MGM Empire City and Resorts World win local approval in New York casino license bid

Two major contenders in the competition for downstate New York’s full-scale casino licenses have taken the lead after receiving unanimous approval from their respective Community Advisory Committees (CACs). MGM Empire City in Yonkers and Resorts World New York City at Aqueduct Racetrack in Queens became the first applicants to clear the local review stage, positioning themselves ahead of six other bidders vying for three licenses expected to be awarded later this year.

On Thursday, the CAC for Empire City Casino unanimously voted 5-0 to forward MGM’s $2.3 billion expansion plan to the state’s Gaming Facility Location Board. Hours later, the Queens-based CAC advanced Resorts World’s $5.5 billion proposal by a 6-0 vote.

Both venues are considered front-runners due to their existing operations as video lottery terminal (VLT) facilities, which have been serving gamblers for over a decade. Empire City opened in 2006 at Yonkers Raceway and was acquired by MGM in 2018 for approximately $850 million. Resorts World launched at Aqueduct in 2011 and expanded its offerings in 2021 with a 400-room hotel.

MGM’s plan includes transforming its VLT venue into a full-scale casino with 183 live dealer games, 14 new restaurants and bars, and a 5,000-seat entertainment venue. The project also outlines the creation of 8,500 jobs, with 6,500 related to construction and 2,000 in gaming, increasing its casino staff from 700 to 2,700.

"We are grateful to the Community Advisory Committee and our local community for demonstrating their continued support for Empire City Casino. For more than 100 years, Yonkers Raceway and Empire City have been intertwined with the City of Yonkers. We look forward to continuing to drive well-paying jobs for local residents and providing hundreds of millions of dollars in annual education revenue to the State of New York," MGM Resorts said in a statement.

Render of MGM Empire City 

As part of its revised proposal, MGM Empire City included several new commitments aligned with its Community Benefit Agreement with the City of Yonkers.

These include $10 million for a new library and community center, $2 million for small business facade improvements along Yonkers Avenue, $1.5 million in seed funding plus $500,000 annually for the Yonkers Economic Development Council, $2 million for streetscape improvements, and $1.25 million for local parks. The plan also includes a $100 million investment in traffic and drainage upgrades near the casino site.

James Cavanaugh, chair of the Yonkers CAC and an appointee of Yonkers Mayor Mike Spano, highlighted the high stakes of the project during Thursday’s vote. “If Yonkers does not get one of the three full casino licenses, Empire Casino will wither and die,” he said. “With three new casinos within a half-hour drive, all offering table games, sports betting, entertainment… who is going to continue going to an aging slot parlor that has none of these things?”

He added: “A casino license is a good deal for New York state, for Westchester County, and especially for Yonkers. For that reason, I join the rest of my fellow committee members and vote yes.”

Meanwhile, in Queens, Resorts World received similar support. Its $5.5 billion proposal envisions the development of what is billed as the largest integrated resort in the US, including expanded gaming options, new hotel rooms, an arena, a parking facility, green space, and the creation of 24,000 jobs, 5,000 of them permanent.

“On behalf of the entire Resorts World team, I want to thank the Community Advisory Committee for recognizing the impact we will have not only on Queens but all of New York City and State,” said Robert DeSalvio, president of Genting Americas East. “We are incredibly grateful to the large number of residents, partners, and supporters who touted this project, without a single person speaking against it.”

Queens Borough President Donovan Richards offered an enthusiastic endorsement of the project during Thursday’s vote, even throwing in a competitive jab at neighboring boroughs that failed to advance proposals. “There’s a theme in Queens, and I know (rapper) Nas is a part of this ‘Queens get the money.’ Sorry, Jay-Z, we win again,” Richards said. “With that being said, I vote aye.”

Resorts World is now preparing to present its full proposal to the Gaming Facility Location Board. A key component of its pitch includes generating $1 billion in economic activity by next year. 

Thursday’s approvals mark the first time any downstate New York CACs have advanced casino proposals. All three Manhattan-based applications, Caesars Palace Times Square, Freedom Plaza, and The Avenir, have been rejected, each by 4-2 margins. Another proposal in Brooklyn, known as The Coney, is likely to be rejected as well, with four CAC members publicly opposing it ahead of Monday’s scheduled vote.

The CACs for Bally’s and The Coney are set to vote Monday, while the CAC reviewing the Metropolitan Park proposal near Citi Field will cast its decision Tuesday, the deadline for all local advisory votes. Failure to hold a vote by then will be considered a rejection.

Ultimately, the New York State Gaming Facility Location Board will review all approved applications and make its recommendations in December. The final decision will rest with the New York State Gaming Commission, which will determine the recipients of the up to three available licenses, each costing $500 million.