MGM’s Empire City Casino in Yonkers Withdraws From Casino License Consideration

In a rather stunning turn of events, MGM Resorts recently announced its intention to withdraw its bid as one of New York’s three downstate casino license applicants. There are now just three bidders remaining for a possible three New York downstate casino licenses.

MGM Refuses to Roll the Dice

The field of casino projects had been whittled from a dozen to only four, but MGM Resorts just upset the proverbial apple cart by withdrawing its application for a $2.3 billion expansion to its existing Empire City Casino in Yonkers.

The racino is located at Yonkers Raceway, home of live harness horse racing.

Although Empire City calls itself a casino, it is actually located adjacent to the raceway and has only slots and electronic table games available. The full casino permit would have allowed live table games and the ability to become a destination resort, which would increase tourist traffic.

The project would have added 183 live dealer games, 14 new restaurants and bars, and a 5,000-seat venue for concerts and shows.

MGM Yonkers released the following statement, which said, in part: “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.

Yonkers Mayor Irate

One of the key stumbling blocks for casino projects has been getting community approval, which comes in the form of a vote from the local Community Advisory Council (CAC). Ironically, the MGM Empire City proposal had been the first downstate casino license applicant to be unanimously approved by its CAC.

Needless to say, the politicians who supported the proposal are none too happy about the decision and were not afraid to voice their displeasure.

Yonkers Mayor Mike Spano called it a “betrayal” and has called on the state to investigate. “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?”

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