Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 28, 2015 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | EMPIRE RESORTS INC | |
Entity Central Index Key | 906,780 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 47,624,899 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 6,002 | $ 6,435 |
Restricted cash | 1,419 | 1,710 |
Accounts receivable, net | 1,006 | 1,048 |
Prepaid expenses and other current assets | 4,990 | 4,297 |
Total current assets | 13,417 | 13,490 |
Property and equipment, net | 25,881 | 26,372 |
Cash for development of the Casino Project | 34,115 | 0 |
Other assets | 8 | 5 |
Total assets | 73,421 | 39,867 |
Current liabilities: | ||
Accounts payable | 2,103 | 2,205 |
Accrued expenses and other current liabilities | 15,214 | 8,098 |
Short-term loan, related party | 17,426 | 0 |
Total current liabilities | 34,743 | 10,303 |
Long-term loan, related party | 0 | 17,426 |
Total liabilities | 63,412 | 56,968 |
Stockholders’ equity / (deficit): | ||
Common stock | 471 | 395 |
Additional paid-in capital | 227,828 | 175,801 |
Accumulated deficit | (218,290) | (193,297) |
Total stockholders’ equity / (deficit) | 10,009 | (17,101) |
Total liabilities and stockholders’ equity / (deficit) | 73,421 | 39,867 |
Series A [Member] | ||
Stockholders’ equity / (deficit): | ||
Preferred stock | 0 | 0 |
Series B Preferred Stock | ||
Stockholders’ equity / (deficit): | ||
Preferred stock | 0 | 0 |
Series E Preferred Stock | ||
Current liabilities: | ||
Series E preferred stock payable - 1,551 Shares as of September 30, 2015 and December 31, 2014 | 28,669 | 29,239 |
Stockholders’ equity / (deficit): | ||
Preferred stock | $ 0 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
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) | 47,625,000 | 39,506,000 |
Common stock, shares outstanding (shares) | 47,625,000 | 39,506,000 |
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 Preferred Stock | ||
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) | 44,000 | 44,000 |
Preferred stock, shares outstanding (shares) | 44,000 | 44,000 |
Series E Preferred Stock | ||
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 | 1,551,000 |
Preferred stock, shares issued (shares) | 27,000 | 27,000 |
Preferred stock, shares outstanding (shares) | 0 | 27,000 |
Preferred stock, aggregate liquidation value | $ 0 | $ 524 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues: | ||||
Gaming | $ 17,408 | $ 16,683 | $ 45,754 | $ 45,886 |
Food, beverage, racing and other | 3,068 | 2,927 | 8,557 | 7,004 |
Gross revenues | 20,476 | 19,610 | 54,311 | 52,890 |
Less: Promotional allowances | (964) | (837) | (2,422) | (3,291) |
Net revenues | 19,512 | 18,773 | 51,889 | 49,599 |
Costs and expenses: | ||||
Gaming | 12,403 | 12,158 | 33,679 | 33,894 |
Food, beverage, racing and other | 2,710 | 2,851 | 7,910 | 7,331 |
Selling, general and administrative | 3,030 | 2,686 | 8,917 | 8,123 |
Casino Project Development expenses | 13,396 | 2,933 | 22,825 | 10,774 |
Stock-based compensation | 121 | 144 | 391 | 427 |
Depreciation | 338 | 321 | 1,011 | 997 |
Total costs and expenses | 31,998 | 21,093 | 74,733 | 61,546 |
Loss from operations | (12,486) | (2,320) | (22,844) | (11,947) |
Amortization of deferred financing costs | (6) | (22) | (21) | (68) |
Interest expense | (647) | (2,506) | (1,969) | (8,481) |
Net loss | (13,139) | (4,848) | (24,834) | (20,496) |
Undeclared dividends on preferred stock | (42) | (47) | (136) | (141) |
Net loss applicable to common shares | $ (13,181) | $ (4,895) | $ (24,970) | $ (20,637) |
Weighted average common shares outstanding, basic (shares) | 47,100 | 39,372 | 46,302 | 38,154 |
Weighted average common shares outstanding, diluted (shares) | 47,100 | 39,372 | 46,302 | 38,154 |
Loss per common share, basic (usd per share) | $ (0.28) | $ (0.12) | $ (0.54) | $ (0.54) |
Loss per common share, diluted (usd per share) | $ (0.28) | $ (0.12) | $ (0.54) | $ (0.54) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net loss | $ (24,834) | $ (20,496) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 1,011 | 997 |
Recovery for doubtful accounts | 5 | 0 |
Non-cash interest expense | 931 | 7,369 |
Stock - based compensation | 391 | 427 |
Changes in operating assets and liabilities: | ||
Restricted cash—NYSGC Lottery and Purse Accounts | 267 | (823) |
Accounts receivable | 47 | 341 |
Prepaid expenses and other current assets | (693) | (1,609) |
Other assets | (3) | 68 |
Accounts payable | (103) | (762) |
Accrued expenses and other current liabilities | 5,615 | 1,238 |
Net cash used in operating activities | (17,376) | (13,250) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (521) | (632) |
Restricted cash | 34,115 | 0 |
Net cash used in investing activities | (34,612) | (630) |
Cash flows from financing activities: | ||
Proceeds from rights offering, net of expenses | 49,528 | 13,180 |
Payments for Redemption of Shares | 533 | 0 |
Proceeds from exercise of stock options and warrants | 2,560 | 2,389 |
Net cash provided by financing activities | 51,555 | 15,569 |
Net (decrease) / increase in cash and cash equivalents | (433) | 1,689 |
Cash and cash equivalents, beginning of period | 6,435 | 7,526 |
Cash and cash equivalents, end of period | 6,002 | 9,215 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 1,042 | 999 |
Noncash investing and financing activities: | ||
Common stock issued in settlement of preferred stock dividends | 159 | 218 |
Racing Capital Improvements [Member] | ||
Cash flows from investing activities: | ||
Restricted cash | $ 24 | $ 2 |
Organization And Nature Of Busi
Organization And Nature Of Business | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature Of Business | Basis for Presentation and Nature of Business Basis for Presentation The condensed consolidated financial statements and notes as of September 30, 2015 and December 31, 2014 and for the three and nine months ended September 30, 2015 and 2014 are unaudited and include the accounts of Empire Resorts, Inc. (“Empire”) and subsidiaries (together with its subsidiaries, the “Company”). The condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all the information and the footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. These condensed consolidated financial statements reflect all adjustments (consisting of normal recurring accruals) which are, in the Company’s opinion, necessary for the fair presentation of the financial position, results of operations and cash flows for the interim periods. These condensed consolidated financial statements and notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014. The results of operations for the interim period may not be indicative of results to be expected for the full year. Nature of Business Through Empire’s wholly-owned subsidiary, Monticello Raceway Management, Inc. ("MRMI"), we currently own and operate Monticello Casino and Raceway, a 45,000 square foot video gaming machine ("VGM") and harness horseracing facility located in Monticello, New York, 90 miles northwest of New York City. Monticello Casino and Raceway operates 1,110 VGMs, which includes 1,080 video lottery terminals ("VLTs") and 30 electronic game positions ("ETGs"). VGMs are similar to slot machines, but they are connected to a central system and report financial information to the central system. The 2015-2016 New York State Budget (the "Budget") expands the statutory definition of Video Lottery Gaming which enables MRMI to operate ETGs of the games of blackjack and 3-card poker. MRMI has begun to add ETGs of the game of blackjack to its facility and will add other games as they are approved by the NYSGC (defined below). We also generate 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 our races to offsite pari-mutuel wagering facilities. In a letter dated December 30, 2014, the New York State Gaming Commission ("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. Casino Project Montreign Operating Company, LLC ("Montreign"), a wholly owned subsidiary of Empire, has been selected as the sole casino applicant eligible to apply to the NYSGC for a gaming facility license (a "Gaming Facility License") to operate a resort casino in the Catskill/Hudson Valley Region One (“Region One” or "our Area"). On December 17, 2014, the New York State Gaming Facility Location Board (the “Siting Board”) unanimously selected Montreign's proposal to build a resort casino to be located at the site of a four-season destination resort planned for the Town of Thompson in Sullivan County 90 miles from New York City ("Adelaar" or the "Adelaar Project"). The NYSGC will award a Gaming Facility License to each applicant upon confirmation of such applicant's suitability and its ability to complete the Gaming Facility (as defined below). At the NYSGC's September 24, 2015 public meeting, the Executive Director said that the NYSGC remains "on track to take licensing action by the end of the calendar year" 2015. The Adelaar Project is to be located on 1,500 acres (the "EPT Property") owned by EPT Concord II, LLC ("EPT") and EPR Concord II, LP, each a wholly-owned subsidiary of EPR Properties Trust (together with its subsidiaries, "EPR"). The casino resort, to be called "Montreign Resort Casino," is part of the initial phase of Adelaar, which will also include an indoor Waterpark Lodge (the "Waterpark"), Rees Jones redesigned "Monster" Golf Course (the "Golf Course") and an Entertainment Village, which will include retail, restaurants, shopping and entertainment (the "Entertainment Village"). Together with Montreign Resort Casino, 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, which are discussed below. Over the past four (4) years, the Company has expended substantial time and resources on designing Montreign Resort Casino 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 development of the Adelaar Project and the Montreign Resort Casino are contingent upon various conditions, including obtaining all necessary governmental approvals, including the award of the Gaming Facility License, and the Company's ability to obtain necessary financing. Master Development Agreement 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 (as defined below), the Golf Course Project and the Initial Resort Project (as such terms are defined 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. 