MGM Resorts Unexpectedly Withdraws New York Casino License Bid

MGM Resorts has withdrawn its application to the New York Gaming Commission for a commercial casino license at Empire City Casino in Yonkers. The decision halts MGM's $2.3 billion plan to convert the existing racino into a full-scale casino and entertainment complex.

The company attributed its withdrawal to economic and regulatory changes that have altered the project's financial outlook. MGM said the narrowing pool of competing proposals in the New York metropolitan area, many clustered in close proximity, had eroded the market assumptions that initially supported its bid. 

Executives also pointed to the state's new licensing terms, which shorten the duration of casino licenses from 30 years to 15, cutting projected returns by half over the long term.

Gov. Kathy Hochul's administration made the change earlier this year, a move that has drawn criticism from both lawmakers and analysts who argue it undermines investor confidence in the state's gaming expansion. MGM said its investment model was based on the longer 30-year term and that the revised structure no longer met its standards for fiscal responsibility.

The company confirmed that Empire City Casino will continue to operate as a video lottery terminal racino. Since MGM's acquisition in 2019, the venue has generated more than $5 billion in revenue and contributed over $1.6 billion to state education funds. 

MGM stated that it remains committed to supporting its employees and the Yonkers community, despite the cancellation of its expansion plans. The decision, however, is a blow to Yonkers' ambitions to become a major regional gaming hub. Yonkers Mayor Mike Spano also urged Hochul to launch an investigation into MGM’s reversal, saying that the decision doesn’t “add up.”

Sen. Addabbo pushes for online sweepstakes ban

With MGM's withdrawal marking a setback in New York's broader gambling landscape, another regulatory issue continues to linger. More than four months have passed since Sen. Joe Addabbo's bill banning sweepstakes casinos cleared the legislature, and it still awaits Gov. Hochul's signature.

The bill, S5935, passed the Senate on June 12 by a vote of 57-2 and was approved by the Assembly shortly thereafter. While states such as California, Montana, Connecticut, and New Jersey have already enacted similar bans, New York's proposal remains pending. Addabbo said he had hoped Murphy's August approval of New Jersey's version would spur action from Hochul, but no decision has yet been made.

Gov. Hochul's office stated that the bill remains under review, with the governor having until the end of the year to sign. The legislation seeks to outlaw dual-currency online games that mimic real-money online casinos or New York sports betting formats and offer cash prizes, while exempting legitimate promotional sweepstakes run by retailers and hospitality businesses.

Sen. Addabbo described the measure as a necessary step to safeguard consumers. "This is protecting New Yorkers from illegal business," he said in September, noting that the governor has the chance to take decisive action before the year closes.