | $ | 166 | $ | — | $ | (5 | ) | $ | — | $ | 161 | |||||||||
Deferred tax asset valuation allowance | $ | 65,832 | $ | — | $ | 6,272 | $ | — | $ | 72,104 | ||||||||||
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, 2014 | |||||||||||
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 NYSGC’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, 2014, 2013 and 2012 are as follows: | |||||||||||
Year ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(in thousands) | |||||||||||
Food and beverage | $ | 1,656 | $ | 1,835 | $ | 1,605 | |||||
Non-subsidized free play | 2,476 | 3,106 | 1,459 | ||||||||
Players club awards | 156 | 516 | 585 | ||||||||
Total retail value of promotional allowances | $ | 4,288 | $ | 5,457 | $ | 3,649 | |||||
The estimated cost of providing complimentary food, beverages and other items for the years ended December 31, 2014, 2013 and 2012 are as follows: | |||||||||||
Year ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(in thousands) | |||||||||||
Food and beverage | $ | 2,206 | $ | 2,154 | $ | 1,605 | |||||
Non-subsidized free play | 1,461 | 1,832 | 861 | ||||||||
Players club awards | 156 | 516 | 585 | ||||||||
Total cost of promotional allowances | $ | 3,823 | $ | 4,502 | $ | 3,051 | |||||
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. | |||||||||||
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 | ||||||||||
Prior to the enactment of the Gaming Act (defined below) in 2013 and the subsequent referendum approving a constitutional amendment in November 2013 to permit Gaming Facilities in New York, we capitalized our development costs for the Casino Project as a VGM facility because we would have transferred our current VGM license to the Casino Project as a VGM facility. However, subsequent to the enactment of the Gaming Act, Montreign submitted an application to the Siting Board for a Gaming Facility License to operate the Casino Project in a competitive environment. Because of the uncertainty of the awarding of a Gaming Facility License in such a competitive environment, we are not capitalizing the expenditures relating to the Casino Project. Therefore, during the fourth quarter of 2013, we expensed approximately $16.0 million of previously capitalized costs relating to the Casino Project, and, since that time, all costs incurred for the Casino Project as part of the proposed Gaming Facility will be expensed until we are awarded a Gaming Facility License. Although we were selected on December 17, 2014 by the Siting Board to apply to the NYSGC for a Gaming Facility License, it is not certain that we will obtain a Gaming Facility License necessary for the Casino Project. | |||||||||||
In fiscal year 2014, total Casino Project development costs incurred were approximately $12.2 million and consisted of $5.1 million in legal, construction manager costs, consultants and other professional services, $3.1 million of non-refundable payments pertaining to the Option Agreement with EPR, $2.1 million in architectural fees, $1.0 million in payment for the RFA application fee, and a $900,000 payment to Kien Huat for a commitment fee pursuant to the Commitment Let | |||||||||||
In fiscal year 2013, total Project and Casino Project development costs expensed were approximately $18.0 million and 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, $900,000 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. No liability was accrued for loss contingencies at December 31, 2014 and 2013. | |||||||||||
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, 2014, 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, 2014 and 2013, 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 $977,000, $885,000 and $1.0 million for the years ended December 31, 2014, 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, 2014, there was approximately $617,000 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 2.00 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 | ||||||||||
In our prior year financial statements, the Company included development expenses in selling, general, and administrative expenses on the statement of operations and disclosed the amount of development expenses in the notes to the financial statements. In the current year, the Company has presented development costs as a separate line on the statement of operations; accordingly, the prior year financial statements have been reclassified to conform to this presentation. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
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, 2014, 2013 and 2012 are as follows: | ||||||||||
Year ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(in thousands) | |||||||||||
Food and beverage | $ | 1,656 | $ | 1,835 | $ | 1,605 | |||||
Non-subsidized free play | 2,476 | 3,106 | 1,459 | ||||||||
Players club awards | 156 | 516 | 585 | ||||||||
Total retail value of promotional allowances | $ | 4,288 | $ | 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, 2014, 2013 and 2012 are as follows: | ||||||||||
Year ended December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||
(in thousands) | |||||||||||
Food and beverage | $ | 2,206 | $ | 2,154 | $ | 1,605 | |||||
Non-subsidized free play | 1,461 | 1,832 | 861 | ||||||||
Players club awards | 156 | 516 | 585 | ||||||||
Total cost of promotional allowances | $ | 3,823 | $ | 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) | |||||||||||
2014 | 2013 | ||||||||||
Land | $ | 770 | $ | 770 | |||||||
Land improvements | 1,681 | 1,672 | |||||||||
Buildings | 4,727 | 4,727 | |||||||||
Building improvements | 27,062 | 25,571 | |||||||||
Vehicles | 282 | 273 | |||||||||
Furniture, fixtures and equipment | 3,540 | 3,357 | |||||||||
Construction in Progress | 85 | 256 | |||||||||
38,147 | 36,626 | ||||||||||
Less—Accumulated depreciation | (11,775 | ) | (10,471 | ) | |||||||
$ | 26,372 | $ | 26,155 | ||||||||
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, 2014 and 2013 that could potentially dilute basic loss per share in the future, but were not included in the calculation of diluted loss per share for the years ended December 31, 2014 and 2013, because their inclusion would have been anti-dilutive. | ||||||||||
