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Empire Resorts to Develop New York Casinos

MONTICELLO, New York -- (PRESS RELEASE) -- Empire Resorts, Inc. (NASDAQ: NYNY) announced today that the State of New York and the Cayuga Nation of New York ("Cayuga Nation") have entered into a definitive agreement providing for the settlement of the Cayuga Nation's land title and trespass claims against the State dating back to the 1700's. The agreement would permit the Cayuga Nation to operate a Class III casino in the Catskills.

Commenting on the accord, Governor George E. Pataki noted, "The agreement will allow us to move forward with plans to establish a second casino in the Catskills, which would create thousands of new jobs and provide a tremendous boost to the region's economy".

Empire CEO Robert Berman said, "Importantly, during the past week, both the Cayuga Nation of New York and Seneca-Cayuga Tribe of Oklahoma have agreed to settle their land claims with New York on amicable terms. These historic events have provided Empire with the unique opportunity to partner with these tribes to develop two Native American casinos just 90 miles from New York City". Morad Tahbaz, President of Empire and head of the company's development team added, "We plan to move forward expeditiously to complete the arrangements for these projects, with to the goal of having them both open by the end of 2006."

Empire has been working with the Cayuga Nation under an agreement to develop and manage a Native American gaming facility in the Catskills. The settlement agreement provides for the State and Cayuga Nation to enter into a class III gaming compact for a tribal casino to be located on a site in the Town of Thompson in Sullivan County, New York. The compact will authorize the operation of slot machines, but not the operation of video lottery gaming devices, and will give the Cayuga Nation and certain other approved Indian nations or tribes the exclusive right to operate slot machines within the geographic area defined by Bronx, Delaware, Greene, Kings, New York, Orange, Queens, Richmond, Rockland, Sullivan, Ulster and Westchester counties. The Cayuga Nation has agreed to contribute 25% (20% during the first four years) of the net revenue from the operation of slot machines to the State of New York.

The compact will be for an initial period of 14 years, subject to automatic renewal for seven years. Operation of the gaming facility is required to start within 18 months of the date of receipt of final state and federal approval. The agreement will become effective after enactment of federal and state legislation and tribal resolutions to implement the settlement provisions.

Empire operates the Monticello Raceway and is involved in the development of other legal gaming venues in New York. Empire opened Mighty M Gaming at the Raceway site on June 30, 2004. The new facility features 1,743 video gaming machines and amenities such as a 350 seat buffet and live nightly entertainment. Together with the Cayuga Nation, Empire has announced plans to develop a $500 million "Class III" Native American casino and resort on a site adjacent to the Raceway. In addition, Empire has recently announced plans to develop a second casino and resort in the Catskills with the Seneca Cayuga Tribe of Oklahoma.

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