MGM Resorts Withdraws from New York Casino License Race, Citing Diminished Returns

MGM Resorts International has withdrawn its application for one of New York’s coveted downstate casino licenses, ending the company’s ambitions to expand its Empire City Casino in Yonkers into a full-scale gaming resort. The Tuesday announcement shocked many industry insiders, marking a decisive shift in one of New York’s most competitive development races.

Regulatory Changes Shifted MGM’s Financial Projections

In a recent official statement, MGM justified its decision by noting that the project was no longer financially viable. The company cited new state guidelines and the concentration of rival proposals as significant negative factors. With the four remaining casino projects clustered relatively closely together, MGM determined that the projected returns would not justify the initial investment.

The competitive and economic assumptions underpinning our application have shifted, altering our return expectations.

MGM statement

The move comes just weeks after Community Advisory Committees in Yonkers and Queens supported the expansion plans of MGM and Resorts World NYC. These two companies were generally considered as frontrunners in the casino license race due to their existing successful “racinos.” These venues offer slot machines and electronic games, and could easily be expanded to accommodate a full casino.

MGM planned to invest $2.3 billion to expand its Empire City property. However, the company reevaluated its plans after regulators indicated that the new licenses would run for 15 years instead of the 30-year term MGM had based its business model on. This shortened licensing period, combined with higher tax obligations, significantly altered MGM’s financial projections.

The Casino License Race Is Nearing Its Conclusion

While MGM is withdrawing from the bidding process, it will continue to operate Empire City Casino in its current form. The venue remains one of the biggest and most profitable slot machine facilities in the USA. Even with increased competition from new casinos, MGM remains confident that this high-value segment will continue to perform well.

With MGM’s withdrawal, only three major contenders remain. These are Resorts World, Bally’s Corporation, and a joint venture of Hard Rock International and Mets owner Steve Cohen. Resorts World, already operating at Aqueduct Racetrack in Queens, has proposed a $5.5 billion expansion. Cohen’s project envisions an $8.1 billion entertainment site next to Citi Field, while Bally’s has proposed a $4 billion development on its golf course property in the Bronx.

The New York Gaming Facility Location Board has the authority to recommend up to three new full-scale casino licenses, but it is not required to issue all of them. The race started with eight projects, though the local review stage significantly reduced this number. The remaining applications now face thorough evaluations based on their economic impact, job creation, community backing, and future sustainability, with a final decision expected by December 1.