Hochul Denies Calls for Investigation Into MGM Dropping Yonkers Casino Bid

^{Hochul said there is no evidence of "wrongdoing” after MGM pulled its bid for a New York downstate casino license. (Photo: Paul Froggatt / Alamy)}

New York Governor Kathy Hochul says that she will not investigation MGM's decision not to continue its bid for a downstate casino license in Yonkers, despite disappointment from local officials.

The governor's comments came just one day after MGM stunned local officials by pulling its bid for a full-scale casino license for Empire City at Yonkers Raceway, which was considered a leading contender for one of the three available downstate casino licenses.

MGM Announcement Draws Criticism from Yonkers Mayor

MGM announced its withdrawal on Tuesday, citing concerns about the licensing time frame changes and the proximity to the other competitors for a casino license.

The company stated that they backed out of the race due to the reduction of the license term from 30 years to 15 years, and the close proximity to the other four remaining contenders for the three licenses.

“I share the mayor’s disappointment that this did not continue, but I at this time am not aware of any reason to launch an investigation,” Hochul told reporters on Wednesday. “I have no evidence to suspect that there’s any wrongdoing in this decision-making. I think MGM knows they made their own financial decision based on what their needs are.”

Speculation Over Trump Ties Quickly Dismissed

Following MGM's announcement on Tuesday, Yonkers Mayor Mike Spano – a strong supporter of the MGM bid – suggested that the decision might have something to do with a $115 million payout that Bally’s might owe the Trump Organization if the Bronx casino project at Ferry Point moved forward.

Both companies quickly rejected that claim. The Trump Organization responded with a statement suggesting that it had no involvement in MGM’s business decisions.

“The Trump Organization had absolutely nothing to do with MGM’s decision to withdraw its bid for a casino license in Yonkers,” it said in a statement. “Even the slightest suggestion otherwise is completely false, irresponsible and pure speculation.”

Bally’s chairman Soo Kim also distanced his company from the controversy, saying that he was unaware of “the circumstances of what other people are doing.”

Spano Says Contract Changes Forced MGM’s Hand

By Wednesday, it seemed that Spano’s ire had changed focus to New York’s Gaming Commission. The Yonkers mayor told reporters that it was decisions by New York officials that caused the sudden change in plans by MGM.

“The gaming commission proposed changes to the contracts six days ago,” Spano said, according to ABC 7 in New York. “It took Yonkers and said, ‘the max you can have now is a 15-year license.’ And with a lot of unanswered questions, that made it very difficult for MGM to put together a business plan.”

The Yonkers proposal was one of four to make it through the community advisory committee stage of the New York casino licensing process. With MGM withdrawing from the race, that leaves three bids for up to three available licenses: the Resorts World New York City racino in Queens, the Bally’s Bronx proposal, and the Metropolitan Park project championed by New York Mets owner Steve Cohen and Hard Rock International. 

The New York Gaming Facility Location Board will award up to three licenses to qualified bidders by Dec. 1, with the New York State Gaming Commission granting final approval by the end of the year.