Monticello, NY – Struggling Empire Resorts announced today it has a new deal with Concord owner Louis Cappelli that could leave Sullivan County with two racinos and two harness tracks within 2.5 miles of each other.
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Empire, which has been teetering on bankruptcy, also announced a shake up on the board of directors. Cappelli, a major shareholder, will join the board with four new members.
The two sides have been working together for a year to develop a new racino and harness track at the Concord. Their old agreement expired on Feb. 28, after the deal had begun to unravel with the worldwide financial crisis.
Cappelli’s Concord Associates notified Empire executives that prospective lenders wouldn’t allow Empire to manage a new racino and that the Concord couldn’t obtain $50 million in financing to help the company out of a financial bind.
“I am glad to join the company’s board of directors,” Cappelli said in a release. “My primary focus is job creation. New York cannot afford to lose any more jobs. The continuation of harness racing and gaming operations at Monticello Raceway will keep hundreds of jobs in place, and protect the tax base of the village of Monticello.”
Empire has had a net loss applicable to common shares of $81.4 million since 2004, much of which was due to dropping gaming revenues. Cappelli’s planned $1 billion “Entertainment City” project has also stalled.
The new agreement only takes effect if Cappelli gains construction financing.
Empire would get a cut from the Concord for 40 years. The Concord would pay a $2 million annual fee that increases by 5 percent every five years, and an annual percentage fee equal to the greater of $2 million or 2 percent of “gross gaming revenues.”
The Concord would also pay the horsemen and breeders’ share of the video gaming machine revenues, roughly $5.8 million last year.
According to Empire’s release, the Racing and Waging Board agreed to “act favorably on an application” for a license for a new racino and harness track at the Concord.
Empire has accepted the resignations of Chairman John Sharpe and directors Frank Catania, Richard Robbins and Ken Dreifach.
All Racetracks, Racinos (whatever they are) Casinos and any and all gambling facilities should burn to the ground! They are the cause of many broken homes and many sick people who become addicted to gambling through them.
I really think that all of these places should be closed down…..why can’t the rabbonim say something on this…..are they waiting for chas v’sholom something to happen…..does anybody realize the affect if these avodah zarah places open……this is a real sakana…..besides children and teenagers at risk, so are marriages…..are my family, me and comment number one the only ones who feel this way…..
in response to #4 , don’t worry we have no interest whatsoever to go go there…….we are just wondering with the economy so rotten, why would they open up such a place……to eat up more hard earned peoples money……its sad, but yet so true……
i have been to casinos, and i dont think its as bad as u say.
dugs and alchohol are far worse
as a member of klal yisroel, we have to start having meetings now about summer getaways, not just for our precious children going to be working upstate, but for each other as well..this avodah zarah place cannot be open..we as a nation of Hashem has to say something..my family has no interest to go to this place or the mountains this summer..gambling causes a lot of problems..it really is mamish like a drug, because its very addictive..just a few months ago, my husbands best friend, best friend had his identity stolen, and this crook gambled $50,000..luckily the credit card companies called him and now the crook is hopefully in jail..so now we can all learn from this story that thid place is looking for trouble..oy please daven that this place doesn’t open ever ever..its just a yetzer horah..
I used to live in Connecticut and saw the devastation caused by the two casinos there. It is really sad.
ah, the good old days (before the casino opened and it was just a racetrack), on off-days in camp, bring a cooler of beer and 6 loud, excitable guys and bet $2 on each horserace. if your horse won, you won like $6 and we all went absolutely crazy, and if you lost, so what?! its only $2! and we still went absolutely crazy! to everyone who will comment on how its people like me who ruin the next generation, and chillul hashem, etc… it was 20 years ago and i was a teenager, and other staff members were going to movies with girls, etc.. so bring on your bashing! and yes, i also shudder to think what the matziv in the mts. would be if these plans ever come to fruition
I thought the Parkers owned the Concord?
Gambling addiction is only a problem if you’re losing
There is a difference between “gambling” and “feeding a gambling addiction”. The same is true for “drinking alcohol” and “being and alcoholic”. The two are mutually exclusive. My wife and I love to gamble. We do it often and always within reason. There is nothing wrong with it when it is treated the same way one we treat any activity. Don’t spend more than you can afford, and you play for FUN. If you gamble for any reason other than the fun of it, you have a problem and you need to deal with it. The rest of us don’t have to give up our pastimes because of YOUR problem. Take responsibility for yourself. Every gambling establishment today has a list that you can put yourself on, and if they see you coming in, they will eject you from the property. If you think you have a problem, just sign up and you’re done!
Should we pull the schnapps and vodka out of every shul in America because someone might become addicted to it?
We all make choices in life. We all make good ones, and we all make bad ones. Stop blaming the baseball parks, the concerts, the casinos… yadda yadda yadda… They are not the problem. Take responsibility for your own life.
I was a dining room Captain for 6 years at both Aquaduct and Belmont. Never saw frum jews. However, people need to take responsibility for their vices and repair these issues.. I never ever ever bet $1. I took the 3-4 hundred a day and went to the bank… was a great job