Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 10, 2017 | Jun. 30, 2016 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | EMPIRE RESORTS INC | ||
Entity Central Index Key | 906,780 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 31,187,247 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 52,294,868 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 11,012 | $ 6,412 |
Restricted cash | 1,078 | 1,341 |
Accounts receivable, net | 921 | 1,156 |
Prepaid expenses and other current assets | 4,335 | 4,841 |
Total current assets | 17,346 | 13,750 |
Property and equipment, net | 26,415 | 25,789 |
Capitalized Development Projects costs | 202,438 | 10,405 |
Cash for Development Projects | 26,384 | 15,472 |
Intangible assets | 51,000 | 0 |
Cash collateral for deposit bond | 15,000 | 0 |
Other assets | 1,175 | 2 |
Total assets | 339,758 | 65,418 |
Current liabilities: | ||
Accounts payable | 2,268 | 1,244 |
Accrued Development Projects costs | 41,933 | 10,811 |
Accrued expenses and other current liabilities | 7,347 | 8,416 |
Total current liabilities | 51,548 | 20,471 |
Long-term loan, related party | 0 | 17,426 |
Other long-term liabilities | 8,644 | 0 |
Total liabilities | 60,192 | 66,877 |
Stockholders’ equity/(deficit): | ||
Common stock | 312 | 96 |
Additional paid-in capital | 533,813 | 228,512 |
Accumulated deficit | (254,559) | (230,067) |
Total stockholders’ equity/(deficit) | 279,566 | (1,459) |
Total liabilities and stockholders’ equity/(deficit) | 339,758 | 65,418 |
Series B | ||
Stockholders’ equity/(deficit): | ||
Preferred stock | 0 | 0 |
Series E | ||
Current liabilities: | ||
Series E Preferred Stock payable- 0 and 1,551 shares as of December 31, 2016 and 2015 | $ 0 | $ 28,980 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (shares) | 31,156,000 | 9,561,000 |
Common stock, shares outstanding (shares) | 31,156,000 | 9,561,000 |
Series B | ||
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 (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (shares) | 44,000 | 44,000 |
Preferred stock, shares outstanding (in shares) | 44,258 | 44,258 |
Series E | ||
Preferred stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, redemption shares (in shares) | 0 | 1,551,000 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) $ in Thousands | Total | Preferred StockSeries B | Preferred StockSeries E | Common Stock | Additional Paid-In Capital [Member] | Accum Deficit [Member] |
Balances, shares, beginning balance at Dec. 31, 2013 | 44,000 | 28,000 | 7,299,000 | |||
Balances, beginning balance at Dec. 31, 2013 | $ (9,775) | $ 0 | $ 1 | $ 73 | $ 159,319 | $ (169,167) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Declared and paid dividends on preferred stock, shares | (6,000) | |||||
Declared and paid dividends on preferred stock | 0 | 218 | (218) | |||
Common stock issued from exercise of rights offering, shares | 428,000 | |||||
Common stock issued from exercise of rights offering | 13,368 | $ 4 | 13,364 | |||
Stock issuance, shares | 27,000 | |||||
Stock issuance | $ (188) | (188) | ||||
Options exercised, shares | 153,600 | 141,000 | ||||
Options exercised | $ 2,770 | $ 2 | 2,768 | |||
Stock-based compensation | 636 | 636 | ||||
Net loss | (23,912) | (23,912) | ||||
Balances, shares, endings balance at Dec. 31, 2014 | 44,000 | 28,000 | 7,901,000 | |||
Balances, ending balance at Dec. 31, 2014 | (17,101) | $ 0 | $ 1 | $ 79 | 176,117 | (193,297) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Declared and paid dividends on preferred stock, shares | (5,000) | |||||
Declared and paid dividends on preferred stock | (1) | 159 | (160) | |||
Redemption of Series E Preferred Shares, shares | (28,000) | |||||
Redemption of Series E Preferred Shares | 534 | $ 1 | 533 | |||
Common stock issued from exercise of rights offering, shares | 1,409,000 | |||||
Common stock issued from exercise of rights offering | 49,528 | $ 14 | 49,514 | |||
Stock issuance, shares | 123,000 | |||||
Stock issuance | $ 1 | $ 1 | ||||
Options exercised, shares | 81,600 | 40,000 | ||||
Options exercised | $ 162 | $ 1 | 160 | |||
Stock-based compensation | 596 | 596 | ||||
Warrants exercised, shares | 83,000 | |||||
Warrants exercised | 2,500 | $ 1 | 2,499 | |||
Net loss | (36,610) | (36,610) | ||||
Balances, shares, endings balance at Dec. 31, 2015 | 44,000 | 0 | 9,561,000 | |||
Balances, ending balance at Dec. 31, 2015 | (1,459) | $ 0 | $ 0 | $ 96 | 228,512 | (230,067) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Declared and paid dividends on preferred stock | (295) | (295) | ||||
Redemption of Series E Preferred Shares, shares | (1,332,000) | |||||
Redemption of Series E Preferred Shares | 17,426 | $ 14 | 17,412 | |||
Common stock issued from exercise of rights offering, shares | 20,139,000 | |||||
Common stock issued from exercise of rights offering | $ 286,003 | $ 201 | 285,802 | |||
Options exercised, shares | 18,000 | |||||
Stock-based compensation | $ 2,122 | 2,122 | ||||
Stockholders' Equity, Other Shares | 124,000 | |||||
Stockholders' Equity, Other | (34) | $ 1 | (35) | |||
Net loss | (24,197) | (24,197) | ||||
Balances, shares, endings balance at Dec. 31, 2016 | 44,000 | 0 | 31,156,000 | |||
Balances, ending balance at Dec. 31, 2016 | $ 279,566 | $ 0 | $ 0 | $ 312 | $ 533,813 | $ (254,559) |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||
Gaming | $ 59,633 | $ 60,463 | $ 59,831 |
Food, beverage, racing and other | 10,668 | 11,171 | 9,683 |
Gross revenues | 70,301 | 71,634 | 69,514 |
Less: Promotional allowances | (2,847) | (3,468) | (4,288) |
Net revenues | 67,454 | 68,166 | 65,226 |
Operating costs and expenses: | |||
Gaming | 44,238 | 44,525 | 44,160 |
Food, beverage, racing and other | 10,174 | 10,493 | 9,986 |
Selling, general and administrative | 19,692 | 12,648 | 11,599 |
Development Projects expenses | 12,970 | 32,514 | 12,207 |
Stock-based compensation | 2,722 | 596 | 636 |
Depreciation | 1,341 | 1,350 | 1,324 |
Total operating costs and expenses | 91,137 | 102,126 | 79,912 |
Loss from operations | (23,683) | (33,960) | (14,686) |
Amortization of deferred financing costs | (105) | (27) | (91) |
Interest expense | (419) | (2,616) | (9,128) |
Interest income | 10 | 0 | 0 |
Loss before income taxes | (24,197) | (36,603) | (23,905) |
Income tax provision | 0 | 7 | 7 |
Net loss | (24,197) | (36,610) | (23,912) |
Undeclared dividends on preferred stock | (168) | (178) | (188) |
Net loss applicable to common stockholders | $ (24,365) | $ (36,788) | $ (24,100) |
Weighted average common shares outstanding, basic (shares) | 28,221 | 10,749 | 9,286 |
Weighted average common shares outstanding, diluted (shares) | 28,221 | 10,749 | 9,286 |
Loss per common share, basic (usd per share) | $ (0.86) | $ (3.42) | $ (2.60) |
Loss per common share, diluted (usd per share) | $ (0.86) | $ (3.42) | $ (2.60) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows provided by (used in) operating activities: | |||
Net loss | $ (24,197,000) | $ (36,610,000) | $ (23,912,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation | 1,341,000 | 1,350,000 | 1,324,000 |
Amortization of deferred financing costs | 105,000 | 0 | 0 |
Provision / (Recovery) for doubtful accounts | 0 | 10,000 | (5,000) |
Non-cash interest expense | 231,000 | 1,241,000 | 7,680,000 |
Loss on disposal of property and equipment | 5,000 | 1,000 | 1,000 |
Stock-based compensation | 2,722,000 | 596,000 | 636,000 |
Changes in operating assets and liabilities: | |||
Restricted cash-NYSGC Lottery and Purse Accounts | 268,000 | 354,000 | (633,000) |
Accounts receivable | 235,000 | (117,000) | 135,000 |
Prepaid expenses and other current assets | 506,000 | (544,000) | (1,274,000) |
Other assets | 0 | 3,000 | 91,000 |
Accounts payable | 1,024,000 | (962,000) | (350,000) |
Accrued expenses and other current liabilities | 4,839,000 | 3,298,000 | 815,000 |
Net cash used in operating activities | (12,921,000) | (31,380,000) | (15,492,000) |
Cash flows provided by (used in) investing activities: | |||
Purchase of property and equipment | (1,974,000) | (767,000) | (1,542,000) |
Capitalized Development Project costs | (157,305,000) | (4,074,000) | 0 |
Restricted cash—racing capital improvement | (10,912,000) | (15,472,000) | 0 |
Cash collateral for deposit bond | (15,000,000) | 0 | 0 |
License fee payment for the casino project | (51,000,000) | 0 | 0 |
Net cash used in investing activities | (236,196,000) | (20,298,000) | (1,549,000) |
Cash flows provided by (used in) financing activities: | |||
Proceeds from rights offering, net of expenses | 286,003,000 | 49,528,000 | 13,180,000 |
Series E Preferred Stock and dividend redemption | (30,711,000) | (533,000) | 0 |
Series B Preferred Stock dividend payment | (263,000) | 0 | 0 |
Proceeds from exercise of stock options and warrants | 54,000 | 2,660,000 | 2,770,000 |
Deferred financing costs | (1,278,000) | 0 | 0 |
Other payments | (88,000) | 0 | 0 |
Net cash provided by financing activities | 253,717,000 | 51,655,000 | 15,950,000 |
Net increase (decrease) in cash and cash equivalents | 4,600,000 | (23,000) | (1,091,000) |
Cash and cash equivalents, beginning of period | 6,412,000 | 6,435,000 | 7,526,000 |
Cash and cash equivalents, end of period | 11,012,000 | 6,412,000 | 6,435,000 |
Supplemental disclosures of cash flow information: | |||
Interest paid | 407,000 | 1,398,000 | 1,330,000 |
Income taxes paid | 0 | 0 | 0 |
Noncash investing and financing activities: | |||
Common stock issued in settlement of preferred stock dividends | 0 | 159,000 | 218,000 |
Conversion of long-term loan, related party into equity | 17,426,000 | 0 | 0 |
Project development costs included in accrued expenses | 40,783,000 | 6,331,000 | 0 |
Racing Capital Improvements [Member] | |||
Cash flows provided by (used in) investing activities: | |||
Restricted cash—racing capital improvement | $ (5,000) | $ 15,000 | $ (7,000) |
Organization And Nature Of Busi
Organization And Nature Of Business | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature Of Business | Organization and Nature of Business Basis for Presentation Empire Resorts, Inc. (“Empire,” and, together with its subsidiaries, the “Company,” “us,” “our” or “we”) was organized as a Delaware corporation on March 19, 1993, and since that time has served as a holding company for various subsidiaries engaged in the hospitality and gaming industries. On December 21, 2015, our wholly-owned subsidiary, Montreign Operating Company, LLC ("Montreign Operating"), was awarded a license (a “Gaming Facility License”) by the New York State Gaming Commission ("NYSGC") to operate a resort casino (the "Casino Project") to be located at the site of a four-season destination resort planned for the Town of Thompson in Sullivan County (the “Destination Resort”), which is described below. Montreign Operating is the sole holder of a Gaming Facility License in the Hudson Valley-Catskill Area, which consists of Columbia, Delaware, Dutchess, Greene, Orange, Sullivan and Ulster counties in New York State. The Gaming Facility License became effective on March 1, 2016. The Destination Resort is to be located on property owned by EPT Concord II, LLC and EPR Concord II, L.P. , two wholly-owned subsidiaries of EPR Properties ("EPR"), which is unrelated to the Company. The Casino Project is part of the initial phase of the Destination Resort, which will also include an Indoor Waterpark Lodge (the “Waterpark”), a Rees Jones redesigned “Monster” Golf Course (the “Golf Course Project”) and an Entertainment Village, which will include hotel, retail, restaurant and other amenities (the “Entertainment Village Project” and, together with the Casino Project and the Golf Course Project, the “Development Projects”). In addition to the Casino Project, subsidiaries of Montreign Operating are responsible for developing the Entertainment Village Project and the Golf Course Project. Subsidiaries of EPR are responsible for developing the Waterpark. Through Empire’s wholly-owned subsidiary, Monticello Raceway Management, Inc. ("MRMI"), the Company currently owns and operates Monticello Casino and Raceway, a video gaming machine ("VGM") and harness horseracing facility located in Monticello, New York. The Company also generates racing revenues through pari-mutuel wagering on the running of live harness horse races, the import simulcasting of harness and thoroughbred horse races from racetracks across the country and internationally, and the export simulcasting of its races to offsite pari-mutuel wagering facilities. In a letter dated December 23, 2016, the New York State Gaming Commission (the "NYSGC") approved MRMI's racetrack and simulcast license renewal applications for calendar year 2017. Generally, the annual license renewal process requires the NYSGC to review the financial responsibility, experience, character and general fitness of MRMI and its management. Liquidity and Capital Resources The 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, as well as the net proceeds of the Term Loan Facility, the Kien Huat Montreign Loan and the $35 million required to be deposited into the lender-controlled account created under the Term Loan Facility, which are discussed below, will be sufficient to meet working capital requirements and the expected costs of the Development Projects for at least the next twelve months. Additionally, following the opening of the Casino Project to the public, which is expected to occur in March 2018, the Revolving Credit Facility will be available for use towards the working capital needs, capital expenditures and for other general corporate purposes of the Project Parties, subject to our ability to meet the conditions therein. Whether these resources are adequate to meet the Company’s liquidity needs beyond that period, including with respect to the costs of the Entertainment Village Project and the Golf Course Project, will depend on the Company’s growth and operating results and the final designs and progress of the Development Projects. In addition, cost overruns, delays in the construction schedule or changes in design are among the factors that may increase the projected costs of the Development Projects, which may also require us to raise additional capital. Pursuant to the Term Loan Facility, Montreign Operating is required to deposit $35 million into the lender-controlled account holding the net proceeds of the Term Loan Facility and the Kien Huat Montreign Loan, which amount will be used towards the Entertainment Village Project. Of this payment, $15 million is required to be deposited by June 30, 2017 and the remaining $20 million is required to be deposited by December 31, 2017. The $35 million must be funded in the form of a further equity contribution to Montreign Operating, for which the Company expects to raise additional equity capital by the dates on which the deposits must be made. Additionally, the Company expects to raise furniture, fixtures and equipment ("FF&E") financing of up to $40 million to complete the Development Projects. To raise additional capital necessary for the Development Projects, to meet obligations under the Term Loan Facility or for the general corporate purposes of the Company, 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, including pursuant to the commitment of Kien Huat to backstop a rights offering of Empire in the amount of $35 million . The sale of additional equity could result in additional dilution to the Company’s existing stockholders, and financing arrangements may not be available to us, or may not be available in amounts or on acceptable terms. As of December 31, 2016, we had total current assets of approximately $17.3 million and current liabilities of approximately $51.5 million . As of December 31, 2016, our total assets included approximately $26.4 million of remaining net proceeds from the January 2016 Rights Offering which are presented on the balance sheet as a non-current asset. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Revenue recognition and Promotional allowances Gaming revenue is the net difference between gaming wagers and payouts for prizes from VGMs, non-subsidized free play and accruals related to the anticipated payout of progressive jackpots. Progressive jackpots contain base jackpots that increase at a progressive rate based on the credits played and are charged to revenue as the amount of the jackpots increase. The Company recognizes gaming revenues before deductions of such related expenses as NYSGC’s share of VGM revenue and the Monticello Harness Horsemen’s Association (the “MHHA”) and Agriculture and New York State Horse Breeding Development Fund’s contractually required percentages. Food, beverage, racing and other revenue, includes food and beverage sales, racing revenue earned from pari-mutuel wagering on live harness racing and simulcast signals to and from other tracks and miscellaneous income. The Company recognizes racing revenues before deductions of such related expenses as purses, stakes and awards. Some elements of the racing revenues from Off-Track Betting Corporations (“OTBs”) are recognized as collected, due to uncertainty of receipt of and timing of payments. Net revenues are recognized net of certain sales incentives in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Certification (“ASC”) 605-50, “Revenue Recognition—Customer Payments and Incentives”. The retail value of complimentary food, beverages and other items provided to the Company’s guests is included in gross revenues and then deducted as promotional allowances. The estimated cost of providing such food, beverage and other items as promotional allowances is included in food, beverage, racing and other expense. In addition, promotional allowances include non-subsidized free play offered to the Company’s guests based on their relative gaming worth and prizes included in certain promotional marketing programs. The retail value amounts included in promotional allowances for the years ended December 31, 2016, 2015 and 2014 were as follows: Year ended December 31, 2016 2015 2014 (in thousands) Food and beverage $ 1,486 $ 1,553 $ 1,656 Non-subsidized free play 978 1,720 2,476 Players Club awards 383 195 156 Total retail value of promotional allowances $ 2,847 $ 3,468 $ 4,288 The estimated cost of providing complimentary food, beverages and other items for the years ended December 31, 2016, 2015 and 2014 were as follows: Year ended December 31, 2016 2015 2014 (in thousands) Food and beverage $ 2,080 $ 2,109 $ 2,206 Non-subsidized free play 577 1,015 1,461 Players Club awards 383 195 156 Total cost of promotional allowances $ 3,040 $ 3,319 $ 3,823 Principles of consolidation The consolidated financial statements include Empire’s accounts and their wholly-owned subsidiaries. All inter-company balances and transactions are eliminated in consolidation. Cash and cash equivalents Cash and cash equivalents include cash on account, demand deposits and certificates of deposit with original maturities of three months or less at acquisition. The Company maintains significant cash balances with financial institutions, which are not covered by the Federal Deposit Insurance