MGM Resorts International announced Tuesday afternoon it is withdrawing its commercial casino license application submitted to the New York State Gaming Commission and Gaming Facility Location Board. MGM had been seeking the license to expand its Empire City property in Yonkers, just north of New York City, from racing and slots into a full-service casino.
MGM’s was one of four remaining bids for up to three casino licenses the state is planning to award by year’s end. At one point the field contained eleven bidders, but three withdrew before the application deadline and four more were vetoed by community advisory committees.
Just three weeks ago, a community advisory committee unanimously approved the MGM project, sending the bid to the location board along with surviving bids from Bally’s in the Bronx, Resorts World New York City in Queens, and Mets owner Steve Cohen’s Metropolitan Park development, which includes a Hard Rock casino adjacent to Citi Field, also in Queens.
“Today, MGM Resorts made the difficult decision to withdraw its application for a commercial casino license in Yonkers, New York,” the company said in a statement. “Since submitting our application in June, the competitive and economic assumptions underpinning our application have shifted, altering our return expectations on the proposed $2.3 billion investment.
“The newly defined competitive landscape – with four proposals clustered in a small geographic area – challenges the returns we initially anticipated from this project,” MGM said. “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 said in its statement that it has been a proud partner of the city of Yonkers and the state of New York since it purchased Empire City Casino in 2019. The property has generated more than $5 billion for New York state education, including $1.6 billion under its ownership.
“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 and the surrounding communities,” MGM said.
Tuesday was a deadline for the remaining bidders to submit supplemental information to the board, including proposed tax rates.
The Yonkers Times reported that Yonkers Mayor Mike Spano called the decision by MGM “a betrayal of the people of Yonkers and Westchester County.”
In his statement, Spano said, “I am calling on Governor (Kathy) Hochul to launch an independent investigation into this process, because the reasons MGM gives for its 180-degree reversal just don’t add up.
“It’s not a secret that the big winner” from this reversal will be Bally’s proposal for a casino at the former Trump Links in the Bronx, Spano said.
“It’s also no secret that Bally’s has a deal with Donald Trump that they will pay him an additional $115 million if they can open a casino there,” Spano said. “People need to be assured that there 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. MGM has publicly acknowledged that Empire City cannot survive without a full gaming license, so why are they signing their own death warrant?
“MGM’s blaming the 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?”
With only three bidders left for up to three licenses, the only suspense remaining in the drawn-out process to build full casinos in downstate New York is about how many licenses the state will award. Resorts World and MGM Empire City already offer slots and horse racing. Bally’s and Metropolitan Park are proposals for brand-new facilities.
