MGM surprisingly dropped its bid to build a casino in Yonkers on Tuesday – a move that whittles the field of new prospective gambling dens downstate.
The move by MGM Resorts International – first reported by Crain’s and confirmed by The Post – to withdraw an application to expand its existing Empire City outpost leaves a trio of contenders for three coveted state gaming licenses.
MGM surprisingly dropped its bid to build a casino in Yonkers on Tuesday – a move that whittles the field of new prospective gambling dens downstate. AP
In a letter to the state gaming commission, MGM’s senior vice president Patrick Madamba said it was difficult decision.
“However, since submitting the Application in June, the competitive and economic assumptions underpinning the Application have shifted, altering MGM’s return expectations on the proposed $2.3 billion investment,” the letter states.
“The newly defined competitive landscape – with four proposals clustered in a small geographic area – challenges the returns MGM initially anticipated from the project.”
The withdrawal is the latest twist in race to win over the state’s gaming commission, which is set to make the final decision on awarding up to three casino licenses by year’s end.
Two prominent bids – a proposal by Caesars/Jay-Z-Roc Nation and SL Green for a casino in Times Square, and another by Silverstein Properties for a casino near Hudson Yards – flamed out amid neighborhood opposition.
Only three proposals now remain, following MGM bowing out.
The bid withdraw leaves a trio of contenders for three coveted state gaming licenses. AP
Mets’ owner Steve Cohen’s bid to open a $8 billion casino complex next to Citi Field remains active, as do applications for Bally’s at a former Trump golf course in The Bronx and Resorts World at Queens’ Aqueduct race track.
The state’s gaming commissioners can effectively greenlight up to all three projects, but also opt to grant fewer licenses.
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MGM had proposed to renovate and expand its existing Empire City Casino with live table games, such as craps, blackjack, poker and baccarat.
But Madamba noted its plans were based on the assumption it’d get a 30-year license, rather than the 15-year license now on the table.
Despite dropping the bid, Empire City Casino’s existing slot parlors will remain open, Madamba wrote.
Yonkers Mayor Mike Spano served up a fiery response to the withdrawal, calling it nothing short of a betrayal to the city and Westchester County. He also insinuated chicanery between Bally’s and President Trump.
“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,” Spano said in a statement.