It has officially ended its ambitious $2.3 billion plan to convert the Empire City Casino in Yonkers into a full-scale luxury resort featuring table games, sports betting, and live entertainment.
The Las Vegas-based casino giant cited “shifting economic and competitive conditions” and changing state licensing terms as reasons for the shocking decision.
The withdrawal comes when the race to win one of three commercial casino licenses in the New York City area enters its final stages. The remaining contenders have now been narrowed down to Genting Group’s Resorts World New York City in Queens, Bally’s Corporation’s Bronx resort, and a partnership between Steve Cohen, owner of the Mets, and Hard Rock International for a massive $8 billion project at Citi Field.
Many Americans are unable to visit physical casino venues due to distance, while the licensing decisions are pending. Online alternatives like casino games for Americans continue to provide accessible and regulated gaming options, with top casino platforms offering table games, slots, free spins and other bonuses, and sports wagering from licensed online operators.
MGM’s withdrawal has surprised industry observers and local officials who considered the Yonkers bid as one of the best, considering there is existing infrastructure and gambling operations. The company was positioning Empire City as a natural fit to transition to a full casino license. However, MGM said its financial calculations were undermined by new state guidance, which shortened the proposed license duration from 30 years to half that, cutting the anticipated return window to just 15 years.
“The competitive and economic assumptions underpinning our application have shifted, altering our return expectations on the proposed $2.3 billion investment,” MGM Resorts said in a statement. “The newly defined competitive landscape, with four proposals clustered in a small geographic area, challenges the returns we initially anticipated from this project.”
MGM’s exit removes a top competitor, but it also shows the complexities regarding finances and the regulation of New York’s casino expansions. The state has one of the highest gaming tax rates in the country, second only to Pennsylvania, and generated almost $2.3 billion in casino tax revenue last year.
The remaining applicants must wait for the New York State Gaming Commission’s final decision on the licenses, expected by December 1, 2025.
MGM will continue to operate Empire City Casino as a slots and electronic gaming venue. The site has contributed more than $5 billion to New York State education funds, including $1.6 billion under MGM’s ownership, which started in 2019.
The impact of MGM’s exit has been felt beyond the gambling industry. Yonkers Mayor Mike Spano has called for an independent investigation into the withdrawal. He alleged that “the reasons MGM gives for its 180-degree reversal just don’t add up”. He suggested that political factors may have played a role, referencing speculation about financial ties between rival bidders and President Donald Trump’s business interests. Bally’s has proposed building its Bronx casino on a golf course formerly owned by the Trump Organization, which would reportedly receive a $115 million payment if Bally’s is awarded the license.
“The decision by MGM defies all logic and is nothing short of a betrayal to the people of Yonkers and Westchester County,” Spano said.
MGM’s exit may have shifted the competitive balance among the three remaining bidders, but it is not guaranteed that they will all have success. The New York State Gaming Commission has clarified that it is under no obligation to award all three downstate licenses.