Outstanding at December 31, | |||||||||||
2014 | 2013 | ||||||||||
Options | 781,000 | 1,890,000 | |||||||||
Warrants | 1,083,000 | 1,083,000 | |||||||||
Option Matching Rights | 901,000 | 999,000 | |||||||||
Restricted stock | 185,000 | 163,000 | |||||||||
Shares to be issued upon conversion of long-term loan, related party | 6,575,000 | 6,575,000 | |||||||||
Total | 9,525,000 | 10,710,000 | |||||||||
Property_and_Equipment_Propert
Property and Equipment Property and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
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) | ||||||||
2014 | 2013 | |||||||
Land | $ | 770 | $ | 770 | ||||
Land improvements | 1,681 | 1,672 | ||||||
Buildings | 4,727 | 4,727 | ||||||
Building improvements | 27,062 | 25,571 | ||||||
Vehicles | 282 | 273 | ||||||
Furniture, fixtures and equipment | 3,540 | 3,357 | ||||||
Construction in Progress | 85 | 256 | ||||||
38,147 | 36,626 | |||||||
Less—Accumulated depreciation | (11,775 | ) | (10,471 | ) | ||||
$ | 26,372 | $ | 26,155 | |||||
Accrued_Expenses_and_Other_Cur1
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Accrued expenses and other current liabilities | Accrued expenses and other current liabilities, as presented on the balance sheet are comprised of the following at December 31, 2014 and 2013: | |||||||
(in thousands) | ||||||||
2014 | 2013 | |||||||
Liability for horseracing purses | $ | 1,568 | $ | 473 | ||||
Accrued payroll | 1,424 | 1,300 | ||||||
Series E payable | 1,241 | — | ||||||
Accrued redeemable points | 187 | 393 | ||||||
Liability to NYSGC | 436 | 521 | ||||||
Liability for local progressive jackpot | 776 | 768 | ||||||
Accrued professional fees | 1,000 | 1,406 | ||||||
Federal tax withholding payable | 114 | — | ||||||
Accrued other | 1,352 | 1,180 | ||||||
Total accrued expenses and other current liabilities | $ | 8,098 | $ | 6,041 | ||||
Stock_Options_and_Warrants_Tab
Stock Options and Warrants (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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 2014, 2013 and 2012. | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Weighted average fair value of options granted | $ | 5.65 | $ | 3.78 | $ | 1.24 | |||||||
Expected dividend yield | —% | —% | —% | ||||||||||
Expected volatility | 101.6 | % | 103.8 | % | 109.4 | % | |||||||
Risk—free interest rate | 1.64 | % | 1.47 | % | 0.67 | % | |||||||
Expected life of options | 5 years | 5 years | 5 years | ||||||||||
Schedule of Stock Option Activity | The following table reflects stock option activity in 2014, 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 | |||||||||
Granted in 2014 | 8,000 | $ | 7.17 | $ | 7.17 | 3.87 | |||||||
Options exercised in 2014 | (768,000 | ) | $2.79 - $6.90 | $ | 4.67 | ||||||||
Forfeited in 2014 | (5,000 | ) | $ | 4.95 | $ | 3.87 | |||||||
Canceled in 2014 | (344,000 | ) | $3.00 - $42.75 | $ | 14.46 | ||||||||
Options outstanding at December 31, 2014 | 781,000 | $ | 6.65 | 1.47 | |||||||||
Options exercisable at December 31, 2014 | 781,000 | $ | 6.65 | 1.47 | |||||||||
Income_Taxes_Income_Taxes_Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Schedule of Deferred Tax Assets and Liabilities | At December 31, 2014, 2013 and 2012, the estimated deferred income tax assets and liability were comprised of the following: | ||||||||
(in thousands) | |||||||||
2014 | 2013 | ||||||||
Deferred tax assets: | |||||||||
Net operating loss carry forwards | $ | 56,942 | $ | 55,171 | |||||
Other | 15,713 | 10,962 | |||||||
72,655 | 66,133 | ||||||||
Deferred tax liability: | |||||||||
Depreciation | (551 | ) | (301 | ) | |||||
Net deferred tax assets | 72,104 | 65,832 | |||||||
Valuation allowance | (72,104 | ) | (65,832 | ) | |||||
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, | |||||||||
2014 | 2013 | 2012 | |||||||
Tax provision at federal statutory tax rate | 35 | % | 35 | % | 35 | % | |||
State income taxes, net | — | % | (0.1 | )% | (1.4 | )% | |||
Non-deductible interest | (11.3 | )% | — | % | — | % | |||
Permanent items | 1.8 | % | (0.3 | )% | (17.2 | )% | |||
Expiration of net operating loss carry forwards | — | % | — | % | (141.1 | )% | |||
Change in valuation allowance | (25.5 | )% | (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, 2014 | ||||
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): | |||
2015 | $ | 1,097 | ||
2016 | — | |||
2017 | — | |||
$ | 1,097 | |||
Prepaid_Expenses_and_Other_Ass1
Prepaid Expenses and Other Assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets, as presented on the balance sheet are comprised of the following at December 31, 2014 and 2013: | ||||||||
(in thousands) | |||||||||
2014 | 2013 | ||||||||
Empire zone real estate tax credit | $ | 2,407 | $ | 1,264 | |||||
Prepaid real estate taxes | 551 | 535 | |||||||
Prepaid insurance | 335 | 300 | |||||||
Prepaid rent payment | 375 | 250 | |||||||
Inventory | 200 | 193 | |||||||
Prepaid gaming expenses | 118 | 83 | |||||||
Prepaid other | 311 | 398 | |||||||
Total prepaid expenses and other current assets | $ | 4,297 | $ | 3,023 | |||||
Organization_And_Nature_Of_Bus1
Organization And Nature Of Business (Details Textual) (USD $) | 0 Months Ended | 4 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | ||||||||||||||||||||||
Dec. 17, 2014 | Nov. 30, 2014 | Apr. 02, 2014 | Apr. 30, 2013 | Mar. 19, 2013 | Mar. 08, 2013 | Mar. 08, 2013 | Dec. 31, 2009 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 6-May-14 | Apr. 30, 2014 | Feb. 06, 2015 | Jan. 02, 2015 | Jun. 20, 2014 | Jun. 26, 2014 | Apr. 23, 2014 | Sep. 30, 2013 | Dec. 21, 2011 | Mar. 28, 2011 | Feb. 16, 2011 | Feb. 15, 2011 | Jul. 22, 2014 | Feb. 12, 2014 | Jan. 05, 2015 | Feb. 07, 2015 | Mar. 06, 2015 | |
mi | sqft | date | ||||||||||||||||||||||||||
electronic_table_game | ||||||||||||||||||||||||||||
video_gaming_machine | ||||||||||||||||||||||||||||
video_lottery_terminal | ||||||||||||||||||||||||||||
mi | ||||||||||||||||||||||||||||
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 | 90 | ||||||||||||||||||||||||||
