MGM Resorts Withdraws from New York Casino License Competition
MGM Resorts Pulls Out of New York Casino License Race
MGM Resorts International has officially withdrawn its bid for one of New York’s highly sought-after downstate casino licenses, ending plans to develop its Empire City Casino in Yonkers into a larger gaming resort. This unexpected announcement represents a major shift in the competitive landscape of New York’s casino development competition.
Financial Viability Impacted by Regulatory Changes
MGM explained that new state regulations and the clustering of competing proposals made the project financially unfeasible. The company highlighted that recent changes have significantly lowered the expected returns, undermining the investment’s profitability.
In their statement, MGM emphasized that evolving competitive and economic conditions have altered their initial financial outlook.
This decision follows recent endorsements from community advisory groups in Yonkers and Queens, which had backstopped expansion efforts by MGM and another major operator, Resorts World NYC. Both companies were leading candidates in the race due to their operation of established racinos—venues that combine racetrack betting with slot machines and electronic games—and their potential for easy expansion into full-scale casinos.
MGM had initially planned a $2.3 billion expansion of its Empire City property. However, a critical change to the state’s licensing terms — shortening the license period from 30 years to 15 years — along with increased tax obligations, forced a re-evaluation of the project’s financial feasibility, ultimately impacting MGM’s decision to withdraw.
Current Status of the Casino License Competition
Despite withdrawing its casino expansion bid, MGM will continue to operate the existing Empire City Casino, which remains one of the largest and most profitable slot machine establishments in the country. MGM remains optimistic about the future performance of this lucrative segment amid rising competition.
The casino license contest now features three primary contenders: Resorts World, Bally’s Corporation, and a joint venture between Hard Rock International and Steve Cohen, owner of the Mets. Resorts World is pursuing a $5.5 billion expansion at Aqueduct Racetrack in Queens, while Steve Cohen’s project aims to develop an $8.1 billion entertainment complex adjacent to Citi Field. Bally’s proposal involves a $4 billion casino and resort development on its golf course land in the Bronx.
The New York Gaming Facility Location Board is authorized to recommend up to three full-scale casino licenses but is not obligated to assign all available licenses. The competition began with eight projects but has been narrowed considerably through local reviews. Remaining proposals are undergoing detailed assessments focusing on economic benefits, employment opportunities, community support, and sustainability efforts. A final decision is expected by December 1.
