MGM Yonkers has abruptly withdrawn its bid for one of New York’s three downstate casino licenses.

The MGM Empire City proposal had been the very first downstate contender to be unanimously approved by its Community Advisory Council, a key step before final selection of the proposals is made in December. 

The move is a stunning reversal for a proposal seen as a leading contender, since it would’ve built on an existing property that’s had video slots and gaming since 2006. MGM had said it was ready to start construction of a $2.3 billion expansion within months of getting a license. Their proposal would’ve added 183 live dealer games, along with 14 new restaurants and bars, and a 5,000-seat venue for concerts and shows.

Tuesday’s announcement puts an end to that. 

MGM on withdrawing its bid

MGM Yonkers released the following statement on their decision to withdraw:

“Today, MGM Resorts made the difficult decision to withdraw its application for a commercial casino license in Yonkers, New York. 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 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.

“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 property has generated more than $5 billion for New York State education, including $1.6 billion under our ownership. 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.”

Yonkers mayor blasts “betrayal,” calls for investigation

Yonkers Mayor Mike Spano blasted the decision as “nothing short of a betrayal” and called on Gov. Kathy Hochul to launch an investigation. In a statement, he said:

“This decision by MGM defies all logic and it’s nothing short of a betrayal to the people of Yonkers and Westchester County. I am calling on Governor Hochul to launch an independent investigation into this process, because the reasons MGM gives for its 180-degree reversal just don’t add up.

“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. People need to be assured that there is no linkage between MGM’s decision and the massive financial benefit to Donald Trump.

“The people of Yonkers deserve to know if this process was tainted or manipulated in any way. MGM has publicly acknowledged that Empire City cannot survive without a full gaming license, so why are they signing their own death warrant?

“Our City has stood ready with the workforce, the infrastructure, and the overwhelming public support for full gaming at Empire City. 

“MGM’s blaming New York State Government for their withdrawal rings hollow. The same rules apply to the other bidders. Why aren’t they pulling out as well?

“Something doesn’t add up here. The people of Yonkers deserve answers.”

Three bids remain under consideration for three casino licenses

The move leaves just three bids remaining for the three gaming licenses to be awarded later this year. That includes two in Queens, including a proposal for Resorts World New York City in Queens, Bally’s Bronx, and Metropolitan Park at Willets Point, Queens. 

Click here for more information about the various downstate casino proposals.