MGM Resorts Abandons Yonkers Full-Scale Casino Project
MGM Resorts has officially withdrawn its proposal to establish a full-scale casino in Yonkers, New York. The announcement, made on Tuesday, comes just two weeks after the MGM Empire City project advanced in the state’s licensing competition.
MGM Resorts’ Withdrawal Explained
The decision to abandon the $2.3 billion project was driven by changing economic conditions and fierce competition for casino licenses in the area. MGM noted that its expectations for the project’s financial returns had shifted significantly since submitting the application in June.
Current State of Casino Bids
With MGM’s withdrawal, only three bids remain in contention for the downstate casino licenses:
- Bally’s Bronx
- Resorts World New York City
- Metropolitan Park (Queens)
The Gaming Facility Location Board is slated to announce the selected proposals in December.
Reactions to MGM’s Decision
Westchester County Executive Ken Jenkins expressed his disappointment, labeling the decision as unexpected. He raised concerns regarding potential political influence, particularly from former President Donald Trump, whose organization stands to gain financially from the Bally’s Bronx bid.
Jenkins stated, “There appears to be more to this story,” suggesting that the Trump Administration may have pressured MGM. Yonkers Mayor Mike Spano mirrored Jenkins’ sentiments, describing MGM’s retreat as a betrayal to the community. He has called on Governor Kathy Hochul to investigate the situation further.
Governor Hochul’s Response
Governor Hochul expressed her surprise at MGM’s decision but indicated that she did not see the need for an investigation. She noted that MGM likely made a financial decision based on its own criteria without any external influence.
Implications for Yonkers
The potential casino project was expected to revitalize the Yonkers Raceway and Empire City Casino by adding various amenities, including new restaurants and an entertainment venue. Community leaders warned that without a full casino license, the existing facility could face serious financial challenges.
Evan Stavisky, a lobbying firm president, mentioned that the absence of a proposed hotel in MGM’s bid may have weakened its position. He noted that a full-service hotel would create more jobs and potentially improve economic returns, which are crucial factors in the state’s licensing evaluation process.
Future of Gaming Licenses
As MGM exits the race, the three remaining applicants are in a stronger position and must now navigate tax rate decisions as part of their proposals. The state mandates minimum tax rates of 25% on slot revenue and 10% on other gaming revenues.
Brian O’Dwyer, chair of the state gaming commission, indicated that the board is analyzing extensive documentation related to each remaining bid, focusing on the economic impacts of the projects. He emphasized that while the state could award up to three licenses, they are not obligated to do so.
