In a stunning about-face, MGM Resorts announced Tuesday it was pulling its bid to operate a casino in Yonkers.
The announcement is particularly surprising because the company had only two weeks ago received the necessary greenlight from community leaders to move onto the final selection round where a state board will decide on the handful of remaining bids vying for New York City’s three casino licensees by the end of the year.
In their public statement Tuesday, MGM Resorts said a competitive and narrow market in the metro area would challenge “the returns we initially anticipated from this project.”
“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,” the statement read.
The company also said their proposal filed in June was predicated on receiving a 30-year casino license. But based on updated guidance from the state, MGM Resorts said, they only expected to receive a license for 15 years.
After MGM’s stunning move, the only bids left to go before the state gambling regulators is Bally’s in the Bronx, Metropolitan Park in Flushing and the Aqueduct Racetrack, also in Queens.
The sudden turn drew skepticism from local officials.
“This decision by MGM defies all logic and it’s nothing short of a betrayal to the people of Yonkers and Westchester County,” Yonkers Mayor Mike Spano wrote Tuesday night.
Spano even called on Gov. Kathy Hochul to investigate the situation.
“It’s no secret that the big winner from this reversal will be Bally’s proposal for a casino at the former Trump Links in Whitestone. It’s also no secret that Bally’s has a deal with Donald Trump that they will pay him an additional $115 million if they can open a casino there,” he continued.
The now former proposal by MGM Resorts would have enhanced the existing Empire City Casino. In addition to building out the current gaming operation, the property would have added restaurants and an entertainment venue.
New York Mets owner Steve Cohen announced plans Tuesday for a new development called Metropolitan Park that he hopes will include a casino and sportsbook.