End of an Era in Yonkers
Last week, MGM Resorts International announced the purchase of Empire City Casino and Yonkers Raceway for $850 million, in one of the largest real estate-business transactions in Westchester history.
“We are excited to announce the addition of Empire City to the MGM Resorts portfolio,” said Jim Murren, chairman and CEO of MGM Resorts International. “This acquisition represents an excellent opportunity to further solidify our presence on the East Coast and expand our reach into the high-density New York City region. We look forward to welcoming the Empire City team and guests to the MGM Resorts family.”
Part of the payment will be in the form of MGM stock, and the deal is also contingent on whether Empire City is awarded a license for live table games on or prior to Dec. 31, 2022, and MGM Resorts accepts such license by Dec. 31, 2024. If table games come to the casino before then, MGM will pay an additional $50 million.
The sale is expected to be completed by the beginning of 2019, and several approvals are required, including from the New York Gaming Commission.
“With Empire City’s approximately 40 percent share of gross gaming revenues in the market, we believe there are significant opportunities for MGM Resorts to further drive growth,” said Dan D’Arrigo, executive vice president and chief financial officer of MGM Resorts International.
The sale of Empire Casino-Yonkers Raceway marks the end of an era in Westchester for the Rooney family, owners of the property since 1972. The family, led by Tim Rooney Sr. xxxxx, has operated the raceway up until 2006, when slot machines were added, as a true neighbor and partner to both Yonkers and Westchester County.
The sale had been rumored for some time, but many were still sad to see the ownership change. “The Rooneys were the best corporate partners that any community could ask for,” said xxx.
The question now becomes: What will happen to the 97-acre property where the casino and raceway now sit? MGM is expected to enhance the gaming experience to the 5,200 slot machines and video lottery terminals already at Empire Casino, and may upgrade the total entertainment experience by adding or improving the dining or adding a hotel. The removal and relocation of the raceway is another option that MGM is said to be considering over time.
The two big gambling questions for the future of the casino and MGM are: Will there be sports betting and table games permitted? The Rooney family and Empire Casino have lobbied hard for casino-style table games to be permitted not only at Yonkers, but across New York State, to compete with Las Vegas and Atlantic City.
Another big unknown that may have sparked the deal is the future of sports betting in New York State. A recent court decision by the U.S. Supreme Court xxxxx Murphy decision xxxxxx allows states to permit gambling on sporting events, which up until now is only allowed in Las Vegas. Gov. Andrew Cuomo and the State Legislature must now come up with legislation to allow sports wagering at casinos, online, or both.
With the purchase of the Casino, MGM will be ready for both table games, sports betting, and online gambling, if they are approved in Albany. MGM has experience in online gambling from its New Jersey site, and from table games and sports wagering from its Las Vegas properties.
Empire City Casino has been profitable since opening more than 10 years ago, with public records showing annual net revenue of $230 million. What changes MGM will make to a legendary Westchester location to further enhance the gambling experience is unknown.
“We are thrilled to welcome MGM to Yonkers, as it’s committed to building upon Empire City Casino’s successes and taking the next steps into developing it into a world class entertainment destination,” said Yonkers Mayor Mike Spano. “Attracting MGM’s first-class brand is a recognition of our city’s ongoing renaissance and transformation. We look forward to working with MGM in continuing to make Yonkers a great place to live, work and play, and we thank Empire City Casino and the Rooney family for all their support and friendship over the years. Without their leadership, vision and success, this MGM partnership would not be possible for the City of Yonkers.”
When Spano proposed video lottery gaming at Yonkers Raceway years ago while in the New York State Assembly, he was met with strong push-back, and many dismissed Yonkers as a prime location for gaming and destination tourism. Today, Empire City Casino is Yonkers’ largest employer and largest property taxpayer.
“The agreement to sell Empire City Casino to MGM Resorts International promises to be a major economic milestone for the City of Yonkers, Westchester County and New York State,” said John Ravitz, executive vice president of the Business Council of Westchester. “The iconic property has been operated with pride and foresight by the Rooney family since 1972 and under their stewardship evolved from its origins as Yonkers Raceway to today’s multi-faceted entertainment complex. Empire City has emerged a major economic driver with more than 1,200 employees and a $45 million annual payroll, nearly 8 million annual visitors, and one of the most successful gaming operations in the nation.
“The proximity of Empire City to New York City and the entire metropolitan area is unrivaled, while its potential for far greater financial success with the addition of full gaming license remains untapped,” he continued. “Gaining a full gaming license for Empire City has long been a top legislative priority. We look forward to continuing these efforts with the new ownership. We thank the Rooneys for their deep commitment to Westchester County and for creating the solid foundation for future success.”
