MGM Yonkers Inc., a subsidiary of MGM Resorts International, has withdrawn its commercial casino licence application in New York, ending its pursuit of one of the three available downstate casino licences. The company confirmed the decision in a statement issued on 14 October.
“MGM Resorts made the difficult decision to withdraw its application for a commercial casino license in Yonkers, New York,” the company said. “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 Resorts’ announcement comes as the New York Gaming Facility Location Board (GFLB) reviews final submissions from the remaining applicants. MGM’s withdrawal reduces the field at a time when the state’s gaming regulators are focusing on projects that demonstrate clear financial viability and long-term economic benefits.
Competitive pressures reshape investment outlook
MGM Resorts cited changes in the newly defined competitive landscape as one of the main reasons for its decision. “The newly defined competitive landscape – with four proposals clustered in a small geographic area – challenges the returns we initially anticipated from this project,” the company explained.
MGM’s statement indicates that the proximity of competing projects had made it difficult for the company to justify its original financial forecasts for the Yonkers site. The $2.3 billion plan had aimed to expand and upgrade Empire City Casino into a full-scale resort casino, pending a state licence.
However, New York’s gaming authorities recently issued updated guidance affecting licence durations, which further altered MGM’s investment calculus. “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 said.
MGM added that the shorter licence period, combined with intensified competition, “results in a proposition that no longer aligns with the company’s commitment to capital stewardship, nor to that of its real estate partner in Yonkers, VICI.
MGM reaffirms commitment to Yonkers and Empire City Casino
While stepping away from the licensing process, MGM Resorts underscored its ongoing role in the Yonkers community and its continuing operations at Empire City Casino.
“MGM Resorts has been a proud partner of the City of Yonkers and the State of New York since we purchased Empire City Casino in 2019,” the company said. “The property has generated more than $5 billion for New York State education, including $1.6 billion under our ownership.”
The company also acknowledged the local impact of its decision but affirmed its commitment to the property’s existing operations. “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.”
Withdrawal narrows field in New York casino race
Resorts World (Queens), Bally’s (Bronx), and Metropolitan Park (Queens) are among the remaining contenders being evaluated by the GFLB. The regulatory board is assessing each proposal on financial stability, community impact, and long-term sustainability, and is expected to release its recommendations by December. While the state has the authority to grant up to three licences, the board has indicated that it will only approve projects that meet all economic and regulatory criteria.
MGM’s exit from the process narrows the competition and may alter how regulators view the overall balance of investment and regional development in the downstate area.
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