MGM abruptly drops Yonkers casino bid
Rendering courtesy of MGM Resorts
After advancing as one of only four casino proposals to move forward, MGM Empire City in Yonkers has abruptly withdrawn its bid. On Tuesday, MGM Resorts announced it would pull its proposal, citing a “newly defined competitive landscape” that “challenges the returns” the company had anticipated from the project, as well as recent changes that would limit the casino license to 15 years instead of 30. The Yonkers proposal had been considered a leading contender for a license and was among the first to receive unanimous approval from its community advisory committee late last month.
MGM was one of two proposals seeking to convert existing gaming facilities into full-scale casinos, unlike other bids that called for entirely new developments. The project would have added a high-limit lounge and a state-of-the-art BetMGM Sportsbook for retail sports betting, as 6sqft previously reported. At $2.3 billion and 863,500 square feet, it was the smallest of the casino proposals still under consideration.
The proposal also included a 5,000-seat entertainment venue with adjacent meeting space, designed to host both major talent and local performers while remaining flexible for events like graduations and community gatherings. Plans also called for three new full-service restaurants and a parking garage equipped with solar panels and electric vehicle charging stations.
It would have also delivered roughly 2,000 permanent jobs, offered funding for flood prevention and police resources, and give 80 percent of its tax revenue to the New York State Education Fund, as reported by The City.
In a statement, MGM cited the competitiveness of other casino proposals and changes to license terms as reasons for withdrawing its bid.
“The newly defined competitive landscape—with four proposals clustered in a small geographic area—challenges the returns we initially anticipated from this project,” the company said. “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.”
They added, “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.”
Yonkers Mayor Mike Spano called the decision “nothing short of a betrayal” to the people of Yonkers and Westchester County and urged Gov. Kathy Hochul to launch an independent investigation into the process, saying the reasons for “the 180-degree reversal” just “don’t add up.”
Spano also suggested that MGM’s exit could give an advantage to Bally’s controversial Bronx casino proposal at the former Trump-owned Ferry Point Park, which, if it receives a license, would provide the Trump Organization with a $115 million payout.
“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,” Spano said in a statement.
“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.”
With MGM’s exit, just three proposals remain in the running for one of the state’s coveted downstate casino licenses, which are expected to be awarded later this year. On September 30, New York Mets owner Steve Cohen’s $8 billion “Metropolitan Park” proposal next to Citi Field was approved, while earlier that week, the Yonkers proposal and Resorts World NYC’s bid at the Aqueduct Racetrack in Jamaica also received approval.
Bally’s Bronx casino remains in the running, despite a City Council vote in July rejecting critical land-use changes needed for the project. Mayor Eric Adams later vetoed the Council’s decision, keeping the proposal alive.
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