MGM Resorts has officially withdrawn its bid for a downstate New York casino license — an unexpected move in a process that has been years in the making. The decision effectively ends its $2.3 billion plan to expand and redevelop its Empire City racino.
The announcement came Tuesday afternoon, coinciding with the deadline to submit a revised proposal to the New York Gaming Facility Location Board (GFLB). MGM had originally filed its application in late June, joining seven other contenders for one of the state’s highly sought-after casino licenses. The project was among four that advanced past the local committee stage in September.
The company had been expected to update its financial projections to account for new market conditions, but instead, MGM abruptly chose to withdraw from the race altogether.
“The recently reshaped competitive environment — with four proposals concentrated within a relatively small area — significantly impacts the returns we originally projected for this project,” the company stated.
MGM further explained that its plan to upgrade and expand the Empire City Casino had been based on securing a 30-year commercial casino license. However, under newly released guidance from the State of New York, the company now expects to qualify only for a 15-year license.
“Considering these developments, the project no longer fits with our commitment to responsible capital allocation, nor with that of our real estate partner in Yonkers, VICI,” the statement concluded.
A pattern for New York casino bidders?
MGM became the third major casino operator to withdraw voluntarily from New York’s downstate casino race. Las Vegas Sands was the first to bow out in April, citing concerns over the state’s potential legalization of online gaming. Wynn Resorts followed in May, departing with a sharply worded statement criticizing New York’s political climate.
Unlike its rivals, MGM stayed in the running and successfully advanced through the initial two phases of evaluation. Its proposal — which included a projected June 2027 opening and emphasized its strong existing tax contributions — was considered a leading contender. The bid also received unanimous approval from its Community Advisory Committee (CAC) in a 6-0 vote.
However, speculation about MGM’s potential withdrawal began in early September when CEO Bill Hornbuckle hinted at growing frustrations during a banking conference. He questioned the fairness of linking capital investment commitments to license duration, noting that those terms were finalized only in August, after applications had already been filed. Hornbuckle also pointed out that Empire City would be required to maintain its current 55% tax rate under the new license.
When asked to respond to that concern, the New York State Gaming Commission declined to comment.
Lowest bidder cost concerns could be ominous sign
MGM’s decision to withdraw over concerns about return on investment is particularly noteworthy, given the company’s active global expansion. It is currently developing major projects in Japan and Dubai while also undertaking a significant renovation of its MGM Grand property in Las Vegas.
Among the four remaining New York finalists, MGM’s proposal stood out for having the lowest projected construction costs.
- MGM: $2.3 billion
- Bally’s Bronx: $4 billion
- Resorts World NYC: $5.5 billion
- Metropolitan Park: $8 billion
Like MGM, Resorts World currently operates as a racino and has proposed launching its full casino operations by July 2026. In contrast, the two remaining contenders — Bally’s and Hard Rock — are pursuing greenfield developments that would require several years to complete and even longer to achieve profitability. Both companies are also engaged in major projects elsewhere, which could lead them to reassess their positions in the New York race.
Hard Rock declined to comment, while Bally’s provided a statement to iGB:
“We have submitted our supplemental materials and remain confident that our proposal offers a strong and compelling case for the state’s consideration. Following last week’s completion of our transformative Bally–Intralot transaction, we now have a robust balance sheet with over $1 billion in cash and available credit facilities dedicated to this project. Combined with accessible project financing and our community investment plan, Bally’s is ready and eager to bet on the Bronx.”
With MGM’s exit, only three applicants remain in contention for the three available casino licenses. The Gaming Facility Location Board (GFLB) will review the updated applications through December 1, the deadline for making its licensing recommendations.
Future of MGM Empire City in New York uncertain
The long-term future of MGM Empire City is now uncertain without the approval of a full commercial casino licence. Throughout the application process, MGM consistently argued that the racino would struggle to compete with three nearby properties holding commercial licences.
Many Empire City employees attended public hearings to voice their support for upgrading the facility. James Cavanaugh, chair of the project’s Community Advisory Committee (CAC), described the racino as “an aging slot parlour” in need of modernization and licensing before voting in favor of the proposal. Yonkers Mayor Mike Spano has also long championed the push for a commercial licence.
Since receiving its video lottery terminal licence in 2006, Empire City has generated about $5 billion in state tax revenue. MGM acquired the property in 2019, several years before the downstate licensing process officially began.
“We understand that our decision affects many people, but we remain committed to operating the property as it currently stands,” MGM said in a statement. “We believe Empire City will continue to thrive and serve the residents of Yonkers and nearby communities.”
