CASINO RACE UPSET: MGM Resorts pulls Yonkers bid, leaving three in the running for as many NYC-area gaming licenses
Photo courtesy MGM Resorts
MGM Resorts has withdrawn its application to expand its Empire City “racino” in Yonkers, leaving just three bids competing for the three commercial casino licenses New York plans to award by the end of the year.
The move comes as the Gaming Facility Location Board approached its Oct. 14 deadline for applicants to submit supplemental materials, including projected tax rates on gaming revenue, revenue estimates under multiple licensing scenarios, and anticipated state and city tax revenue.
With MGM stepping aside, the competition for the three downstate licenses now includes just three viable bidders: Resorts World NYC and Metropolitan Park in Queens, and Bally’s Bronx proposal.
MGM stated in a press release issued late on Tuesday that changing economic and competitive conditions had rendered the project no longer viable. The company also cited a reduction in the expected license term from 30 years to 15 years, which would alter returns on its planned $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. 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,” the statement read. “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.”
The now-dead bid would have seen the expansion and renovation of Empire City Casino at Yonkers Raceway, adding a high-limit lounge, a state-of-the-art BetMGM Sportsbook, a 5,000-seat entertainment venue, and flexible meeting spaces for events and community functions. The project also included three new full-service restaurants, upgraded dining options, and a parking garage with solar panels and EV charging stations.
MGM added it will continue operating Empire City Casino in its current format, which has generated $1.6 billion for New York State education since 2019.
The shocking dropout, first reported by Crain’s New York, was also confirmed by the state Gaming Commission, which told amNewYork it was notified of the Las Vegas-based company’s withdrawal Tuesday afternoon.
The Gaming Facility Location Board, which will recommend up to three winners, is expected to make its selections by Dec. 1, 2025, with the Gaming Commission having the final say and granting final licenses by Dec. 31, 2025.
In deciding who gets a license, the board will evaluate casino proposals mainly on their economic impact and business development, considering factors such as projected tax revenue, job creation, construction timelines, quality of facilities, financing, and operator experience.