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 ( 5 ) years following the termination of the Option Agreement. 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 portions of the EPT Property on which Montreign Resort Casino will be located 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 certain portions of the EPT Property. 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 exercised its right 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. We are making such monthly Option Payments. 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 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 that 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 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 was exercisable any time between May 1, 2015 and September 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. The Company did not exercise such option. Pursuant to the Option Agreement, we have made cumulative life to date option payments to EPT in the amount of $ 8.0 million as of September 30, 2015. Pursuant to the June 20, 2014 letter agreement to amend the Option 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. Montreign Resort Casino Montreign's proposal to build a Gaming Facility at Adelaar that was selected by the Siting Board anticipates that our minimum capital investment, without the license fee, would be approximately $ 452 million . The Gaming Facility selected by the Siting Board 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. Since our selection by the Siting Board, we have submitted to the NYSGC proposed changes to Montreign Resort Casino (the "Proposed Changes"), and other changes to the Gaming Facility, as described below. The Proposed Changes would require an increase to our previously projected minimum capital investment in Montreign Resort Casino (including the Proposed Changes, the "Casino Project") to be approximately $ 650 million which includes the Company's expanded role in the development of Adelaar, but excludes the license fee, for a combined anticipated investment in the Gaming Facility by the Company and EPR of $1.3 billion. We expect that the Proposed Changes will provide incremental profit and cash flow to support the additional investment. The differences between the proposal submitted by Montreign that was selected by the Siting Board and the Proposed Changes include the following: Selected Plan Proposed Plan 80,000 sq. ft. casino with 61 table games Approximately 95,200 sq. ft. casino with approximately 102 table games 391 luxury rooms designed to meet the 4-star and 4-diamond standards of Forbes® and AAA® Approximately 333 luxury rooms including 249 rooms of approximately 600 sq. ft. each, 60 suites of approximately 900 sq. ft. each, Penthouse level with 9 suites of approximately 1,100 to 2,300 sq. ft. each with butler service available, 8 garden suites of approximately 1,200 sq. ft. each and 7 two-story villas of approximately 1,800 sq. ft. each, all of which will be designed to meet the 5-star and 5-diamond standards of Forbes® and AAA® 20,000 sq. ft. meeting and conference space in the M Centre Approximately 27,000 sq. ft. meeting and conference space in the M Centre The Proposed Changes include several minor changes to the building’s footprint. The hotel tower would be elongated by approximately 50 feet and a new basement level would be added under the main entrance of the Montreign Resort Casino. The overall square footage of the footprint of the building would not, however, increase. Minor modifications to the porte-cochere and loading areas would also be required. Many of the interior spaces are being redesigned. The size and number of restaurants would increase and include the addition of an upscale Asian restaurant. On-site parking would decrease by approximately 53 spaces to 3,389 . Additionally, due to the increased meeting and conference space, the showroom will be removed. The Proposed Changes are subject to the approval of, among others, the NYSGC. The Company received the approval of the Town Board of the Town of Thompson (the "Town Board") and the Planning Board of the Town of Thompson (the "Planning Board") in relation to the Proposed Changes. In accordance with the Report and Findings of the Siting Board dated February 27, 2015, which is available on the NYSGC's website, the NYSGC must ensure that Montreign substantially fulfills the commitments and executes the development plans presented in response to the Request for Applications ("RFA") that Montreign submitted to the Siting Board and to ensure that any changes do not increase Montreign's debt-to-equity ratio substantially beyond the levels presented by Montreign in its response to the RFA and/or standard industry practices. Therefore, we expect the increase in the minimum capital investment for the proposed plan to be financed by additional equity and debt financing in substantially the same debt-to-equity ratio previously considered. In addition to the Proposed Changes, certain amendments to the Waterpark and the Entertainment Village have been submitted to the NYSGC. It is expected that the Waterpark will be relocated to a site that provides space for future expansion, dependent on market demand. The initial design of the Waterpark has been revised to address present market conditions and will include approximately 300 family style suites (in place of 350 suites originally proposed) and a 75,000 square foot indoor waterpark (in place of an 80,000 square foot waterpark originally proposed). The development of the Entertainment Village is expected to be built-out in phases with the initial phase being approximately 50,000 square feet. At full build-out, the Entertainment Village will be approximately 150,000 - 200,000 square feet, depending on market demand. Minor changes are anticipated to the Golf Course. The expansion of the Company's role in the development of Adelaar and the changes to the Gaming Facility are subject to NYSGC and other approvals and will further increase the Company's financing in connection with the Adelaar Project. On September 3, 2015, MRMI and EPT entered into a non-binding term sheet (the “Term Sheet”) reflecting general terms of a proposed amendment to the Option Agreement. The Term Sheet contemplates, among other things, amendments to the Option Agreement that would require MRMI and/or its affiliates to lease the parcels on which the Golf Course and Entertainment Village will be located in addition to the Casino Project parcel in connection with the exercise of the Option Agreement for the portion of the EPT Property on which the Casino Project will be built. The Term Sheet also includes proposed terms on which MRMI and/or its affiliates would be responsible for developing the Golf Course and Entertainment Village, in addition to the Montreign Resort Casino, and EPR would be responsible for developing the Waterpark. The Company anticipates investing approximately $15 million for the redesign of the Golf Course and approximately $25 million for the development of the Entertainment Village. The Term Sheet also contemplates a separate purchase option agreement granting MRMI and/or its affiliates the right to purchase all three, but not less than all three, of the Casino Project, Golf Course and Entertainment Village parcels at a purchase price that increases over time and also a purchase option with respect to, and a right of first offer for, the remaining undeveloped portions of the EPT Property for ten ( 10 ) years. MRMI and EPT are negotiating the terms of the definitive documents. The Term Sheet is for discussion purposes only and is not binding on either MRMI or EPT until definitive agreements are executed and the terms of such definitive agreements may be subject to regulatory review and/or approval. Liquidity The accompanying condensed consolidated financial statements have been prepared on a basis that contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The Company anticipates that its current cash and cash equivalents balances and cash generated from operations will not be sufficient to meet the working capital requirements of our current operations for the next twelve months unless the Company is awarded a Gaming Facility License (in which case the Kien Huat Note (as defined below) will be converted into common stock of the Company, subject to the conditions described below) or the Kien Huat Note is renegotiated to extend the maturity date. If we are awarded a Gaming Facility License, we will require additional capital resources to finance the Casino Project and our expanded role in the development of Adelaar if we agree on definitive terms with EPR and its subsidiaries. To fund our role in the development of the Adelaar Project, 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 September 30, 2015, we had total current assets of approximately $13.4 million and current liabilities of approximately $34.7 million , including the $17.4 million convertible promissory note ("Kien Huat Note") issued to Kien Huat Realty III Limited ("Kien Huat"), our largest stockholder. As of September 30, 2015, our total assets included approximately $34.1 million of remaining net proceeds from the January 2015 Rights Offering (as defined and discussed below) which are presented on the balance sheet as a non-current asset. The proceeds of the January 2015 Rights Offering, which were approximately $49.5 million , may be used solely to pay for the expenses relating to the pursuit of a Gaming Facility License and for development purposes. In the nine months ended September 30, 2015, we incurred $22.8 million of development expenses for the Casino Project, of which $15.4 million was disbursed through September 30, 2015. If the Company is not awarded a Gaming Facility License, the remaining portion of the proceeds of the January 2015 Rights Offering, after the payment of all outstanding expenses incurred by the Company in pursuit of the Gaming Facility License, may be used for general working capital of the Company, including the repayment of the Kien Huat Note. A failure to obtain a Gaming Facility License constitutes an immediate event of default under the Kien Huat Note. If the Kien Huat Note is not converted into shares of our common stock or if an event of default occurs prior to its maturity date of March 15, 2016, we may need to repay the Kien Huat Note in full or renegotiate the terms of the Kien Huat Note. 