Statement from Empire Resorts, Inc.: NY Court Affirms Native American Gaming in New York State but Declares Current Legislation Unconstitutional

Business Wire,  July 8, 2004  

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MONTICELLO, N.Y. -- Empire Resorts, Inc. announced today that the Third Judicial Department of New York State Supreme Court's appellate division affirmed the legality of legislation passed in 2001 authorizing Native American casinos in New York State under the New York constitution and federal law. The Court also affirmed the argument that video gaming machines (VGM's) are to be treated as lotteries under New York State penal law. However, the Court held unconstitutional the law authorizing New York State racetracks to engage in VGM operations because of the revenue allocations used in conducting such VGM operations, finding that net proceeds from the VGM's dedicated to horsemen and breeders violated the constitutional mandate that such funds be applied solely for educational purposes.

In partnership with the Cayuga Nation of New York, Empire has announced plans to construct and operate a $500 million resort and casino on land adjacent to Monticello Raceway, located just 90 miles north of New York City. Commencement of the project will require federal and State approvals, which are pending. When opened, the facility will include 3,000 slot machines, 200 table games, six restaurants, retail shops, and a 600-person show lounge. The Company also operates Mighty M Gaming, a facility which hosts 1,743 VGM's. The Company has been advised by the New York Lottery that it is evaluating the impact of the decision and the State's options, including an appeal of the decision to the New York State Court of Appeals and a legislative solution that would address payments to the horsemen and breeders.

No assurance can be given that any curative legislation, if adopted, will maintain the existing revenue allocations for our VGM program.

About Empire Resorts, Inc.

Empire Resorts, Inc. is involved in the development of legal gaming at Monticello Raceway which is located 90 miles north of New York City and is within convenient driving distance of an estimated 23 million people. The Company opened Mighty M Gaming at Monticello Raceway 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 (see www.mightymgaming.net for more information). In addition to the Mighty M, Empire Resorts' partner, the Cayuga Nation of New York, has submitted an application to the United States Department of the Interior, Bureau of Indian Affairs (BIA) for the transfer of approximately 30 acres of land adjacent to the Raceway to the United States Government to be held in trust for the Cayuga Nation of New York for purposes of building a $500 million "Class III" Native American casino and resort. The Nation's application is currently in the final stages of review by the BIA. On June 10, 2004, Governor George E. Pataki and the Cayuga Nation of New York signed an agreement that contains key provisions that advance the proposed development of the Cayuga Catskill Resort. For more information visit www.empireresorts.com

Statements in this press release regarding the Company's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties, including the need for regulatory approvals, financing and successful completion of construction. The Company wishes to caution readers not to place undue reliance on such forward-looking statements, which statements are made pursuant to the Private Securities Litigation Reform Act of 1994, and as such, speak only as of the date made. To the extent the content of this press release includes forward-looking statements, they involve various risks and uncertainties including (i) the risk that various approvals necessary for the projects described herein and required to be obtained from the United States Bureau of Indian Affairs, the National Indian Gaming Regulatory Commission, the Governor of the State of New York and various other federal, State and local governmental entities are not received, (ii) the risk that financing necessary for the proposed programs or projects may not be able to be obtained because of credit factors, market conditions or other contingencies, (iii) the risk that the Cayuga Nation may exercise certain broad rights with regard to termination of its agreements with the Company, (iv) the risk of non-compliance by various counterparties of the related agreements, and (v) general risks affecting the Company as described from time to time in its reports filed with the Securities and Exchange Commission. For a full discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.

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