The company added that “a newly defined competitive landscape – with four proposals clustered in a small geographic area–challenges the returns we initially anticipated from this project,” MGM said.

Shorter Investment Timeline
MGM’s statement specifically cited the shortened casino licensing term by the New York State Gaming Commission as a key reason for its withdrawal. “The newly defined competitive landscape—with four proposals clustered in a small geographic area—challenges the returns we initially anticipated from this project. 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. 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,” MGM stated.

The Real Deal reports that under the current state gaming rules, to qualify for a 30-year license, an applicant would need to invest at least $10 billion in the project. All three other casino applicants—Resorts World New York City in Queens, Metropolitan Park in Queens and Bally’s in the Bronx are also under the $10-billion threshold and therefore would only qualify for a 15-year license.

Concluding its statement, MGM noted its partnership with the City of Yonkers and New York State and touted Empire City Casino’s revenue generation over the years, including $1.6 billion since it took ownership of the property in 2019.

“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 stated.

Reaction Swift
Yonkers Mayor Mike Spano offered harsh criticism of MGM’s decision to abandon its plan at Empire City. “This decision by MGM defies all logic and it’s nothing short of a betrayal to the people of Yonkers and Westchester County. I am calling on Governor Hochul to launch an independent investigation into this process, because the reasons MGM gives for its 180-degree reversal just don’t add up,” the mayor stated.

Westchester County Executive Ken Jenkins shared the mayor’s criticism and stated he was “shocked, disappointed, and deeply dismayed by MGM Resorts’ decision to withdraw its commercial casino license application.” He concluded, “For decades, so many of us have supported this effort, believing in the promise of good-paying jobs, new investment, and long-term economic stability for Yonkers and Westchester County. While this was not the outcome we hoped for, we remain committed to supporting MGM and Yonkers and to ensuring that our community continues to thrive.”