MGM Withdraws from New York Casino Bid

MGM Resorts has decided to withdraw its application for a casino licence in New York City, specifically for the Empire City Casino project in Yonkers. The decision comes on the very day that tax rate submissions were due, leaving only three contenders in the race for the coveted casino licences.

MGM Resorts cited “newly issued guidance” regarding the licensing terms as a significant factor in their decision to step back. The company had initially planned a substantial investment of $2.3 billion to transform Empire City Casino into a fully operational casino and entertainment venue. However, the recent changes indicated that the company would only qualify for a 15-year commercial casino licence instead of the anticipated 30-year licence.

Financial Implications

The shift in licensing expectations has altered the financial landscape for MGM. The company expressed that the revised competitive environment, with multiple proposals concentrated in a small area, has diminished the anticipated returns from the project. In a statement, MGM noted:

“The newly defined competitive landscape…challenges the returns we initially anticipated from this project.”

This withdrawal not only impacts MGM’s plans but also raises questions about the future of the existing gaming complex, which currently generates significant tax revenue for Yonkers.

MGM’s proposal had garnered considerable support within the Yonkers community, receiving a unanimous vote from a local advisory committee to advance to the tax submission stage. The project was expected to create thousands of jobs and inject $100 million into local infrastructure improvements. The community had high hopes that the expansion would bolster the local economy.

However, with MGM’s exit, concerns have arisen about the potential for the existing Empire City Casino to remain viable amidst increasing competition from other casinos. The facility currently contributes approximately $30 million annually in tax revenue to the city, and its future now appears uncertain.

Local officials and community members expressed disappointment at MGM’s decision. Many had viewed the expansion as a vital opportunity for economic growth and job creation. The advisory committee had initially supported the proposal partly due to fears that the emergence of other casinos could jeopardise the future of Empire City.

Remaining Contenders

With MGM’s withdrawal, the competition for New York City’s casino licences has narrowed to three remaining proposals: Resorts World, Metropolitan Park, and Bally’s Bronx. These contenders will now proceed to the next stage of the selection process.

The remaining proposals will be evaluated by the Gaming Facility Location Board, which will consider tax rates based on projected gross gaming revenue over a three-year period. The board will assess three potential competitive scenarios—low, average, and high—before making its recommendations.

The New York Gaming Commission is expected to announce the awarded licences by early December, allowing the selected projects to move forward with their plans, potentially commencing operations in 2026.