Number of video gaming machines | 1,110 | |||||||||||||||||||||||||||
Number of video lottery terminals | 1,090 | |||||||||||||||||||||||||||
Number of electronic table games | 20 | |||||||||||||||||||||||||||
Estimated cost for investment property | $1,100,000,000 | |||||||||||||||||||||||||||
Total current assets | 13,490,000 | 12,797,000 | ||||||||||||||||||||||||||
Total current liabilities | 10,303,000 | 8,596,000 | ||||||||||||||||||||||||||
Loss from operations | 14,686,000 | 20,120,000 | -392,000 | |||||||||||||||||||||||||
Project development costs incurred | 12,200,000 | 18,000,000 | ||||||||||||||||||||||||||
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 | 150,000,000 | 95,000,000 | ||||||||||||||||||||||||
Class Of Warrant Or Right, Convertible Non-Transferable Right To Purchase Common Stock | 0.0666 | |||||||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 0.0666 | 0.18917 | ||||||||||||||||||||||||||
Proceeds from rights offering, net of expenses | 55,000,000 | 13,180,000 | 11,178,000 | 0 | ||||||||||||||||||||||||
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 by counterparty | 300,000,000 | |||||||||||||||||||||||||||
Noncompete Agreement, Period Of Restriction | 5 years | |||||||||||||||||||||||||||
Option Exercise Period End Date, Extension, Period | 12 months | 12 months | ||||||||||||||||||||||||||
Option payment deferred lease costs | 3,100,000 | 750,000 | ||||||||||||||||||||||||||
Project developments costs agreement payments | 472,603 | 472,603 | ||||||||||||||||||||||||||
Amount becoming non-refundable | 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 Of Recognition | 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 | 13,400,000 | 11,400,000 | ||||||||||||||||||||||||||
Commitment Fee, Percent of Amount Raised, Percent | 1.00% | |||||||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | 6.25 | 2.65 | ||||||||||||||||||||||||||
Proceeds from Issuance of Stock, Rights Issue, Net | 13,200,000 | 11,200,000 | ||||||||||||||||||||||||||
Debt Instrument Covenant, Equity Investment Required | 150,000,000 | |||||||||||||||||||||||||||
Application Fees, Gaming Facility License | 1,000,000 | |||||||||||||||||||||||||||
Additional Monthly Option Payment For Extension of Option Exercise Period | 375,000 | |||||||||||||||||||||||||||
Project Development, Final Option Exercise Period After Receipt Of Notice | 60 days | |||||||||||||||||||||||||||
Non-refundable development cost payments | 3,700,000 | |||||||||||||||||||||||||||
EPT Concord II, LLC [Member] | ||||||||||||||||||||||||||||
Organization And Nature Of Business (Textual) | ||||||||||||||||||||||||||||
Real estate property (acres) | 1,500 | |||||||||||||||||||||||||||
Montreign | ||||||||||||||||||||||||||||
Organization And Nature Of Business (Textual) | ||||||||||||||||||||||||||||
Minimum capital investment, without license fee | 452,000,000 | |||||||||||||||||||||||||||
Common Stock | ||||||||||||||||||||||||||||
Organization And Nature Of Business (Textual) | ||||||||||||||||||||||||||||
Common stock issued from exercise of rights offering, shares | 2,139,000 | 6,032,000 | ||||||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 135,000 | 50,000 | ||||||||||||||||||||||||||
Class of Warrant or Right | ||||||||||||||||||||||||||||
Organization And Nature Of Business (Textual) | ||||||||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 2,138,881 | |||||||||||||||||||||||||||
Proceeds from Issuance of Stock, Rights Issue, Net | 13,200,000 | 13,400,000 | ||||||||||||||||||||||||||
Basic Subscription Rights | Class of Warrant or Right | ||||||||||||||||||||||||||||
Organization And Nature Of Business (Textual) | ||||||||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 453,165 | |||||||||||||||||||||||||||
Basic Subscription Rights | Class of Warrant or Right | Kien Huat Realty Limited | ||||||||||||||||||||||||||||
Organization And Nature Of Business (Textual) | ||||||||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 1,512,629 | |||||||||||||||||||||||||||
Over Subscription Rights | Class of Warrant or Right | ||||||||||||||||||||||||||||
Organization And Nature Of Business (Textual) | ||||||||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 173,087 | |||||||||||||||||||||||||||
Execution of Commitment Letter | ||||||||||||||||||||||||||||
Organization And Nature Of Business (Textual) | ||||||||||||||||||||||||||||
Commitment Fee, Percent of Amount Raised, Percent | 0.50% | |||||||||||||||||||||||||||
Rights Offering Launched | ||||||||||||||||||||||||||||
Organization And Nature Of Business (Textual) | ||||||||||||||||||||||||||||
Commitment Fee, Percent of Amount Raised, Percent | 0.50% | |||||||||||||||||||||||||||
Senior Secured Credit Facility | Credit Suisse AG | ||||||||||||||||||||||||||||
Organization And Nature Of Business (Textual) | ||||||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 478,000,000 | |||||||||||||||||||||||||||
Minimum | ||||||||||||||||||||||||||||
Organization And Nature Of Business (Textual) | ||||||||||||||||||||||||||||
Non Taxable Free Play Allowance, Percent | 10.00% | |||||||||||||||||||||||||||
Minimum | Montreign | ||||||||||||||||||||||||||||
Organization And Nature Of Business (Textual) | ||||||||||||||||||||||||||||
Gaming facility license fee | 51,000,000 | 51,000,000 | ||||||||||||||||||||||||||
Maximum | ||||||||||||||||||||||||||||
Organization And Nature Of Business (Textual) | ||||||||||||||||||||||||||||
Option Exercise Period End Date, Extension, Period | 12 months | 12 months | 90 days | |||||||||||||||||||||||||
Non Taxable Free Play Allowance, Percent | 15.00% | |||||||||||||||||||||||||||
Montreign Resort Casino | Montreign | ||||||||||||||||||||||||||||
Organization And Nature Of Business (Textual) | ||||||||||||||||||||||||||||
Real estate property (acres) | 80,000 | |||||||||||||||||||||||||||
Number of stories | 18 | |||||||||||||||||||||||||||
Number of Table Games | 61 | |||||||||||||||||||||||||||
Number of Slot Machine | 2,150 | |||||||||||||||||||||||||||
Number of Rooms | 391 | |||||||||||||||||||||||||||