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 or if we default on the Kien Huat Note as a result of the Company's failure to obtain a Gaming Facility License, it would have a material adverse effect on the Company. We have had continuing net losses and negative cash flow from operating activities, including a loss from operations of $22.8 million for the nine months ended September 30, 2015. The net losses for the nine months ended September 30, 2015 were primarily related to the Company’s on-going expenditures with respect to the Casino Project, which expenses can not be capitalized unless and until the Company is awarded a Gaming Facility License. As discussed above, in the nine months ended September 30, 2015 we incurred $22.8 million of development expenses for the Casino Project, of which $15.4 million was disbursed from cash through September 30, 2015. Until such time as the Company is awarded a Gaming Facility License and the expenses of the development may be capitalized, the on-going expenditures with respect to the Casino Project will continue to negatively impact our results of operations. Although the NYSGC has stated its intention to award a Gaming Facility License prior to the end of calendar year 2015, there is no guarantee or assurance that the NYSGC will award us a Gaming Facility License prior to the end of the year, if at all. The Company has adequate funds to support the development activities to which it has committed with respect to the Casino Project. 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, the Company currently anticipates financing the associated costs and expenses of the license award and the development of the Casino Project, including the licensing fee, and, if the Company and EPR agree to definitive terms, the development of the Golf Course and Entertainment Village, with a combination of debt and equity financing. The Proposed Changes and the Company's expanded role in the development of Adelaar would increase our previously projected minimum capital investment in the Gaming Facility to be approximately $ 650 million excluding the license fee, for a combined anticipated investment in the Gaming Facility by the Company and EPR of $1.3 billion . To support the Proposed Changes and the expansion of the Company's role in the development of Adelaar, the Company entered into amendments to the debt and equity financing commitments initially obtained in June 2014 in support of Montreign's application for a Gaming Facility License. For the debt portion of the Company's financing, in June 2014 Credit Suisse AG ("Credit Suisse") committed to provide a senior secured credit facility ("CS Credit Commitment") of up to a maximum amount of $478 million . On September 22, 2015, Credit Suisse and the Company entered into a further amendment to the CS Credit Commitment increasing the financing commitment of Credit Suisse up to a maximum of $545 million . The CS Credit Commitment provides that Credit Suisse may change the terms of the credit facility to ensure successful syndication. The CS Credit Commitment 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, in an amount which increased from an aggregate total of $150 million to an aggregate total of $301 million , of which $50 million was raised in the January 2015 Rights Offering discussed below. With respect to the $301 million equity investment the Company is required to evidence, the Company is permitted to take into account an estimated $10 million of the amounts expended on the Casino Project prior to January 2015. 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 Commitment 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 (as amended, the "Commitment Letter"), pursuant to which Kien Huat committed to exercise its proportionate share of subscription rights if the Company commended a rights offering on the terms described in the Commitment Letter to meet the requirements of the CS Credit Commitment (the “Casino Project Rights Offering”). Kien Huat agreed it would enter into a standby purchase agreement to exercise all subscription rights not exercised by other holders in the Casino Project 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 in the Casino Project Rights Offering, of which 0.5% was paid upon execution of the Commitment Letter and the remaining 0.5% is due if the Casino Project Rights Offering is launched. In addition, the Company has agreed to pay for or reimburse Kien Huat for all of its out-of-pocket expenses in connection with the negotiation, execution and delivery of the Commitment Letter and the consummation of the transactions contemplated thereby. On January 5, 2015, the Company commenced a rights offering (the “January 2015 Rights Offering”) for aggregate gross proceeds of $50 million to raise a portion of the equity financing necessary to develop the Casino Project. In partial satisfaction of Kien Huat's obligations pursuant to the Commitment Letter, in connection with the January 2015 Rights Offering, on January 2, 2015, the Company and Kien Huat entered into a standby purchase agreement (the “January 2015 Standby Purchase Agreement”). Pursuant to the January 2015 Standby Purchase Agreement, 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. In addition, Kien Huat agreed it would exercise all rights not otherwise exercised by the other holders in an aggregate amount not to exceed $50 million . On January 2, 2015, the Company and Kien Huat amended 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. Under the January 2015 Standby Purchase Agreement, the Company paid Kien Huat a portion of the commitment fee described in the Commitment Letter in the amount of $250,000 and reimbursed Kien Huat for its expenses in an amount not exceeding $40,000 . The January 2015 Rights Offering closed on February 6, 2015 and the Company received net proceeds of approximately $49.5 million , which are being used for the expenses relating to the pursuit of the Gaming Facility License and for development purposes. To meet the revised requirements of the CS Credit Commitment, as well as to support the contemplated changes to the Casino Project and the expansion of the Company's role at Adelaar, on September 22, 2015, the Company and Kien Huat entered into a second amendment commitment letter (the “Second Amendment” or the “Second Amendment to the Commitment Letter”), whereby Kien Huat increased its overall equity investment commitment to the Company from $150 million plus the amount necessary to redeem the Series E Preferred Stock to an aggregate total of $375 million , which amounts include $50 million inves |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
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. The retail value amounts included in promotional allowances for the three and nine months ended September 30, 2015 and 2014 are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands) Food and beverage $ 429 $ 411 $ 1,165 $ 1,239 Non-subsidized free play 456 455 999 1,945 Players club awards 79 (29 ) 258 107 Total retail value of promotional allowances $ 964 $ 837 $ 2,422 $ 3,291 The estimated cost of providing complimentary food, beverages and other items for the three and nine months ended September 30, 2015 and 2014 are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands) Food and beverage $ 535 $ 521 $ 1,554 $ 1,605 Non-subsidized free play 268 269 589 1,147 Players club awards 79 (29 ) 258 107 Total cost of promotional allowances $ 882 $ 761 $ 2,401 $ 2,859 Accounts receivable Accounts receivable, net of allowances, are stated at the amount the Company expects to collect. When required, an allowance for doubtful accounts is recorded based on information on the collectability of specific accounts. Accounts are considered past due or delinquent based on contractual terms, how recently payments have been received and the Company’s judgment of collectability. In the normal course of business, the Company settles wagers for other racetracks and is exposed to credit risk. These wagers are included in accounts receivable. Account balances are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. As of September 30, 2015 and December 31, 2014 the Company recorded an allowance for doubtful accounts of approximately $156,000 and $161,000 , respectively. Project Development Costs Because of the uncertainty of the awarding of a Gaming Facility License, 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. See Note C. Project Development Costs for additional details. 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 all periods presented in the accompanying statement of operations were the same. The following table shows the approximate number of common stock equivalents outstanding at September 30, 2015 and 2014 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 three and nine months ended September 30, 2015 and 2014, because their inclusion would have been anti-dilutive. Outstanding at September 30, 2015 2014 Options 720,000 905,000 Warrants 667,000 1,083,000 Option Matching Rights 1,186,000 1,223,000 Non-vested restricted stock 632,000 156,000 Shares to be issued upon conversion of long-term loan, related party 6,575,000 6,575,000 Total 9,780,000 9,942,000 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 September 30, 2015 and December 31, 2014, the Company’s management was unable to estimate reasonably the fair value of the short-term loan due to the inability to obtain quotes for similar credit facilities. 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. On July 9, 2015, the FASB reaffirmed the guidance in its April 29, 2015 proposed ASU that defers the effective date of the new revenue recognition standard by one year and allows early adoption as of the original effective date. Entities can transition to the new guidance either retrospectively or as a cumulative-effect adjustment as of the date of adoption. Management is assessing the impact that the new revenue recognition guidance will have on the consolidated financial statements. In June 2015, the FASB issued a proposed ASU on share-based payments as part of its simplification initiative. The proposed ASU simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, minimum statutory withholding requirements, classification in the statement of cash flows, and classification of awards with repurchase features. |
