MGM Resorts International has withdrawn its application for a commercial casino license in Yonkers, New York, citing significant changes in competitive conditions and licensing terms that have altered the project’s financial viability.
MGM Yonkers Inc., a subsidiary of MGM Resorts International, officially withdrew its commercial casino license application to the New York Gaming Commission and the Gaming Facility Location Board. The decision ends the company’s pursuit of a $2.3 billion project to transform its Empire City Casino site into a full-scale commercial casino and entertainment destination.
“The competitive and economic assumptions underpinning our application have shifted, altering our return expectations on the proposed $2.3 billion investment,” MGM Resorts stated. The company identified two primary factors behind the withdrawal: intensified competition from rival bids clustered in a small geographic area, and a significant reduction in the license term from an expected 30 years to just 15 years based on newly issued state guidance.
The company emphasized that these combined factors “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 Empire City Casino, which MGM acquired in 2019, currently operates as a slots and electronic gaming facility. Despite withdrawing from the license competition, MGM Resorts confirmed it will continue operating the property in its current format. The site has generated more than $5 billion for New York State education, including $1.6 billion under MGM’s ownership.
MGM’s withdrawal narrows the field in New York’s downstate casino race, which initially attracted eight bidders competing for three available licenses. With MGM now out of the running, three major contenders remain: Genting’s Resorts World New York City expansion in Queens; Bally’s proposed casino at the site of the former Trump Golf Links in the Bronx; and Metropolitan Park, a planned entertainment and casino complex adjacent to Citi Field proposed by a consortium led by New York Mets owner Steve Cohen and Hard Rock International.
Meanwhile, the Genting group remains a frontrunner for one of the coveted licenses. Genting Malaysia is proposing a US$5.5 billion bid to expand and upgrade its existing Resorts World New York City facility. To support this project, parent company Genting Bhd announced a conditional voluntary takeover offer for Genting Malaysia on Monday, aiming to strengthen the subsidiary’s financial position.
‘If the [New York] bid is successful, significant capital investment is required,’ Genting Bhd stated, adding that majority ownership would enable the group to ‘lend the Genting group’s financial strength and network to support the development of this significant project.’
Genting Malaysia previously revealed that the results of the downstate New York casino licensing process are expected on December 1st.