Corporation. The Company has not incurred any losses in such accounts and believes it is not exposed to any significant credit risk on cash. Restricted cash The Company has four types of restricted cash accounts. Approximately $393,000 of cash is held in reserve in accordance with NYSGC regulations as of December 31, 2016 as listed below. The Company granted the NYSGC a security interest in the segregated cash account used to deposit NYSGC’s share of net win in accordance with the NYSGC Rules and Regulations. Under New York State Racing, Pari-Mutual Wagering and Breeding Law, MRMI is obliged to withhold a certain percentage of certain types of racing and pari-mutuel wagers towards the establishment of a pool of money, the use of which is restricted to the funding of approved capital improvements. Periodically during the year, MRMI petitions the NYSGC to certify that the noted expenditures are eligible for reimbursement from the capital improvement fund. The balance in this account was approximately $39,000 and $34,000 at December 31, 2016 and 2015, respectively. In April 2005, the New York law governing VGM operations was modified to provide an increase in the revenues retained by the VGM operator. A portion of that increase was designated as a reimbursement of marketing expenses incurred by the VGM operator. The amount of revenues directed toward this reimbursement is deposited in a bank account under the control of the NYSGC and the VGM operator. The funds are transferred from this account to the VGM operator upon the approval by NYSGC officials of the reimbursement requests submitted by the VGM operator. The balance in this account was approximately $354,000 and $629,000 at December 31, 2016 and 2015, respectively. In connection with the Company’s VGM operations, it agreed to maintain a restricted bank account. The balance in this account was $0 and $400,000 , at December 31, 2016 and 2015, respectively. The NYSGC can make withdrawals directly from this account if they have not received their share of net win when due. In 2016, the NYSGC released to the Company the balance of $400,000 previously restricted by NYSGC. In addition to the NYSGC restricted cash balances listed above, the Company established an account to segregate amounts collected and payable to Monticello Harness Horsemen’s Association (the “MHHA”) and pursuant to its contract. The balance in this account was approximately $685,000 and $278,000 at December 31, 2016 and 2015, respectively. Accounts receivable Accounts receivable, net of allowances, are stated at the amount the Company expects to collect. When required, an allowance for doubtful accounts is recorded based on information on the collectability of specific accounts. Accounts are considered past due or delinquent based on contractual terms, how recently payments have been received and the Company’s judgment of collectability. In the normal course of business, the Company settles wagers for other racetracks and is exposed to credit risk. These wagers are included in accounts receivable. Account balances are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. The Company recorded an allowance for doubtful accounts of approximately $171,000 and $171,000 , as of December 31, 2016 and 2015. Property and equipment Property and equipment is stated at cost less accumulated depreciation. The Company provides for depreciation on property and equipment used by applying the straight-line method over the following estimated useful lives: Assets Estimated Useful Lives Vehicles 5-10 years Furniture, fixtures and equipment 5-10 years Land improvements 5-20 years Building improvements 5-40 years Buildings 40 years Deferred financing costs Deferred financing costs are amortized on the straight-line method over the term of the related debt. Development Projects Costs Because the Company's application for a Gaming Facility License was submitted in a competitive environment and the Company could not be certain it would be awarded a Gaming Facility License, all costs incurred for the Development Projects were expensed until the Company was awarded the a Gaming License on December 21, 2015. Once awarded the Gaming Facility License, the Company began capitalizing qualifying expenditures on the Development Projects during the fourth quarter of 2015. Impairment of long-lived assets The Company periodically reviews the carrying value of its long-lived assets in relation to historical results, as well as management’s best estimate of future trends, events and overall business climate. If such reviews indicate an issue as to whether the carrying value of such assets may not be recoverable, the Company will then estimate the future cash flows generated by such assets (undiscounted and without interest charges). If such future cash flows are insufficient to recover the carrying amount of the assets, then impairment is triggered and the carrying value of any impaired assets would then be reduced to fair value. Loss contingencies There are times when non-recurring events may occur that require management to consider whether an accrual for a loss contingency is appropriate. Accruals for loss contingencies typically relate to certain legal proceedings, customer and other claims and litigation. As required by generally accepted accounting principles in the United States of America (“GAAP”), the Company determines whether an accrual for a loss contingency is appropriate by assessing whether a loss is deemed probable and can be reasonably estimated. The Company analyzes its legal proceedings and other claims based on available information to assess potential liability. The Company develops its views on estimated losses in consultation with outside counsel handling its defense in these matters, which involves an analysis of potential results assuming a combination of litigation and settlement strategies. Other long-term liabilities The difference between our cash payments and straight-line rent on our leases of $8.0 million at December 31, 2016 is included in other long-term liabilities. Common stock - loss per share The Company computes basic loss per share by dividing net loss applicable to common shares by the weighted-average common shares outstanding for the period. Diluted 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 loss of the entity. Since the effect of common stock equivalents is anti-dilutive with respect to losses, these common stock equivalents have been excluded from the Company’s computation of loss per common share. Therefore, basic and diluted loss per common share for the years ended December 31, 2016, 2015 and 2014 were the same. The following table shows the approximate number of common stock equivalents outstanding at December 31, 2016, 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 years ended December 31, 2016, 2015 and 2014, because their inclusion would have been anti-dilutive. Outstanding at December 31, 2016 2015 2014 Options 34,000 57,000 156,200 Warrants 133,000 133,000 216,600 Option Matching Rights 21,000 229,000 238,000 Restricted stock 216,000 137,000 37,000 Shares to be issued upon conversion of long-term loan, related party — 1,332,000 1,332,000 Total 404,000 1,888,000 1,979,800 Pursuant to the terms of the Investment Agreement (defined in Note J), Kien Huat has the right to purchase an equal number of additional shares of common stock as are issued upon the exercise of certain options and warrants (the "Option Matching Rights"). On February 17, 2016, the Company provided written notice to Kien Huat regarding the exercise of certain Option Matching Rights to elect whether to exercise such Option Matching Rights. On February 17, 2016, Kien Huat declined to exercise the Option Matching Rights to purchase 204,706 shares of common stock. 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 primarily comprised of current assets and current liabilities. Current assets and current liabilities approximate fair value due to their short-term nature. Advertising The Company records in selling, general and administrative expense the costs of general advertising, promotion and marketing programs at the time those costs are incurred. Advertising expense was approximately, $1.1 million, $1.1 million and $977,000 for the years ended December 31, 2016, 2015 and 2014, respectively. Stock-based compensation The cost of all share-based awards to employees, including grants of employee stock options and restricted stock, is recognized in the financial statements based on the fair value of the awards at grant date. The fair value of stock option awards is determined using the Black-Scholes valuation model on the date of grant. The fair value of restricted stock awards is equal to the market price of Empire’s common stock on the date of grant. The fair value of share-based awards is recognized as stock-based compensation expense on a straight-line basis over the requisite service period from the date of grant. As of December 31, 2016, there was approximately $2.4 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Company’s equity compensation plan. That cost is expected to be recognized over a period of 1.75 years. This expected cost does not include the impact of any future stock-based compensation awards. Income taxes The Company applies the asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates for the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized. Intangible Assets In accordance with ASC 350, Intangibles - Goodwill and Other, the Company amortizes intangible assets over their estimated useful lives unless the Company determines their lives to be indefinite. As a condition of the Gaming Facility License, the Company was granted a gaming license, for which it paid $51 million on February 25, 2016. The term of the gaming license is 10 years; however, amortization will not commence until the completion of construction and the opening to the general public of the Casino Project. Amortization will be recognized on a straight-line basis beginning at that time and continuing until the license is up for renewal in 2026. During the period that the Company is not amortizing the intangible asset, the Company will assess it for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. 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, 2017, including interim periods within that reporting period. Entities can transition to the new guidance either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company currently anticipates adopting this accounting standard during the first quarter of 2018, with a cumulative effect adjustment as of the date of adoption. Although we are still evaluating the full impact of this standard on our consolidated financial statements, the Company has concluded that the adoption of this standard will affect how we account for our customer loyalty program as well as the classification of revenues between gaming, food and beverage, lodging, and retail, entertainment and other. Under our customer loyalty program, customers earn points based on their level of play, which may be redeemed for various benefits, such as cash back or dining, among others. We currently determine our liability for unredeemed points based on the estimated costs of services or merchandise to be provided and estimated redemption rates. Under the new standard, points awarded under our customer loyalty program are considered a material right given to the players based on their gaming play and the promise to provide points to players will need to be accounted for as a separate performance obligation. The new standard will require us to allocate the revenues associated with the players’ activity between gaming revenue and the value of the points and to measure the liability based on the estimated standalone value of the points earned after factoring in the likelihood of redemption. As a result, we expect that gaming revenues will be reduced with a corresponding increase, in total, of food and beverage, lodging, and retail, entertainment and other revenues. The revenue associated with the points earned will be recognized in the period in which they are redeemed. The quantitative effects of these changes have not yet been determined and are still being analyzed. In February 2016, FASB issued ASU 2016-02, Leases (Topic 842) ("ASU 2016-02"), which provides guidance for accounting for leases. Under ASU 2016-02, the Company will be required to recognize the assets and liabilities for the rights and obligations created by leased assets. ASU 2016-02 will take effect for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The standard must be adopted using a modified retrospective approach and provides for certain practical expedients. Early adoption is permitted. The Company has not yet completed its assessment of the impact of the new standard on the Company's consolidated financial statements. The Company currently anticipates adopting this standard during the first quarter of 2019. In March 2016, FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"), which provides guidance for accounting for stock-based compensation for employees. Under ASU 2016-09, several aspects of the accounting for share-based payment award transactions are simplified, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 will take effect for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The Company currently anticipates adopting this standard during the first quarter of 2017 and does not anticipate a material impact from this guidance. |
Prepaid Expenses and Other Asse
Prepaid Expenses and Other Assets | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Prepaid Expenses and Other Assets | Prepaid Expenses and Other Assets The Company has participated in the New York State Empire Zones real estate tax credit program for over 10 years. Under this program, the Company receives a refund for real estate taxes paid during the year, after the end of New York State's fiscal year. Beginning in 2014, the amount of the tax credit received is reduced by 20% each year until the tax credit ends for the Company at December 31, 2017. For the year ended December 31, 2016, the Company will receive a 40% refund for real estate taxes paid. The amounts of the unreceived real estate tax credits are included in prepaid expenses and other current assets on the accompanying consolidated balance sheet at December 31, 2016 and 2015, and were approximately $1.3 million and $1.9 million , respectively. Prepaid expenses and other current assets, as presented on the balance sheet are comprised of the following at December 31, 2016 and 2015: 12/31/2016 12/31/2015 (in thousands) Empire zone real estate tax credit $ 1,325 $ 1,945 Prepaid real estate taxes 558 548 Prepaid insurance 919 236 Prepaid rent payment — 500 Inventory 177 207 Prepaid gaming expenses 61 46 Development escrow & security refundable deposit 623 911 Prepaid other 672 448 Total prepaid expenses and other current assets $ 4,335 $ 4,841 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment, Capitalized Project Development Costs and Cash for Development Projects Property and equipment at December 31, 2016 and 2015 consists of: 12/31/2016 12/31/2015 (in thousands) Land $ 770 $ 770 Land improvements 1,758 1,732 Buildings 4,727 4,727 Building improvements 28,088 27,284 Vehicles 307 280 Furniture, fixtures and equipment 4,278 3,894 Construction in Progress 919 197 40,847 38,884 Less—Accumulated depreciation (14,432 ) (13,095 ) $ 26,415 $ 25,789 Depreciation expense was approximately $1.3 million , $1.4 million and $1.3 million for years ended December 31, 2016 , 2015 and 2014, respectively. The VGMs in the Company’s facility are owned by the NYSGC and, accordingly, the Company's consolidated financial statements include neither the cost nor the depreciation of those devices. Capitalized Project Development Costs Once it was awarded the Gaming Facility License on December 21, 2015, the Company began capitalizing certain Project Development expenditures during the fourth quarter of 2015. At December 31, 2016 and 2015, total Capitalized Project Development costs incurred were approximately $202.4 million and $10.4 million , respectively. Total Capitalized Project Development costs at December 31, 2016 consisted of $198.9 million of construction costs, site development, contractor insurance, general conditions, architectural fees, construction manager fees, and approximately $3.5 million of professional service fees such legal and accounting fees and is reflected on the balance sheet as Capitalized Development Project costs. Total Capitalized Development Project costs at December 31, 2015 consisted of $10.3 million in architectural, engineering fees, construction manager and subcontractor costs, site development costs and approximately $127,000 in legal fees, accounting fees, consultants and other costs. Cash Collateral for Deposit Bond In February 2016, the Company deposited $15 million in performance bonds to guarantee the completion of the Development Projects. These funds will be returned to the Company upon the satisfactory completion of the Development Projects. Cash for Development Projects At December 31, 2016, the $26.4 million in Cash for Development Projects on the Consolidated Balance Sheet represents the remaining portion from the January 2016 Rights Offering to be utilized for the Casino Project, Golf Course, and Entertainment Village. At December 31, 2015, the $15.5 million of Cash for Development Projects on the Consolidated Balance Sheet represents the remaining funds from the January 2015 Rights Offering to be utilized for the Casino Project. |
Project Development Costs
Project Development Costs | 12 Months Ended |
Dec. 31, 2016 | |
Project Development Costs [Abstract] | |
Project Development Costs | Projects Costs In 2016 , total Development Projects costs incurred were approximately $205.0 million , of which $192.0 million was capitalized and $13.0 million was expensed. Development Project expenses consisted of $10.4 million of land lease costs, $400,000 of real estate taxes, $482,000 of insurance expense, $324,000 in consultants and other professional service fees, $164,000 in legal fees and $1.2 million of pre-opening expenses, including salary and related benefits, as well as marketing expenses. In 2015, total Development Projects costs incurred were approximately $42.9 million , of which $32.5 million was expensed and consisted of $2.7 million in legal fees, consultants and other professional service fees, $4.6 million of non-refundable payments pertaining the Option Agreement with EPR, $24.2 million in architectural, engineering fees, construction manager costs and subcontractor costs, and a $975,000 payment to Kien Huat for a commitment fee pursuant to the Second amendment to the Commitment Letter. The $42.9 million includes $10.4 million of capitalized project development costs during 2015. In 2014 , the Development Projects costs incurred were approximately $12.2 million and consisted of $5.1 million in legal fees, construction manager costs, consultants and other professional service fees, $3.1 million of non-refundable payments pertaining to the Option Agreement with EPR, $2.1 million in architectural fees, $1.0 million payment for the RFA application fee, and a $900,000 payment to Kien Huat for a commitment fee pursuant to the Commitment Letter. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued Development Projects costs at December 31, 2016 and 2015 were $41.9 million and $10.8 million , respectively, and were primarily comprised of amounts due to the Construction Manager for costs incurred for the Development Projects, as well as amounts due to the architect and other vendors. Accrued expenses and other current liabilities, as presented on the balance sheet are comprised of the following at December 31, 2016 and 2015: 12/31/2016 12/31/2015 (in thousands) Liability for horseracing purses $ 1,139 $ 529 Accrued payroll 1,897 1,719 Series E Preferred Stock payable — 1,500 Accrued redeemable points 167 67 Liability to NYSGC 360 1,012 Liability for local progressive jackpot 907 927 Accrued settlement liability 758 — Accrued professional fees 308 844 Federal tax withholding payable 78 154 Accrued other 1,733 1,664 Total accrued expenses and other current liabilities $ 7,347 $ 8,416 |
