By Dan Murphy
In a shocking announcement, MGM Yonkers announced today that they are withdrawing their application to the NY Gaming Commission for a commercial casino license at Empire Casino in Yonkers.
The statement reads:
MGM Yonkers Inc., a subsidiary of MGM Resorts International (NYSE: MGM), today withdrew its commercial casino license application to the New York Gaming Commission and the Gaming Facility Location Board.
MGM Resorts issued the following statement:
“Today, MGM Resorts made the difficult decision to withdraw its application for a commercial casino license in Yonkers, New York. Since submitting our application in June, the competitive and economic assumptions underpinning our application have shifted, altering our return expectations on the proposed $2.3 billion investment.
“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.
“MGM Resorts has been a proud partner of the City of Yonkers and the State of New York since we purchased Empire City Casino in 2019. The property has generated more than $5 billion for New York State education, including $1.6 billion under our ownership. We know our decision will impact many individuals; we remain committed to operating the property in its current format and believe it will continue to enjoy success serving customers in Yonkers and the surrounding communities.”
Yonkers Mayor Mike Spano called the decision by MGM “a betrayal to the people of Yonkers and Westchester County” and “Something doesn’t add up here. The people of Yonkers deserve answers.”
Spano’s full statement is below:
“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?
Our City has stood ready with the workforce, the infrastructure, and the overwhelming public support for full gaming at Empire City. MGM’s blaming New York State Government for their withdrawal rings hollow. The same rules apply to the other bidders. Why aren’t they pulling out as well?
Something doesn’t add up here. The people of Yonkers deserve answers,” said Spano.
Edited:
County Executive Ken Jenkins Statement on MGM Resorts’ Withdrawal of Casino License Application
“I am both shocked, disappointed, and deeply dismayed by MGM Resorts’ decision to withdraw its commercial casino license application for Empire City Casino from consideration by the New York Gaming Commission and the Gaming Facility Location Board. Frankly, this decision makes little sense — especially after MGM had just been celebrating its advancement through the first round of the process.
“I share Yonkers Mayor Mike Spano’s concern that there appears to be more to this story — potentially political influence or pressure from the Trump Administration, or even the President himself, that forced MGM’s hand to default to Bally’s — a move that could result in a profit of roughly $115 million for Trump.
“For decades, so many of us have supported this effort, believing in the promise of good-paying jobs, new investment, and long-term economic stability for Yonkers and Westchester County. While this was not the outcome we hoped for, we remain committed to supporting MGM and Yonkers and to ensuring that our community continues to thrive,” said Jenkins.
Edited:
Here’s what we are hearing:
Initial blame on President Donald Trump and the Bronx Casino proposal isn’t making sense. Why would Governor Hochul, or anyone in NY Government, force MGM out so that Bally’s in the Bronx gets the license?
Also, many are questioning MGM’s explanation that the Bally’s Bronx location would be too close to Yonkers Empire Casino. One elected we spoke to said, “Yonkers is closest to all of the northern suburbs and the Hudson Valley. Even Northern New Jersey, which makes the Yonkers site the most accessible. This doesn’t add up.”
Also, with MGM out, one of the licenses will go to Bally’s but the other two will go to locations in Queens…near each other. Mets owner Steve Cohen is a big winner with his proposed Hard Rock International Casino License Bid at Metropolitan Park (Citi Field), Willets Point, Queens.
The other Queens location, The Resorts World New York City location at the Aquaduct Racino in Ozone Park, Queens has always made sense, as did the other raceway, in YONKERS! But both are in Queens so what gives?
Governor Hochul is receiving a lot of initial criticism for reducing the license duration from 30 years to 15 years. That move is indeed a legitimate reason why MGM or anyone would pull out, but the other three now winning applicants are going to go along with it? Why couldn’t MGM? And why did Hochul lower the years at the last minute?
Majority Leader John Rubbo’s Statement on MGM Resorts’ Withdrawal from Empire City Casino License Process
“I am outraged and deeply disappointed by MGM Resorts’ decision to walk away from the Empire City casino license process. After years of promises, planning, and partnership with the City of Yonkers and New York State, MGM chose to abandon this project rather than fight for it. While other applicants remain in the process, MGM is walking away.
“MGM had every opportunity to stand up for this city and for the future of Empire City. Instead of challenging the Gaming Commission’s ruling on the license term, they chose the easy way out. A company of MGM’s size and resources, should have fought harder for a 30 year license term. Empire City generates nearly $700 million a month in gaming activity right here in Yonkers, proof that this property is one of the most successful gaming venues in the country.
“Yonkers built partnerships, spent thousands of hours reviewing this project, as well as advocating and lobbying at all levels of government. Yonkers stands ready to welcome a first-class entertainment destination that would benefit not only our residents but the entire region. MGM’s withdrawal is a reflection on their unwillingness to finish what they started.
“I am asking New York State, as a continued partner, to help ensure that Yonkers achieves the outcomes originally contemplated in our Community Benefits Agreement (CBA). Yonkers needs parity, the same outcome as contemplated by the CBA, by the State adjusting the vendor fee to enable MGM to perform under the CBA.
“Our city continues to deliver enormous value to the State through video lottery terminals (VLTs), yet Yonkers receives only $19.6 million annually in return. I look forward to working with the State to explore increasing our city’s share to 10% of all VLT proceeds paid into the State Education Fund, a fair reflection of what our community contributes every single day.
“Our city is strong, capable, and determined. Yonkers will continue working with New York State to make sure we receive the growth, jobs, and investment that our residents were promised, with or without MGM,” said Rubbo.
Council President Lakisha Collins-Bellamy said, “Yesterday, MGM Yonkers announced that it decided to withdraw its application for a commercial casino license. As City Council President, I am very disappointed by MGM’s choice to step away from a proposal that promised significant investment, new jobs, and tax revenues for Yonkers.
While this is a setback, it will not define our city or our future. Yonkers has long shown its resiliance and capacity for reinvention. We will continue to work with our partners, community leaders, and the state to pursue opportunities that deliver responsible economic growth, protect our neighborhoods, and create shared prosperity for all residents. I remain committed to our efforts to build “a Yonkers for all.”