Indoor Waterpark Lodge | Montreign | ||||||||||||||||||||||||||||
Organization And Nature Of Business (Textual) | ||||||||||||||||||||||||||||
Number of Rooms | 350 | |||||||||||||||||||||||||||
Entertainment Village | Montreign | ||||||||||||||||||||||||||||
Organization And Nature Of Business (Textual) | ||||||||||||||||||||||||||||
Real estate property (acres) | 200,000 | |||||||||||||||||||||||||||
EPR Member | ||||||||||||||||||||||||||||
Organization And Nature Of Business (Textual) | ||||||||||||||||||||||||||||
Non-refundable development cost payments | 3,100,000 | |||||||||||||||||||||||||||
Trigger One | ||||||||||||||||||||||||||||
Organization And Nature Of Business (Textual) | ||||||||||||||||||||||||||||
Option Exercise Period End Date, Extension, Period | 120 days | |||||||||||||||||||||||||||
Trigger Two | ||||||||||||||||||||||||||||
Organization And Nature Of Business (Textual) | ||||||||||||||||||||||||||||
Option Exercise Period End Date, Extension, Period | 60 days | |||||||||||||||||||||||||||
Shelf Registration [Member] | ||||||||||||||||||||||||||||
Organization And Nature Of Business (Textual) | ||||||||||||||||||||||||||||
Common Stock, Shares Authorized | 250,000,000 | |||||||||||||||||||||||||||
Subsequent Event | ||||||||||||||||||||||||||||
Organization And Nature Of Business (Textual) | ||||||||||||||||||||||||||||
Capital | 50,000,000 | |||||||||||||||||||||||||||
Subsequent Event | January 2015 Rights Offering | ||||||||||||||||||||||||||||
Organization And Nature Of Business (Textual) | ||||||||||||||||||||||||||||
Common Stock, Shares Authorized | 7,042,254 | 7,042,254 | ||||||||||||||||||||||||||
Proceeds from rights offering, net of expenses | 49,500,000 | |||||||||||||||||||||||||||
Subsequent Event | January 2015 Rights Offering | Common Stock | ||||||||||||||||||||||||||||
Organization And Nature Of Business (Textual) | ||||||||||||||||||||||||||||
Exercise period after grant | 10 days | |||||||||||||||||||||||||||
Agreement to exercise additional rights aggregate amount (not to exceed $50 million) | $50,000,000 | |||||||||||||||||||||||||||
Shares, Issued | 53,291 | 53,291 | ||||||||||||||||||||||||||
Shares Issued, Price Per Share | $7.10 | 7.1 | ||||||||||||||||||||||||||
Subsequent Event | January 2015 Rights Offering | Common Stock | Kien Huat Realty Limited | ||||||||||||||||||||||||||||
Organization And Nature Of Business (Textual) | ||||||||||||||||||||||||||||
Shares, Issued | 4,321,798 | 4,321,798 | 2,667,165 | |||||||||||||||||||||||||
Percentage of shares owned by shareholder | 67.00% | |||||||||||||||||||||||||||
Subsequent Event | Standby Repurchase Agreement [Member] | Common Stock | Kien Huat Realty Limited | ||||||||||||||||||||||||||||
Organization And Nature Of Business (Textual) | ||||||||||||||||||||||||||||
Shares, Issued | 2,667,165 | |||||||||||||||||||||||||||
Subsequent Event | Shelf Registration [Member] | ||||||||||||||||||||||||||||
Organization And Nature Of Business (Textual) | ||||||||||||||||||||||||||||
Common Stock, Shares Authorized | 186,600,000 | |||||||||||||||||||||||||||
EPT Concord II, LLC [Member] | Casino Lease | ||||||||||||||||||||||||||||
Organization And Nature Of Business (Textual) | ||||||||||||||||||||||||||||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 70 years | |||||||||||||||||||||||||||
Lessee Leasing Arrangements, Operating Leases, Notice To Terminate Lease | 12 months | |||||||||||||||||||||||||||
Lessee Leasing Arrangements, Operating Leases, Number Of Anniversaries Lease Can Be Terminated | 5 | |||||||||||||||||||||||||||
Operating Leases, Transfer Of Lease, Period After Gaming License Receipt | 60 days |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Promotional Allowances (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Total retail value of promotional allowances | $4,288 | $5,457 | $3,649 |
Total cost of promotional allowances | 3,823 | 4,502 | 3,051 |
Food and beverage [Member] | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Total retail value of promotional allowances | 1,656 | 1,835 | 1,605 |
Total cost of promotional allowances | 2,206 | 2,154 | 1,605 |
Non-subsidized free play [Member] | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Total retail value of promotional allowances | 2,476 | 3,106 | 1,459 |
Total cost of promotional allowances | 1,461 | 1,832 | 861 |
Players club awards [Member] | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Total retail value of promotional allowances | 156 | 516 | 585 |
Total cost of promotional allowances | $156 | $516 | $585 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Vehicles [Member] | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property and equipment | 5 years |
Vehicles [Member] | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property and equipment | 10 years |
Furniture, fixtures and equipment [Member] | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property and equipment | 5 years |
Furniture, fixtures and equipment [Member] | Maximum | |
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, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total number of common stock equivalents outstanding | 9,525 | 10,710 |
Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total number of common stock equivalents outstanding | 781 | 1,890 |
Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total number of common stock equivalents outstanding | 1,083 | 1,083 |
Option matching rights [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total number of common stock equivalents outstanding | 901 | 999 |
Restricted stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total number of common stock equivalents outstanding | 185 | 163 |
Shares to be issued upon conversion of convertible of long-term loan, related party [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total number of common stock equivalents outstanding | 6,575 | 6,575 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Cash and Restricted Cash (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
restricted_cash_account | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Uninsured cash amounts | $904,000,000 | |
