MGM Empire City Withdraws in Stunning Reversal
In a development that shocked the gaming industry, MGM Resorts International withdrew its $2.3 billion casino license application for Empire City in Yonkers on October 14, 2025—just hours before the deadline to submit tax rate proposals to state regulators. The withdrawal leaves exactly three remaining contenders for three available downstate New York casino licenses.
MGM Yonkers Inc., a subsidiary of MGM Resorts International, notified the New York Gaming Commission and Gaming Facility Location Board of its decision to exit the competition, citing changed economic conditions and revised state guidance on license terms.
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.
License Term Change Cited as Key Factor
MGM indicated that newly issued state guidance reduced the expected license term from 30 years to 15 years, fundamentally altering the project’s economics. The company also pointed to increased competition in a concentrated geographic area as challenging projected returns.
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 emphasized its ongoing commitment to Empire City Casino, which has generated more than $5 billion for New York State education since the company acquired the property in 2019, including $1.6 billion under MGM ownership. The company confirmed it will continue operating the property in its current video lottery terminal format.
Political Fallout and Calls for Investigation
Yonkers Mayor Mike Spano reacted strongly to the withdrawal, calling on Governor Kathy Hochul to launch an independent investigation into the licensing process. Spano questioned the timing and reasoning behind MGM’s decision, noting that the same rules apply to all remaining bidders.
“This decision by MGM defies all logic, and it’s nothing short of a betrayal to the people of Yonkers and Westchester County,” Spano said in a statement. “It’s no secret that the big winner from this reversal will be Bally’s proposal for a casino at the former Trump Links in Whitestone. It’s also no secret that Bally’s has a deal with Donald Trump that they will pay him an additional $115 million if they can open a casino there.”
Spano added that MGM’s explanation “rings hollow” given that other bidders face identical conditions. “Our City has stood ready with the workforce, the infrastructure, and the overwhelming public support 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?”
Three Remaining Contenders
With MGM’s departure, three proposals remain for the three available licenses, though state regulators retain discretion to award fewer than three if applications don’t meet standards. The remaining contenders are:
Bally’s Bronx
The $4 billion proposal at Ferry Point Park includes a 500,000-square-foot casino, 500-room hotel, 2,000-seat event center, and parking for approximately 4,660 vehicles. The site takes advantage of its location near the Whitestone Bridge and major highways. Under an arrangement stemming from when the golf course was owned by President Donald Trump’s company, the Trump Organization will receive $115 million if Bally’s secures the license.
Resorts World New York City (Queens)
Genting’s $5.5 billion proposal for Aqueduct Raceway received unanimous 6-0 approval from the Queens-based Community Advisory Committee. The expansion of the existing racino would add a 7,000-seat arena, conference center, 2,000-room hotel, and parking for 7,000 cars. The application emphasizes operational speed, with backers noting that existing gambling operations could be ramped up within months—offering faster revenue to the state than competing bids.
Metropolitan Park (Queens)
Steve Cohen’s $8.1 billion casino proposal near Citi Field received unanimous approval on September 30. The development would be built on a 78-acre parking lot next to Citi Field, which is technically state parkland—a contentious point for opponents. The casino would feature a luxury hotel, convention center, entertainment venue, multiple restaurants, and nearly 300,000 square feet of gambling space with 5,000 slot machines and 375 table games.
The Community Advisory Committee’s unanimous approval underscores the deep and broad community support behind Metropolitan Park.
Background: The Road to Three Finalists
The New York Gaming Facility Location Board began evaluating four casino proposals after eight initial submissions underwent local community advisory committee reviews. MGM Empire City had been considered a front-runner, receiving the first unanimous community approval on September 25 with a 5-0 vote.
MGM’s proposed $2.3 billion expansion would have transformed the existing video lottery terminal venue into a full-scale casino with 183 live dealer games, 14 new restaurants and bars, and a 5,000-seat entertainment venue, creating 8,500 jobs. The project included substantial community commitments: $10 million for a new library and community center, $2 million for small business improvements, $1.5 million in seed funding for economic development, and $100 million for infrastructure upgrades.
Tax Rate Submission and Timeline
MGM withdrew on the same day that all casino applicants faced an October 14 deadline to submit proposed tax rates in a blind bidding process, where no bidder knows competitors’ offers. New York’s approach allows each applicant to propose tax rates above the minimum threshold of 25% on slot machines and 10% on table games. The setup mirrors New York’s 2021 mobile sports betting approach, which resulted in the nation’s highest tax rate of 51%.
The Gaming Facility Location Board expects to make final decisions by December 1, 2025, followed by Gaming Commission licensure by December 31, 2025.
The Evaluation Process
The five-member Gaming Facility Location Board consists of individuals with expertise in banking, economic development, and housing. Board chair Vicki Been, appointed in October 2022, has stated she’s “never been to a casino” and that casinos are “nowhere I want to spend my time.” Other members include Greg Reimers, a retired JPMorgan Chase executive; Marion Phillips III from US News & World Report; Cindy Estrada, executive director of the New York City Hispanic Chamber of Commerce; and Terryl Brown from Pace University.
The board’s deliberations occur behind closed doors, with no additional public testimony expected. During the board’s October 8 meeting, Been indicated the panel can award up to three casino licenses but isn’t required to do so, placing heavy emphasis on which proposals can be financed and built promptly while generating significant regional economic benefits.
License Terms and Fees
Each license comes with a one-time fee of $500 million. All licenses last at least 10 years, with longer terms available based on investment size: 15 years for projects between $1.5 billion and $5 billion, 20 years for $5 billion to $10 billion, and 30 years for investments exceeding $10 billion. MGM’s $2.3 billion proposal would have qualified for a 15-year license under these guidelines.
Lobbying Expenditures
In 2024, the casino proposals spent millions on lobbying efforts. The two organizations backing the Citi Field casino spent $1.8 million across 14 lobbying firms—the highest amount in New York City that year. Genting LLC spent just under $1 million with three lobbying firms, while Bally’s spent more than $900,000 across eight firms.
What’s Next
Following the board’s December recommendations, the Gaming Commission will issue final licenses by December 31, 2025, ensuring New York State collects the casino license fees ahead of schedule. While full-scale casinos are still years away from opening, the licensing process marks a major milestone since voters approved a 2013 ballot measure to amend the state constitution and expand gambling.
The withdrawal of MGM—once considered a leading contender with an existing gaming facility and strong community support—has raised questions about the competitive dynamics and regulatory framework guiding New York’s historic casino licensing process.
Source: MGM Resorts International and Multiple News Sources