Project Development Costs
Project Development Costs | 9 Months Ended |
Sep. 30, 2015 | |
Project Development Costs [Abstract] | |
Project Development Costs | Project Development Costs Because of the uncertainty of the awarding of a Gaming Facility License, 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. Our total assets include approximately $34.1 million of remaining net proceeds available from the January 2015 Rights Offering (as defined and discussed in Note A above) which are presented on the balance sheet as a non-current asset. The proceeds of the January 2015 Rights Offering, which were approximately $49.5 million , may be used solely to pay for the expenses relating to the pursuit of a Gaming Facility License for the Casino Project and for development purposes. Approximately $15.4 million has been disbursed during the nine months ended September 30, 2015. 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, including the potential repayment of the $17.4 million Kien Huat Note. For the nine months ended September 30, 2015, total Casino Project development costs incurred were approximately $22.8 million and consisted of $2.5 million in legal, consultants and other professional services, $3.4 million of non-refundable payments pertaining to the Option Agreement with EPR, $15.9 million in architectural, engineering fees, construction manager costs and subcontractor costs, and $975,000 payment to Kien Huat for a commitment fee pursuant to the Commitment letter. For the nine months ending September 30, 2014, total Casino Project development costs expensed were approximately $10.8 million and consisted of $1.9 million in architectural fees, $1.0 million payment for an application fee, $4.7 million in legal, construction manager costs, consultants and other professional services, $900,000 payment to Kien Huat for a commitment fee pursuant to the Commitment letter, and $2.3 million of non-refundable payments pertaining to the Option Agreement with EPR. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 9 Months Ended |
Sep. 30, 2015 | |
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 September 30, 2015 and December 31, 2014: (in thousands) September 30, 2015 December 31, 2014 Liability for horseracing purses $ 828 $ 1,568 Accrued payroll 1,279 1,424 Series E payable 1,500 1,241 Accrued redeemable points 198 187 Liability to NYSGC 541 436 Liability for local progressive jackpot 822 776 Accrued Casino Project Development costs 8,134 89 Accrued professional fees 394 911 Federal tax withholding payable 154 114 Accrued other 1,364 1,352 Total accrued expenses and other current liabilities $ 15,214 $ 8,098 |
Long-Term Loan, Related Party
Long-Term Loan, Related Party | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Loan, Related Party | Short-Term Loan, Related Party As set forth in Note A, on March 3, 2015, the Company and Kien Huat entered into 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. Therefore, the Loan has been classified as a short-term obligation on the balance sheet as of March 31, 2015, 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 one-time 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 Kien Huat Note issued to Kien Huat 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 the Company’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 the Company 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, the Company 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 Company is granted a Gaming Facility License, and so long as Empire meets the Conversion Conditions, 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 Second Amendment to the 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 into common stock pursuant to the Second Amendment, the Company and Kien Huat have agreed that 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 . 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. Moreover, in the event the Company is not granted a Gaming Facility License, we will be in default on the Kien Huat Note. 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 or if we are in default as a result of not obtaining a Gaming Facility License, it would have a material adverse effect on the Company. 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 $1.0 million and $987,000 in interest expense associated with the Loan during the nine months ended September 30, 2015 and 2014, 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. In March 2015 we received notification from the IRS that the interest and penalties on the Taxes Payable for 2011-2013 is approximately $154,000 . We have filed an appeal of the penalties for 2011- 2013. At the conclusion of the appeal any amounts due will be remitted to the IRS upon the IRS's request. |
Bryanston Settlement
Bryanston Settlement | 9 Months Ended |
Sep. 30, 2015 | |
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, the Company 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”). If the Concord Event had occurred after December 31, 2013 and on or before June 30, 2014, all Bryanston Preferred Stock and all dividends accrued and unpaid since December 10, 2002 (the "Accrued Dividends") would have been redeemed for an amount between $22.8 million and $28.0 million . 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 was required to 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 had occurred after December 31, 2014 and on or before June 30, 2015, all Preferred Stock held by Bryanston would have been 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. Because the Concord Event did 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 following 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 was 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 September 30, 2015, the liability has been reflected in the amount of $30.2 million in the accompanying consolidated balance sheet. Interest expense associated with the change in the redemption amount of the liability was approximately $310,000 and $2.2 million for the three months ended September 30, 2015 and 2014, respectively, and $931,000 and $7.4 million for the nine months ended September 30, 2015 and 2014, respectively. |
Stockholders Equity
Stockholders Equity | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Stock-based compensation expense was approximately $121,000 and $144,000 for the three months ended September 30, 2015 and 2014, respectively and approximately $391,000 and $427,000 for the nine months ending September 30, 2015 and 2014, respectively. As of September 30, 2015, there was approximately $226,000 of total unrecognized compensation cost related to non-vested share-based compensation awards granted under Empire’s plans. That cost is expected to be recognized over the remaining vesting period. This expected cost does not include the impact of any future stock-based compensation awards, including the award of shares of restricted stock granted and discussed below. An agreement between MRMI and the Monticello Harness Horsemen’s Association (the “MHHA”), which governs the conduct of MRMI and MHHA relating to horseracing purse payments, the simulcasting of horse races and certain other payments, was entered into on November 3, 2014 (the "2014 MHHA Agreement"). The 2014 MHHA Agreement will have an initial term of two ( 2 ) years. However, if Montreign is awarded a Gaming Facility License, the 2014 MHHA Agreement will be extended for an additional seven ( 7 ) years beginning on the date that the NYSGC approves the Casino Project to engage in legalized gaming. On that same date, MHHA will also receive 1,000,000 shares of Empire common stock and a warrant to purchase 300,000 shares of common stock, the proceeds of any sales of which will provide additional monies for the harness horsemen’s purse account. On May 5, 2015, a total of 525,000 shares of restricted stock were granted to the Chairman of the Board of the Company (the "Chairman") and the Company's four ( 4 ) executive officers which restricted stock shall vest as to one half upon the date when the NYSGC authorizes the opening of the Montreign Resort Casino to the public (the "Casino Date") and as to one half on the six month anniversary of the Casino Date. The grants provide for immediate vesting upon a change in control (as defined in the grant). Further, the grant to the Chairman provides for immediate vesting in the event (i) the Chairman is removed from the Company's Board of Directors (the "Board") other than for cause; or (ii) if the Chairman is not re-nominated to stand for election to the Board. The stock based compensation expense for the shares will be approximately $2.7 million and we will recognize stock based compensation expenses if and when the Company is awarded a Gaming Facility License. During the quarter ended June 30, 2015, the Company issued an aggregate of 416,668 shares of common stock at $6.00 per share from the exercise of warrants from a warrant holder. The Company received proceeds of $2.5 million from the exercise of these warrants. As of September 30, 2015, there are outstanding warrants to purchase 666,667 shares of Empire's common stock at $6 per share with an expiration date of May 10, 2020. On January 5, 2015, the Company commenced the January 2015 Rights Offering. 