Number of restricted cash accounts | 4 | |
New York State Racing, Pari-Mutual Wagering And Breeding Law [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash and cash equivalents | 49,000 | 42,000 |
Monticello Harness Horsemens Association [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash and cash equivalents | 806,000 | 229,000 |
VGM New York Governing Law [Member] | ||
Restricted Cash and Cash Equivalents Items [Line Items] | ||
Restricted cash and cash equivalents | 405,000 | 399,000 |
Minimum reserve balance | $450,000 | $400,000 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounting Policies [Abstract] | |||
Allowance for doubtful accounts | $161 | $166 | |
Advertising expense | 977 | 885 | 1,000 |
Total unrecognized compensation | $617 | ||
Vesting period for unrecognized compensation cost to be recognized | 2 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 | ||
Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Development Costs [Line Items] | ||||
Development expenses | $16,000,000 | $12,207,000 | $18,009,000 | $0 |
Project development costs incurred | 12,200,000 | 18,000,000 | ||
Architectural Fees [Member] | ||||
Development Costs [Line Items] | ||||
Project development costs incurred | 2,100,000 | 10,400,000 | ||
Legal, Construction Manager Costs, Consultants, And Other Professional Services [Member] | ||||
Development Costs [Line Items] | ||||
Project development costs incurred | 5,100,000 | |||
Shared Development Expenses [Member] | ||||
Development Costs [Line Items] | ||||
Project development costs incurred | 1,900,000 | |||
Legal Expense [Member] | ||||
Development Costs [Line Items] | ||||
Project development costs incurred | 3,100,000 | 2,300,000 | ||
Construction Manager Costs [Member] | ||||
Development Costs [Line Items] | ||||
Project development costs incurred | 1,000,000 | |||
Professional Services [Member] | ||||
Development Costs [Line Items] | ||||
Project development costs incurred | 1,000,000 | 900,000 | ||
Agreement Payments [Member] | ||||
Development Costs [Line Items] | ||||
Project development costs incurred | $900,000 | $1,500,000 |
Property_and_Equipment_Propert1
Property and Equipment Property and Equipment (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $38,147 | $36,626 | |
Less—Accumulated depreciation | -11,775 | -10,471 | |
Property and equipment, net | 26,372 | 26,155 | |
Depreciation | 1,324 | 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 | 1,681 | 1,672 | |
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 | 27,062 | 25,571 | |
Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 282 | 273 | |
Furniture, fixtures and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 3,540 | 3,357 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $85 | $256 |
Project_Development_Costs_Proj
Project Development Costs Project Development Costs (Details Textual) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||
Nov. 30, 2014 | Mar. 08, 2013 | Mar. 08, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 20, 2014 | Sep. 30, 2013 | Dec. 21, 2011 | |
date | ||||||||
Development Costs [Line Items] | ||||||||
Option exercise period end date, extension, period | 12 months | 12 months | ||||||
Amount becoming non-refundable | $1,222,603 | |||||||
Non-refundable development cost payments | 3,700,000 | |||||||
Option payment deferred lease costs | 3,100,000 | 750,000 | ||||||
Project developments costs agreement payments | 472,603 | 472,603 | ||||||
Additional monthly option payment for extension of option exercise period | $375,000 | |||||||
Project Development, Final Option Exercise Period After Receipt Of Notice | 60 days | |||||||
Maximum | ||||||||
Development Costs [Line Items] | ||||||||
Option exercise period end date, extension, period | 12 months | 12 months | 90 days | |||||
Maximum | Trigger Two | ||||||||
Development Costs [Line Items] | ||||||||
Option exercise period end date, extension, period | 60 days | |||||||
Minimum | Trigger One | ||||||||
Development Costs [Line Items] | ||||||||
Option exercise period end date, extension, period | 120 days | |||||||
EPT Concord II, LLC [Member] | Casino Lease | ||||||||
Development Costs [Line Items] | ||||||||
Lease term | 70 years | |||||||
Notice to terminate lease | 12 months | |||||||
Number of Option Dates in which lease can be terminated | 5 | |||||||
Operating Leases, Transfer Of Lease, Period After Gaming License Receipt | 60 days |
Accrued_Expenses_and_Other_Cur2
Accrued Expenses and Other Current Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Class of Stock [Line Items] | ||
Liability for horseracing purses | $1,568 | $473 |
Accrued payroll | 1,424 | 1,300 |
Series E payable | 1,300 | |
Accrued redeemable points | 187 | 393 |
Liability to NYSGC | 436 | 521 |
Liability for local progressive jackpot | 776 | 768 |
Accrued professional fees | 1,000 | 1,406 |
Federal tax withholding payable | 114 | 0 |
Accrued other | 1,352 | 1,180 |
Total accrued expenses and other current liabilities | 8,098 | 6,041 |
Series E [Member] | ||
Class of Stock [Line Items] | ||
Series E payable | $1,241 | $0 |
LongTerm_Loan_Related_Party_De
Long-Term Loan, Related Party (Details Textual) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | 41 Months Ended | ||||
Dec. 18, 2014 | Aug. 08, 2012 | Nov. 17, 2010 | 31-May-11 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | |
Debt Instrument [Line Items] | ||||||||
Principal amount of promissory note | $1,000 | |||||||
Debt Instrument, Periodic Payment, Principal | 17,600,000 | |||||||
Extend maturity date of Bridge loan | 15-Mar-15 | 31-Dec-14 | ||||||
Principal sum evidenced by the Note such that the unconverted portion multiple | 1 | |||||||
Principal amount, which represents a conversion price (usd per share) | $2.62 | |||||||
Debt Instrument, Convertible, Conversion Ratio | 382.202837 | |||||||
Interest expense | 9,128,000 | 1,331,000 | 1,063,000 | |||||
Amendment One [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Bridge Loan bears interest rate | 7.50% | |||||||
Debt instrument loan agreement one-time fee | 174,261 | |||||||
