Major Las Vegas casino operator withdraws New York license application

A major casino company shocked the gambling world on Tuesday by voluntarily bowing out of the race to run a New York City area casino.

MGM Resorts International, operator of Empire City Casino in Yonkers, said it was withdrawing its commercial casino application with New York gambling regulators. Las Vegas-based MGM Resorts said it made the “difficult decision” to remove itself from consideration because “the competitive and economic assumptions underpinning our application have shifted,” since the licensing process formally began in June.

“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 in a statement. “We know our decision will impact many individuals; we remain committed to operating the property in its current format and believe it will continue to enjoy success serving customers in Yonkers and the surrounding communities.”

MGM and Empire City were widely considered favorites to secure one of three available downstate class III gaming licenses. The racino, which only has electronic table games and video lottery terminal slot machines, was the sixth highest-grossing commercial property in the country outside of Nevada and Mississippi last year, according to data from the American Gaming Association.

Last month, MGM and Empire City received support from a local Community Advisory Committee to advance the project, a required step in the licensing process, which eliminated several potential competitors.

MGM also said the terms of securing a downstate New York gaming license had changed.

“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,” the company said Tuesday. “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.”

With MGM’s withdrawal, there are only three remaining downstate New York casino license applications.

Genting Group, a Malaysia-based conglomerate, is proposing to expand Resorts World New York City at Aqueduct Racetrack in Queens into a full-fledged casino resort. The racino was the highest-grossing commercial property in the country outside of Nevada and Mississippi last year, based on AGA data. Genting also own Resorts World Las Vegas.

Hard Rock International and billionaire Steve Cohen received CAC support for their joint project, Metropolitan Park, in Queens. Metropolitan Park is an $8 billion gaming and entertainment complex proposed for an adjacent lot near Citi Field, where Cohen’s New York Mets play 81 home games. Hard Rock International and the Seminole Tribe of Florida are in the process of transforming the former Mirage casino-hotel into Hard Rock Las Vegas, as well as constructing the 660-foot-tall Guitar Tower Hotel on the Strip.

Rhode Island-based Bally’s Corp. nailed down a CAC endorsement for its proposal to construct a casino resort on the Bally’s Golf Links near Ferry Point in The Bronx. Bally’s recently unveiled plans to build a resort on the former Tropicana Las Vegas site next to the under-construction Athletics major league baseball stadium on the Strip.

Contact David Danzis at ddanzis@reviewjournal.com or 702-383-0378. Follow @AC2Vegas_Danzis on X.