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. At the conclusion of the January 2015 Rights Offering and after giving effect to the January 2015 Rights Offering, Kien Huat owned approximately 31,191,035 shares of the Company’s outstanding common stock. The net proceeds of the January 2015 Rights Offering are being 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 on-going operations. On April 2, 2014, the Company commenced the April 2014 Rights Offering. Upon completion of the April 2014 Rights Offering, the Company issued 2,138,881 shares of common stock and raised approximately $13.4 million . 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 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, or the first 1,000,000 granted to directors or officers as of the final closing date 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. The Company refers to these rights as the “Option Matching Rights”. Pursuant to the terms of the Investment Agreement, the Company is required to provide notice of any exercise within five ( 5 ) business days, after which notice is received, Kien Huat is required to notify the Company of whether it decides to exercise such Option Matching Rights within ten ( 10 ) business days. The Company has not provided such notice to Kien Huat for the approximately 1,032,000 shares of common stock as required by the Investment Agreement as of September 30, 2015. The Company has alerted Kien Huat to this matter and anticipates rectifying the matter by providing the necessary notice to Kien Huat and providing them with ten ( 10 ) business days to make a determination with respect to their Option Matching Rights, which decision period will commence upon the date the Company determines Kien Huat is no longer bound by the terms of the Confidentiality Agreement it has signed with the Company. Upon the delivery of notice, Kien Huat will have Option Matching Rights to acquire approximately 1,032,000 shares of common stock as of September 30, 2015. In the event any further options included on the Investment Agreement annex are exercised prior to their respective expiration dates, Kien Huat may obtain up to an approximately an additional 154,000 Option Matching Rights as of September 30, 2015. Series E Preferred Stock On July 14, 2015, the Company redeemed 26,667 shares of its Series E Preferred Stock, held by beneficial owners other than the Bryanston Group, for approximately $533,000 . Preferred Stock and Dividends 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 . |
Concentration
Concentration | 9 Months Ended |
Sep. 30, 2015 | |
Risks and Uncertainties [Abstract] | |
Concentration | Concentration As of December 31, 2014, the Company had one debtor, Hawthorn OTB, which represented 14.5% of the total net outstanding racing related accounts receivable. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
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 Associates L.P. ("Concord"), an affiliate of Louis R. Cappelli who was a significant stockholder. The lawsuit seeks amounts that MRMI claims 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 claims 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 Department ("Third Department"). The oral argument on the appeal was heard by the Third Department on April 28, 2015 and the Third Department determined that the damages to MRMI should be reduced to $122,562 . On July 8, 2015, we filed a Notice of Motion for Re-Argument and Leave to Appeal (the "Motion") regarding the decision of the Third Department. The Motion was denied by the Third Department on September 2, 2015. On October 9, 2015, we filed a Motion for Leave to Appeal with the Court of Appeals. 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 2 nd Circuit Court lifted the Stay of Appeal and the Appeal has been fully briefed. Oral argument was heard by the 2 nd Circuit Court on April 29, 2015. The Company considers this lawsuit to be 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. |
Related Party Transactions Rela
Related Party Transactions Related Party Transactions | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | 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. On May 20, 2015, the Moelis Letter Agreement was amended to, among others, extend the term of such agreement through June 9, 2016 and to include a non-refundable Interim Fee of $400,000 , which was expensed upon execution, and which is creditable against future fees. In the event financing is consummated, the Moelis Letter Agreement contemplates additional transaction-based fees would be earned by Moelis if and when such fees are earned. During 2014, we reimbursed Moelis approximately $44,000 for outside professional services and expenses incurred. 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, the amendment and the determination of whether to enter into such agreement. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On November 3, 2015, the Company adopted a cash bonus plan (the "Bonus Plan") for the senior executives of the Company. Pursuant to the Bonus Plan, up to $525,000 was set aside for possible award to Mr. D’Amato, Ms. Pitts, Ms. Horner, Mr. Degliomini and Mr. Keith Kabeary with respect to the fiscal year ended December 31, 2015. Bonuses may be awarded to such senior executives in amounts determined by the Compensation Committee of the Board of Directors and based upon the recommendation of Mr. D’Amato for such other senior executives. Bonuses totaling up to the $525,000 aggregate maximum under this plan could be awarded (i) to the extent MRMI’s earnings before interest, tax, depreciation and amortization (“EBITDA”) for the fiscal year met or exceeded 80% of the target EBITDA established by the Compensation Committee and (ii) whether goals with respect to the Casino Project have been met. The aggregate maximum amount available for award pursuant to the Bonus Plan would be reduced in proportion to the amount by which MRMI’s EBITDA for the fiscal year misses the target EBITDA. The amount of individual bonuses awarded pursuant to the Bonus Plan would be based 25% upon whether MRMI met or exceeded its EBITDA target and 75% based upon meeting goals with respect to the Casino Project as determined by the Compensation Committee. |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
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. |
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. |
Deferred lease costs | Project Development Costs Because of the uncertainty of the awarding of a Gaming Facility License, 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. |
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 all periods presented in the accompanying statement of operations 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 September 30, 2015 and December 31, 2014, the Company’s management was unable to estimate reasonably the fair value of the short-term loan due to the inability to obtain quotes for similar credit facilities. |
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. |
New Accounting Pronouncements | 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. On July 9, 2015, the FASB reaffirmed the guidance in its April 29, 2015 proposed ASU that defers the effective date of the new revenue recognition standard by one year and allows early adoption as of the original effective date. Entities can transition to the new guidance either retrospectively or as a cumulative-effect adjustment as of the date of adoption. Management is assessing the impact that the new revenue recognition guidance will have on the consolidated financial statements. In June 2015, the FASB issued a proposed ASU on share-based payments as part of its simplification initiative. The proposed ASU simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, minimum statutory withholding requirements, classification in the statement of cash flows, and classification of awards with repurchase features. |
Organization And Nature Of Bu18
Organization And Nature Of Business Organization and Nature of Business (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Differences Between Proposed Plan and Select Plan | The differences between the proposal submitted by Montreign that was selected by the Siting Board and the Proposed Changes include the following: Selected Plan Proposed Plan 80,000 sq. ft. casino with 61 table games Approximately 95,200 sq. ft. casino with approximately 102 table games 391 luxury rooms designed to meet the 4-star and 4-diamond standards of Forbes® and AAA® Approximately 333 luxury rooms including 249 rooms of approximately 600 sq. ft. each, 60 suites of approximately 900 sq. ft. each, Penthouse level with 9 suites of approximately 1,100 to 2,300 sq. ft. each with butler service available, 8 garden suites of approximately 1,200 sq. ft. each and 7 two-story villas of approximately 1,800 sq. ft. each, all of which will be designed to meet the 5-star and 5-diamond standards of Forbes® and AAA® 20,000 sq. ft. meeting and conference space in the M Centre Approximately 27,000 sq. ft. meeting and conference space in the M Centre |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Summary of retail value amounts included in promotional allowances | The retail value amounts included in promotional allowances for the three and nine months ended September 30, 2015 and 2014 are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands) Food and beverage $ 429 $ 411 $ 1,165 $ 1,239 Non-subsidized free play 456 455 999 1,945 Players club awards 79 (29 ) 258 107 Total retail value of promotional allowances $ 964 $ 837 $ 2,422 $ 3,291 |
