MGM Resorts International unexpectedly exited the race for a downstate New York casino license, announcing Tuesday that it would no longer pursue plans to transform its Empire City racetrack in Yonkers into a full-scale casino. The decision significantly narrows the pool of applicants competing for up to three gaming licenses in the New York City area.
In a statement, MGM explained that since submitting its proposal in June, shifting market dynamics and economic conditions had impacted the feasibility of its $2.3 billion investment. The company cited increased competition in a concentrated geographic area and a change in the expected license duration, from 30 years to just 15, as key factors that altered its financial outlook.
Three Bids Remain For NYC Casino License
With MGM stepping aside, only three proposals remain. These include:
- Steve Cohen’s plan to build a casino near Citi Field in Queens.
- Bally’s proposal to develop a gaming venue on the former Trump golf course in the Bronx.
- Resorts World’s initiative to expand its existing racetrack-casino hybrid in southeast Queens.
The New York State Gaming Facility Location Board is expected to announce its final decisions by December 1. Each license will cost a minimum of $500 million, though Resorts World has pledged $600 million, while Cohen has committed to the base amount. Bally’s has not disclosed its proposed fee.
Yonkers Mayor Mike Spano responded to MGM’s withdrawal with concern, urging Governor Kathy Hochul to initiate an independent review of the licensing process. He questioned whether the decision was influenced by financial arrangements, particularly Bally’s agreement to pay the Trump Organization $115 million if its Bronx casino plan is approved. Spano emphasized the need for transparency and public confidence in the integrity of the selection process.
Meanwhile, four other casino proposals, including three located in Manhattan, were previously rejected by local advisory boards. The remaining applicants were required to submit additional documentation this week, including proposed tax rates for their facilities.
Online Casinos In New York
While the state of New York offers numerous online gambling options, casinos are not authorized to operate online within the state’s borders. However, there are no restrictions on players who choose to gamble online with offshore casino sites.
Current state and federal gambling laws do not address offshore gambling sites, but the state has made efforts to stop operators from accepting their players. In early 2024, the state sent numerous cease-and-desist letters to popular operators; some opted out of the market, while others did not comply.