MGM Resorts has withdrawn its application for a commercial casino licence at Empire City Casino in Yonkers, marking an unexpected reversal in the state’s high-stakes race for downstate casino approvals.
The decision ends MGM’s $2.3bn expansion plan that aimed to transform the racino into a full-scale gaming and entertainment complex.
In a statement, MGM Resorts cited changes in both the economic landscape and the competitive framework since it submitted its bid in June.
According to the company, these factors altered its expected return on investment, leading to the conclusion that the project no longer aligned with its financial objectives or those of its real estate partner, VICI Properties.
Executives pointed to a narrowing field of competitors in the New York metropolitan area, where four proposals have clustered within a small geographic radius.
The resulting overlap, MGM said, had diminished the viability of its Yonkers project under the original assumptions.
The company also expressed concern over newly issued state guidance that reduces the licence duration from 30 years to 15 years, a change that significantly impacts long-term revenue projections.
The shortened licence term, a decision by Gov. Kathy Hochul’s administration, has already sparked criticism from lawmakers and industry analysts who argue it undermines investor confidence.
MGM said its plan was predicated on securing a 30-year licence, and the revised framework forced a reassessment of its commitment.
“Taken together, these developments result in a proposition that no longer aligns with our commitment to capital stewardship,” MGM stated.
The company reaffirmed, however, that it remains dedicated to operating Empire City Casino in its existing capacity.
Since acquiring the Yonkers property in 2019, MGM has contributed over $1.6bn to state education funding, part of more than $5bn generated overall from the facility.
Despite the withdrawal, MGM said it would continue to support its employees and the local community, emphasising that the property remains profitable as a video lottery terminal racino.
Still, the decision represents a setback for Yonkers’ hopes of becoming a major gaming destination, especially given the city’s strong labour and infrastructure support for the expansion.
Local leaders condemn MGM’s withdrawal as ‘Betrayal’
The announcement provoked immediate outrage from local officials.
Yonkers Mayor Mike Spano, as reported by Politico, described MGM’s reversal as “a betrayal to the people of Yonkers and Westchester County,” demanding answers from both the company and Gov. Hochul’s administration.
Spano questioned the logic of the withdrawal, suggesting that external political or financial factors might have influenced the outcome.
He noted that Bally’s proposal to develop a casino at the former Trump Golf Links site in Whitestone, Queens, stands to benefit significantly.
The project includes a provision under which Bally’s would pay The Trump Organisation an additional $115m if it secures a casino licence for the property.
Spano called for an independent investigation into the state’s licensing process, saying that MGM’s explanation “defies all logic.”
He highlighted that the company itself had previously claimed Empire City could not remain competitive without a full gaming licence, making the decision appear self-defeating.
“Our city has stood ready with the workforce, infrastructure, and public support for full gaming,” Spano said.
“MGM’s blaming New York State Government for their withdrawal rings hollow. The same rules apply to the other bidders — why aren’t they pulling out as well?”
Westchester County Executive Ken Jenkins echoed those sentiments in a separate statement, labelling MGM’s decision as both shocking and dismaying.
Jenkins said the move raises serious questions about potential “political influence or pressure” connected to the Trump-linked Bally’s deal.
He warned that the decision “could result in a profit of roughly $115m for Trump”, a claim that underscores the politically charged atmosphere surrounding the downstate licensing process.
Queens projects emerge as front-runners in casino race
With MGM’s exit, New York’s potential casino landscape has shifted decisively toward Queens, where two major bids are now seen as leading contenders.
One of the three potential licences is expected to go to Bally’s for its Whitestone project, while the remaining two could be awarded to locations within a few miles of each other in Queens.
Mets owner Steve Cohen and Hard Rock International are positioned as key beneficiaries. Their joint bid for an $8bn casino and entertainment complex at Metropolitan Park, adjacent to Citi Field in Willets Point, has gained considerable momentum.
The project promises thousands of construction and permanent jobs, along with major redevelopment of the surrounding area.
The other Queens contender, Resorts World New York City at the Aqueduct Racino in Ozone Park, remains in strong contention.
Resorts World already operates as a successful video lottery terminal facility and has long sought a full-scale casino licence to expand its gaming offerings.
However, despite mounting industry anticipation, the New York Gaming Commission has clarified that while it may issue up to three downstate casino licences, it is not obligated to award all of them.
This caveat adds an element of uncertainty to an already complex process, particularly as political scrutiny intensifies following MGM’s unexpected withdrawal.