MGM Yonkers withdraws New York casino licence application
The decision leaves three proposals competing for up to three New York casino licences.
US.- MGM Yonkers, a subsidiary of MGM Resorts International, has withdrawn its application for a full casino licence in New York. The decision leaves three contenders in competition for up to three licences, making it possible that all three receive licences.
MGM Yonkers had proposed an expansion of its existing Empire City Casino, the renovation and expansion of existing gaming areas and the addition of a new high-limit lounge and BetMGM Sportsbook.
The operator’s project had advanced to the New York State Casino Gaming Location Board after receiving approval from the local advisory committee. However, in a surprise announcement, MGM Resorts said it had withdrawn of its application to the New York Gaming Commission and the New York Gaming Facility Location Board due to changes in “competitive and economic assumptions”.
It said in a statement: “Today, MGM Resorts made the difficult decision to withdraw its application for a commercial casino license in Yonkers, New York. Since submitting our application in June, the competitive and economic assumptions underpinning our application have shifted, altering our return expectations on the proposed $2.3bn investment.
“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 Resorts purchased Empire City Casino in 2019. It said the property has generated more than $5bn for education, including $1.6bn under its ownership.
“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 added.
Of eight applications, three now remain in contention for up to three available licences: Resorts World in Queens, Bally’s in the Bronx, and Hard Rock International. The New York State Gaming Commission is expected to issue casino licences by the end of the year.
