MGM Resorts withdraws Yonkers casino license bid, citing shifting economics and licensing terms

MGM Resorts International has formally withdrawn its bid to convert Empire City Casino in Yonkers into a full-scale commercial casino, eliminating what was seen as one of the leading contenders for a coveted downstate New York license.

The announcement was made by MGM Yonkers Inc., a subsidiary of the Las Vegas-based gaming giant, in a letter to the New York State Gaming Commission and the Gaming Facility Location Board. The company stated that since submitting its application in June, changes to the competitive landscape and revised guidance from the state have altered the financial viability of its $2.3 billion proposal.

“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.”

MGM noted that the sudden clustering of four major proposals in a small geographic area had created an unexpected level of competition, reducing anticipated returns. Compounding this challenge was a change in the expected duration of the license.

MGM said its investment strategy was based on receiving a 30-year license, but newly issued state guidance now indicates only a 15-year license would be granted.

“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 statement added.

Despite withdrawing its application, MGM said it would continue to operate Empire City Casino in its current format, which offers electronic table games and video lottery terminals. Since acquiring the racino in 2019, MGM has contributed $1.6 billion to New York State education funding, with the property generating over $5 billion in total since opening.

Render of the proposed development

“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.

The withdrawal is a major shift in the race for up to three available downstate gaming licenses, a process that is expected to conclude by the end of the year. MGM’s Empire City bid was widely seen as one of the strongest in the field, particularly after it received endorsement from a local Community Advisory Committee (CAC) last month, a critical milestone in the state’s licensing process.

Yonkers Mayor Mike Spano expressed deep frustration over the development, sharply criticizing MGM's reversal and suggesting there may be more to the story.

“I am calling on Governor Hochul to launch an independent investigation into this process, because the reasons MGM gives for its 180-degree reversal just don’t add up,” Spano said in a statement. He also hinted at possible favoritism in the remaining bids, including one by Bally’s, which is proposing a resort at a former Trump golf course in The Bronx.

MGM's exit leaves three proposals still in the running. Genting Group is seeking to expand its existing Resorts World facility at Aqueduct Racetrack in Queens into a full casino resort. The site was the highest-grossing commercial gaming property outside of Nevada and Mississippi last year, according to the American Gaming Association.

In Queens, New York Mets owner Steve Cohen and Hard Rock International are pursuing an $8 billion casino and entertainment complex dubbed Metropolitan Park, next to Citi Field. The project has already received CAC approval.

The third remaining bid comes from Bally’s Corporation, which hopes to develop a casino resort at the Bally’s Golf Links site near Ferry Point in The Bronx. The Rhode Island-based operator has also recently unveiled new details of its plans to redevelop the former Tropicana site in Las Vegas.

While the New York State Gaming Commission has the authority to award up to three licenses, it is not obligated to grant all three. MGM’s departure comes in the middle of a competitive process that has already seen prominent bids, including proposals for casinos in Times Square and Hudson Yards, fall through amid community opposition. MGM’s Empire City Casino was the sixth highest-grossing commercial property in the country outside Nevada and Mississippi last year.