MGM Yonkers abruptly withdraws on line casino license bid for Empire City

MGM Yonkers has abruptly withdrawn its bid for one in all New York’s three downstate on line casino licenses.

The MGM Empire City proposal had been the very first downstate contender to be unanimously accepted by its Community Advisory Council, a key step earlier than ultimate collection of the proposals is made in December. 

The transfer is a shocking reversal for a proposal seen as a number one contender, since it might’ve constructed on an present property that is had video slots and gaming since 2006. MGM had mentioned it was prepared to begin building of a $2.3 billion growth inside months of getting a license. Their proposal would’ve added 183 reside vendor video games, together with 14 new eating places and bars, and a 5,000-seat venue for live shows and reveals.

Tuesday’s announcement places an finish to that. 

MGM on withdrawing its bid

MGM Yonkers launched the next assertion on their resolution to withdraw:

“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 $2.3 billion investment. 

“The newly outlined aggressive panorama – with 4 proposals clustered in a small geographic space – challenges the returns we initially anticipated from this mission. Also, our proposal to renovate and increase Empire City Casino was predicated on the receipt of a 30-year business on line casino license however based mostly on newly issued steerage from the State of New York we now anticipate to qualify for less than a 15-year license. Taken collectively, these occasions lead to a proposition that not aligns with our dedication to capital stewardship, nor to that of our actual property associate in Yonkers, VICI.

“MGM Resorts has been a proud partner of the City of Yonkers and the State of New York since we purchased Empire City Casino in 2019. The property has generated more than $5 billion for New York State education, including $1.6 billion under our 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.”

Yonkers mayor blasts “betrayal,” requires investigation

Yonkers Mayor Mike Spano blasted the choice as “nothing short of a betrayal” and known as on Gov. Kathy Hochul to launch an investigation. In an announcement, he mentioned:

“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.

“It’s no secret that the large winner from this reversal might be Bally’s proposal for a on line casino on the former Trump Links in Whitestone. It’s additionally no secret that Bally’s has a take care of Donald Trump that they may pay him a further $115 million if they’ll open a on line casino there. People should be assured that there isn’t any linkage between MGM’s resolution and the large monetary profit to Donald Trump.

“The people of Yonkers deserve to know if this process was tainted or manipulated in any way. MGM has publicly acknowledged that Empire City cannot survive without a full gaming license, so why are they signing their own death warrant?

“Our City has stood prepared with the workforce, the infrastructure, and the overwhelming public assist for full gaming at Empire City. 

“MGM’s blaming New York State Government for their withdrawal rings hollow. The same rules apply to the other bidders. Why aren’t they pulling out as well?

“Something does not add up right here. The folks of Yonkers deserve solutions.”

In an interview with CBS News New York, Spano called the withdrawal “a intestine shot.”

“There was so much riding on this, and for MGM to basically pull out before we could even get together and try and, you know, fix the problem,” he mentioned.

Westchester County Executive Ken Jenkins additionally launched an announcement saying he was “shocked, disappointed, and deeply dismayed” by the withdrawal.

“Frankly, this decision makes little sense — especially after MGM had just been celebrating its advancement through the first round of the process,” he wrote, partially. “I share Yonkers Mayor Mike Spano’s concern that there appears to be more to this story — potentially political influence or pressure from the Trump Administration, or even the President himself, that forced MGM’s hand to default to Bally’s — a move that could result in a profit of roughly $115 million for Trump.”

According to courtroom paperwork from the civil fraud case towards Mr. Trump, in 2023, the Trump Organization assigned the Ferry Point license to Bally’s Corporation. Bally’s agreed to pay a further $115 million to the Trump Organization if Bally’s obtains a gaming license.  

CBS News New York has reached out to Bally’s, Hochul and the White House for a response.

Three bids stay into account for 3 on line casino licenses

The transfer leaves simply three bids remaining for the three gaming licenses to be awarded later this yr. That contains two in Queens, together with a proposal for Resorts World New York City in Queens, Bally’s Bronx, and Metropolitan Park at Willets Point, Queens.

CBS News New York reached out to the gaming fee to see if MGM’s withdrawal will impression what number of licenses might be granted, however didn’t instantly hear again.

Click here for more information about the assorted downstate on line casino proposals.