MGM Resorts International has officially withdrawn its bid for a coveted downstate casino license in New York, halting plans to transform its Empire City Casino in Yonkers into a comprehensive gaming resort. The announcement on Tuesday took many industry analysts by surprise, signifying a major shift in one of the most competitive casino development races in the state.
MGM cited recent regulatory changes as a key factor in its decision. The company explained that these changes, along with the clustering of competing proposals, have made the project financially unappealing. MGM’s assessment of the market conditions suggested that the returns from the investment would not meet early expectations, forcing them to reconsider.
The company noted that the competitive landscape and economic assumptions that initially supported their application had undergone significant shifts, altering the anticipated returns. MGM’s statement reflected a clear reevaluation of the project’s viability in light of these new conditions.
This development follows shortly after Community Advisory Committees in Yonkers and Queens had endorsed the expansion plans of MGM and Resorts World NYC. Both companies were perceived as leading candidates in the casino license race, primarily because of their successful operation of “racinos.” These establishments, which feature slot machines and electronic games, were positioned for easy conversion into full-scale casinos.
Initially, MGM had targeted an investment of $2.3 billion to upgrade its Empire City property. However, the company’s plans changed considerably after regulatory bodies indicated that the new casino licenses would be valid for 15 years, rather than the 30-year period MGM had originally factored into its business model. This reduced licensing term, paired with increased tax obligations, dramatically shifted MGM’s financial forecast.
Despite stepping back from the bidding process, MGM will continue running Empire City Casino in its current format. The facility continues to rank as one of the largest and most profitable slot machine venues in the United States. Even with the threat of new competition from upcoming casinos, MGM remains optimistic about the ongoing profitability of this high-value market segment.
MGM’s withdrawal leaves three major players in the race: Resorts World, Bally’s Corporation, and a partnership between Hard Rock International and Mets owner Steve Cohen. Resorts World, which operates at Aqueduct Racetrack in Queens, has proposed an ambitious $5.5 billion expansion. Meanwhile, Cohen’s vision includes an $8.1 billion entertainment complex next to Citi Field, and Bally’s aims to develop a $4 billion project on its existing golf course location in the Bronx.
The New York Gaming Facility Location Board possesses the authority to recommend up to three new full-scale casino licenses, although it is under no obligation to grant all three. Initially, eight projects competed for consideration, but the intensive local review process has narrowed the field significantly. The remaining candidates will undergo rigorous assessment concerning their economic impact, job creation potential, community support, and projected sustainability. A final decision is anticipated by December 1.
While MGM’s exit may seem like a setback, it also reflects a strategic recalibration in response to evolving market dynamics. The company’s decision may be seen as prudent, avoiding heavy investment in a potentially oversaturated market. A voice familiar with the landscape remarked that sometimes the best financial decision is knowing when to fold, suggesting that MGM’s withdrawal might not be a retreat but a calculated pause, preserving capital for more favorable opportunities.
Conversely, other industry stakeholders view this as a missed opportunity for MGM to innovate further in a transforming gaming environment. The remaining contenders are moving forward with bold visions and strong financial commitments, underscoring the robust competition and substantial market potential they foresee in New York.
The New York casino scene remains one of the most lucrative and enticing in the United States, attracting significant interest from major gaming corporations. The outcome of the current licensing race could dramatically alter the gaming landscape in the region, influencing not just the businesses involved but also local economies and job markets. As the deadline for final decisions approaches, all eyes will be on the New York Gaming Facility Location Board and the strategies of the remaining contenders. The stakes are high, and the anticipated economic ripple effects underscore the importance of each decision taken in this high-profile contest.
