MGM Yonkers withdrew its commercial casino license application from the New York State Gaming Commission yesterday. The decision surprised many observers.
The operator had advanced to the state’s Casino Gaming Location Board on September 25. Its bid received unanimous approval from the Community Advisory Committee just two days earlier. MGM now joins the list of operators stepping back from major expansion plans.
Hard Rock International, Resorts World and Bally’s Corporation remain in contention for New York’s three available licenses.
Why MGM Changed Its Casino Investment Strategy
The company’s original $2.3 billion investment proposal no longer makes financial sense. “The competitive and economic assumptions underpinning our application have shifted” since the June filing, MGM stated.
Four casino proposals ended up clustered in a small geographic area. This concentration changed MGM’s expected returns significantly. The math just didn’t work anymore.
But there’s another problem. MGM expected to receive a 30-year commercial casino license for its Empire City Casino expansion. New guidance from New York State means they’d only qualify for 15 years instead.
That’s half the operating timeframe. It fundamentally alters the investment equation.
What Factors Drove the Withdrawal Decision
MGM cited its partnership with real estate firm VICI as part of the calculus. The shortened license term and increased competition created a “proposition that no longer aligns with our commitment to capital stewardship,” the company explained.
The operator purchased Empire City Casino back in 2019. Since then, the property has generated $1.6 billion for New York State education. Total contributions from the site exceed $5 billion.
MGM also announced a partnership with UK charity BetBlocker on October 14 to strengthen player protection across its properties. The company will continue operating Empire City in its current racino format.
How This Changes New York’s Casino Competition
The Gaming Commission plans to award three commercial casino licenses by year’s end. Two proposals in Queens and one in the Bronx are still under review.
MGM’s exit reduces pressure on the remaining applicants. With one fewer competitor, the three operators left may see improved odds.
The clustered geographic positioning that concerned MGM could still affect the other bids. Regulators will need to consider whether approving multiple casinos in close proximity serves the market well.
For Yonkers specifically, this means no major casino expansion is coming. The existing racino will keep operating, but the planned $2.3 billion transformation won’t happen. At least not under MGM’s ownership.