Long-Term Loan, Related Party
Long-Term Loan, Related Party | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Loan, Related Party | Long-Term Loans, Related Party Conversion of Kien Huat Note On November 17, 2010, Empire entered into a loan agreement (the "2010 Kien Huat Loan Agreement") with Kien Huat Realty III Limited ("Kien Huat") pursuant to which Empire issued a convertible promissory note (the "2010 Kien Huat Note") in the original principal amount of $35 million , of which $17.4 million was outstanding as of December 31, 2015. On February 17, 2016, upon consummation of the January 2016 Rights Offering, the 2010 Kien Huat Note was converted into 1,332,058 shares of common stock (the "Note Conversion") in accordance with the terms of the 2010 Kien Huat Loan Agreement. The Company recognized approximately $178,000 , $1.3 million and $1.3 million in interest expense associated with the 2010 Kien Huat Note during the years ended December 31, 2016, 2015 and 2014, respectively. Kien Huat Construction Loan Agreement On October 13, 2016, Montreign Operating and Kien Huat entered into a loan agreement (the "KH Construction Loan Agreement"). Pursuant to the KH Construction Loan Agreement, Kien Huat agreed to make available to Montreign Operating up to an aggregate of $50 million of loans to pay the expenses of the Casino Project while the debt financing for the Development Projects was being finalized. The term of the KH Construction Loan Agreement would expire on the earlier of (i) the consummation of financing in an amount no less than the remaining contract amount under the Casino Project construction contract and (ii) October 13, 2017. In connection with the closing of the Term Loan Facility and the Kien Huat Montreign Loan, on January 24, 2017, the KH Construction Loan Agreement expired pursuant to its terms without being utilized by Montreign Operating. Montreign paid Kien Huat a commitment fee of $500,000 upon execution of the KH Construction Loan. The commitment fee was capitalized and is included in Other Assets. It is being amortized over the life of the agreement. |
Bryanston Settlement
Bryanston Settlement | 12 Months Ended |
Dec. 31, 2016 | |
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 (as amended, 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 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 Series E 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. Pursuant to the Settlement Agreement, and because the Bryanston Group shares were not redeemed before December 31, 2014, the annual dividend for calendar year 2014 was paid to the Bryanston Group in the amount of approximately $1.2 million on February 12, 2015 from funds legally available to the Company to effect such payment. 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 December 31, 2015 balance sheet. The amount of the liability recorded on the balance sheet is the amount at which it would be settled if the redemption occurred as of the balance sheet date. The difference between the redemption amount and the amount recorded in the balance sheet as of the date of the Settlement Agreement has been reflected as a deemed dividend on that date. Changes in the redemption value of the liability subsequent to the date of the Settlement Agreement are recorded as interest expense. On March 7, 2016, the Company redeemed the outstanding Series E Preferred Stock held by the Bryanston Group for approximately $30.7 million pursuant to the terms of the Settlement Agreement. Because the event that caused the entire liability to become due occurred during 2016, the liability was recorded pursuant to the payment terms in place at December 31, 2015 of which $1.5 million was recorded as a current liability and the remainder as a long term liability on the accompanying balance sheet. Interest expense associated with the change in the redemption amount of the liability was $231,000 , $1.2 million and $7.7 million for the years ended December 31, 2016, 2015 and 2014, respectively. |
Stockholders Equity
Stockholders Equity | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Authorized Capital On November 1, 2016, Empire filed the Second Amended and Restated Certificate of Incorporation (the "Restated Charter”) with the Secretary of State of the State of Delaware. Pursuant to Restated Charter, Empire’s authorized capital stock consists of 155 million shares, of which 150 million shares are common stock and five million shares are preferred stock. Common Stock Our common stock is transferable only subject to the provisions of Section 303 of the Racing, Pari-Mutuel Wagering and Breeding Law, so long as we hold directly or indirectly, a license issued by the NYSGC, and may be subject to compliance with the requirements of other laws pertaining to licenses held directly or indirectly by us. The owners of common stock issued by us may be required by regulatory authorities to possess certain qualifications and may be required to dispose of their common stock if the owner does not possess such qualifications. January 2016 Rights Offering On January 4, 2016, we commenced a rights offering (the "January 2016 Rights Offering") of transferable subscription rights to holders of record of our common stock and Series B Preferred Stock as of January 4, 2016 to purchase up to 20,138,888 shares of our common stock. The subscription rights were listed for trading on The Nasdaq Stock Market under the symbol "NYNYR" for the duration of the January 2016 Rights Offering. In connection with the January 2016 Rights Offering, on December 31, 2015, the Company and Kien Huat entered into a standby purchase agreement (the "January 2016 Standby Purchase Agreement"). Pursuant to the January 2016 Standby Purchase Agreement, Kien Huat agreed to (i) exercise its basic subscription rights to acquire approximately $30 million of our common stock within 10 days of the commencement of the January 2016 Rights Offering with a closing proximate thereto and (ii) to exercise the remainder of its basic subscription rights prior to the expiration date of the January 2016 Rights Offering. In addition, Kien Huat agreed it would exercise all rights not otherwise exercised by the other holders in the January 2016 Rights Offering in an aggregate amount not to exceed $290 million . The January 2016 Rights Offering closed on February 17, 2016. The Company issued a total of 20,138,888 shares of common stock for aggregate gross proceeds of approximately $290 million . This includes 176,086 shares issued to holders upon exercise of their basic subscription and over-subscription rights and 13,136,817 shares issued to Kien Huat upon exercise of its basic subscription rights. Kien Huat also acquired the remaining 6,825,985 shares not sold in the January 2016 Rights Offering pursuant to the January 2016 Standby Purchase Agreement. The net proceeds of the January 2016 Rights Offering were approximately $286.0 million following the deduction of expenses, which were used (i) to pay the expenses relating to the construction of the Casino Project, (ii) to redeem the outstanding shares of the Series E Preferred Stock in accordance with the terms of the Settlement Agreement on March 7, 2016 and (iii) for the working capital needs of the Company. Pursuant to the January 2016 Standby Purchase Agreement, we paid Kien Huat a commitment fee of $1,450,000 , which is equal to 0.5% of the maximum amount of the January 2016 Rights Offering, and reimbursed Kien Huat for expenses in the amount of $50,000 . January 2015 Rights Offering On January 5, 2015, the Company commenced a rights offering (the "January 2015 Rights Offering") of non-transferable subscription rights to holders of record of our common stock and Series B Preferred Stock as of January 2, 2015 to purchase up to 1,408,451 shares of our common stock. 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 10 days of its grant. In addition, Kien Huat agreed it would exercise all rights not otherwise exercised by the other holders in the January 2015 Rights Offering in an aggregate amount not to exceed $50 million . The January 2015 Rights Offering closed on February 6, 2015. The Company issued a total of 1,408,451 shares of common stock for aggregate gross proceeds of approximately $50 million . This includes 10,658 shares issued to holders upon exercise of their basic subscription rights and over-subscription rights and 864,360 shares issued to Kien Huat upon exercise of its basic subscription rights. Kien Huat also acquired the remaining 533,433 shares not sold in the January 2015 Rights Offering pursuant to the terms of the January 2015 Standby Purchase Agreement. The net proceeds of the January 2015 Rights Offering were approximately $49.5 million following the deduction of expenses, which were used to pay the expenses of the Casino Project. Pursuant to the January 2015 Standby Purchase Agreement, we paid Kien Huat a commitment fee of $250,000 , which is equal to 0.5% of the maximum amount of the January 2015 Rights Offering and reimbursed Kien Huat for expenses in the amount of $40,000 . April 2014 Rights Offering On April 2, 2014, the Company commenced a rights offering of common stock to holders of its common stock and Series B Preferred Stock as of March 31, 2014 (the "April 2014 Rights Offering"). Upon completion of the April 2014 Rights Offering, the Company issued 427,776 shares of common stock and raised approximately $13.4 million . This includes 90,633 shares issued to holders upon exercise of their basic subscription rights, 302,526 shares issued to Kien Huat upon exercise of its basic subscription rights and 34,617 shares issued to holders upon exercise of their over-subscription rights in the April 2014 Rights Offering. Preferred Stock and Dividends The Company’s Series B Preferred Stock has voting rights of 0.054 votes per share and each share is convertible into 0.054 shares of common stock. It has a liquidation value of $29 per share and is entitled to annual cumulative dividends of $2.90 per share payable quarterly in cash. The Company has the right to pay the dividends on an annual basis by issuing shares of its common stock at the rate of $3.77 per share. The value of common shares issued as payment is based upon the average closing price for the common shares for the 20 trading days preceding January 30 of the year following that for which the dividends are due. At December 31, 2016 and 2015, there were 44,258 shares of Series B Preferred Shares outstanding. The Board authorized the cash payment of the Series B Preferred Stock quarterly dividends for calendar year 2016. Payments in the amount of $32,087 were made on April 1, 2016, July 1, 2016, October 3, 2016 and January 3, 2017. On March 2, 2016, our Board authorized the cash payment of dividends due for the year ended December 31, 2015 on our Series B Preferred Stock in the amount of approximately $167,000 . At December 31, 2015, the Company had undeclared cash dividends on the Series B Preferred Stock of approximately $167,000 and payment was made the same day. The cash dividend was calculated as if it were a dividend issued in shares of our comment stock, which in accordance with the terms of the Series B Preferred stock, means the amount of the cash payment is the annual cash dividend value (if it had been paid quarterly) multiplied by 1.3 . On February 9, 2015, our Board authorized the issuance of 5,102 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 6,167 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 . The Company’s Series E Preferred Stock was non-convertible and, except as set forth in Note H, had no fixed date for redemption or liquidation. It had a redemption value of $10 per share plus accrued but unpaid dividends. It was entitled to cumulative dividends at the annual rate of 8% of redemption value and the holders of these shares are entitled to voting rights of 0.25 per share. Dividends on common stock and certain other uses of the Company’s cash were subject to restrictions for the benefit of holders of the Series E Preferred Stock. Kien Huat Letter Agreement As a result of Kien Huat’s increased proportionate ownership following the consummation of the January 2016 Rights Offering and the Note Conversion, at the request of the Company, on February 17, 2016, Kien Huat and the Company entered into a letter agreement (the "Kien Huat Letter Agreement") pursuant to which, during the period commencing on February 17, 2016 and ending on the earlier of (i) the three -year anniversary of the closing of the January 2016 Rights Offering and (ii) the one -year anniversary of the opening of the Casino Project, Kien Huat has agreed not to take certain actions with respect to the Company. In particular, during such time period, Kien Huat has agreed not to, and to cause the Kien Huat Parties not to, take certain actions in furtherance of a “going-private” transaction (as such term is defined in the Kien Huat Letter Agreement) involving the Company unless such transaction is subject to the approval of (x) holders of a majority of the votes represented by the common stock, Series B Preferred Stock and any other capital stock of the Company entitled to vote together with the common stock in the election of the Board (other than any such capital stock owned by any Kien Huat Parties) and (x) either (A) a majority of disinterested members of the Board or (y) a committee of the Board composed of disinterested members of the Board. In addition, during such period, the Company and Kien Huat have agreed to cooperate to ensure that, to the greatest extent possible, the Board includes no fewer than three independent directors (the definition of independence as determined under the standards of The Nasdaq Stock Market or any other securities exchange on which the common stock of the Company is then listed). |
Stock Options and Warrants
Stock Options and Warrants | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Options And Warrants | Option Matching Rights, Warrants and Options Option Matching Rights On August 19, 2009, the Company entered into an investment agreement (the "Investment Agreement") with Kien Huat, pursuant to which Kien Huat purchased shares of common stock of the Company 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 200,000 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 (an “Option Exercise Notice”) of any exercise within five 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 business days. The Company did not provide such notice to Kien Huat pursuant to the Investment Agreement. On December 31, 2015, the Company and Kien Huat entered into a letter agreement (the “OMR Letter Agreement”) pursuant to which the parties agreed that, as a result of the Company’s failure to provide the Option Exercise Notice, Kien Huat’s right to elect to purchase an equal number of shares had not yet vested and would inure to Kien Huat’s benefit only upon the Company’s delivery of such Option Exercise Notice. To fulfill the Company’s obligations pursuant to the Investment Agreement pursuant to the OMR Letter Agreement, the Company provided the Option Exercise Notice as of December 31, 2015 for approximately 204,706 shares of common stock as required by the Investment Agreement. Kien Huat shall have ten business days following the date on which the Company’s Chief Compliance Officer provides written notice that Kien Huat is no longer unable to exercise the Option Matching Rights pursuant to the Company’s Insider Trading Policy (the “Effective Date Notice”) to elect whether to exercise such Option Matching Rights. On February 17, 2016, the Company provided the Effective Date Notice to Kien Huat regarding Kien Huat's election to exercise its Option Matching Rights. On February 17, 2016, Kien Huat declined to exercise the Option Matching Rights to purchase 204,706 shares of common stock. At December 31, 2016, there were approximately 21,000 Option Matching Rights outstanding with various exercise prices and expiration dates through July 2018. Warrants During 2015, the Company issued an aggregate of 83,334 shares of common stock at $30.00 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 December 31, 2016, there are outstanding warrants to purchase an aggregate of approximately 133,300 shares of Empire’s common stock at $30.00 per share with an expiration date of May 10, 2020. Options Second Amended and Restated 2005 Equity Incentive Plan In May 2015, the Company's Second Amended and Restated 2005 Equity Incentive Plan (the “2005 Equity Incentive Plan”) expired. Options to purchase approximately 33,600 shares of common stock were outstanding as of December 31, 2016 under the 2005 Equity Incentive Plan. Although the 2005 Equity Incentive Plan expired, the approximately 33,600 options still outstanding under such plan are still exercisable. 