Percentage of fees as of outstanding principal amount | 1.00% | |||||||
Amendment Two [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument loan agreement one-time fee | 25,000 | |||||||
Legal fees and expenses paid | 20,000 | |||||||
Amendment Three [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument loan agreement one-time fee | 25,000 | |||||||
Legal fees and expenses paid | 20,000 | |||||||
Kien Huat Realty Limited | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of promissory note | 1,000 | |||||||
Unconverted Portion of Notes | 1,000 | |||||||
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% | |||||||
Interest Paid | 4,100,000 | |||||||
Foreign Entity Affiliate, Interest, Tax Withholding Percentage | 30.00% | |||||||
Interest Paid, Withholding Tax Payable | 1,200,000 | |||||||
Withholding Tax Payable, including Interest On Income Tax | 1,300,000 | |||||||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 114,000 | |||||||
Unrecognized Tax Benefits, Income Tax Penalties Accrued | 400,000 | |||||||
Bridge Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of promissory note | 35,000,000 | |||||||
Bridge Loan bears interest rate | 5.00% | |||||||
Interest expense | $1,300,000 | $1,300,000 | $1,100,000 |
Bryanston_Settlement_Details
Bryanston Settlement (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2013 | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Shares redeemed | $25,619,000 | |||
Series E payable | 1,300,000 | |||
Interest expense | 9,128,000 | 1,331,000 | 1,063,000 | |
Preferred Stock [Member] | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Shares redeemed | 6,854,000 | 1,500,000 | ||
Series E [Member] | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Series E payable | 1,241,000 | 0 | ||
Stock payable | 29,239,000 | 22,800,000 | ||
Mandatorily Redeemable Preferred Stock [Member] | Series E [Member] | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Share value redeemable upon settlement event | 30,500,000 | |||
Interest expense | 7,700,000 | 0 | ||
Event Occurs on or Before December 31, 2013 [Member] | Mandatorily Redeemable Preferred Stock [Member] | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Stock payable | 22,800,000 | |||
Event Occurs after June 30, 2013 and on or Before December 31, 2014 [Member] | Mandatorily Redeemable Preferred Stock [Member] | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Stock payable | 28,000,000 | |||
Preferred stock, per share liquidation value (usd per share) | $10 | |||
Event Occurs After June 30, 2014 and on or Before December 31, 2014 [Member] | Mandatorily Redeemable Preferred Stock [Member] | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Dividends payable upon settlement event | 1,200,000 | |||
Event Does not Occur by June 30, 2015 [Member] | Mandatorily Redeemable Preferred Stock [Member] | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Number of shares redeemable upon settlement event (shares) | 150,000 | |||
Share value redeemable upon settlement event | 1,500,000 | |||
Redeemable period upon settlement event | 3 years | |||
Event Does not Occur by June 30, 2015 [Member] | Mandatorily Redeemable Preferred Stock Redeemable Over Three Year Period [Member] | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Number of shares redeemable upon settlement event (shares) | 150,000 | |||
Share value redeemable upon settlement event | 1,500,000 | |||
Minimum | Event Occurs After December 31, 2013 and on or Before December, 31 2014 | Mandatorily Redeemable Preferred Stock [Member] | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Stock payable | 22,800,000 | |||
Maximum | Event Occurs After December 31, 2013 and on or Before December, 31 2014 | Mandatorily Redeemable Preferred Stock [Member] | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Stock payable | 28,000,000 | |||
Accrued Expenses and Other Current Liabilities [Member] | Mandatorily Redeemable Preferred Stock [Member] | Series E [Member] | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Settlement terms, share value, amount, current | $1,200,000 |
Stockholders_Equity_Authorized
Stockholders Equity - Authorized Capital (Details) | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 16, 2011 | Feb. 15, 2011 |
Stockholders' Equity Note [Abstract] | ||||
Preferred stock, shares authorized (shares) | 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 | ||||||
Apr. 02, 2014 | Apr. 30, 2013 | Aug. 19, 2009 | Dec. 31, 2009 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 20-May-11 | Dec. 31, 2011 | Mar. 28, 2011 | Nov. 12, 2009 | |
director | tranche | ||||||||||
Class of Warrant or Right [Line Items] | |||||||||||
Stock called by each right (shares) | 0.0666 | 0.18917 | |||||||||
Common Stock, Shares, Issued | 2,138,881 | 36,495,000 | 29,931,000 | ||||||||
Exercise price of right (usd per right) | 6.25 | 2.65 | |||||||||
Proceeds from issuance of common stock | $55,000,000 | $13,180,000 | $11,178,000 | $0 | |||||||
Number of trenches proceeds were received in | 2 | ||||||||||
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 | 13,400,000 | 11,400,000 | |||||||||
Proceeds from Issuance of Stock, Rights Issue, Net | 13,200,000 | 11,200,000 | |||||||||
May 20, 2011 [Member] | |||||||||||
Class of Warrant or Right [Line Items] | |||||||||||
Stock issued during the period | 17,600,000 | ||||||||||
Options Matching Right [Member] | |||||||||||
Class of Warrant or Right [Line Items] | |||||||||||
Exercise price of right (usd per right) | 3.42 | ||||||||||
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 | ||||||||||
Basic Subscription Rights | |||||||||||
Class of Warrant or Right [Line Items] | |||||||||||
Common Stock, Shares, Issued | 453,165 | ||||||||||
Over Subscription Rights | |||||||||||
Class of Warrant or Right [Line Items] | |||||||||||
Common Stock, Shares, Issued | 173,087 | ||||||||||
Common Stock | |||||||||||
Class of Warrant or Right [Line Items] | |||||||||||
Conversion of common stock (shares) | 6,628,925 | ||||||||||
Common Stock | Kien Huat Realty Limited | |||||||||||
