- MGM pulls New York City casino application, citing shifting economic assumptions
- Company also mentioned likelihood of receiving a 15-year license, half of what was originally expected
- It’s among the casino industry’s most shocking news this year
In what’s arguably among the most stunning casino industry news of 2025, MGM Resorts International (NYSE: MGM) is out of the New York City casino competition — one in which the Bellagio operator was widely viewed as one of the leaders.
Citing shifting economics, among other factors, the Las Vegas-based gaming company made the announcement Tuesday afternoon, calling it a “difficult” decision to not pursue a license that would have allowed Empire City Casino in Yonkers to be converted to a Strip-style gaming venue.
Today, MGM Resorts made the difficult decision to withdraw its application for a commercial casino license in Yonkers, New York,” said MGM in a statement. “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.”
Entering today, there were four contenders for the three downstate casino permits — Bally’s, Hard Rock International, MGM, and Resorts World New York.
MGM Mentions Geography in Scrapped NYC Casino Bid
Geography appears to have played a part in MGM abandoning its New York ambitions with the operator noting four bids “clustered in a small geographic area” pressured initial economic assumptions pertaining to the possible Empire City conversion.
“Clustered” may be subjective in this case. Empire City is located about 23 miles from Resorts World New York, which is also viewed as one of the top contenders for one of the downstate licenses. The MGM venue is roughly 17 miles away from Citi Field, which is just blocks away from where the $8 billion Metropolitan Park, including the Hard Rock casino, will be located if it wins a permit.
Bally’s bid, situated at the Ferry Point golf course in the Bronx, is located less than 12 miles from the MGM Yonkers property.
“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,” adds MGM. “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.”
VICI Properties (NYSE: VICI) owns the property assets of Empire City.
In NYC Casino, Nearly All Big Names Are Out
With MGM’s announcement, all four of the largest publicly traded US-based casino operators are out of the New York competition. Las Vegas Sands (NYSE: LVS) and Wynn Resorts (NASDAQ: WYNN) previously abandoned bids before moving onto the community advisory committee (CAC) process while Caesars Entertainment’s (NASDAQ: CZR) Times Square proposal was rejected by a CAC.
With MGM out, the implication is that of the recognizable US gaming brands, only Hard Rock will run a New York City gaming venue.
Another result could well be something many New Yorkers don’t want: President Donald Trump getting a bit wealthier. Should Bally’s win a license — odds of which dramatically shortened with MGM’s departure — the regional casino operator would owe the Trump Organization another $115 million on top of the $60 million already paid to the business entity to acquire the lease rights to Ferry Point.
The post Big Apple Shocker: MGM Yanks NYC Casino Application appeared first on Casino.org.
