MGM Drops Bid for New York Casino License at Empire City Yonkers

This proposed MGM property in Yonkers was looking promising until it suddenly didn’t. (Image: courtesy of MGM Resports)

MGM Yonkers announced Tuesday that it would be dropping its bid for a commercial casino license in New York, a stunning announcement that dropped the field of contenders for the three downstate casino licenses to just three proposals.

The announcement, which came in a statement issued on October 14, comes as MGM’s Empire City Casino facility was seen as a clear favorite to win one of the available licenses.

MGM Cites License Length, Geography in Decision

According to MGM, the decision was made due to its changing analysis of the economic situation surrounding casino gaming in New York.

“The newly defined competitive landscape – with four proposals clustered in a small geographic area – challenges the returns we initially anticipated from this project,” MGM Resorts said in a statement. “Also, our proposal to renovate and expand Empire City Casino was predicated on the receipt of a 30-year commercial casino license but based on newly issued guidance from the State of New York we now expect to qualify for only a 15-year license. Taken together, these events result in a proposition that no longer aligns with our commitment to capital stewardship, nor to that of our real estate partner in Yonkers, VICI.”

MGM also said that it hoped to continue to enjoy a positive relationship with the City of Yonkers despite the decision. 

“MGM Resorts has been a proud partner of the City of Yonkers and the State of New York since we purchased Empire City Casino in 2019,” the statement read. “We know our decision will impact many individuals; we remain committed to operating the property in its current format and believe it will continue to enjoy success serving customers in Yonkers in the surrounding communities.”

Spano: MGM Decision ‘Defies All Logic’

Already, some local officials have reacted strongly to the announcement. Yonkers Mayor Mike Spano, who has been a vocal proponent of the MGM Resorts casino bid, questioned how the casino firm came to its decision.

“This decision by MGM defies all logic, and it’s nothing short of a betrayal to the people of Yonkers and Westchester County,” Spano said in a statement. “I am calling on Governor Hochul to launch an independent investigation into this process, because the reasons MGM gives for its 180-degree reversal just don’t add up.”

With MGM out of the picture, that leaves three bids in competition for up to three licenses: Resorts World New York City in Queens, the Metropoitan Park proposal from New York Mets owner Steve Cohen and Hard Rock International adjacent to Citi Field, and the Bally’s Bronx bid at the former Trump Links golf course at Ferry Point. 

Spano noted the potential additional payout to the Trump Organization should Bally’s win a license as a potential factor to be looked at in his statement.

“It’s no secret that the big winner from this reversal will be Bally’s proposal for a casino at the former Trump Links in Whitestone. It’s also no secret that Bally’s has a deal with Donald Trump that they will pay him and additional $115 million if they can open a casino there,” Spano said. “People need to be assured that these is no linkage between MGM’s decision and the massive financial benefit to Donald Trump. The people of Yonkers deserve to know if this process was tainted or manipulated in any way.”

The casino proposal at Empire City was approved by its community advisory committee in a unanimous vote on Sept. 25. The New York State Gaming Facility Location Board will award up to three licenses before the end of 2025.