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 three and nine months ended September 30, 2015 and 2014 are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 (in thousands) Food and beverage $ 535 $ 521 $ 1,554 $ 1,605 Non-subsidized free play 268 269 589 1,147 Players club awards 79 (29 ) 258 107 Total cost of promotional allowances $ 882 $ 761 $ 2,401 $ 2,859 |
Summary of the approximate number of common stock equivalents outstanding | The following table shows the approximate number of common stock equivalents outstanding at September 30, 2015 and 2014 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 three and nine months ended September 30, 2015 and 2014, because their inclusion would have been anti-dilutive. Outstanding at September 30, 2015 2014 Options 720,000 905,000 Warrants 667,000 1,083,000 Option Matching Rights 1,186,000 1,223,000 Non-vested restricted stock 632,000 156,000 Shares to be issued upon conversion of long-term loan, related party 6,575,000 6,575,000 Total 9,780,000 9,942,000 |
Accrued Expenses and Other Cu20
Accrued Expenses and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 September 30, 2015 and December 31, 2014: (in thousands) September 30, 2015 December 31, 2014 Liability for horseracing purses $ 828 $ 1,568 Accrued payroll 1,279 1,424 Series E payable 1,500 1,241 Accrued redeemable points 198 187 Liability to NYSGC 541 436 Liability for local progressive jackpot 822 776 Accrued Casino Project Development costs 8,134 89 Accrued professional fees 394 911 Federal tax withholding payable 154 114 Accrued other 1,364 1,352 Total accrued expenses and other current liabilities $ 15,214 $ 8,098 |
Organization And Nature Of Bu21
Organization And Nature Of Business (Details Textual) | Sep. 22, 2015USD ($) | Sep. 21, 2015USD ($) | Sep. 18, 2015USD ($) | Sep. 17, 2015USD ($) | May. 26, 2015USD ($) | Feb. 06, 2015USD ($) | Jan. 05, 2015USD ($)shares | Jan. 02, 2015USD ($) | Dec. 17, 2014ami | Nov. 30, 2014USD ($) | Jun. 20, 2014anniversary | Mar. 31, 2014USD ($) | Nov. 30, 2013 | Mar. 19, 2013USD ($) | Nov. 17, 2010USD ($) | Jun. 30, 2015USD ($) | Sep. 30, 2015USD ($)ft²table_gameslot_machinestoryroom$ / sharesshares | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)ft²offeringtable_gameelectronic_table_gamevideo_gaming_machineslot_machineparking_spacevideo_lottery_terminalmistoryroomft$ / sharesshares | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($)$ / sharesshares | Nov. 03, 2015ft²table_gameroom | Nov. 01, 2015shares | Jun. 26, 2014 | Feb. 12, 2014shares |
Subsequent Event | |||||||||||||||||||||||||
Size of Video Gaming Machine and Harness Horse Racing Facility | ft² | 45,000 | ||||||||||||||||||||||||
Distance from Location | mi | 90 | 90 | |||||||||||||||||||||||
Number of Video Gaming Machine | video_gaming_machine | 1,110 | ||||||||||||||||||||||||
Number of Video Lottery Terminals | video_lottery_terminal | 1,080 | ||||||||||||||||||||||||
Number of Electronic Table Game | electronic_table_game | 30 | ||||||||||||||||||||||||
Noncompete Agreement, Period Of Restriction | 5 years | ||||||||||||||||||||||||
Additional Monthly Option Payment For Extension of Option Exercise Period | $ 375,000 | ||||||||||||||||||||||||
Project Development, Final Option Exercise Period After Receipt Of Notice | 60 days | ||||||||||||||||||||||||
Deferred Costs, Leasing, Gross | $ 0 | $ 0 | |||||||||||||||||||||||
Anticipated Number of Feet Property Building Elongated | ft | 50 | ||||||||||||||||||||||||
Proposed Decrease in Number of Parking Spaces | parking_space | 53 | ||||||||||||||||||||||||
Total Number of Parking Spaces After Proposal | parking_space | 3,389 | ||||||||||||||||||||||||
Assets, Current | 13,417,000 | $ 13,417,000 | $ 13,490,000 | ||||||||||||||||||||||
Liabilities, Current | 34,743,000 | 34,743,000 | $ 10,303,000 | ||||||||||||||||||||||
Project Development Costs Incurred | 22,800,000 | $ 10,800,000 | |||||||||||||||||||||||
Casino Project Development expenses | 13,396,000 | $ 2,933,000 | 22,825,000 | 10,774,000 | |||||||||||||||||||||
Operating Income (Loss) | $ (12,486,000) | $ (2,320,000) | $ (22,844,000) | $ (11,947,000) | |||||||||||||||||||||
Debt Instrument Covenant, Equity Investment Required | $ 301,000,000 | $ 150,000,000 | |||||||||||||||||||||||
Commitment Fee, Percent of Amount Raised, Percent | 1.00% | ||||||||||||||||||||||||
Capital | $ 50,000,000 | ||||||||||||||||||||||||
Agreement to Exercise Additional Rights, Number of Additional Rights Offerings | offering | 2 | ||||||||||||||||||||||||
Common Stock, Shares Authorized | shares | 150,000,000 | 150,000,000 | 150,000,000 | ||||||||||||||||||||||
Debt Instrument, Convertible, Conversion Ratio | 382.202837 | 382.202837 | |||||||||||||||||||||||
Debt Instrument, Face Amount | $ 1,000 | $ 1,000 | $ 1,000 | ||||||||||||||||||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 2.6164 | $ 2.6164 | $ 2.6164 | ||||||||||||||||||||||
Application Fees, Gaming Facility License | $ 1,000,000 | $ 1,000,000 | |||||||||||||||||||||||
Tax Rate On Slot Machines | 39.00% | ||||||||||||||||||||||||
Tax Rate On Tables | 10.00% | ||||||||||||||||||||||||
Annual Binding Supplemental Fee | $ 500 | ||||||||||||||||||||||||
Estimated Capital Tax Allowable | $ 15,000,000 | ||||||||||||||||||||||||
Estimated Tax Credit Allowable Related To Mortgages | 1,100,000 | ||||||||||||||||||||||||
Estimated Real Property Tax Abatement | $ 126,000,000 | ||||||||||||||||||||||||
Estimated Tax Abatement Period Of Recognition | 16 years | ||||||||||||||||||||||||
Administrative Fee to Regulatory Body | $ 150,000 | ||||||||||||||||||||||||
Deferred Escrow Payment | $ 100,000 | ||||||||||||||||||||||||
Revenue from Monticello Casino and Raceway [Member] | Regulated Revenue [Member] | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Concentration of risk | 41.00% | ||||||||||||||||||||||||
Execution of Commitment Letter | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Commitment Fee, Percent of Amount Raised, Percent | 0.50% | ||||||||||||||||||||||||
Rights Offering Launched | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Commitment Fee, Percent of Amount Raised, Percent | 0.50% | ||||||||||||||||||||||||
Senior Secured Credit Facility | Credit Suisse AG | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 545,000,000 | 478,000,000 | $ 478,000,000 | ||||||||||||||||||||||
Casino Project | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Project Development Costs Incurred | $ 22,800,000 | ||||||||||||||||||||||||
Casino Project Development expenses | 15,400,000 | ||||||||||||||||||||||||
Debt Instrument Covenant, Equity Investment Required | 10,000,000 | $ 301,000,000 | |||||||||||||||||||||||
Gaming Facility | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Project Development, Future Minimum Capital Investment, Excluding License Fee | $ 650,000,000 | ||||||||||||||||||||||||
January 2015 Rights Offering | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Agreement To Exercise Additional Rights, Proceeds from Offering | $ 50,000,000 | ||||||||||||||||||||||||
Common Stock, Shares Authorized | shares | 7,042,254 | ||||||||||||||||||||||||
License Grant Rights Offering | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Agreement to Exercise Additional Rights, Commencement Period | 10 days | ||||||||||||||||||||||||
Shelf Registration | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Common Stock, Shares Authorized | shares | 250,000,000 | ||||||||||||||||||||||||
Shelf Registration | Subsequent Event | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Common Stock, Shares Authorized | shares | 186,600,000 | ||||||||||||||||||||||||
Common Stock | January 2015 Rights Offering | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Agreement To Exercise Additional Rights, Proceeds from Offering | $ 49,500,000 | $ 34,100,000 | |||||||||||||||||||||||
Basic Subscription Rights, Exercise Period After Grant | 10 days | ||||||||||||||||||||||||
Agreement To Exercise Additional Rights, Aggregate Amount Threshold | $ 50,000,000 | ||||||||||||||||||||||||
Kien Haut Note | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Short-term Debt | $ 17,400,000 | $ 17,400,000 | |||||||||||||||||||||||
Montreign Resort Casino | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Area of Real Estate Property | ft² | 20,000 | 20,000 | |||||||||||||||||||||||
Number of Table Games | table_game | 61 | 61 | |||||||||||||||||||||||
Number of Units in Real Estate Property | room | 391 | 391 | |||||||||||||||||||||||
Montreign Resort Casino | Forecast | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Area of Real Estate Property | ft² | 27,000 | ||||||||||||||||||||||||
Number of Table Games | table_game | 102 | ||||||||||||||||||||||||
Number of Units in Real Estate Property | room | 333 | ||||||||||||||||||||||||
Number of 600 sq ft Units in Real Estate Property | room | 249 | ||||||||||||||||||||||||
Number of 900 sq ft Units in Real Estate Property | room | 60 | ||||||||||||||||||||||||
Number of Penthouse Units in Real Estate Property | room | 9 | ||||||||||||||||||||||||
Square Footage of Penthouse Units in Real Estate | ft² | 1,100 | ||||||||||||||||||||||||
Number of Garden Suite Units in Real Estate Property | room | 8 | ||||||||||||||||||||||||
Number of 1,800 sq ft Two-Story Villas in Real Estate Property | room | 7 | ||||||||||||||||||||||||
Montreign Resort Casino | Casino Hotel | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Area of Real Estate Property | ft² | 80,000 | 80,000 | |||||||||||||||||||||||
Montreign Resort Casino | Casino Hotel | Forecast | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Area of Real Estate Property | ft² | 95,200 | ||||||||||||||||||||||||