2015 Equity Incentive Plan In September 2015, our Board approved, and in November 2015, our stockholders approved the Company's 2015 Equity Incentive Plan (the "2015 Equity Incentive Plan"). The 2015 Equity Incentive Plan provided for an aggregate of 952,498 shares of common stock to be available for Awards. Subject to adjustments based on the terms of the 2015 Equity Incentive Plan, on the 90th day after the Company is awarded a Gaming Facility License (the “Trigger Date”), the maximum shares of Common stock available for Awards were to automatically increase by the lesser of: (i) 1,633,209 shares of common stock; (ii) such number of shares as would increase the aggregate number of shares of Common stock available for Awards equal to 10% of the issued and outstanding shares of Common stock as of the Trigger Date; and (iii) such number of shares of Common stock as the Compensation Committee would otherwise determines. On March 8, 2016, pursuant to the terms of the 2015 Equity Incentive Plan, the Board determined to increase the number of shares of common stock available for grant under such plan by 1,663,209 shares for a total amount of shares available for grants of 2,600,707 . Such change was effective as of March 20, 2016. At December 31, 2016, a total of 2,501,309 shares were available for future issuance under the Plan. Stock-based compensation expense was approximately $2.7 million, $596,000 and $636,000 for the years ended December 31, 2016, 2015 and 2014, respectively. As of December 31, 2016, there was approximately $2.4 million of total unrecognized compensation cost related to non-vested share-based compensation awards granted under the Company’s plan. That cost is expected to be recognized over the remaining vesting period of 1.75 years. This expected cost does not include the impact of any future stock-based compensation awards. In 2016, 2015 and 2014, the Company received approximately $163,000 , $160,000 and $2.8 million , respectively, in proceeds from shares of common stock issued as a result of the exercise of stock options. The following table sets forth the weighted average assumptions used in applying the Black Sholes option pricing model to the option grants in 2014. No options were granted in 2016 and 2015: 2014 Weighted average fair value of options granted $5.65 Expected dividend yield —% Expected volatility 101.6% Risk-free interest rate 1.64% Expected life of options 5 years The following table reflects stock option activity in 2016, 2015 and 2014: Approximate number of shares Range of exercise prices per share Weighted average exercise price per share Weighted average remaining contractual life (years) Options outstanding at December 31, 2013 378,000 $7.95 - $131.10 $ 33.15 1.46 Granted in 2014 1,600 $ 35.85 3.87 Options exercised in 2014 (153,600 ) $13.95 - $34.50 Forfeited in 2014 (1,000 ) $ 24.75 Canceled in 2014 (68,800 ) $15.00 - $213.75 Options outstanding at December 31, 2014 156,200 $7.95 - $131.10 $ 33.25 1.47 Options exercised in 2015 (81,600 ) $13.95-$27.15 Forfeited in 2015 (18,000 ) $13.95 -$127.95 Options outstanding at December 31, 2015 56,600 $7.95 - $131.10 $ 48.50 2.61 Options exercised in 2016 (18,000 ) $7.95-$9.90 Forfeited in 2016 (5,000 ) $14.85 -$82.95 Options outstanding at December 31, 2016 33,600 $7.95 - $131.10 $ 68.92 1.11 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Empire and all of its subsidiaries file a consolidated income tax return. At December 31, 2016 and 2015, the estimated deferred income tax assets and liability were comprised of the following: 12/31/2016 12/31/2015 (in thousands) Deferred tax assets: Net operating loss carryforwards $ 57,327 $ 57,177 Stock—based compensation 2,863 6,706 Development costs 26,805 20,101 Other 1,939 2,108 Net deferred tax assets 88,934 86,092 Valuation allowance (88,934 ) (86,092 ) Deferred tax assets, net $ — $ — The valuation allowance increased approximately $ 2.8 million and $14.0 million during the years ended December 31, 2016 and 2015, respectively. Of the $146.5 million in net operating loss carryforwards approximately $66.4 million is readily available as of December 31, 2016. There are limits on the Company’s ability to use its current net operating loss carryforwards, potentially increasing the future tax liability of the Company if it were to generate taxable income. As of December 31, 2016, the Company had net operating loss carryforwards of approximately $146.5 million that expire between 2018 and 2036. The 2004 merger of the Company’s operations with Catskills Development LLC and the investment by Kien Huat in 2009 will limit the amount usable in any year of its net operating losses due to the change in control of the Company within the meaning of the tax laws. The following is a reconciliation of the federal statutory tax rate to the Company’s effective tax rate: Year ended December 31, 2016 2015 2014 Tax provision at federal statutory tax rate 35.0 % 35.0 % 35.0 % New York State income taxes, net — % (0.1 )% — % Non-deductible interest (0.3 )% (1.2 )% (11.3 )% Permanent items (3.5 )% (2.5 )% 1.8 % Change in valuation allowance (31.2 )% (31.4 )% (25.5 )% Effective tax rate — % (0.2 )% — % As of December 31, 2016, the Company does not have any uncertain tax positions. As a result, there are no unrecognized tax benefits as of December 31, 2016. If the Company was to incur any interest and penalties in connection with income tax deficiencies, the Company would classify interest in the “interest expense” category and classify penalties in the “non-interest expense” category within the consolidated statements of operations. The Company files tax returns in the U.S. federal jurisdiction and in various states. All of its federal and New York State tax filings as of December 31, 2015 have been timely filed. The Company is subject to U.S. federal or New York State income tax examinations by tax authorities for years after 2012. During the periods open to examination, the Company has net operating loss and tax credit carryforwards that have attributes from closed periods. Since these net operating loss and tax credit carryforwards may be utilized in future periods, they remain subject to examination. |
Concentration
Concentration | 12 Months Ended |
Dec. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Concentration | Concentration As of December 31, 2016, the Company had one debtor that consisted of greater than 10% of accounts receivable. Hawthorne OTB represented 16.9% of the total net outstanding racing- related accounts receivable. As of December 31, 2015, the Company had one debtor that consisted of greater than 10% of accounts receivable. Hawthorne OTB represented 11.4% of the total net outstanding racing- related accounts receivable. |
Employee Benefit Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plan | Employee Benefit Plans Empire 401-k Plan Our eligible employees may participate in a Company-sponsored 401(k) benefit plan (the “Plan”). The Company established the Plan to provide employees with the opportunity to accumulate pre-tax assets, and to provide employer contributions for eligible employees for their retirement and other needs. It is intended to be administered in accordance with all applicable federal laws and regulations. The Plan covers substantially all employees not otherwise covered by plans resulting from collective bargaining agreements. The Plan permits employees to defer a portion of their compensation as a pre-tax deferral up to statutory maximums. Effective May 2011, the Company made matching contributions for eligible, other than salaried, employees as follows: 100% matching contribution for an employee contribution of up to 3% of compensation, a matching contribution of 3% of compensation for an employee contribution of 3% to 3.99% , a matching contribution of 3.5% of compensation for an employee contribution of 4% to 4.99% and a matching contribution of 4% of compensation for an employee contribution of 5% or more. Effective July 2016, the Company now makes a matching contribution for eligible salaried employees as follows: 50% matching contribution for an employee contribution of up to 4% of compensation. Eligible employees shall be 100% vested in the portion of their accounts derived from the Company’s matching contributions. Matching contributions for the years ended December 31, 2016, 2015 and 2014 were approximately $142,000 , $96,000 and $92,000 , respectively. As of December 31, 2016, the Plan had 179 participants. Deferred Compensation Plan The Company adopted a deferred compensation plan (the "Deferred Compensation Plan"), which is effective on January 1, 2017. The Deferred Compensation Plan is a non-qualified deferred compensation plan under which eligible participants may elect to defer the receipt of current compensation. Eligible participants include select employees of the Company, including its executive officers. Pursuant to the Deferred Compensation Plan and subject to applicable tax laws, participants may elect to defer up to 50% of their base salary and up to 100% of any cash bonus. In addition to elective deferrals, the Deferred Compensation Plan permits the Company to make discretionary contributions. Participants may elect to receive payment of their vested account balances in a single cash payment or in annual installments for a period of five , 10 or 15 years. Payments will be made or commence upon the earliest of a participant’s separation from service, death or disability. If a participant so elects, payments will be deferred until a fixed and determinable date. The obligations incurred by the Company under the Deferred Compensation Plan will be unsecured general obligations of the Company to pay the compensation deferred in accordance with the terms of the Deferred Compensation Plan and will rank equally with other unsecured and unsubordinated indebtedness of the Company. Because the Company has subsidiaries, the right of the Company, and hence the right of creditors of the Company (including eligible participants in the Deferred Compensation Plan), to participate in a distribution of the assets of a subsidiary upon its liquidation or reorganization or otherwise, necessarily is subject to the prior claims of creditors of the subsidiary, except to the extent that claims of the Company itself as a creditor may be recognized. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is a party from time to time to various 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 our consolidated financial position, results of operations or cash flows. Operating leases The following table represents the minimum lease payments: Payments due by Period Year ending December 31, Total Lease Payments (in thousands) 2017 $ 10,000 2018 10,550 2019 7,775 2020 7,800 2021 8,300 2022 to 2056 370,274 Total $ 414,699 The details of lease commitments are described below. Casino Lease On December 28, 2015 , Montreign Operating entered into a lease (the "Casino Lease") with EPT for the lease of the parcel on which the Casino Project is being built (the "Casino Parcel'). The Casino Lease has a term that expires on the earlier of (i) March 31, 2086, and (ii) Montreign Operating giving EPT written notice of its election to terminate the Casino Lease (the “Termination Option”) at least 12 months prior to any one of five Option Dates (as defined below). The option dates (each an "Option Date") under the Casino Lease mean each of the 20th, 30th, 40th, 50th and 60th anniversaries of the commencement of the Casino Lease. Upon Montreign Operating's timely notice of exercise of its Termination Option, the Casino Lease shall be automatically terminated effective as of the applicable Option Date. T he following table represents the fixed rent payments under the Casino Lease: Year ending December 31, Fixed Rent Payments due by Period (in thousands) 2017 (1) (2) $10,000 2018 (2) (3) 10,500 2019 (3) 7,500 2020 (3) 7,500 2021 (3) 8,000 2022 to 2056 (3) 354,624 (1) Until February 29, 2016, the Company continued to make payments of $500,000 per month it would have made under the Original Option Agreement. From March 1, 2016 until February 28, 2017, option payments made by the Company under the Original Option Agreement, which totaled $8.5 million , were applied against fixed rent due by the Company under the Casino Lease for such period. (2) From March 1, 2017 through August 31, 2018, fixed rent will be $1 million per month. (3) From September 1, 2018 through the remainder of the term of the Casino Lease, fixed rent shall equal $7.5 million per year, subject to an eight percent escalation every five years ("Base Amount"). In addition to the annual fixed rent, beginning September 2018 and through the remainder of the term of the Casino Lease (the “Percentage Rent Period”), Montreign Operating is obligated to pay an annual percentage rent equal to five percent of the Eligible Gaming Revenue (as such term is defined in the Casino Lease) in excess of the Base Amount for the Percentage Rent Period. Additionally, the lease is a net lease, and Montreign Operating has an obligation to pay the rent payable under the Casino Lease and other costs related to Montreign Operating's use and operation of the Casino Parcel, including the special district tax assessments allocated to the Casino Parcel, not to exceed the capped dollar amount applicable to the Casino Parcel. Golf Course Lease On December 28, 2015, ERREI entered into a sublease (the “Golf Course Lease”) with the Adelaar Developer, LLC (the "Destination Resort Developer") for the lease of the Golf Course Parcel. The terms of the Golf Course Lease are substantially similar to the Casino Lease, subject to the material differences described below. Under the Golf Course Lease, there is no percentage rent due. Fixed rent payments under the Golf Course Lease are represented in the table below: Year ending December 31, Fixed Rent Payments due by Period (in thousands) 2017 (1)(2) $0 2018 (2) 0 2019 (2) 125 2020 (2) 150 2021 (2) 150 2022 to 2056 (2) (3) 7,825 (1) From the date the Golf Course Lease commenced (the “Golf Course Lease Commencement Date”) and until the date on which the Golf Course opens for business, which is expected to be in Spring 2018 (the “Golf Course Opening Date”), fixed rent payments shall equal $0 . (2) From the Golf Course Opening Date and continuing for the 10 years thereafter, fixed rent shall equal $150,000 per year. (3) From March 2029 through the remainder of the term of the Golf Course Lease, fixed rent shall equal $250,000 per year. The Golf Course Lease is a net lease and ERREI is obligated to pay the rent payable under the Golf Course Lease and other costs related to ERREI's use and operation of the Golf Course Parcel, including the special district tax assessments allocated to the Golf Course Parcel, not to exceed the capped dollar amount applicable to the Golf Course Parcel. This obligation shall not be assessed against ERREI prior to 60 months following the Golf Course Lease Commencement Date. Entertainment Village Lease On December 28, 2015, ERREII entered into a sublease (the “Entertainment Village Lease”) with the Destination Resort Developer, for the lease of the Entertainment Village Parcel. The terms of the Entertainment Village Lease are substantially similar to the Casino Lease, subject to the material differences described below. Under the Entertainment Village Lease, there is no percentage rent due. Fixed rent payments under the Entertainment Village Lease are represented in the table below: Year ending December 31, Fixed Rent Payments due by Period (in thousands) 2017 (1)(2) $0 2018 (2) 50 2019 (2) 150 2020 (2) 150 2021 (2) 150 2022 to 2056 (2) (3) 7,825 (1) From the date the Entertainment Village Lease commenced (the “Entertainment Village Lease Commencement Date”) and until the date on which the Entertainment Village opens for business, which is expected to be September 2018 (the “Entertainment Village Opening Date”), fixed rent payments shall equal $0 . (2) From the Entertainment Village Opening Date and continuing for the 10 years thereafter, fixed rent shall equal $150,000 per year. (3) From September 2028 through the remainder of the term of the Entertainment Village Lease, fixed rent shall equal $250,000 per year. The Entertainment Village Lease is a net lease and ERREII is obligated to pay the rent payable under the Entertainment Village Lease and other costs related to ERREII's use and operation of the Entertainment Village Parcel, including the special district tax assessments allocated to the Entertainment Village Parcel, not to exceed the capped dollar amount applicable to the Entertainment Village Parcel. This obligation shall not be assessed against ERREII prior to 60 months following the Entertainment Village Lease Commencement Date. Purchase Option Agreement On December 28, 2015, Montreign Operating and EPR entered into a Purchase Option Agreement (the “Purchase Option Agreement”), pursuant to which EPR granted to Montreign Operating the option (the “Purchase Option”) to purchase all, but not fewer than all, of the Development Project Parcels for a purchase price of $175 million , ( $200 million after the sixth anniversary of the License Award Effective Date), less a credit of up to $25 million for certain previous payments made by the Project Parties. The Purchase Option commenced on December 28, 2015 and shall expire on the earlier to occur of (i) the natural expiration of the term of the Casino Lease and (ii) 90 days following the earlier termination of the Casino Lease, if otherwise terminated in accordance with its terms (the “Purchase Option Period”). Under the Purchase Option Agreement, EPR also granted to Montreign Operating the option (the “Resort Project Purchase Option”) to purchase not less than all of the balance of the EPR Property, excluding the Development Project Parcels and the Waterpark (the “Resort Property”) for an additional fee. The Resort Project Purchase Option may be exercised only simultaneously with or after the exercise of the Purchase Option. The Resort Project Purchase Option commenced on December 28, 2015 and shall expire on the earlier to occur of (a) the expiration of the Purchase Option Period or (b) March 1, 2026. Under the Purchase Option Agreement, EPR also granted to Montreign a right of first offer (“ROFO”) with respect to all or any portion of the Resort Property. Under the terms of the ROFO, if EPR makes an offer to or rejects an offer made by Montreign Operating, then EPR shall be precluded for a period of six months from transferring the designated portion of the Resort Property at a price and on terms which are on the whole substantially equivalent to or worse than those proposed or accepted by Montreign Operating. The ROFO commenced on the Effective Date and shall continue in full force and effect until EPR has sold, leased, licensed or otherwise transferred all of the Resort Property. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Moelis Agreements 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 Casino Project. Pursuant to the Moelis Letter Agreement, we agreed to pay Moelis a retainer fee in the aggregate amount of $250,000 , of which $150,000 was payable upon execution and $100,000 of which was paid within 90 days after execution. In the event a financing is consummated, the Moelis Letter Agreement contemplates additional transaction-based fees would be earned by Moelis. During 2014, we paid Moelis approximately $44,000 for professional services and travel. During 2015, we paid Moelis approximately $428,000 for professional services, travel and expenses. At the close of the January 2016 Rights Offering, Moelis was paid approximately $2.1 million for financial advisory services in connection with the Casino Project pursuant to the Moelis letter Agreement. On January 24, 2017, in connection with the closing of the Term Loan Facility and the Revolving Credit Facility, Moelis was paid approximately $2.5 million for financial advisory services in connection with the Casino Project pursuant to the Moelis Letter Agreement. In March 2017, Montreign Operating entered into an engagement agreement with Moelis (the "Moelis-Montreign Engagement Agreement") pursuant to which Moelis will act as exclusive financial advisor to Montreign Operating. Pursuant to the Moelis-Montreign Engagement Agreement, Moelis is entitled to an advisory fee of $100,000 , which is payable upon execution, and the reimbursement of expenses up to $75,000 . The Moelis-Montreign Engagement Agreement will automatically terminate on December 31, 2017 unless either party terminates earlier. Gregg Polle, a director of the Company, is a Managing Director of Moelis. Mr. Polle refrained from participating in the discussion of the Moelis Letter Agreement and the Moelis-Montreign Engagement Agreement and the determination of whether to enter into such agreements. |
