
By Rick Pezzullo—
The surprising withdrawal of a commercial casino license application by the owners of Empire City Casino in Yonkers has several officials in Westchester calling MGM Resorts International’s bluff.
On Oct. 14, MGM Yonkers Inc., a subsidiary of MGM Resorts, announced it had taken its application to the New York Gaming Commission and the Gaming Facility Location Board off the table.
“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,” MGM stated. ““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 added.
Westchester County Executive Ken Jenkins said he was “shocked, disappointed and deeply dismayed” by MGM Resorts’ decision.
“Frankly, this decision makes little sense — especially after MGM had just been celebrating its advancement through the first round of the process,” Jenkins said. “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.”
Spano called on Governor Kathy Hochul to launch an independent investigation into the process, “because the reasons MGM gives for its 180-degree reversal just don’t add up.”
“This decision by MGM defies all logic and it’s nothing short of a betrayal to the people of Yonkers and Westchester County,” Spano remarked. “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. 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. MGM has publicly acknowledged that Empire City cannot survive without a full gaming license, so why are they signing their own death warrant?” he added.
MGM said the property has generated about $1.6 billion for education in New York State since it purchased the county’s owning gaming facility in 2019.
“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,” MGM stated.
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