Empire Resorts reports results

7 August 2007

LAS VEGAS, Nevada -- (PRESS RELEASE) -- Empire Resorts, Inc. (NASDAQ: NYNY) announces financial results for the second quarter and six months ended June 30, 2007.

Net revenue for the second quarter was $19.8 million, down 23% from the $25.9 million reported in the second quarter of 2006. Revenue from racing declined by approximately $2.9 million, or 55%, reflecting decreased revenue allocations from OTB facilities, while revenue from the company's video gaming machine (VGM) business declined by approximately $3.4 million, or 17%, primarily due to increased competition in the region. The daily win per unit fell 18% to $115.20 for the quarter from $139.77 in the second quarter of 2006.

The company's operating loss for the quarter was $1.7 million versus operating income of $1.3 million in the prior-year period. EBITDA was $(1.4) million for the quarter compared with $1.6 million in the second quarter of 2006. The company posted a net loss for the second quarter of $3.7 million, or $(0.12) per diluted share, compared with a net loss of $0.1 million, or $(0.03) per diluted share, in 2006.

For the first six months of fiscal 2007, Empire reported net revenue of $38.2 million, versus $48.5 million in the same period last year. EBITDA was $(3.7) million for the first two quarters of 2007, as compared to $1.7 million in 2006. Empire's net loss for the period was $8.3 million, or $(0.28) per diluted share, versus a net loss of $3.0 million, or $(0.11) per diluted share, last year.

"Facing increased regional competition, we took decisive steps this quarter to grow revenue through targeted marketing efforts and enhanced entertainment options. We believe these actions, along with seasonal factors, paid off in sequential revenue growth and lower net loss versus the first quarter," commented David Hanlon, CEO and president. "As our renewed marketing efforts take hold, we continue to take all measures necessary to improve the Monticello Gaming and Raceway operations.

"In addition, we value the vigorous efforts of Governor Spitzer and Senator Schumer, along with local elected officials, in championing the St. Regis Mohawk casino as a vital path to bringing much-needed economic benefits, including thousands of jobs, to Sullivan County. We remain steadfast with regard to finalizing the required U.S. Department of the Interior approvals and have taken all steps necessary to pave the way for putting 29 acres of land into trust for the St. Regis Mohawks. The Tribe, in conjunction with elected officials and community leaders, are dedicated to completing this long process and are in regular communication with Secretary Kempthorne and his staff to provide assistance and answer any remaining questions they may have. Bringing a casino to the Catskills remains our number one priority, and we stand ready to move forward as rapidly as possible once appropriate steps are taken at the Federal level."

The company makes use of EBITDA (earnings before interest, taxes, depreciation and amortization) as a financial measure which it believes is a useful performance indicator. EBITDA is not a recognized term under generally accepted accounting principles, or "GAAP," and should not be considered as an alternative to net income/(loss) or net cash provided by operating activities, which are GAAP measures. A reconciliation of EBITDA to net income/(loss) appears at the end of this release, as do both actual results for the quarter and year-to-date periods.