Loss Per Share
Loss Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Loss Per Share | Loss Per Share As previously discussed in Note H, the Company completed a rights offering during January 2016. As per ASC 260-10-55-13 to ASC 260-10-55-14, a rights issue in which the exercise price at issuance is less than the fair value of the stock contains a bonus element that is somewhat similar to a stock dividend. If a rights issue contains a bonus element and the rights issue is offered to all existing shareholders, basic and diluted earnings per share shall be adjusted retroactively for the bonus element for all periods presented. Since the Company offered the right to all existing shareholders at a 20% discount, a bonus element was present. The Company determined the bonus element to be an additional 1.458 million shares which would be added to the denominator that was used in computing basic and diluted earnings per share in 2015 and 2014. The calculation of the bonus element gave rise to the following adjustments to the weighted average number of common shares and loss per common share for the years ended December 31, 2015 and 2014: Year ended December 31, 2015 2014 (in thousands, except per share ) Weighted average number of common shares, as reported 9,291 7,828 Adjustment 1,458 1,458 Weighted average number of common shares, as adjusted 10,749 9,286 Loss per common share, as reported $ (4.00 ) $ (3.08 ) Adjustment $ (0.58 ) $ (0.48 ) Loss per common shares, as adjusted $ (3.42 ) $ (2.60 ) |
Summarized Quarterly Data (Unau
Summarized Quarterly Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Summarized Quarterly Data (Unaudited) | Summarized Quarterly Data (Unaudited) The following table summarizes the quarterly results of operations for the years ended December 31, 2016 and 2015: Fiscal Quarter Quarter 1 Quarter 2 Quarter 3 Quarter 4 2016 (in thousands, expect per share data) Net revenues $ 16,205 $ 17,405 $ 18,530 $ 15,314 Loss from operations (4,764 ) (7,047 ) (5,388 ) (6,484 ) Net loss (5,177 ) (7,045 ) (5,388 ) (6,587 ) Loss per common share: Loss per common share, basic $ (0.26 ) $ (0.23 ) $ (0.18 ) $ (0.19 ) Loss per common share, diluted $ (0.26 ) $ (0.23 ) $ (0.18 ) $ (0.19 ) 2015 Net revenues $ 14,525 $ 17,852 $ 19,512 $ 16,277 Loss from operations (3,359 ) (7,000 ) (12,486 ) (11,115 ) Net loss (4,047 ) (7,650 ) (13,139 ) (11,774 ) Loss per common share: Loss per common share, basic $ (0.45 ) $ (0.80 ) $ (1.40 ) $ (0.77 ) Loss per common share, diluted $ (0.45 ) $ (0.80 ) $ (1.40 ) $ (0.77 ) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Corporate Restructuring In January 2017, the Company undertook certain corporate restructuring. In particular, Empire created Montreign Holding Company, LLC (“Montreign Holding”), a wholly-owned subsidiary, to which it contributed all of its membership interests in Montreign Operating, which was formerly a wholly-owned subsidiary of Empire. Concurrently therewith, Empire contributed to Montreign Operating all of its membership interests in each of Empire Resorts Real Estate I, LLC (“ERREI”), which is developing the Golf Course Project, and Empire Resorts Real Estate II, LLC (“ERREII” and, together with ERREI, the “Montreign Subsidiaries” and, together with ERREI and Montreign Operating, the “Project Parties”), which is developing the Entertainment Village Project, each of which were formerly wholly-owned subsidiaries of Empire. Term Loan Agreement and Revolving Credit Agreement Term Loan Agreement On January 24, 2017 (the “Loan Closing Date”), Montreign Operating entered into a Building Term Loan Agreement (the “Term Loan Agreement”), among Montreign Operating, the lenders from time to time party thereto, and Credit Suisse AG, Cayman Islands Branch (“Credit Suisse”), as administrative agent. The Term Loan Agreement provides for loans to be made to Montreign Operating in an aggregate principal amount of $485 million (the “Term Loan Facility”). The Term Loan Facility consists of $70 million of Term A loan ( the “Term A Loan”) and $415 million of Term B loans (the “Term B Loan”). The Term B Loan was borrowed in full on the Loan Closing Date and the proceeds were used to pay fees and expenses related to the financing and fund various lender-controlled accounts. The proceeds of the Term Loan Facility (including proceeds of the Term A Loan, which will be deposited into the lender-controlled accounts upon borrowing) will be made available to Montreign Operating, subject to Montreign Operating satisfying the disbursement conditions set forth in the Term Loan Agreement and related loan documents, to pay debt service and costs relating to the development and construction of the Development Projects. The Term A Loan may be borrowed during the period from the Loan Closing Date to July 24, 2018, subject to meeting the conditions set forth in the Term Loan Agreement at the time of the borrowing. The Term A Loan will mature on January 24, 2022 and the Term B Loan will mature on January 24, 2023. Interest will accrue on outstanding borrowings under the Term A Loan at a rate equal to LIBOR plus 5.0% per annum, or an alternate base rate plus 4.0% per annum. Interest will accrue on outstanding borrowings under the Term B Loan at a rate equal to LIBOR (with a LIBOR floor of 1% ) plus 8.25% per annum , or an alternate base rate plus 7.25% per annum. In addition, Montreign Operating will pay a commitment fee to each Term A Loan lender (“Term A Lender”) equal to the undrawn amount of such Term A Lender’s Term A Loan commitment multiplied by a rate equal to 2.5% per annum for the period commencing on the Loan Closing Date through March 24, 2018 and 5.0% per annum thereafter. In the event that the Term B Loan is prepaid or repaid in whole or in part for any reason other than as a result of scheduled amortization and certain other exceptions, Montreign Operating is required to pay pre-payment premiums based on a make-whole if the prepayment occurs from the Loan Closing Date to (but excluding) the 30th-month anniversary following the Loan Closing Date (the “30th Month”), and a 2% and 1% premium if the prepayment occurs from the 30th Month to (but excluding) the 42nd-month anniversary of the Loan Closing Date (the “42nd Month”) and from the 42nd Month to (but excluding) the 54th-month anniversary of the Loan Closing Date, respectively. Revolving Credit Agreement On the Loan Closing Date, Montreign Operating also entered into a Revolving Credit Agreement (the “Revolving Credit Agreement”), among Montreign Operating, the lenders from time to time party thereto, and Fifth Third Bank, as administrative agent. The Revolving Credit Agreement provides for loans or other extensions of credit to be made to Montreign Operating in an aggregate principal amount of up to $15 million (including a letter of credit sub-facility of $10 million ) (the “Revolving Credit Facility”), the proceeds of which may be used for working capital needs, capital expenditures and other general corporate purposes following the opening of the Casino Project to the public. The Revolving Credit Facility will mature on January 24, 2022. Interest will accrue on outstanding borrowings at a rate equal to LIBOR plus 5.0% per annum, or an alternate base rate plus 4.0% per annum. Collateral and Other Provisions The Term Loan Facility and the Revolving Credit Facility are each guaranteed by the Montreign Subsidiaries and are secured by security interests in substantially all the real and personal property of Montreign Operating and the Montreign Subsidiaries and by a pledge of all the membership interests of Montreign Operating held by Montreign Holding. In addition, Empire delivered a completion guaranty in connection with the Term Loan Facility guaranteeing the completion of the construction of the Casino Project and the Entertainment Village Project. Empire’s liability under the completion guaranty (excluding lender’s enforcement costs) is capped at $30 million . The Term Loan Facility and the Revolving Credit Agreement contain representations and warranties, affirmative covenants, negative covenants and financial covenants that are usual and customary, including representations, warranties and covenants that, among other things, restrict the ability of Montreign Operating and the Montreign Subsidiaries to incur additional debt, incur or permit liens on assets, make investments and acquisitions, consolidate or merge with any other company, or make dividends or other distributions. Additionally, Montreign Operating is required to deposit $35 million into the lender-controlled account holding the net proceeds of the Term Loan Facility and the Kien Huat Montreign Loan, which amount will be used towards the Entertainment Village Project. Of this payment, $15 million is required to be deposited by June 30, 2107 and the remaining $20 million is required to be deposited by December 31 2017. The $35 million must be funded in the form of a further equity contribution to Montreign Operating. The Company expects to raise additional equity capital by the dates on which the deposits must be made. Obligations under the Term Loan Agreement and the Revolving Credit Agreement may be accelerated upon certain customary events of default (subject to grace periods, as appropriate), including, among others: nonpayment of principal, interest or fees; breach of the affirmative or negative covenants; revocation of a gaming license for seven consecutive business days; and a change of control (as such term is defined in the Term Loan Agreement) of Montreign Operating. To further fund the Development Projects, on January 24, 2017, Montreign Operating entered into the Term Loan Agreement and Montreign Holding entered into the Kien Huat Montreign Loan Agreement. In connection with the consummation of the Term Loan Agreement, on the Loan Closing Date, that certain construction loan agreement (the "Kien Huat Construction Loan Agreement") dated October 13, 2016, by and between Kien Huat and Montreign Operating expired on its terms without being utilized by Montreign Operating. Montreign Operating and Kien Huat had entered into the Kien Huat Construction Loan Agreement to provide Montreign Operating with short-term access to up to $50 million of loans to pay the expenses of the Casino Project while the debt financing for the Development Projects was being finalized. Kien Huat Montreign Loan Agreement On the Loan Closing Date, Kien Huat and Montreign Holding entered into the Kien Huat Montreign Loan Agreement, pursuant to which Montreign Holding obtained from Kien Huat a loan in the principal amount of $32.3 million , the net proceeds of which will be used as a capital contribution to Montreign Operating for use towards the expenses of the Development Projects. The Kien Huat Montreign Loan shall mature on February 24, 2024 (the “Kien Huat Loan Maturity Date”), which Kien Huat Loan Maturity Date may be extended by Kien Huat in its sole discretion by up to an additional year. The Kien Huat Montreign Loan bears interest at a rate of 12% per annum. Prior to the Kien Huat Loan Maturity Date, interest on the Kien Huat Montreign Loan shall accrue and be added to the outstanding principal of the Kien Huat Montreign Loan (the “Principal Indebtedness”) on the first business day of each calendar month beginning on February 1, 2017 (each an “Interest Payment Date”) and shall thereafter be deemed to be part of the Principal Indebtedness. The Principal Indebtedness, including all interest due through the applicable Interest Payment Date and other amounts due under the Kien Huat Montreign Loan, shall be payable in cash on the Kien Huat Loan Maturity Date. Notwithstanding the foregoing, Montreign Holding shall be required to pay in cash to Kien Huat, at the end of any “accrual period” (as defined in Section 1275(a)(5) of the Internal Revenue Code of 1986, as amended (the “Code”)) ending after the fifth anniversary of the Loan Closing Date the aggregate amount by which (x) the sum of (i) the amount of accrued interest on the Kien Huat Montreign Loan that has been added to the Principal Indebtedness plus (ii) any other accrued but unpaid original issue discount (as determined under Section 163(i) of the Code) on the Kien Huat Montreign Loan from the closing date through the end of such accrual period, in each case that has not been paid in cash, exceeds (y) the product of (i) the “issue price” (as defined for purposes of the Code) and (ii) the “yield to maturity” (as defined for purposes of the Code). In addition to the interest payable on the Kien Huat Montreign Loan, Kien Huat was entitled to a commitment fee of 1% , which fee was added to the Principal Indebtedness of the Kien Huat Montreign Loan. Until the Kien Huat Montreign Loan is repaid in full, Montreign Holding shall make no dividend or other distributions to Empire except (i) for purposes of paying bona fide corporate overhead expenses in an amount not to exceed $9 million (which amount is subject to further reduction pursuant to the Kien Huat Montreign Loan Agreement) and (ii) for purposes of the payiment of taxes by Empire, to the extent also permitted by the Term Loan Agreement with respect to distributions to Montreign Operating. The Kien Huat Montreign Loan may be prepaid in full or in part at any time without premium or penalty. The obligations of Montreign Holding under the Kien Huat Montreign Loan Agreement are secured by a pledge of all the membership interests of Montreign Holding by Empire. The Kien Huat Montreign Loan Agreement contains representations and warranties and affirmative covenants that are usual and customary, including representations, warranties and covenants that, among other things, restrict Montreign Holding’s use of the proceeds of the Kien Huat Montreign Loan to expenses relating to the Development Projects. Obligations under the Kien Huat Montreign Loan Agreement may be accelerated upon certain customary events of default (subject to grace periods, as appropriate), including, among others: nonpayment of principal, interest or fees; breach of the affirmative covenants and a default with respect to the payment of principal or interest under the Term Loan by Montreign Operating or acceleration of the Term Loan for any reason. Contingent Liability Settlement On January 4, 2017, the Company entered into an agreement (the “Settlement Agreement”) to issue 33,333 shares (the "Settlement Shares") of its common stock to an individual "Claimant" as part of the settlement of a claim asserted in connection with Claimant's alleged provision of services to the Company. Pursuant to the Settlement Agreement, the Company issued the Settlement Shares on January 9, 2017. The Settlement Agreement provided for the a mutual full release of all potential claims upon the Company's delivery of such Settlement Shares to Claimant. The amount of the liability of $758,000 was recorded in accrued expenses at December 31, 2016. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II—Valuation and Qualifying Accounts Empire Resorts, Inc. and Subsidiaries Valuation and Qualifying Accounts December 31, 2016, 2015 and 2014 (in thousands) Description Balance at beginning of year Addition charged to costs and expenses Other additions (deductions) Less deductions Balance at end of year Year ended December 31, 2016 Allowance for doubtful accounts $ 171 $ — $ — $ — $ 171 Deferred tax asset valuation allowance $ 86,092 $ — $ 2,842 $ — $ 88,934 Year ended December 31, 2015 Allowance for doubtful accounts $ 161 $ 10 $ — $ — $ 171 Deferred tax asset valuation allowance $ 72,104 $ — $ 13,988 $ — $ 86,092 Year ended December 31, 2014 Allowance for doubtful accounts $ 166 $ — $ (5 ) $ — $ 161 Deferred tax asset valuation allowance $ 65,832 $ — $ 6,272 $ — $ 72,104 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Revenue recognition and Promotional allowances | Revenue recognition and Promotional allowances Gaming revenue is the net difference between gaming wagers and payouts for prizes from VGMs, non-subsidized free play and accruals related to the anticipated payout of progressive jackpots. Progressive jackpots contain base jackpots that increase at a progressive rate based on the credits played and are charged to revenue as the amount of the jackpots increase. The Company recognizes gaming revenues before deductions of such related expenses as NYSGC’s share of VGM revenue and the Monticello Harness Horsemen’s Association (the “MHHA”) and Agriculture and New York State Horse Breeding Development Fund’s contractually required percentages. Food, beverage, racing and other revenue, includes food and beverage sales, racing revenue earned from pari-mutuel wagering on live harness racing and simulcast signals to and from other tracks and miscellaneous income. The Company recognizes racing revenues before deductions of such related expenses as purses, stakes and awards. Some elements of the racing revenues from Off-Track Betting Corporations (“OTBs”) are recognized as collected, due to uncertainty of receipt of and timing of payments. Net revenues are recognized net of certain sales incentives in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Certification (“ASC”) 605-50, “Revenue Recognition—Customer Payments and Incentives”. The retail value of complimentary food, beverages and other items provided to the Company’s guests is included in gross revenues and then deducted as promotional allowances. The estimated cost of providing such food, beverage and other items as promotional allowances is included in food, beverage, racing and other expense. In addition, promotional allowances include non-subsidized free play offered to the Company’s guests based on their relative gaming worth and prizes included in certain promotional marketing programs. |
Principles of consolidation | Principles of consolidation The consolidated financial statements include Empire’s accounts and their wholly-owned subsidiaries. All inter-company balances and transactions are eliminated in consolidation. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include cash on account, demand deposits and certificates of deposit with original maturities of three months or less at acquisition. The Company maintains significant cash balances with financial institutions, which are not covered by the Federal Deposit Insurance Corporation. The Company has not incurred any losses in such accounts and believes it is not exposed to any significant credit risk on cash. |