Class of Warrant or Right [Line Items] | |||||||||||
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% | ||||||||||
Series B Preferred Stock [Member] | |||||||||||
Class of Warrant or Right [Line Items] | |||||||||||
Stock called by each right (shares) | 15 | ||||||||||
Exercise price of right (usd per right) | 6.25 | ||||||||||
Majority Shareholder [Member] | Basic Subscription Rights | |||||||||||
Class of Warrant or Right [Line Items] | |||||||||||
Common Stock, Shares, Issued | 1,512,629 |
Stockholders_Equity_Preferred_
Stockholders' Equity - Preferred Stock (Details) (USD $) | 12 Months Ended | ||||||
Dec. 31, 2014 | Feb. 19, 2014 | Jun. 30, 2013 | Feb. 12, 2013 | Feb. 09, 2015 | Dec. 31, 2013 | Dec. 31, 2012 | |
vote_per_stock | |||||||
Class of Stock [Line Items] | |||||||
Common stock dividends (shares) | 30,833 | 75,530 | |||||
Redemption of preferred stock | $1,500,000 | ||||||
Subsequent Event | |||||||
Class of Stock [Line Items] | |||||||
Common stock dividends (shares) | 25,509 | ||||||
Series B [Member] | |||||||
Class of Stock [Line Items] | |||||||
Voting rights per stock (vote per stock) | 0.8 | ||||||
Shares convertible for each stock (shares) | 0.27 | ||||||
Preferred stock, per share liquidation value (usd per share) | $29 | $29 | |||||
Dividends declared per share (usd per share) | $2.90 | ||||||
Preferred stock, shares outstanding (shares) | 44,258 | 44,258 | |||||
Common stock dividends, declared and undeclared | 218,000 | 167,000 | |||||
Common stock dividends, undeclared | 159,000 | 218,000 | 167,000 | ||||
Series B [Member] | Subsequent Event | |||||||
Class of Stock [Line Items] | |||||||
Common stock dividends, declared and undeclared | 159,000 | ||||||
Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Price per share on issuable shares (usd per share) | $3.77 | ||||||
Number of trading dates used to calculated price per share | 20 days | ||||||
Series E [Member] | |||||||
Class of Stock [Line Items] | |||||||
Voting rights per stock (vote per stock) | 0.25 | ||||||
Preferred stock, shares outstanding (shares) | 27,000 | 1,731,000 | |||||
Common stock dividends, undeclared | 1,300,000 | ||||||
Preferred stock, per share redemption value (usd per share) | $10 | $10 | |||||
Preferred stock, dividend rate | 8.00% | ||||||
Cumulative dividends undeclared | $300,000 |
Stock_Options_and_Warrants_Det
Stock Options and Warrants (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted (shares) | 8,000 | 50,000 | 50,000 |
Exercise price (usd per share) | $7,170 | $4.95 | $1.59 |
Total unrecognized compensation | $617 | ||
Vesting period for unrecognized compensation cost to be recognized | 2 years | ||
Proceeds from stock options exercised | 2,770 | 1,013 | 1 |
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) | 2,534,000 | ||
Stock-based compensation expense | 636 | 385 | 647 |
Total unrecognized compensation | $617 | ||
Vesting period for unrecognized compensation cost to be recognized | 2 years |
Stock_Options_and_Warrants_Rig
Stock Options and Warrants - Rights and Warrants (Details) (USD $) | 12 Months Ended | ||||||
Dec. 31, 2014 | Apr. 02, 2014 | Mar. 28, 2011 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 12, 2009 | Dec. 31, 2013 | |
Class of Warrant or Right [Line Items] | |||||||
Exercise price of right (usd per right) | 6.25 | 2.65 | |||||
Former Chief Executive Officer [Member] | |||||||
Class of Warrant or Right [Line Items] | |||||||
Number of shares that may be purchased by warrants (shares) | 1,100,000 | ||||||
Exercise price of right (usd per right) | 6 | ||||||
Litigation expense | $5,600,000 | ||||||
Former Chief Executive Officer [Member] | May 10, 2015 [Member] | |||||||
Class of Warrant or Right [Line Items] | |||||||
Number of shares that may be purchased by warrants (shares) | 83,333 | ||||||
Former Chief Executive Officer [Member] | May 10, 2015 [Member] | |||||||
Class of Warrant or Right [Line Items] | |||||||
Number of shares that may be purchased by warrants (shares) | 333,333 | ||||||
Former Chief Executive Officer [Member] | May 10, 2020 [Member] | |||||||
Class of Warrant or Right [Line Items] | |||||||
Number of shares that may be purchased by warrants (shares) | 666,667 | ||||||
Former Chief Executive Officer [Member] | Clause One and Two [Member] | |||||||
Class of Warrant or Right [Line Items] | |||||||
Number of shares that may be purchased by warrants (shares) | 416,666 | ||||||
Options Matching Right [Member] | |||||||
Class of Warrant or Right [Line Items] | |||||||
Exercise price of right (usd per right) | 3.42 | ||||||
Aggregate fair value of rights | $46,000 | $673,000 | |||||
Rights outstanding (shares) | 1,300,000 | ||||||
Options Matching Right [Member] | Director | |||||||
Class of Warrant or Right [Line Items] | |||||||
Assigned rights (usd per share) | 83,333 | ||||||
Rights outstanding (shares) | 83,333 |
Stock_Options_and_Warrants_Sch
Stock Options and Warrants - Schedule of Fair Value Assumptions (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Weighted average fair value of options granted | $5.65 | $3.78 | $1.24 |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 101.61% | 103.80% | 109.40% |
Risk—free interest rate | 1.64% | 1.47% | 0.67% |
Expected life of options | 5 years | 5 years | 5 years |
Stock_Options_and_Warrants_Sch1
Stock Options and Warrants - Schedule of Stock Option Activity (Details) (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Options outstanding, beginning balance (shares) | 1,890 | 2,204 | 2,676 | |
Granted (shares) | 8 | 50 | 50 | |
Exercised (shares) | -768 | -314 | ||
Forfeited (shares) | -5 | |||
Canceled (shares) | 344 | 50 | 522 | |
Options outstanding, ending balance (shares) | 781 | 1,890 | 2,204 | 2,676 |
Options exercisable at December 31, 2013 (shares) | 781 | |||
Range of exercise prices Granted (usd per share) | $7,170 | $4.95 | $1.59 | |
Range of exercise price foreited (usd per share) | $4,950 | |||
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) | $6.63 | $8.45 | $6.93 | |
Options exercised, weighted average exercise price (usd per share) | $4.67 | $3.23 | ||
