HOUSTON, March 9, 2020 /PRNewswire/ -- 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 Club, Tootsie's Cabaret, and Scarlett's
Cabaret. Sports bars/restaurants operate under the brand name
Bombshells Restaurant & Bar. Please visit
http://www.rcihospitality.com/
Forward-Looking Statements
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.
Media & Investor Contacts
Gary Fishman and Steven Anreder at 212-532-3232 or
gary.fishman@anreder.com and steven.anreder@anreder.com
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SOURCE RCI Hospitality Holdings, Inc.