Restricted cash | Restricted cash The Company has four types of restricted cash accounts. |
Accounts receivable | Accounts receivable Accounts receivable, net of allowances, are stated at the amount the Company expects to collect. When required, an allowance for doubtful accounts is recorded based on information on the collectability of specific accounts. Accounts are considered past due or delinquent based on contractual terms, how recently payments have been received and the Company’s judgment of collectability. In the normal course of business, the Company settles wagers for other racetracks and is exposed to credit risk. These wagers are included in accounts receivable. Account balances are charged against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. |
Property and equipment | Property and equipment Property and equipment is stated at cost less accumulated depreciation. The Company provides for depreciation on property and equipment used by applying the straight-line method over the following estimated useful lives: Assets Estimated Useful Lives Vehicles 5-10 years Furniture, fixtures and equipment 5-10 years Land improvements 5-20 years Building improvements 5-40 years Buildings 40 years |
Deferred financing costs | Deferred financing costs Deferred financing costs are amortized on the straight-line method over the term of the related debt. |
Deferred lease costs | Projects Costs Because the Company's application for a Gaming Facility License was submitted in a competitive environment and the Company could not be certain it would be awarded a Gaming Facility License, all costs incurred for the Development Projects were expensed until the Company was awarded the a Gaming License on December 21, 2015. |
Impairment of long-lived assets | Impairment of long-lived assets The Company periodically reviews the carrying value of its long-lived assets in relation to historical results, as well as management’s best estimate of future trends, events and overall business climate. If such reviews indicate an issue as to whether the carrying value of such assets may not be recoverable, the Company will then estimate the future cash flows generated by such assets (undiscounted and without interest charges). If such future cash flows are insufficient to recover the carrying amount of the assets, then impairment is triggered and the carrying value of any impaired assets would then be reduced to fair value. |
Loss contingencies | Loss contingencies There are times when non-recurring events may occur that require management to consider whether an accrual for a loss contingency is appropriate. Accruals for loss contingencies typically relate to certain legal proceedings, customer and other claims and litigation. As required by generally accepted accounting principles in the United States of America (“GAAP”), the Company determines whether an accrual for a loss contingency is appropriate by assessing whether a loss is deemed probable and can be reasonably estimated. The Company analyzes its legal proceedings and other claims based on available information to assess potential liability. The Company develops its views on estimated losses in consultation with outside counsel handling its defense in these matters, which involves an analysis of potential results assuming a combination of litigation and settlement strategies. |
Earnings (loss) per common share | oss per share The Company computes basic loss per share by dividing net loss applicable to common shares by the weighted-average common shares outstanding for the period. Diluted 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 loss of the entity. Since the effect of common stock equivalents is anti-dilutive with respect to losses, these common stock equivalents have been excluded from the Company’s computation of loss per common share. Therefore, basic and diluted loss per common share for the years ended December 31, 2016, 2015 and 2014 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 primarily comprised of current assets and current liabilities. Current assets and current liabilities approximate fair value due to their short-term nature. |
Advertising | Advertising The Company records in selling, general and administrative expense the costs of general advertising, promotion and marketing programs at the time those costs are incurred. |
Stock-based compensation | Stock-based compensation The cost of all share-based awards to employees, including grants of employee stock options and restricted stock, is recognized in the financial statements based on the fair value of the awards at grant date. The fair value of stock option awards is determined using the Black-Scholes valuation model on the date of grant. The fair value of restricted stock awards is equal to the market price of Empire’s common stock on the date of grant. The fair value of share-based awards is recognized as stock-based compensation expense on a straight-line basis over the requisite service period from the date of grant. |
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. |
Recent 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, 2017, including interim periods within that reporting period. Entities can transition to the new guidance either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company currently anticipates adopting this accounting standard during the first quarter of 2018, with a cumulative effect adjustment as of the date of adoption. Although we are still evaluating the full impact of this standard on our consolidated financial statements, the Company has concluded that the adoption of this standard will affect how we account for our customer loyalty program as well as the classification of revenues between gaming, food and beverage, lodging, and retail, entertainment and other. Under our customer loyalty program, customers earn points based on their level of play, which may be redeemed for various benefits, such as cash back or dining, among others. We currently determine our liability for unredeemed points based on the estimated costs of services or merchandise to be provided and estimated redemption rates. Under the new standard, points awarded under our customer loyalty program are considered a material right given to the players based on their gaming play and the promise to provide points to players will need to be accounted for as a separate performance obligation. The new standard will require us to allocate the revenues associated with the players’ activity between gaming revenue and the value of the points and to measure the liability based on the estimated standalone value of the points earned after factoring in the likelihood of redemption. As a result, we expect that gaming revenues will be reduced with a corresponding increase, in total, of food and beverage, lodging, and retail, entertainment and other revenues. The revenue associated with the points earned will be recognized in the period in which they are redeemed. The quantitative effects of these changes have not yet been determined and are still being analyzed. In February 2016, FASB issued ASU 2016-02, Leases (Topic 842) ("ASU 2016-02"), which provides guidance for accounting for leases. Under ASU 2016-02, the Company will be required to recognize the assets and liabilities for the rights and obligations created by leased assets. ASU 2016-02 will take effect for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The standard must be adopted using a modified retrospective approach and provides for certain practical expedients. Early adoption is permitted. The Company has not yet completed its assessment of the impact of the new standard on the Company's consolidated financial statements. The Company currently anticipates adopting this standard during the first quarter of 2019. In March 2016, FASB issued ASU 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting ("ASU 2016-09"), which provides guidance for accounting for stock-based compensation for employees. Under ASU 2016-09, several aspects of the accounting for share-based payment award transactions are simplified, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 will take effect for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The Company currently anticipates adopting this standard during the first quarter of 2017 and does not anticipate a material impact from this guidance. |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Summary of retail value amounts included in promotional allowances | The retail value amounts included in promotional allowances for the years ended December 31, 2016, 2015 and 2014 were as follows: Year ended December 31, 2016 2015 2014 (in thousands) Food and beverage $ 1,486 $ 1,553 $ 1,656 Non-subsidized free play 978 1,720 2,476 Players Club awards 383 195 156 Total retail value of promotional allowances $ 2,847 $ 3,468 $ 4,288 |
Summary of estimated cost of providing complimentary food, beverages and other items | The estimated cost of providing complimentary food, beverages and other items for the years ended December 31, 2016, 2015 and 2014 were as follows: Year ended December 31, 2016 2015 2014 (in thousands) Food and beverage $ 2,080 $ 2,109 $ 2,206 Non-subsidized free play 577 1,015 1,461 Players Club awards 383 195 156 Total cost of promotional allowances $ 3,040 $ 3,319 $ 3,823 |
Summary of useful lives for property, plant and equipment | The Company provides for depreciation on property and equipment used by applying the straight-line method over the following estimated useful lives: Assets Estimated Useful Lives Vehicles 5-10 years Furniture, fixtures and equipment 5-10 years Land improvements 5-20 years Building improvements 5-40 years Buildings 40 years Property and equipment at December 31, 2016 and 2015 consists of: 12/31/2016 12/31/2015 (in thousands) Land $ 770 $ 770 Land improvements 1,758 1,732 Buildings 4,727 4,727 Building improvements 28,088 27,284 Vehicles 307 280 Furniture, fixtures and equipment 4,278 3,894 Construction in Progress 919 197 40,847 38,884 Less—Accumulated depreciation (14,432 ) (13,095 ) $ 26,415 $ 25,789 |
Summary of the approximate number of common stock equivalents outstanding | The following table shows the approximate number of common stock equivalents outstanding at December 31, 2016, 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 years ended December 31, 2016, 2015 and 2014, because their inclusion would have been anti-dilutive. Outstanding at December 31, 2016 2015 2014 Options 34,000 57,000 156,200 Warrants 133,000 133,000 216,600 Option Matching Rights 21,000 229,000 238,000 Restricted stock 216,000 137,000 37,000 Shares to be issued upon conversion of long-term loan, related party — 1,332,000 1,332,000 Total 404,000 1,888,000 1,979,800 |
Prepaid Expenses and Other As28
Prepaid Expenses and Other Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets, as presented on the balance sheet are comprised of the following at December 31, 2016 and 2015: 12/31/2016 12/31/2015 (in thousands) Empire zone real estate tax credit $ 1,325 $ 1,945 Prepaid real estate taxes 558 548 Prepaid insurance 919 236 Prepaid rent payment — 500 Inventory 177 207 Prepaid gaming expenses 61 46 Development escrow & security refundable deposit 623 911 Prepaid other 672 448 Total prepaid expenses and other current assets $ 4,335 $ 4,841 |
Property and Equipment Property
Property and Equipment Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | The Company provides for depreciation on property and equipment used by applying the straight-line method over the following estimated useful lives: Assets Estimated Useful Lives Vehicles 5-10 years Furniture, fixtures and equipment 5-10 years Land improvements 5-20 years Building improvements 5-40 years Buildings 40 years Property and equipment at December 31, 2016 and 2015 consists of: 12/31/2016 12/31/2015 (in thousands) Land $ 770 $ 770 Land improvements 1,758 1,732 Buildings 4,727 4,727 Building improvements 28,088 27,284 Vehicles 307 280 Furniture, fixtures and equipment 4,278 3,894 Construction in Progress 919 197 40,847 38,884 Less—Accumulated depreciation (14,432 ) (13,095 ) $ 26,415 $ 25,789 |
Accrued Expenses and Other Cu30
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables and Accruals [Abstract] | |
Accrued expenses and other current liabilities | Accrued expenses and other current liabilities, as presented on the balance sheet are comprised of the following at December 31, 2016 and 2015: 12/31/2016 12/31/2015 (in thousands) Liability for horseracing purses $ 1,139 $ 529 Accrued payroll 1,897 1,719 Series E Preferred Stock payable — 1,500 Accrued redeemable points 167 67 Liability to NYSGC 360 1,012 Liability for local progressive jackpot 907 927 Accrued settlement liability 758 — Accrued professional fees 308 844 Federal tax withholding payable 78 154 Accrued other 1,733 1,664 Total accrued expenses and other current liabilities $ 7,347 $ 8,416 |
Stock Options and Warrants (Tab
Stock Options and Warrants (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Fair Value Assumptions | The following table sets forth the weighted average assumptions used in applying the Black Sholes option pricing model to the option grants in 2014. No options were granted in 2016 and 2015: 2014 Weighted average fair value of options granted $5.65 Expected dividend yield —% Expected volatility 101.6% Risk-free interest rate 1.64% Expected life of options 5 years |
Schedule of Stock Option Activity | The following table reflects stock option activity in 2016, 2015 and 2014: Approximate number of shares Range of exercise prices per share Weighted average exercise price per share Weighted average remaining contractual life (years) Options outstanding at December 31, 2013 378,000 $7.95 - $131.10 $ 33.15 1.46 Granted in 2014 1,600 $ 35.85 3.87 Options exercised in 2014 (153,600 ) $13.95 - $34.50 Forfeited in 2014 (1,000 ) $ 24.75 Canceled in 2014 (68,800 ) $15.00 - $213.75 Options outstanding at December 31, 2014 156,200 $7.95 - $131.10 $ 33.25 1.47 Options exercised in 2015 (81,600 ) $13.95-$27.15 Forfeited in 2015 (18,000 ) $13.95 -$127.95 Options outstanding at December 31, 2015 56,600 $7.95 - $131.10 $ 48.50 2.61 Options exercised in 2016 (18,000 ) $7.95-$9.90 Forfeited in 2016 (5,000 ) $14.85 -$82.95 Options outstanding at December 31, 2016 33,600 $7.95 - $131.10 $ 68.92 1.11 |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities | At December 31, 2016 and 2015, the estimated deferred income tax assets and liability were comprised of the following: 12/31/2016 12/31/2015 (in thousands) Deferred tax assets: Net operating loss carryforwards $ 57,327 $ 57,177 Stock—based compensation 2,863 6,706 Development costs 26,805 20,101 Other 1,939 2,108 Net deferred tax assets 88,934 86,092 Valuation allowance (88,934 ) (86,092 ) Deferred tax assets, net $ — $ — |
Schedule of Effective Income Tax Rate Reconciliation | The following is a reconciliation of the federal statutory tax rate to the Company’s effective tax rate: Year ended December 31, 2016 2015 2014 Tax provision at federal statutory tax rate 35.0 % 35.0 % 35.0 % New York State income taxes, net — % (0.1 )% — % Non-deductible interest (0.3 )% (1.2 )% (11.3 )% Permanent items (3.5 )% (2.5 )% 1.8 % Change in valuation allowance (31.2 )% (31.4 )% (25.5 )% Effective tax rate — % (0.2 )% — % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Fixed rent payments under the Entertainment Village Lease are represented in the table below: Year ending December 31, Fixed Rent Payments due by Period (in thousands) 2017 (1)(2) $0 2018 (2) 50 2019 (2) 150 2020 (2) 150 2021 (2) 150 2022 to 2056 (2) (3) 7,825 (1) From the date the Entertainment Village Lease commenced (the “Entertainment Village Lease Commencement Date”) and until the date on which the Entertainment Village opens for business, which is expected to be September 2018 (the “Entertainment Village Opening Date”), fixed rent payments shall equal $0 . (2) From the Entertainment Village Opening Date and continuing for the 10 years thereafter, fixed rent shall equal $150,000 per year. (3) From September 2028 through the remainder of the term of the Entertainment Village Lease, fixed rent shall equal $250,000 per year. Under the Golf Course Lease, there is no percentage rent due. Fixed rent payments under the Golf Course Lease are represented in the table below: Year ending December 31, Fixed Rent Payments due by Period (in thousands) 2017 (1)(2) $0 2018 (2) 0 2019 (2) 125 2020 (2) 150 2021 (2) 150 2022 to 2056 (2) (3) 7,825 (1) From the date the Golf Course Lease commenced (the “Golf Course Lease Commencement Date”) and until the date on which the Golf Course opens for business, which is expected to be in Spring 2018 (the “Golf Course Opening Date”), fixed rent payments shall equal $0 . (2) From the Golf Course Opening Date and continuing for the 10 years thereafter, fixed rent shall equal $150,000 per year. (3) From March 2029 through the remainder of the term of the Golf Course Lease, fixed rent shall equal $250,000 per year. The following table represents the minimum lease payments: Payments due by Period Year ending December 31, Total Lease Payments (in thousands) 2017 $ 10,000 2018 10,550 2019 7,775 2020 7,800 2021 8,300 2022 to 2056 370,274 Total $ 414,699 T he following table represents the fixed rent payments under the Casino Lease: Year ending December 31, Fixed Rent Payments due by Period (in thousands) 2017 (1) (2) $10,000 2018 (2) (3) 10,500 2019 (3) 7,500 2020 (3) 7,500 2021 (3) 8,000 2022 to 2056 (3) 354,624 (1) Until February 29, 2016, the Company continued to make payments of $500,000 per month it would have made under the Original Option Agreement. From March 1, 2016 until February 28, 2017, option payments made by the Company under the Original Option Agreement, which totaled $8.5 million , were applied against fixed rent due by the Company under the Casino Lease for such period. (2) From March 1, 2017 through August 31, 2018, fixed rent will be $1 million per month. (3) From September 1, 2018 through the remainder of the term of the Casino Lease, fixed rent shall equal $7.5 million per year, subject to an eight percent escalation every five years ("Base Amount"). |
Loss Per Share (Tables)
Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The calculation of the bonus element gave rise to the following adjustments to the weighted average number of common shares and loss per common share for the years ended December 31, 2015 and 2014: Year ended December 31, 2015 2014 (in thousands, except per share ) Weighted average number of common shares, as reported 9,291 7,828 Adjustment 1,458 1,458 Weighted average number of common shares, as adjusted 10,749 9,286 Loss per common share, as reported $ (4.00 ) $ (3.08 ) Adjustment $ (0.58 ) $ (0.48 ) Loss per common shares, as adjusted $ (3.42 ) $ (2.60 ) |
Summarized Quarterly Data (Un35
