Empire Resorts Announces Third Quarter Results; Reports Positive EBITDA and Marks Progress Towards a Casino in the Catskills

Empire Resorts, Inc. (NASDAQ: NYNY) today reported
financial results for the third quarter and nine months ended
September 30, 2005.
   Net revenue for the third quarter was $25.6 million, up 17% from
the $21.9 million reported in the third quarter of 2004. Revenue from
racing increased by approximately $1.4 million, or 56%, while revenue
from the company's video gaming machine (VGM) operations rose by
approximately $2.5 million, or 14%, offset slightly by an increase in
complimentary expenses of approximately $0.2 million. The growth in
racing revenue was a result of higher revenue allocations from
off-track betting facilities. In the company's VGM operations, the
daily win per unit for the quarter ended September 30, 2005 was
$123.17, compared with $113.12 for the corresponding quarter in 2004 -
an increase of nearly 9%. Operating costs declined by approximately
$0.2 million, or 1%, for the quarter versus the prior-year period.
EBITDA rose to $0.6 million from $(0.5) million in 2004. Net loss for
the third quarter was $(1.6) million, or $(0.06) per diluted share,
compared to $(1.9) million, or $(0.07) per diluted share, in the
prior-year period.
   For the first nine months of fiscal 2005, Empire reported net
revenue of $64.3 million versus $27.1 million in the same period last
year, reflecting the impact of the VGM business, which began in June,
2004. EBITDA was $(2.2) million for the first three quarters of 2005,
as compared to $(8.2) million in 2004. Empire's net loss for the
period was $(8.0) million, or $(0.31) per share, versus $(11.0)
million, or $(0.44) per share, last year.
   Reflecting on these results, David Hanlon, CEO and president,
commented, "Given the seasonally-strong nature of the third quarter,
we achieved positive EBITDA - marking continued progress in our
operations, which have improved substantially since the introduction
of VGM machines last year. During the quarter, we added 20,000
individuals to our Player's Club and now have over 140,000 members. In
addition, on-track betting was up 27% over last year and Monticello
Raceway purses rose by 123%.
   "Most importantly, Empire took a significant step towards building
a Class III casino resort in the Catskills by teaming up again with
the St. Regis Mohawk Tribe of New York. We are pleased that the
Mohawks chose to work exclusively with Empire Resorts, committing to a
presence at the Monticello Raceway, and we look forward to making this
dream a reality for the Mohawk Tribe and people of Sullivan County. As
we make headway in bringing a casino to the area, we continue to study
the purchase of the Concord and Grossinger properties."
   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.

   About Empire Resorts, Inc.

   Empire Resorts operates the Monticello Raceway and is involved in
the development of other legal gaming venues. Empire's Mighty M Gaming
facility now features over 1,500 video gaming machines and amenities
including a 350-seat buffet and live entertainment. Empire is also
working to develop a $500 million "Class III" Native American casino
and resort on a site adjacent to the Raceway and other gaming and
non-gaming resort projects in the Catskills region and other areas.
Additional information can be found at 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 the various
approvals necessary as described herein and other approvals required
to be obtained from the United States Congress, the 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 sovereign Native American
governments 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 it's 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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                EMPIRE RESORTS, INC. AND SUBSIDIARIES
           CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
          (In thousands, except per share data) (Unaudited)

                                Three Months Ended   Nine Months Ended
                                   September 30,      September 30,
                                   2005    2004      2005      2004
                                 ------- -------   -------    ------
Net Revenues                     $25,648   $21,856  $64,291   $27,086

Operating Costs                   20,166    20,376   54,168    27,559
Selling, General & Administrative  4,885     2,013    9,988     7,738
Depreciation & Amortization          428       372    1,268       636
Interest Expense                   1,318       628    3,314       965
--------------------------------  -------  -------  -------   --------
    Total Costs & Expenses        26,797    23,389   68,738    36,898
--------------------------------  -------  -------  -------   --------

Loss From Operations              (1,149)   (1,533)  (4,447)   (9,812)
Write Off of Advances to Tribal
 Gaming
    Authorities & Gaming License
    & Development Costs               45              2,363
--------------------------------  ----------------  ------------------

Net (Loss)                        (1,194)   (1,533)  (6,810)   (9,812)

Dividends Paid on Preferred Stock                                  30
Cumulative Undeclared Dividends on
    Preferred Stock                  388       388    1,164     1,122
-------------------------------- -------   -------  ------- ---------

Net Loss Applicable to Common
    Shareholders                $(1,582)   $(1,921) $(7,974) $(10,964)
==============================   =======    =======  ======= ========
Weighted Average Common Shares
    Outstanding                  26,147     26,075   26,111    24,905

Loss Per Common Share           $ (0.06)   $ (0.07) $ (0.31) $  (0.44)
==============================   =======    =======  =======  ========


Reconciliation of Net Loss to
 EBITDA

Net Loss                        $(1,194)   $(1,533) $(6,810) $ (9,812)
Less: Depreciation and
 Amortization                       428        372    1,268       636
Less: Provision for Income Taxes      -          -        -         -
Less: Interest                    1,318        628    3,314       965
------------------------------- --------   -------  -------  --------

EBITDA                          $   552    $  (533) $(2,228) $ (8,211)
==============================  =======    ========  ======= ========
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                EMPIRE RESORTS, INC. AND SUBSIDIARIES
                CONDENSED CONSOLIDATED BALANCE SHEETS
                            (in thousands)

                                           September 30,  December 31,
                                               2005           2004
                                            (Unaudited)    (Audited)
                                           ------------  -------------
                  Assets
Current Assets:
    Cash and Cash Equivalents              $     6,297    $     7,164
    Restricted Cash                                611            159
    Accounts Receivable                          5,099          2,680
    Prepaid Expenses and Other Current
     Assets                                      1,547            874
------------------------------------------  -----------    -----------
Total Current Assets                            13,554         10,877

Property and Equipment - Net                    32,808         33,147
Deferred Financing Costs - Net                   3,119          3,009
Advances - Tribal Gaming Authorities               700            925
Deferred Development Costs                       3,890          3,890
Gaming License and Development Costs            10,533          8,905
------------------------------------------  -----------    -----------

Total Assets                               $    64,604    $    60,753
==========================================  ===========    ===========


  Liabilities and Stockholders' Deficit
Current Liabilities:
    Accounts Payable                       $     3,565    $     3,805
    Revolving Credit Facility                    7,345
    Construction Costs Payable                                  1,447
    Accrued Expenses and Other Current
     Liabilities                                 6,747          5,493
------------------------------------------  -----------    -----------
Total Current Liabilities                       17,657         10,745

Senior Convertible Notes                        65,000         65,000
------------------------------------------  -----------    -----------

Total Liabilities                               82,657         75,745

Stockholders' Deficit                          (18,053)       (14,992)
------------------------------------------  -----------    -----------

Total Liabilities and Stockholders'
 Deficit                                   $    64,604    $    60,753
==========================================  ===========    ===========
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