Costs Associated with Exit or Disposal Activities.
As previously reported on a Current Report on Form
dated January 22, 2019, management of
Empire Resorts, Inc. (together with its subsidiaries, the Company) and Monticello Raceway Management, Inc. (MRMI), a wholly-owned subsidiary of the Company, notified employees of MRMI concerning the Companys plans to
cease video gaming machine (VGM) operations and food and beverage service at Monticello Casino and Raceway. Such operations ceased on April 23, 2019. The Company estimates the cost of the severance packages offered and accepted by
employees of MRMI will be approximately $1.6 million, which represents the total cost the Company expects to incur in connection with ceasing the VGM operations and food and beverage service at Monticello Casino and Raceway.
This report contains forward-looking statements. These statements include statements about our estimated expenses and involve known and
unknown risks that are difficult to predict. As a result, the actual results of the Company may differ materially from those expressed or implied by these forward-looking statements. In some cases, you can identify forward-looking statements by the
use of words such as may, could, expect, intend, plan, seek, anticipate, believe, estimate, predict, potential,
continue, likely, will, would, and variations of these terms and similar expression, or the negative of these terms or similar expressions. Such forward-looking statements are necessarily based upon
estimates and assumptions that, while considered reasonable by the Company and its management team based on the experience of management operating gaming facilities, are inherently uncertain. All forward-looking statements speak only as of the date
as of which they are made. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions concerning future events that are difficult to predict. Factors that may cause actual results to differ
materially from current expectations include, among others, the ability to comply with regulatory requirements relating to ceasing VGM operations and food and beverage service operations at Monticello Casino and Raceway; and the ability to comply
with federal and state statutes and regulations with respect to labor and employment and other operational matters at Monticello Casino and Raceway, over which we may have no control.
A more complete description of these risks and uncertainties can be found in the filings of the Company with the U.S. Securities and Exchange
Commission. We caution you not to place undue reliance on any forward-looking statements, which are made as of the date hereof or as otherwise specified herein. The Company undertakes no obligation to update any of these forward-looking statements
to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements, except to the extent required by applicable law. If we update one or more forward-looking
statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.