Granted, Weighted average exercise price per share (usd per share) | $4.95 | $1.59 | ||
Forfeited, Weighted average exercise price per share (usd per share) | $3.87 | |||
Cancelled, Weighted average exercise price per share (usd per share) | $7.17 | $12.84 | $12.84 | |
Options outstanding, Weighted average exercise price per share, ending balance (usd per share) | $6.65 | $6.63 | $8.45 | $6.93 |
Options exercisable at December 31, 2012, Weighted average exercise price per share (usd per share) | $6.65 | |||
Options outstanding, Weighted average remaining contractual life | 1 year 5 months 19 days | 1 year 5 months 16 days | 2 years 3 months 4 days | 1 year 9 months 7 days |
Granted, Weighted average remaining contractual life | 3 years 10 months 13 days | 4 years 10 months 13 days | 4 years 10 months 6 days | |
Options exercisable, Weighted average remaining contractual life | 1 year 5 months 19 days | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $14.46 | |||
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Range of exercise prices Cancelled (usd per share) | $3 | $4.71 | $4.71 | |
Range of exercise prices exercised (usd per share) | $2.79 | $2.79 | ||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Range of exercise prices Cancelled (usd per share) | $42.75 | $42.75 | $26.22 | |
Range of exercise prices exercised (usd per share) | $6.90 | $4.71 |
Income_Taxes_Income_Taxes_Sche
Income Taxes Income Taxes - Schedule of Deferred Income Tax Assets and Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Net operating loss carry forwards | $56,942 | $55,171 |
Development Costs | 15,713 | 10,962 |
Total deferred tax assets, gross | 72,655 | 66,133 |
Deferred tax liability: | ||
Depreciation | -551 | -301 |
Net deferred tax assets | 72,104 | 65,832 |
Valuation allowance | -72,104 | -65,832 |
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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Tax provision at federal statutory tax rate | 35.00% | 35.00% | 35.00% |
State income taxes, net | 0.00% | -0.10% | -1.40% |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Percent | -11.30% | 0.00% | 0.00% |
Permanent items | 1.80% | -0.30% | -17.20% |
Expiration of net operating loss carry forwards | 0.00% | 0.00% | -141.10% |
Change in valuation allowance | -25.50% | -34.70% | 122.40% |
Other taxes | 0.00% | 0.00% | 0.00% |
Non-includable (income) expenses | 0.00% | 0.00% | 0.00% |
Effective tax rate | 0.00% | -0.10% | -2.30% |
Income_Taxes_Income_Taxes_Narr
Income Taxes Income Taxes - Narrative (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | ||
Increase (Decrease) in valuation allowance | $6,272,000 | ($9,300,000) |
Net operating loss carryforwards | 143,700,000 | |
Operating Loss Carryforwards, Readily Available | $50,800,000 |
Concentration_Narrative_Detail
Concentration - Narrative (Details) (Accounts Receivable [Member], Credit Concentration Risk [Member]) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
debtor | debtor | |
Concentration Risk [Line Items] | ||
Number of debtors | 1 | 1 |
Hawthorne OTB [Member] | ||
Concentration Risk [Line Items] | ||
Concentration of risk | 15.00% | 10.00% |
Employee_Benefit_Plan_Employee
Employee Benefit Plan Employee Benefit Plan (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
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 | $92 | $94 | $81 |
Number of participants | 154 | ||
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 | |||
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 | |||
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 | |||
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 | |||
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 | |
Jul. 31, 2011 | Jan. 15, 2014 | Dec. 31, 2010 | |
Empire [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 | ||
Concord [Member] | |||
Commitments and Contingencies (Textual) [Abstract] | |||
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, 2014 |
In Thousands, unless otherwise specified | |
Employment Compensation Contracts [Member] | Chief Executive Officer [Member] | |
Schedule of Contractual Obligations [Line Items] | |
2014 | $1,097 |
2015 | 0 |
2016 | 0 |
Total future minimum payments | $1,097 |
Prepaid_Expenses_and_Other_Ass2
Prepaid Expenses and Other Assets (Details) (USD $) | 2 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 10, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Prepaid taxes | $2.40 | $1.30 | ||
Subsequent Event | ||||
Real estate tax refund receivable | 1.3 | |||
Scenario, Forecast [Member] | ||||
Real estate tax refund receivable | $1.10 |
Prepaid_Expenses_and_Other_Ass3
Prepaid Expenses and Other Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Empire zone real estate tax credit | $2,407 | $1,264 |
Prepaid real estate taxes | 551 | 535 |
Prepaid insurance | 335 | 300 |
Prepaid rent payment | 375 | 250 |
Inventory | 200 | 193 |
Prepaid gaming expenses | 118 | 83 |
Prepaid other | 311 | 398 |
Total prepaid expenses and other current assets | $4,297 | $3,023 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (Director, USD $) | 0 Months Ended | 12 Months Ended |
Dec. 09, 2013 | Dec. 31, 2014 | |
Related Party Transaction | ||
Professional fees expensed | $250,000 | $44,000 |
On Execution | ||
Related Party Transaction | ||
Professional fees expensed | 150,000 | |
Ninety Days Post Execution | ||
Related Party Transaction | ||
Professional fees expensed | $100,000 |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Acconts (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | 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 | $161 | $166 | $202 | $177 |
Addition charged to costs and expenses | 0 | 0 | 25 | |
Other additions (deductions) | -5 | -36 | 0 | |
Less deductions | 0 | 0 | 0 | |
Balance at end of year | 166 | 202 | 177 | |
Deferred tax asset valuation allowance | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of year | 72,104 | 65,832 | 56,574 | 63,931 |
Addition charged to costs and expenses | 0 | 0 | 0 | |
Other additions (deductions) | 6,272 | 9,258 | -7,357 | |
Less deductions | 0 | 0 | 0 | |
Balance at end of year | $65,832 | $56,574 | $63,931 |