Indoor Waterpark Lodge | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Area of Real Estate Property | ft² | 75,000 | 75,000 | |||||||||||||||||||||||
Number of Units in Real Estate Property | room | 300 | 300 | |||||||||||||||||||||||
Indoor Waterpark Lodge | Forecast | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Area of Real Estate Property | ft² | 80,000 | ||||||||||||||||||||||||
Number of Units in Real Estate Property | room | 350 | ||||||||||||||||||||||||
Entertainment Village | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Payments for Capital Improvements, Anticipated Cost | $ 25,000,000 | ||||||||||||||||||||||||
Entertainment Village | Forecast | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Area of Real Estate Property, Phase One | ft² | 50,000 | ||||||||||||||||||||||||
Golf Course | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Payments for Capital Improvements, Anticipated Cost | $ 15,000,000 | ||||||||||||||||||||||||
Casino Project, Golf Course, and Entertainment Village | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Purchase Option, Period | 10 years | ||||||||||||||||||||||||
County of Sullivan Industrial Development Agency | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Tax Benefit, Maximum Benefit | $ 35,000,000 | ||||||||||||||||||||||||
Increase (Decrease) in Rent | 166,000 | ||||||||||||||||||||||||
Payment in Lieu of Tax, Amount | 65,000,000 | $ 53,500,000 | |||||||||||||||||||||||
Increase (Decrease) in Transaction Fee | $ 82,500 | ||||||||||||||||||||||||
Casino Lease | EPT Concord II, LLC | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
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 | anniversary | 5 | ||||||||||||||||||||||||
Operating Leases, Transfer Of Lease, Period After Gaming License Receipt | 60 days | ||||||||||||||||||||||||
Trigger One | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Option Exercise Period End Date, Extension, Period | 120 days | ||||||||||||||||||||||||
Trigger Two | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Option Exercise Period End Date, Extension, Period | 60 days | ||||||||||||||||||||||||
Maximum | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Option Exercise Period End Date, Extension, Period | 12 months | 12 months | 90 days | ||||||||||||||||||||||
Non Taxable Free Play Allowance, Percent | 15.00% | 10.00% | 15.00% | 10.00% | |||||||||||||||||||||
Maximum | Forecast | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Square Footage of Penthouse Units in Real Estate | ft² | 2,300 | ||||||||||||||||||||||||
Maximum | Entertainment Village | Forecast | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Area of Real Estate Property | ft² | 200,000 | ||||||||||||||||||||||||
Minimum | Entertainment Village | Forecast | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Area of Real Estate Property | ft² | 150,000 | ||||||||||||||||||||||||
EPT Concord II, LLC | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Area of Real Estate Property | a | 1,500 | ||||||||||||||||||||||||
Montreign | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Project Development, Future Minimum Capital Investment, Excluding License Fee | $ 452,000,000 | ||||||||||||||||||||||||
Montreign | Montreign Resort Casino | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Area of Real Estate Property | ft² | 80,000 | 80,000 | |||||||||||||||||||||||
Number of stories | story | 18 | 18 | |||||||||||||||||||||||
Number of Table Games | table_game | 61 | 61 | |||||||||||||||||||||||
Number of Slot Machine | slot_machine | 2,150 | 2,150 | |||||||||||||||||||||||
Number of Rooms | room | 391 | 391 | |||||||||||||||||||||||
Montreign | Indoor Waterpark Lodge | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Number of Rooms | room | 350 | 350 | |||||||||||||||||||||||
Montreign | Entertainment Village | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Area of Real Estate Property | ft² | 200,000 | 200,000 | |||||||||||||||||||||||
Montreign | Minimum | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Gaming Facility License Fee | $ 51,000,000 | ||||||||||||||||||||||||
Kien Huat Realty Limited | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Equity Investment Commitment | $ 375,000,000 | $ 150,000,000 | |||||||||||||||||||||||
Debt Instrument, Face Amount | $ 1,000 | $ 1,000 | |||||||||||||||||||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 2.65 | $ 2.65 | |||||||||||||||||||||||
Kien Huat Realty Limited | January 2015 Rights Offering | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Commitment Fee, Portion Paid | $ 250,000 | $ 900,000 | $ 975,000 | ||||||||||||||||||||||
Commitment Fee, Expenses Reimbursed | $ 40,000 | ||||||||||||||||||||||||
Kien Huat Realty Limited | License Grant Rights Offering | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Agreement to Exercise Additional Rights, Participation Amount | 290,000,000 | ||||||||||||||||||||||||
Kien Huat Realty Limited | Follow-On Rights Offering | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Agreement to Exercise Additional Rights, Participation Amount | $ 325,000,000 | ||||||||||||||||||||||||
The Company and EPR | Gaming Facility | |||||||||||||||||||||||||
Subsequent Event | |||||||||||||||||||||||||
Project Development, Future Minimum Capital Investment, Excluding License Fee | $ 1,300,000,000 |
Summary of Significant Accoun22
Summary of Significant Accounting Policies - Promotional Allowances (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Total retail value of promotional allowances | $ 964 | $ 837 | $ 2,422 | $ 3,291 |
Total cost of promotional allowances | 882 | 761 | 2,401 | 2,859 |
Food and beverage [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Total retail value of promotional allowances | 429 | 411 | 1,165 | 1,239 |
Total cost of promotional allowances | 535 | 521 | 1,554 | 1,605 |
Non-subsidized free play [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Total retail value of promotional allowances | 456 | 455 | 999 | 1,945 |
Total cost of promotional allowances | 268 | 269 | 589 | 1,147 |
Players club awards [Member] | ||||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | ||||
Total retail value of promotional allowances | 79 | (29) | 258 | 107 |
Total cost of promotional allowances | $ 79 | $ (29) | $ 258 | $ 107 |
Summary of Significant Accoun23
Summary of Significant Accounting Policies - Stock option equivalents (Details) - shares shares in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total number of common stock equivalents outstanding | 9,780 | 9,942 |
Options [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total number of common stock equivalents outstanding | 720 | 905 |
Warrants [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total number of common stock equivalents outstanding | 667 | 1,083 |
Option matching rights [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total number of common stock equivalents outstanding | 1,186 | 1,223 |
Restricted stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Total number of common stock equivalents outstanding | 632 | 156 |
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 Accoun24
Summary of Significant Accounting Policies (Details Textual) $ in Thousands | Aug. 19, 2009USD ($)trancheshares | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) |
Class of Stock [Line Items] | ||||
Allowance for doubtful accounts | $ | $ 156 | $ 161 | ||
Proceeds from rights offering, net of expenses | $ | $ 49,528 | $ 13,180 | ||
Kien Huat Realty Limited | Investment Agreement [Member] | ||||
Class of Stock [Line Items] | ||||
Proceeds from rights offering, net of expenses | $ | $ 55,000 | |||
Sale of Stock, Number of Tranches | tranche | 2 | |||
Sale of Stock, Number of Units Exercised for Purchase Right to be Valid | 1,000,000 | |||
Sale of Stock, Exercise Notification Period | 5 days | |||
Sale of Stock, Notification Period of Intent to Match | 10 days | |||
Sale of Stock, Number of Securities to be Called by Rights | 1,032,000 | |||
Sale of Stock, Number of Additional Rights Possible | 154,000 |
Project Development Costs Proje
Project Development Costs Project Development Costs (Details Textual) - USD ($) $ in Thousands | Feb. 06, 2015 | Jan. 05, 2015 | Jun. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 |
Development Costs [Line Items] | |||||
Agreement To Exercise Additional Rights, Expenses Relating to Gaming Facility License | $ 15,400 | ||||
Periodic payment, principal | 17,400 | ||||
Project Development Costs Incurred | 22,800 | $ 10,800 | |||
Legal, Construction Manager Costs, Consultants, And Other Professional Services [Member] | |||||
Development Costs [Line Items] | |||||
Project Development Costs Incurred | 2,500 | ||||
Legal Expense [Member] | |||||
Development Costs [Line Items] | |||||
Project Development Costs Incurred | 3,400 | 4,700 | |||
Architectural Fees [Member] | |||||
Development Costs [Line Items] | |||||
Project Development Costs Incurred | 15,900 | 1,900 | |||
Application Fee [Member] | |||||
Development Costs [Line Items] | |||||
Project Development Costs Incurred | 1,000 | ||||
Professional Services [Member] | |||||
Development Costs [Line Items] | |||||
Project Development Costs Incurred | 900 | ||||
Agreement Payments [Member] | |||||
Development Costs [Line Items] | |||||
Project Development Costs Incurred | $ 2,300 | ||||
January 2015 Rights Offering | |||||
Development Costs [Line Items] | |||||
Agreement To Exercise Additional Rights, Proceeds from Offering | $ 50,000 | ||||
January 2015 Rights Offering | Kien Huat Realty Limited | |||||
Development Costs [Line Items] | |||||
Commitment Fee, Portion Paid | $ 250 | $ 900 | 975 | ||
January 2015 Rights Offering | Common Stock | |||||
Development Costs [Line Items] | |||||
Agreement To Exercise Additional Rights, Proceeds from Offering | $ 49,500 | $ 34,100 |