Summarized Quarterly Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Statements | The following table summarizes the quarterly results of operations for the years ended December 31, 2016 and 2015: Fiscal Quarter Quarter 1 Quarter 2 Quarter 3 Quarter 4 2016 (in thousands, expect per share data) Net revenues $ 16,205 $ 17,405 $ 18,530 $ 15,314 Loss from operations (4,764 ) (7,047 ) (5,388 ) (6,484 ) Net loss (5,177 ) (7,045 ) (5,388 ) (6,587 ) Loss per common share: Loss per common share, basic $ (0.26 ) $ (0.23 ) $ (0.18 ) $ (0.19 ) Loss per common share, diluted $ (0.26 ) $ (0.23 ) $ (0.18 ) $ (0.19 ) 2015 Net revenues $ 14,525 $ 17,852 $ 19,512 $ 16,277 Loss from operations (3,359 ) (7,000 ) (12,486 ) (11,115 ) Net loss (4,047 ) (7,650 ) (13,139 ) (11,774 ) Loss per common share: Loss per common share, basic $ (0.45 ) $ (0.80 ) $ (1.40 ) $ (0.77 ) Loss per common share, diluted $ (0.45 ) $ (0.80 ) $ (1.40 ) $ (0.77 ) |
Organization And Nature Of Bu36
Organization And Nature Of Business (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2015 | |
Subsequent Event [Line Items] | ||||
Assets, Current | $ 17,346,000 | $ 13,750,000 | ||
Liabilities, Current | 51,548,000 | $ 20,471,000 | ||
Follow-On Rights Offering [Member] | Kien Huat Realty Limited [Member] | ||||
Subsequent Event [Line Items] | ||||
Agreement to Exercise Additional Rights, Participation Amount | 35,000,000 | |||
Transferable Subscription Rights [Member] | ||||
Subsequent Event [Line Items] | ||||
Proceeds from offering | 26,400,000 | |||
Entertainment Village [Member] | Montreign Operating [Member] | ||||
Subsequent Event [Line Items] | ||||
Deposit commitment | 35,000,000 | |||
Development Projects [Member] | ||||
Subsequent Event [Line Items] | ||||
Property, Plant and Equipment, Expected Financing | $ 40,000,000 | |||
Scenario, Forecast [Member] | Entertainment Village [Member] | Montreign Operating [Member] | ||||
Subsequent Event [Line Items] | ||||
Deposit commitment | $ 15,000,000 | $ 20,000,000 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Promotional Allowances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Total retail value of promotional allowances | $ 2,847 | $ 3,468 | $ 4,288 |
Total cost of promotional allowances | 3,040 | 3,319 | 3,823 |
Food and Beverage | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Total retail value of promotional allowances | 1,486 | 1,553 | 1,656 |
Total cost of promotional allowances | 2,080 | 2,109 | 2,206 |
Non Subsidized Free Play | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Total retail value of promotional allowances | 978 | 1,720 | 2,476 |
Total cost of promotional allowances | 577 | 1,015 | 1,461 |
Players Club Awards | |||
Revenue Recognition, Multiple-deliverable Arrangements [Line Items] | |||
Total retail value of promotional allowances | 383 | 195 | 156 |
Total cost of promotional allowances | $ 383 | $ 195 | $ 156 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies - Additional Information (Details) | Feb. 25, 2016USD ($) | Dec. 31, 2016USD ($)restricted_cash_account | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($) | Feb. 17, 2016shares |
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Accrued rent | $ 8,000,000 | ||||
Gaming Facility License Term | 10 years | ||||
Number of restricted cash accounts | restricted_cash_account | 4 | ||||
Uninsured cash amounts | $ 400,000 | ||||
Allowance for doubtful accounts | 171,000 | $ 171,000 | |||
Number of securities declined to exercise (in shares) | shares | 204,706 | ||||
Advertising expense | 1,100,000 | $ 1,075,000 | $ 977,000 | ||
Total unrecognized compensation | $ 2,400,000 | ||||
Vesting period for unrecognized compensation cost to be recognized (in years) | 1 year 9 months | ||||
New York State Racing, Pari-Mutual Wagering And Breeding Law [Member] | |||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Restricted cash and cash equivalents | $ 39,000 | 34,000 | |||
VGM New York Governing Law [Member] | |||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Restricted cash and cash equivalents | 354,000 | 629,000 | |||
Minimum reserve balance | 0 | 400,000 | |||
Restricted Cash and Cash Equivalents, Amount Released | 400,000 | ||||
Monticello Harness Horsemens Association [Member] | |||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Restricted cash and cash equivalents | $ 685,000 | $ 278,000 | |||
Option Matching Rights [Member] | |||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Number of securities declined to exercise (in shares) | shares | 204,706 | ||||
Montreign [Member] | |||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Gaming Facility License Fee | $ 51,000,000 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Property and Equipment (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Vehicles [Member] | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property and equipment (in years) | 5 years |
Vehicles [Member] | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property and equipment (in years) | 10 years |
Furniture, fixtures and equipment [Member] | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property and equipment (in years) | 5 years |
Furniture, fixtures and equipment [Member] | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property and equipment (in years) | 10 years |
Land Improvements [Member] | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property and equipment (in years) | 5 years |
Land Improvements [Member] | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property and equipment (in years) | 20 years |
Building Improvements [Member] | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property and equipment (in years) | 5 years |
Building Improvements [Member] | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property and equipment (in years) | 40 years |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Useful life of property and equipment (in years) | 40 years |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Stock option equivalents (Details) - shares | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total number of common stock equivalents outstanding (in shares) | 404,000 | 1,888,000 | 1,979,800 |
Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total number of common stock equivalents outstanding (in shares) | 34,000 | 57,000 | 156,200 |
Warrants [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total number of common stock equivalents outstanding (in shares) | 133,000 | 133,000 | 216,600 |
Option matching rights [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total number of common stock equivalents outstanding (in shares) | 21,000 | 229,000 | 238,000 |
Restricted stock [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Total number of common stock equivalents outstanding (in shares) | 216,000 | 137,000 | 37,000 |
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 (in shares) | 0 | 1,332,000 | 1,332,000 |
Prepaid Expenses and Other As41
Prepaid Expenses and Other Assets - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Number of years of participation (in years) | 10 years | |
Refund reduction percent | 20.00% | |
Refund percent | 40.00% | |
Prepaid taxes | $ 1.3 | $ 1.9 |
Prepaid Expenses and Other As42
Prepaid Expenses and Other Assets - Schedule of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Empire zone real estate tax credit | $ 1,325 | $ 1,945 |
Prepaid real estate taxes | 558 | 548 |
Prepaid insurance | 919 | 236 |
Prepaid rent payment | 0 | 500 |
Inventory | 177 | 207 |
Prepaid gaming expenses | 61 | 46 |
Development escrow & security refundable deposit | 623 | 911 |
Prepaid other | 672 | 448 |
Total prepaid expenses and other current assets | $ 4,335 | $ 4,841 |
Property and Equipment Proper43
Property and Equipment Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Feb. 29, 2016 | |
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | $ 40,847 | $ 38,884 | ||
Less—Accumulated depreciation | (14,432) | (13,095) | ||
Property and equipment, net | 26,415 | 25,789 | ||
Depreciation | 1,341 | 1,350 | $ 1,324 | |
Capitalized project development costs | 202,400 | 10,400 | ||
Deposit assets | $ 15,000 | |||
Cash for Development Projects | 26,384 | 15,472 | ||
Construction Manager Costs [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Capitalized project development costs | 198,900 | |||
Architectural, Engineering, Construction Manager, and Subcontractor [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Capitalized project development costs | 10,300 | |||
Professional Services [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Capitalized project development costs | 3,500 | |||
Legal Expense [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Capitalized project development costs | 127 | |||
Land [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 770 | 770 | ||
Land Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 1,758 | 1,732 | ||
Building [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 4,727 | 4,727 | ||
Building Improvements [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 28,088 | 27,284 | ||
Vehicles [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 307 | 280 | ||
Furniture, fixtures and equipment [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 4,278 | 3,894 | ||
Construction in Progress [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Property and equipment, gross | 919 | 197 | ||
Transferable Subscription Rights [Member] | ||||
Property, Plant and Equipment [Line Items] | ||||
Proceeds from offering | $ 26,400 | |||
Cash for Development Projects | $ 15,500 |
Project Development Costs (Deta
Project Development Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Development Costs [Line Items] | |||
Project development costs incurred | $ 205,000 | $ 42,900 | $ 12,200 |
Capitalized project development costs, period increase | 192,000 | ||
Capitalized project development costs | 202,400 | 10,400 | |
Development Projects expenses | 12,970 | 32,514 | 12,207 |
Land Lease Expense [Member] | |||
Development Costs [Line Items] | |||
Project development costs incurred | 10,400 | ||
Property Tax Expense [Member] | |||
Development Costs [Line Items] | |||
Project development costs incurred | 400 | ||
Insurance Expense [Member] | |||
Development Costs [Line Items] | |||
Project development costs incurred | 482 | ||
Professional Services [Member] | |||
Development Costs [Line Items] | |||
Project development costs incurred | 324 | 2,700 | |
Capitalized project development costs | 3,500 | ||
Legal Expense [Member] | |||
Development Costs [Line Items] | |||
Project development costs incurred | 164 | ||
Capitalized project development costs | 127 | ||
Pre-opening Expense [Member] | |||
Development Costs [Line Items] | |||
Project development costs incurred | $ 1,200 | ||
Agreement Payments [Member] | |||
Development Costs [Line Items] | |||
Project development costs incurred | 4,600 | 3,100 | |
Architectural Fees [Member] | |||
Development Costs [Line Items] | |||
Project development costs incurred | 24,200 | 2,100 | |
Commitment Fee [Member] | |||
Development Costs [Line Items] | |||
Project development costs incurred | $ 975 | 900 | |
Legal, Construction Manager Costs, Consultants, And Other Professional Services [Member] | |||
Development Costs [Line Items] | |||
Project development costs incurred | 5,100 | ||
Application Fee [Member] | |||
Development Costs [Line Items] | |||
Project development costs incurred | $ 1,000 |
Accrued Expenses and Other Cu45
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Class of Stock [Line Items] | ||
Liability for horseracing purses | $ 1,139 | $ 529 |
Accrued payroll | 1,897 | 1,719 |
Accrued redeemable points | 167 | 67 |
Liability to NYSGC | 360 | 1,012 |
Liability for local progressive jackpot | 907 | 927 |
Accrued settlement liability | 758 | 0 |
Accrued settlement liability | 41,933 | 10,811 |
Accrued professional fees | 308 | 844 |
Federal tax withholding payable | 78 | 154 |
Accrued other | 1,733 | 1,664 |
Total accrued expenses and other current liabilities | 7,347 | 8,416 |
Series E | ||
Class of Stock [Line Items] | ||
Series E Preferred Stock payable | $ 0 | $ 1,500 |
Long-Term Loan, Related Party (
Long-Term Loan, Related Party (Details) - USD ($) | Oct. 13, 2016 | Feb. 17, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Nov. 17, 2010 |
Debt Instrument [Line Items] | ||||||
Converted instrument, shares issued (in shares) | 1,332,058 | |||||
Interest expense | $ 419,000 | $ 2,616,000 | $ 9,128,000 | |||
Bridge Loan | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of promissory note | $ 35,000,000 | |||||
Long-term Debt | 17,400,000 | |||||
Interest expense | $ 178,000 | $ 1,300,000 | $ 1,300,000 | |||
KH Construction Loan Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount of promissory note | $ 50,000,000 | |||||
KH Construction Loan Agreement [Member] | Montreign [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Related Commitment Fees and Debt Issuance Costs | $ 500,000 |
Bryanston Settlement (Details)
Bryanston Settlement (Details) - USD ($) $ in Thousands | Mar. 07, 2016 | Feb. 12, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |||||
Dividends payable upon settlement event | $ 263 | $ 0 | $ 0 | ||
Interest expense | 419 | 2,616 | 9,128 | ||
Series E | |||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |||||
Payments for Repurchase of Private Placement | $ 30,700 | ||||
Redemption of preferred stock | $ 1,500 | ||||
Mandatorily Redeemable Preferred Stock | |||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |||||
Dividends payable upon settlement event | $ 1,200 | ||||
Mandatorily Redeemable Preferred Stock | Series E | |||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |||||
Interest expense | $ 231 | $ 1,200 | $ 7,700 |
Stockholders Equity - Authorize
Stockholders Equity - Authorized Capital (Details) - shares | Dec. 31, 2016 | Nov. 01, 2016 | Dec. 31, 2015 |
Stockholders' Equity Note [Abstract] | |||
Capital stock, shares authorized (in shares) | 155,000,000 | ||
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 | 150,000,000 |
Preferred Stock, Shares Authorized | 5,000,000 |
Stockholders' Equity - Common a
Stockholders' Equity - Common and Preferred Stock (Details) | Jan. 03, 2017USD ($) | Oct. 03, 2016USD ($) | Jul. 01, 2016USD ($) | Apr. 01, 2016USD ($) | Mar. 02, 2016USD ($) | Feb. 17, 2016USD ($)directorshares | Jan. 04, 2016USD ($)shares | Feb. 06, 2015USD ($) | Jan. 05, 2015USD ($) | Apr. 02, 2014USD ($)shares | Dec. 31, 2016USD ($)vote_per_stock$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)shares | Nov. 01, 2016shares | Feb. 06, 2016USD ($)shares | Feb. 09, 2015USD ($)shares | Feb. 19, 2014USD ($)shares | Dec. 31, 2013USD ($) |
Class of Stock [Line Items] | ||||||||||||||||||
Capital stock, shares authorized (in shares) | 155,000,000 | |||||||||||||||||
Common Stock, Shares Authorized | 150,000,000 | 150,000,000 | 150,000,000 | |||||||||||||||
Preferred Stock, Shares Authorized | 5,000,000 | |||||||||||||||||
Proceeds from rights offering, net of expenses | $ | $ 286,000,000 | $ 286,003,000 | $ 49,528,000 | $ 13,180,000 | ||||||||||||||
Related Party Transaction, Closing Period, Number of Years After Closing Date | 3 years | |||||||||||||||||
Related Party Transaction, Closing Period, Number of Years After Opening of Project | 1 year | |||||||||||||||||
Common stock dividends (in shares) | 5,102 | 6,167 | ||||||||||||||||
Related Party Transaction, Minimum Number of Independent Directors | director | 3 | |||||||||||||||||
Series B | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 | ||||||||||||||||
Voting rights per stock (vote per stock) | vote_per_stock | 0.054 | |||||||||||||||||
Shares convertible for each stock (in shares) | 0.054 | |||||||||||||||||
Preferred stock, per share liquidation value (usd per share) | $ / shares | $ 29 | $ 29 | ||||||||||||||||
Dividends declared per share (usd per share) | $ / shares | $ 2.90 | |||||||||||||||||
Preferred stock, shares outstanding (in shares) | 44,258 | 44,258 | ||||||||||||||||
Dividends, Preferred Stock, Cash | $ | $ 32,087 | $ 32,087 | $ 32,087 | $ 167,000 | $ 167,000 | |||||||||||||
Dividends, Preferred Stock, Multiplier | 1.3 | |||||||||||||||||
Common stock dividends, declared and undeclared | $ | $ 159,000 | $ 218,000 | ||||||||||||||||
Common stock dividends, undeclared | $ | $ 159,000 | $ 218,000 | ||||||||||||||||
Common Stock | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Price per share on issuable shares (usd per share) | $ / shares | $ 3.77 | |||||||||||||||||
Number of trading dates used to calculated price per share | 20 days | |||||||||||||||||
Series E | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Voting rights per stock (vote per stock) | vote_per_stock | 0.25 | |||||||||||||||||
Preferred stock, per share redemption value (usd per share) | $ / shares | $ 10 | |||||||||||||||||
Preferred stock, dividend rate | 8.00% | |||||||||||||||||
Subsequent Event | Series B | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Dividends, Preferred Stock, Cash | $ | $ 32,087 | |||||||||||||||||
Transferable Subscription Rights [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Common Stock, Shares Authorized | 20,138,888 | |||||||||||||||||
Proceeds from Issuance of Private Placement | $ | $ 290,000,000 | $ 49,500,000 | ||||||||||||||||
Value of subscription rights to be exercised within 10 days of commencement | $ | $ 30,000,000 | |||||||||||||||||
Value of subscription rights to be exercised, maximum | $ | 290,000,000 | $ 50,000,000 | ||||||||||||||||
Sale of stock, commitment fee | $ | $ 1,450,000 | 250,000 | ||||||||||||||||
Sale of stock, commitment fee, percent | 0.50% | |||||||||||||||||
Sale of stock, expenses reimbursed (not exceeding) | $ | $ 40,000 | |||||||||||||||||
Basic Subscription Rights [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Stock issuance, shares | 90,633 | |||||||||||||||||
Over Subscription Rights [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Stock issuance, shares | 34,617 | |||||||||||||||||
Warrant or Right [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Stock issuance, shares | 427,776 | |||||||||||||||||
Proceeds from Issuance of Stock, Rights Issue, Net | $ | $ 13,400,000 | |||||||||||||||||
Common Stock | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Stock issuance, shares | 123,000 | 27,000 | ||||||||||||||||
Common Stock | Transferable Subscription Rights [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Shares, Issued | 20,138,888 | |||||||||||||||||
Common Stock | Non-Transferable Subscription Rights [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Shares, Issued | 1,408,451 | |||||||||||||||||
Agreement To Exercise Additional Rights, Aggregate Amount Threshold | $ | $ 50,000,000 | |||||||||||||||||
Basic Subscription Rights, Exercise Period After Grant | 10 days | |||||||||||||||||
Common Stock | Basic Subscription Rights [Member] | Transferable Subscription Rights [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Shares, Issued | 176,086 | |||||||||||||||||
Common Stock | Basic Subscription Rights [Member] | Non-Transferable Subscription Rights [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Shares, Issued | 10,658 | |||||||||||||||||
