RCI Announces U.S. Court Rules Texas Patron Tax Unconstitutional
HOUSTON – March 9, 2020 – RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today announced the U.S. District Court for the Western District of Texas, Austin Division, ruled on Friday that the Texas Patron Tax is unconstitutional as it is being applied and enforced.
Eric Langan, President & CEO, said, "The ruling by Senior U.S. District Judge David Alan Ezra was very favorable in our more than 10-year effort to overturn the tax. While the state still has the option to appeal, the ruling significantly enhances our efforts to end the tax and possibly collect money we've already paid."
The Texas Comptroller of Public Accounts has been collecting the $5 per customer tax from certain gentlemen's clubs in the state that are owned by RCI subsidiaries. In the company's most recently ended Fiscal 2019, such tax payments totaled approximately $2.2 million.
About RCI Hospitality Holdings, Inc. (Nasdaq: RICK)
With more than 40 units, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country's leading company in gentlemen's clubs and sports bars/restaurants. Clubs in New York City, Chicago, Dallas/Ft. Worth, Houston, Miami, Minneapolis, St. Louis, Charlotte, Pittsburgh, and other markets operate under brand names, such as Rick's Cabaret, XTC, Club Onyx, Vivid Cabaret, Jaguars, Tootsie's Cabaret, and Scarlett's Cabaret. Sports bars/restaurants operate under the brand name Bombshells Restaurant & Bar. Please visit http://www.rcihospitality.com
This press release may contain forward-looking statements that involve a number of risks and uncertainties that could cause the company's actual results to differ materially from those indicated in this press release, including, but not limited to, the risks and uncertainties associated with (i) operating and managing an adult business, (ii) the business climates in cities where it operates, (iii) the success or lack thereof in launching and building the company's businesses, (iv) cyber security, (v) conditions relevant to real estate transactions, (vi) our ability to maintain compliance with the filing requirements of the SEC and the Nasdaq Stock Market, and (vii) numerous other factors such as laws governing the operation of adult entertainment businesses, competition and dependence on key personnel. The company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.
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