Accrued Expenses and Other Cu26
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Class of Stock [Line Items] | ||
Liability for horseracing purses | $ 828 | $ 1,568 |
Accrued payroll | 1,279 | 1,424 |
Accrued redeemable points | 198 | 187 |
Liability to NYSGC | 541 | 436 |
Liability for local progressive jackpot | 822 | 776 |
Accrued Casino Project Development costs | 8,134 | 89 |
Accrued professional fees | 394 | 911 |
Federal tax withholding payable | 154 | 114 |
Accrued other | 1,364 | 1,352 |
Total accrued expenses and other current liabilities | 15,214 | 8,098 |
Series E Preferred Stock | ||
Class of Stock [Line Items] | ||
Series E payable | $ 1,500 | $ 1,241 |
Long-Term Loan, Related Party (
Long-Term Loan, Related Party (Details Textual) | Nov. 17, 2010USD ($) | Sep. 30, 2015USD ($)$ / shares | Mar. 31, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)shares$ / shares | Sep. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2014$ / shares |
Debt Instrument [Line Items] | ||||||||
Principal amount of promissory note | $ 1,000 | $ 1,000 | $ 1,000 | |||||
Periodic payment, principal | 17,400,000 | |||||||
Principal sum evidenced by the Note such that the unconverted portion multiple | $ 1 | $ 1 | ||||||
Principal amount, which represents a conversion price (usd per share) | $ / shares | $ 2.6164 | $ 2.6164 | $ 2.6164 | |||||
Debt Instrument, Convertible, Conversion Ratio | 382.202837 | 382.202837 | ||||||
Interest expense | $ 647,000 | $ 2,506,000 | $ 1,969,000 | $ 8,481,000 | ||||
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 | 1,000 | ||||||
Unconverted Portion of Notes | $ 1,000 | |||||||
Non-assessable shares of Empire's common stock at a conversion rate (shares) | shares | 377 | |||||||
Principal amount, which represents a conversion price (usd per share) | $ / shares | $ 2.65 | $ 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% | 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 | $ 154,000 | |||||||
Bridge Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest expense | $ 1,000,000 | $ 987,000 |
Bryanston Settlement (Details)
Bryanston Settlement (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Jun. 30, 2013 | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||||
Interest expense | $ 647 | $ 2,506 | $ 1,969 | $ 8,481 | ||
Series E Preferred Stock | ||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||||
Stock payable | 28,669 | 28,669 | $ 29,239 | |||
Mandatorily Redeemable Preferred Stock [Member] | Series E Preferred Stock | ||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||||
Share value redeemable upon settlement event | 30,200 | 30,200 | ||||
Interest expense | $ 310 | $ 2,200 | $ 931 | $ 7,400 | ||
Event Occurs after June 30, 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 | |||||
Preferred stock, per share liquidation value (usd per share) | $ 10 | |||||
Event Occurs After June 30, 2014 and on or Before December 31, 2014 | Mandatorily Redeemable Preferred Stock [Member] | ||||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||||
Dividends payable upon settlement event | $ 1,200 | |||||
Event Does not Occur by June 30, 2015 | 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 | 150,000 | ||||
Share value redeemable upon settlement event | $ 1,500 | $ 1,500 | ||||
Redeemable period upon settlement event | 3 years | |||||
Event Does not Occur by June 30, 2015 | 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 | 150,000 | ||||
Share value redeemable upon settlement event | $ 1,500 | $ 1,500 | ||||
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 | |||||
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 |
Stockholders Equity Stockholder
Stockholders Equity Stockholders' Equity (Details) | Jul. 14, 2015USD ($)shares | May. 05, 2015USD ($)executive_officershares | Nov. 03, 2014shares | Apr. 02, 2014USD ($)shares | Aug. 19, 2009USD ($)trancheshares | Sep. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2015USD ($)$ / sharesshares | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)$ / sharesshares | Sep. 30, 2014USD ($) | Feb. 09, 2015USD ($)shares | Feb. 07, 2015shares | Jan. 05, 2015$ / sharesshares | Dec. 31, 2014USD ($)shares | Feb. 19, 2014USD ($)shares | Dec. 31, 2013USD ($) |
Equity [Line Items] | ||||||||||||||||
Stock-based compensation | $ | $ 121,000 | $ 144,000 | $ 391,000 | $ 427,000 | ||||||||||||
Deferred Compensation Share-based Arrangements, Liability, Current and Noncurrent | $ | $ 226,000 | $ 226,000 | ||||||||||||||
Number of Executive Officers with Restricted Stock | executive_officer | 4 | |||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 416,668 | |||||||||||||||
Exercise price of warrants or rights | $ / shares | $ 6 | |||||||||||||||
Proceeds from Warrant Exercises | $ | $ 2,500,000 | |||||||||||||||
Common stock, shares authorized (shares) | 150,000,000 | 150,000,000 | 150,000,000 | |||||||||||||
Common Stock Dividends on Series B Preferred Stock Shares Authorized | 25,509 | 30,833 | ||||||||||||||
Proceeds from rights offering, net of expenses | $ | $ 49,528,000 | $ 13,180,000 | ||||||||||||||
Series E Preferred Stock | ||||||||||||||||
Equity [Line Items] | ||||||||||||||||
Stock Redeemed or Called During Period, Shares | 26,667 | |||||||||||||||
Stock Redeemed or Called During Period, Value | $ | $ 533,000 | |||||||||||||||
Series B Preferred Stock | ||||||||||||||||
Equity [Line Items] | ||||||||||||||||
Common Stock Dividends, Declared And Undeclared, Value | $ | $ 159,000 | $ 218,000 | ||||||||||||||
Common Stock Dividends, Undeclared, Value | $ | $ 159,000 | $ 218,000 | ||||||||||||||
Class of Warrant or Right | ||||||||||||||||
Equity [Line Items] | ||||||||||||||||
Stock issued during period, shares, new issues | 2,138,881 | |||||||||||||||
Stock issued during period, value, new issues | $ | $ 13,400,000 | |||||||||||||||
Proceeds from issuance of stock, rights issue, net | $ | $ 13,200,000 | |||||||||||||||
January 2015 Rights Offering | ||||||||||||||||
Equity [Line Items] | ||||||||||||||||
Common stock, shares authorized (shares) | 7,042,254 | |||||||||||||||
January 2015 Rights Offering | Common Stock | ||||||||||||||||
Equity [Line Items] | ||||||||||||||||
Price per share | $ / shares | $ 7.10 | |||||||||||||||
Shares, Issued | 53,291 | |||||||||||||||
Kien Huat Realty Limited | Standby Purchase Agreement | Common Stock | ||||||||||||||||
Equity [Line Items] | ||||||||||||||||
Shares, Issued | 2,667,165 | |||||||||||||||
Kien Huat Realty Limited | January 2015 Rights Offering | Common Stock | ||||||||||||||||
Equity [Line Items] | ||||||||||||||||
Shares, Issued | 31,191,035 | 4,321,798 | ||||||||||||||
Expiring May 10, 2020 | ||||||||||||||||
Equity [Line Items] | ||||||||||||||||
Exercise price of warrants or rights | $ / shares | $ 6 | $ 6 | ||||||||||||||
Class of Warrant or Right, Outstanding | 666,667 | 666,667 | ||||||||||||||
Restricted Stock [Member] | Board of Directors Chairman [Member] | ||||||||||||||||
Equity [Line Items] | ||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 525,000 | |||||||||||||||
Stock Granted, Value, Share-based Compensation, Net of Forfeitures | $ | $ 2,700,000 | |||||||||||||||
Casino Project | Monticello Harness Horsemen's Association Agreement [Member] | ||||||||||||||||
Equity [Line Items] | ||||||||||||||||
Agreement, Contractual Term | 2 years | |||||||||||||||
Agreement, Contractual Term Extension | 7 years | |||||||||||||||
Casino Project | Monticello Harness Horsemen's Association Agreement [Member] | Common Stock | ||||||||||||||||
Equity [Line Items] | ||||||||||||||||
Sale of Stock, Number of Shares Issued in Transaction | 1,000,000 | |||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 300,000 | |||||||||||||||
Kien Huat Realty Limited | Investment Agreement [Member] | ||||||||||||||||
Equity [Line Items] | ||||||||||||||||
Proceeds from rights offering, net of expenses | $ | $ 55,000,000 | |||||||||||||||
Sale of Stock, Number of Tranches | tranche | 2 | |||||||||||||||
Sale of Stock, Number of Units Exercised for Purchase Right to be Valid | 1,000,000 | |||||||||||||||
Sale of Stock, Exercise Notification Period | 5 days | |||||||||||||||
Sale of Stock, Notification Period of Intent to Match | 10 days | |||||||||||||||
Sale of Stock, Number of Securities to be Called by Rights | 1,032,000 | |||||||||||||||
Sale of Stock, Number of Additional Rights Possible | 154,000 |
Concentration - Narrative (Deta
Concentration - Narrative (Details) - Accounts Receivable [Member] - Credit Concentration Risk [Member] | 12 Months Ended |
Dec. 31, 2014debtor | |
Concentration Risk [Line Items] | |
Number of debtors | 1 |
Hawthorne OTB [Member] | |
Concentration Risk [Line Items] | |
Concentration of risk | 14.50% |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) | Apr. 28, 2015 | Jan. 15, 2014 | Jul. 31, 2011 | 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 | |||
Loss Contingency, Reduction in Damages Sought, Value | $ 122,562 |
Related Party Transactions (Det
Related Party Transactions (Details) - Financial Advisor - USD ($) | May. 20, 2015 | Dec. 31, 2014 |
Interim Fee | ||
Related Party Transaction [Line Items] | ||
Related Party Transaction, Amounts of Transaction | $ 400,000 | |
Professional Services and Travel | ||
Related Party Transaction [Line Items] | ||
Professional Fees | $ 44,000 |
Subsequent Events (Details)
Subsequent Events (Details) - Deferred Bonus [Member] - Executive Officer [Member] - Subsequent Event $ in Thousands | Nov. 03, 2015USD ($) |
Subsequent Event | |
Deferred Compensation Arrangement with Individual, Employer Contribution | $ 525 |
Deferred Compensation Arrangement with Individual, Terms, Percent of Target EBITDA to be Met | 80.00% |
Deferred Compensation Arrangement with Individual, Terms, Weight of EBITDA Condition | 25.00% |
Deferred Compensation Arrangement with Individual, Terms, Weight of Project Completion Condition | 75.00% |