Common Stock | Over Subscription Rights [Member] | Transferable Subscription Rights [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Shares, Issued | 13,136,817 | |||||||||||||||||
Kien Huat Realty Limited [Member] | Basic Subscription Rights [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Stock issuance, shares | 302,526 | |||||||||||||||||
Kien Huat Realty Limited [Member] | Common Stock | Non-Transferable Subscription Rights [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Shares, Issued | 864,360 | |||||||||||||||||
Kien Huat Realty Limited [Member] | Common Stock | Standby Purchase Agreement [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Shares, Issued | 6,825,985 | 533,433 | ||||||||||||||||
Kien Huat Realty Limited [Member] | Expense Reimbursement [Member] | ||||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||||
Related Party Transaction, Amounts of Transaction | $ | $ 50,000 |
Stock Options and Warrants - Ri
Stock Options and Warrants - Rights and Warrants (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 19, 2009 | Dec. 31, 2015 | Dec. 31, 2016 | Feb. 17, 2016 |
Class of Warrant or Right [Line Items] | ||||
Number of securities declined to exercise (in shares) | 204,706 | |||
Number of shares that may be purchased by warrants (shares) | 83,334 | |||
Exercise price of right (usd per right) | $ 30 | $ 30 | ||
Proceeds from warrant exercises | $ 2.5 | |||
Class of warrant or right, outstanding (in shares) | 133,000 | |||
Option Matching Rights [Member] | ||||
Class of Warrant or Right [Line Items] | ||||
Class of Warrant or Right, Number of Securities Exercised to Trigger Option Matching Rights | 200,000 | |||
Class of Warrant or Right, Option Exercise Notice | 5 years | |||
Class of Warrant or Right, Option Exercise, Second Notice | 10 days | |||
Number of securities declined to exercise (in shares) | 204,706 | |||
Class of Warrant or Right, Option Cancellation Notice | 10 years | |||
Class of warrant or right, outstanding (in shares) | 21,000 |
Stock Options and Warrants - Op
Stock Options and Warrants - Options and Equity Incentive Plan (Details) - USD ($) $ in Thousands | Mar. 08, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Nov. 30, 2015 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options outstanding (in shares) | 33,600 | 56,600 | 156,200 | 378,000 | ||
Stock-based compensation expense | $ 2,700 | $ 596 | $ 636 | |||
Total unrecognized compensation | $ 2,400 | |||||
Vesting period for unrecognized compensation cost to be recognized (in years) | 1 year 9 months | |||||
Proceeds from stock options exercised | $ 163 | $ 160 | $ 2,800 | |||
Second Amended And Restated 2005 Equity Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options outstanding (in shares) | 33,600 | |||||
Options exercisable (in shares) | 33,600 | |||||
2015 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized (in shares) | 2,600,707 | 2,501,309 | ||||
Additional shares authorized after 90 days (in shares) | 1,633,209 | |||||
Additional shares authorized after 90 days, percent of total available | 10.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 1,663,209 |
Stock Options and Warrants - Sc
Stock Options and Warrants - Schedule of Fair Value Assumptions (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Weighted average fair value of options granted (in dollars per share) | $ 5.65 | |
Expected dividend yield | 0.00% | |
Expected volatility | 101.60% | |
Risk—free interest rate | 1.64% | |
Expected life of options (in years) | 5 years |
Stock Options and Warrants - 53
Stock Options and Warrants - Schedule of Stock Option Activity (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Options outstanding, beginning balance (shares) | 56,600 | 156,200 | 378,000 | |
Granted (shares) | 1,600 | |||
Exercised (shares) | (18,000) | (81,600) | (153,600) | |
Canceled (shares) | (68,800) | |||
Forfeited (shares) | (5,000) | (18,000) | (1,000) | |
Options outstanding, ending balance (shares) | 33,600 | 56,600 | 156,200 | 378,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Options outstanding, beginning balance (usd per share) | $ 48.50 | $ 33.25 | $ 33.15 | |
Granted (usd per share) | 35.85 | |||
Forfeited (usd per share) | 24.75 | |||
Options outstanding, ending balance (usd per share) | $ 68.92 | $ 48.50 | $ 33.25 | $ 33.15 |
Options outstanding, weighted average remaining contractual life (in years) | 1 year 5 months 19 days | 1 year 5 months 16 days | ||
Granted, weighted average remaining contractual life (in years) | 3 years 10 months 13 days | |||
Options exercisable, weighted average remaining contractual life (in years) | 1 year 1 month 10 days | 2 years 7 months 10 days | ||
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Options outstanding, beginning balance (usd per share) | $ 7.95 | $ 7.95 | $ 7.95 | |
Exercised (usd per share) | 7.95 | 13.95 | 13.95 | |
Forfeited (usd per share) | 14.85 | 13.95 | ||
Canceled (usd per share) | 15 | |||
Options outstanding, ending balance (usd per share) | 7.95 | 7.95 | 7.95 | $ 7.95 |
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||||
Options outstanding, beginning balance (usd per share) | 131.10 | 131.10 | 131.10 | |
Exercised (usd per share) | 9.90 | 27.15 | 34.50 | |
Forfeited (usd per share) | 82.95 | 127.95 | ||
Canceled (usd per share) | 213.75 | |||
Options outstanding, ending balance (usd per share) | $ 131.10 | $ 131.10 | $ 131.10 | $ 131.10 |
Income Taxes Income Taxes - Sch
Income Taxes Income Taxes - Schedule of Deferred Income Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 57,327 | $ 57,177 |
Stock—based compensation | 2,863 | 6,706 |
Development costs | 26,805 | 20,101 |
Other | 1,939 | 2,108 |
Net deferred tax assets | 88,934 | 86,092 |
Valuation allowance | (88,934) | (86,092) |
Deferred tax assets, net | $ 0 | $ 0 |
Income Taxes Income Taxes - S55
Income Taxes Income Taxes - Schedule of Effective Income Tax Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Tax provision at federal statutory tax rate | 35.00% | 35.00% | 35.00% |
New York State income taxes, net | 0.00% | (0.10%) | 0.00% |
Non-deductible interest | (0.30%) | (1.20%) | (11.30%) |
Permanent items | (3.50%) | (2.50%) | 1.80% |
Change in valuation allowance | (31.20%) | (31.40%) | (25.50%) |
Effective tax rate | 0.00% | (0.20%) | 0.00% |
Income Taxes Income Taxes - Nar
Income Taxes Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Increase (decrease) in valuation allowance | $ 2.8 | $ 14 |
Net operating loss carryforwards | 146.5 | |
Operating loss carryforwards, readily available | $ 66.4 |
Concentration (Details)
Concentration (Details) - Accounts Receivable - Credit Concentration Risk - debtor | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Concentration Risk [Line Items] | ||
Number of debtors | 1 | |
Hawthorne OTB | ||
Concentration Risk [Line Items] | ||
Concentration of risk | 16.90% | 11.40% |
Employee Benefit Plan Employee
Employee Benefit Plan Employee Benefit Plan (Details) $ in Thousands | Jul. 31, 2016 | May 31, 2011 | Dec. 31, 2016USD ($)employee | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Vesting percentage of employer contribution | 100.00% | ||||
Costs recognized | $ | $ 142 | $ 96 | $ 92 | ||
Number of participants | employee | 179 | ||||
Deferred Compensation Arrangement with Individual, Percent of Base Salary That May Be Deferred | 50.00% | ||||
Deferred Compensation Arrangement with Individual, Percent of Bonus That May Be Deferred | 100.00% | ||||
Deferred Compensation, Period 1 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Deferred Compensation Arrangement with Individual, Maximum Contractual Term | 5 years | ||||
Deferred Compensation, Period 2 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Deferred Compensation Arrangement with Individual, Maximum Contractual Term | 10 years | ||||
Deferred Compensation, Period 3 [Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Deferred Compensation Arrangement with Individual, Maximum Contractual Term | 15 years | ||||
Up To 3% | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Employer contribution, percent match on employee contribution | 50.00% | 100.00% | |||
Employer matching contribution on salary of employee | 3.00% | ||||
3% to 3.99% | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Employer contribution, percent match on employee contribution | 3.00% | ||||
3% to 3.99% | Minimum | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Employer matching contribution on salary of employee | 3.00% | ||||
3% to 3.99% | Maximum | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Employer matching contribution on salary of employee | 3.99% | ||||
4% to 4.99% | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Employer contribution, percent match on employee contribution | 3.50% | ||||
4% to 4.99% | Minimum | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Employer matching contribution on salary of employee | 4.00% | 4.00% | |||
4% to 4.99% | Maximum | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Employer matching contribution on salary of employee | 4.99% | ||||
5% Or More | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Employer contribution, percent match on employee contribution | 4.00% | ||||
Employer matching contribution on salary of employee | 5.00% |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies - Lease Payments (Details) - USD ($) | 2 Months Ended | 12 Months Ended | 18 Months Ended | 460 Months Ended | |
Feb. 29, 2016 | Feb. 28, 2017 | Dec. 31, 2016 | Aug. 31, 2018 | Dec. 31, 2056 | |
Loss Contingencies [Line Items] | |||||
2,017 | $ 10,000,000 | ||||
2,018 | 10,550,000 | ||||
2,019 | 7,775,000 | ||||
2,020 | 7,800,000 | ||||
2,021 | 8,300,000 | ||||
2022 to 2056 | 370,274,000 | ||||
Total | 414,699,000 | ||||
Casino Lease [Member] | |||||
Loss Contingencies [Line Items] | |||||
2,017 | 10,000,000 | ||||
2,018 | 10,500,000 | ||||
2,019 | 7,500,000 | ||||
2,020 | 7,500,000 | ||||
2,021 | 8,000,000 | ||||
Total | 354,624,000 | ||||
Operating Leases, Monthly Fixed Rent | $ 500,000 | ||||
Golf Course Lease [Member] | |||||
Loss Contingencies [Line Items] | |||||
2,017 | 0 | ||||
2,018 | 0 | ||||
2,019 | 125,000 | ||||
2,020 | 150,000 | ||||
2,021 | 150,000 | ||||
Total | 7,825,000 | ||||
Operating Leases, Annual Fixed Rent, First Ten Years | 150,000 | ||||
Operating Leases, Annual Fixed Rent, After Ten Years | 250,000 | ||||
Operating Leases, Annual Fixed Rent, Before Opening | 0 | ||||
Entertainment Village Lease [Member] | |||||
Loss Contingencies [Line Items] | |||||
2,017 | 0 | ||||
2,018 | 50,000 | ||||
2,019 | 150,000 | ||||
2,020 | 150,000 | ||||
2,021 | 150,000 | ||||
Total | 7,825,000 | ||||
Operating Leases, Annual Fixed Rent, First Ten Years | 150,000 | ||||
Operating Leases, Annual Fixed Rent, After Ten Years | 250,000 | ||||
Operating Leases, Annual Fixed Rent, Before Opening | $ 0 | ||||
Subsequent Event | Casino Lease [Member] | |||||
Loss Contingencies [Line Items] | |||||
Operating Lease, Option Payment Total | $ 8,500,000 | ||||
Scenario, Forecast [Member] | Casino Lease [Member] | |||||
Loss Contingencies [Line Items] | |||||
Operating Leases, Annual Fixed Rent | $ 1,000,000 | $ 7,500,000 | |||
Operating Lease, Annual Fixed Rent, Escalation Percent Increase Every Five Years | 8.00% |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Millions | Dec. 28, 2015 | Dec. 31, 2016 |
Loss Contingencies [Line Items] | ||
Purchase Option Price, After Credit | $ 175 | |
Purchase Option Price, Before Credit | 200 | |
Purchase Option Price, Credit | $ 25 | |
Purchase Option, Period | 90 days | |
Casino Lease [Member] | ||
Loss Contingencies [Line Items] | ||
Operating Leases, Annual Rent, Percent of Gaming Revenue in Excess of $150,000,000 | 5.00% | |
EPT Concord II, LLC [Member] | Casino Lease [Member] | ||
Loss Contingencies [Line Items] | ||
Lessee Leasing Arrangements, Operating Leases, Notice To Terminate Lease | 12 months |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | Mar. 07, 2017 | Jan. 24, 2017 | Feb. 10, 2016 | Dec. 09, 2013 | Dec. 31, 2015 | Dec. 31, 2014 |
Director | ||||||
Related Party Transaction | ||||||
Professional fees expensed | $ 2,100,000 | $ 250,000 | $ 428,000 | $ 44,000 | ||
Professional fees, payable upon execution | 150,000 | |||||
Professional fees, paid within 90 days | $ 100,000 | |||||
Director | Subsequent Event | ||||||
Related Party Transaction | ||||||
Professional fees expensed | $ 2,500,000 | |||||
Montreign Operating [Member] | Moelis [Member] | Subsequent Event | ||||||
Related Party Transaction | ||||||
Professional fees expensed | $ 100,000 | |||||
Professional and Contract Services Expense | $ 75,000 |
Loss Per Share (Details)
Loss Per Share (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Discount percent | 20.00% | ||
Weighted average number of common shares (in shares) | 10,749 | 9,286 | |
Loss per common share (in dollars per share) | $ (3.42) | $ (2.60) | |
Scenario, Previously Reported | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted average number of common shares (in shares) | 9,291 | 7,828 | |
Loss per common share (in dollars per share) | $ (4) | $ (3.08) | |
Restatement Adjustment | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Weighted average number of common shares (in shares) | 1,458 | 1,458 | |
Loss per common share (in dollars per share) | $ (0.58) | $ (0.48) |
Summarized Quarterly Data (Un63
Summarized Quarterly Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||
Net revenues | $ 15,314 | $ 18,530 | $ 17,405 | $ 16,205 | $ 16,277 | $ 19,512 | $ 17,852 | $ 14,525 | $ 67,454 | $ 68,166 | $ 65,226 |
Loss from operations | (6,484) | (5,388) | (7,047) | (4,764) | (11,115) | (12,486) | (7,000) | (3,359) | (23,683) | (33,960) | (14,686) |
Net loss | $ (6,587) | $ (5,388) | $ (7,045) | $ (5,177) | $ (11,774) | $ (13,139) | $ (7,650) | $ (4,047) | $ (24,197) | $ (36,610) | $ (23,912) |
Loss per common share, basic (usd per share) | $ (0.19) | $ (0.18) | $ (0.23) | $ (0.26) | $ (0.77) | $ (1.40) | $ (0.80) | $ (0.45) | $ (0.86) | $ (3.42) | $ (2.60) |
Loss per common share, diluted (usd per share) | $ (0.19) | $ (0.18) | $ (0.23) | $ (0.26) | $ (0.77) | $ (1.40) | $ (0.80) | $ (0.45) | $ (0.86) | $ (3.42) | $ (2.60) |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Jan. 24, 2017 | Jan. 04, 2017 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Montreign Operating [Member] | Entertainment Village [Member] | |||||
Subsequent Event [Line Items] | |||||
Deposit commitment | $ 35,000,000 | ||||
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Litigation settlement (in shares) | 33,333 | ||||
Litigation settlement, amount | $ 758,000 | ||||
Subsequent Event | Casino and Entertainment Village Project [Member] | |||||
Subsequent Event [Line Items] | |||||
Guaranty liabilities | $ 30,000,000 | ||||
Subsequent Event | Montreign Operating [Member] | Revolving Credit Facility [Member] | |||||
Subsequent Event [Line Items] | |||||
Maximum borrowing capacity | $ 15,000,000 | ||||
Subsequent Event | Montreign Operating [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Subsequent Event [Line Items] | |||||
Basis spread on variable rate | 5.00% | ||||
Subsequent Event | Montreign Operating [Member] | Revolving Credit Facility [Member] | Base Rate [Member] | |||||
Subsequent Event [Line Items] | |||||
Basis spread on variable rate | 4.00% | ||||
Subsequent Event | Montreign Operating [Member] | Letter of Credit [Member] | |||||
Subsequent Event [Line Items] | |||||
Maximum borrowing capacity | $ 10,000,000 | ||||
Subsequent Event | Montreign Operating [Member] | Construction Loans [Member] | |||||
Subsequent Event [Line Items] | |||||
Unused borrowing capacity, amount | $ 50,000,000 | ||||
Subsequent Event | Senior Secured First Lien Term Loan [Member] | Montreign Operating [Member] | Senior Notes [Member] | |||||
Subsequent Event [Line Items] | |||||
Number of consecutive days of gaming license revocation (in days) | 7 days | ||||
Subsequent Event | Term Loan Facility, Term A Loan [Member] | Montreign Operating [Member] | Notes Payable to Banks [Member] | |||||
Subsequent Event [Line Items] | |||||
Unused borrowing capacity, amount | $ 70,000,000 | ||||
Commitment fee percent, through closing date | 2.50% | ||||
Commitment fee percent, after closing date | 5.00% | ||||
Subsequent Event | Term Loan Facility, Term A Loan [Member] | Montreign Operating [Member] | Notes Payable to Banks [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Subsequent Event [Line Items] | |||||
Basis spread on variable rate | 5.00% | ||||
Subsequent Event | Term Loan Facility, Term A Loan [Member] | Montreign Operating [Member] | Notes Payable to Banks [Member] | Base Rate [Member] | |||||
Subsequent Event [Line Items] | |||||
Basis spread on variable rate | 4.00% | ||||
Subsequent Event | Term Loan Facility, Term B Loan [Member] | Montreign Operating [Member] | Notes Payable to Banks [Member] | |||||
Subsequent Event [Line Items] | |||||
Face amount | $ 415,000,000 | ||||
Prepayment premium percent, month 30 to month 42 | 2.00% | ||||
Prepayment premium percent, month 42 to month 54 | 1.00% | ||||
Subsequent Event | Term Loan Facility, Term B Loan [Member] | Montreign Operating [Member] | Notes Payable to Banks [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Subsequent Event [Line Items] | |||||
Basis spread on variable rate | 8.25% | ||||
Stated percentage rate range, minimum | 1.00% | ||||
Subsequent Event | Term Loan Facility, Term B Loan [Member] | Montreign Operating [Member] | Notes Payable to Banks [Member] | Base Rate [Member] | |||||
Subsequent Event [Line Items] | |||||
Basis spread on variable rate | 7.25% | ||||
Subsequent Event | Term Loan Facility [Member] | Montreign Operating [Member] | Notes Payable to Banks [Member] | |||||
Subsequent Event [Line Items] | |||||
Borrowing capacity, amount | $ 485,000,000 | ||||
Subsequent Event | Kien Huat Montreign Loan [Member] | Montreign Operating [Member] | |||||
Subsequent Event [Line Items] | |||||
Face amount | $ 32,300,000 | ||||
Subsequent Event | Kien Huat Montreign Loan [Member] | Montreign Operating [Member] | Construction Loans [Member] | |||||
Subsequent Event [Line Items] | |||||
Stated percentage | 12.00% | ||||
Commitment fee | 1.00% | ||||
Overhead expenses maximum | $ 9,000,000 | ||||
Scenario, Forecast [Member] | Montreign Operating [Member] | Entertainment Village [Member] | |||||
Subsequent Event [Line Items] | |||||
Deposit commitment | $ 15,000,000 | $ 20,000,000 |
Schedule II - Valuation and Q65
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for doubtful accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 171 | $ 171 | $ 161 |
Addition charged to costs and expenses | 0 | 10 | 0 |
Other additions (deductions) | 0 | 0 | (5) |
Less deductions | 0 | 0 | 0 |
Balance at end of year | 171 | 161 | 166 |
Deferred tax asset valuation allowance | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 88,934 | 86,092 | 72,104 |
Addition charged to costs and expenses | 0 | 0 | 0 |
Other additions (deductions) | 2,842 | 13,988 | 6,272 |
Less deductions | 0 | 0 | 0 |
Balance at end of year | $ 86,092 | $ 72,104 | $ 65,832 |