MGM Halts Yonkers Casino Plan, Citing Shifting Economics
Withdrawal of application for full New York license scraps a major downstate expansion and revenue growth plan.
MGM Resorts International has abruptly withdrawn its application for a full-scale commercial casino license at its Empire City property in Yonkers, New York, a move that halts a key growth initiative for the company in the lucrative downstate market. The decision, announced Tuesday, scraps a planned multi-billion dollar investment to convert the existing electronic games and horse racing facility into a full-fledged casino featuring live table games.
The company cited a significant shift in the economic and competitive landscape since its initial application. In a statement, MGM explained that the anticipated returns on the investment no longer justified the expenditure. detailed concerns over a newly defined competitive landscape and new guidance from New York State that altered the financial viability of the project.
This withdrawal has significant implications for the race for one of the three downstate New York casino licenses. With MGM out of the running, the field of competitors has narrowed, leaving just three other bidders. This development could streamline the selection process, but it also removes a major player from the high-stakes competition for a foothold in the New York City area gaming market.
The decision was met with sharp criticism from local officials who had anticipated a major economic boost from the project. Yonkers Mayor Mike Spano called MGM's move a 'betrayal' to the community, highlighting the loss of projected jobs and revenue. , a significant economic stimulus that will no longer materialize.
MGM has confirmed that it will continue to operate Empire City Casino in its current 'racino' format, with horse racing and video lottery terminals. While the property remains a part of MGM's portfolio, the scuttled expansion plan marks a notable setback in the company's efforts to expand its presence in the Northeast. . The future of gaming in the region remains a high-stakes game, but for now, MGM has decided to fold its hand in Yonkers.