'Nothing Short Of A Betrayal': Empire City Abruptly Ends Bid For Casino License

YONKERS, NY — Plans for a new glitzy, Vegas-style, multi-billion dollar Empire City Casino in Yonkers, proposed by MGM Resorts, appear to have busted before ever drawing a card.

On Tuesday, the gaming giant announced that it would no longer be pursuing one of a limited number of casino licenses, just months after unveiling ambitious plans for a resort and casino that the company predicted would bring thousands of jobs and "be a game-changer for the entire region."

The company said that the likelihood of the state awarding other licenses nearby made the investment unfeasible.

"Today, MGM Resorts made the difficult decision to withdraw its application for a commercial casino license in Yonkers, New York," the company said in a statement released on Tuesday. "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 company said that state regulators moved the goal posts, spelling an end to the massive project.

See Also:

• MGM Resorts Unveils Plans For New Glitzy, Vegas-Style Empire City
• Yonkers Casino Proposal Primed To Land 1 Of 3 Downstate New York Licenses

"The newly defined competitive landscape – with four proposals clustered in a small geographic area – challenges the returns we initially anticipated from this project," the MGM Resorts statement said. "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."

Perhaps not surprisingly, local elected officials are unhappy, and apparently caught off-guard by today's decision.

"The decision by MGM defies all logic and it's nothing short of a betrayal to the people of Yonkers and Westchester County," Yonkers Mayor Mike Spano said in a statement released today. "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."

Spano suggested that the move by MGM will directly benefit the current president of the United States.

"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," Spano said. "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. People need to be assured that there is no linkage between MGM's decision and the massive financial benefit to Donald Trump. The people of Yonkers deserve to know if this process was tainted or manipulated in any way."

Spano said that today's decision might well spell the end for the historic Yonkers raceway founded in 1899, making the move hard to digest.

"MGM has publicly acknowledged that Empire City cannot survive without a full gaming license, so why are they signing their own death warrant?" Spano asked. "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? Something doesn't add up here. The people deserve answers."

Westchester County Executive Ken Jenkins largely echoed Spano's sentiments.

"I am both shocked, disappointed, and deeply dismayed by MGM Resorts' decision to withdraw its commercial casino license application for Empire City Casino from consideration by the New York Gaming Commission and the Gaming Facility Location Board," Jenkins said in a statement. "Frankly, this decision makes little sense — especially after MGM had just been celebrating its advancement through the first round of the process."

The county executive also raised concerns that the process might have been corrupted by powerful influences.

"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," Jenkins said.

MGM Resorts said that while its quest for a casino license has come to an end, it still plans to remain a good neighbor in its chosen community.

"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 company said. "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."

County Executive Jenkins said that while he is disappointed, Westchester has a vested interested in seeing Empire City prosper.

"For decades, so many of us have supported this effort, believing in the promise of good-paying jobs, new investment, and long-term economic stability for Yonkers and Westchester County," Jenkins said. "While this was not the outcome we hoped for, we remain committed to supporting MGM and Yonkers and to ensuring that our community continues to thrive."