The company said that its proposal to renovate and expand Empire City Casino was predicated on the receipt of a 30-year commercial casino license. However, based on newly issued guidance from the State of New York, MGM noted, “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.”

Under a proposed rule issued in August by New York State Gaming Commission General Counsel Edmund Burns, the term of a casino license would be based on the amount of investment. The rule, which was published in the State Register on Oct. 8 and is now under a 60-day comment period that ends on Dec. 7, establishes four tiers in terms of licensing term—10 years for investments up to $1.5 billion, 15 years for investments for up to $5 billion; 20 years for investments up to $10 billion and 30 years for investments of more than $10 billion.

In Yonkers, the local community advisory committee unanimously approved the MGM project in late September, enabling the application to clear a critical hurdle, qualifying MGM Empire City as one of four applicants to be considered by the Gaming Facility Location Board and later the State Gaming Commission for up to three full commercial casino gaming licenses.

All four casino applicants—MGM Empire City, Resorts World New York City in Queens, Metropolitan Park in Queens and Bally’s in the Bronx—are under the $10-billion threshold.

On Oct. 14, Resorts World New York City announced it filed a supplemental application with the New York State Gaming Commission that increased its overall investment from $5.5 billion to $7.5 billion, including $2 billion in community benefits. Under the proposed rule, Resorts World New York City could qualify for a 20-year casino license. Metropolitan Park in Queens, with its $8.1-billion investment value, could also qualify for a 20-year license. Bally’s in the Bronx coming in at a projected $4 billion cost could qualify for a 15-year license.

The MGM Empire City proposal’s $2.3 billion investment, the smallest of the four remaining casino license candidates, would qualify under a 15-year casino licensing term. It would need to more than double its investment to qualify for a 20-year license. The $2.3-billion investment into the expansion of the existing Video Lottery Terminal facility included a total of $1.8 billion in capital investment.

In its application for a casino license earlier this year, MGM Empire City stated: “In order to meet a minimally acceptable return on such a level of investment, we require the maximum 30-year license term.”

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.”

“It’s understandable that many feel shock, anger, betrayal, and abandonment over MGM’s withdrawal from the NYS gaming license process for its Yonkers site. I share those feelings,” stated John Cooney, Jr., executive director of the Construction Industry Council of Westchester & Hudson Valley, Inc. His statement continued:

“From the beginning, the law disadvantaged existing facilities, especially MGM. Their obligations included nearly half a billion dollars annually through state-mandated education payments, racing subsidies, and revenue shares with the city and counties, regardless of revenue performance. Despite this, MGM moved forward with confidence.

“But the challenges kept mounting. Tax rates are unknown. MGM’s billion-dollar prior investment was excluded from consideration. The horsemen’s contract, just renewed, became the richest in the U.S., funneling tens of millions to non-resident participants. Then came a last-minute state policy change: license terms cut from 30 years to 15, with potential renewals costing as much as the original half-billion fee.

“Add to that the looming deficits of Yonkers and the State, both eager to tap corporations to close gaps. Mobile sports betting showed what’s possible. I-gaming legislation and possible NJ casino expansion threaten long-term viability. No wonder two industry giants, Wynn and Las Vegas Sands, already walked away. There are likely internal boardroom factors we’ll never know, but to MGM, the risk simply outweighed the reward.

“The biggest loss falls on Yonkers and the surrounding communities. No applicant matched MGM’s potential for regional economic transformation. While NYC licensees may have impact, theirs will be ripples in a vast ocean compared to the wave of lasting betterment Yonkers and the lower Hudson Valley just lost.

“We may feel disappointed in MGM, but the deeper issue is New York’s hostile business environment, one that punishes rather than partners. ‘Hunger Games’-style policymaking is no way to drive growth, support communities, or build a stable future.”

The Business Council of Westchester and a coalition, A Sure Bet for New York’s Future, said they “are deeply disappointed” by the MGM announcement. “This decision to withdraw from the licensing process is devastating news for the City of Yonkers, the County of Westchester, and our entire region,” said in a statement. “There are no winners when good jobs, local investment, and a once-in-a-generation opportunity to strengthen New York’s competitiveness are lost.”

Shortly after the withdrawal announcement, Yonkers Mayor Mike Spano fired back with harsh criticism of MGM for abandoning 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 Gov. Hochul to launch an independent investigation into this process, because the reasons MGM gives for its 180-degree reversal just don’t add up.”