MGM Resorts Withdraws New York Downstate Casino Bid

• MGM Resorts, one of the frontrunners for a New York downstate casino license, yesterday withdrew its bid
• Expected returns on the project became “challenged,” according to an official company statement
• Three bids remain for up to three New York casino licenses

MGM Resorts, which many believed to be a frontrunner for a New York “downstate” casino license, yesterday unexpectedly withdrew its bid for one of the three available licenses.

The company announced Tuesday it would no longer pursue its Empire City Casino renovation and expansion project, noting that since it submitted its application in June “the competitive and economic assumptions underpinning our application have shifted, altering our return expectations on the proposed $2.3 billion investment.”

With MGM Resorts withdrawal, only three license bids remain for a total of three potential casino licenses.

So, What Happened?

MGM Resorts proposal to renovate and expand the Empire City Casino in Yonkers was the first project unanimously approved by the Community Advisory Council. MGM planned to add 183 live dealer games and a 5,000-seat venue for concerts and shows at the facility.

However, due to changes in estimated returns on the project, and new guidance on licensing, MGM Resorts decided to pull the project.

“The newly defined competitive landscape – with four proposals clustered in a small geographic area – challenges the returns we initially anticipated from this project. Also, 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. 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 company said.

MGM Resorts purchased the property in 2019 and had planned to begin construction and renovations within months if it was awarded a license. The facility currently offers horse racing, slots, and video gaming to the public.

Despite the decision, the company will “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.”

Three Bids Remains

Only three companies and three bids remain for up to three casino licenses which can be awarded by the New York State Gaming Commission.

Resorts World, Bally’s Bronx, and Metropolitan Park remain as the three finalists for licenses. Resorts World is planning a $5.5 billion, 5.6 million-square-foot proposal for a casino in Queens; Bally’s Bronx proposed a $4 billion, 3 million-square-foot facility in the Bronx; and Metropolitan Park, a partnership between Steve Cohen and Hard Rock International, proposed an $ billion casino and open space project on 50-acres of an asphalt parking lot at Citi Field, home of the New York Mets.

The New York State Gaming Commission will ultimately make its decision on the three applications in December, awarding the licenses so projects can begin construction in 2026.