MGM Empire City Wins Local Approval in New York Casino Race

MGM Empire City advanced in the competition for one of New York’s downstate commercial casino licenses on Thursday after its bid won unanimous approval from a state-appointed community advisory committee (CAC). The vote marked the first time a project has cleared the local review stage since the process began earlier this year. The Yonkers-based facility, which has operated as a video lottery terminal racino since 2006, received a 5-0 vote of support. The decision allows MGM to move on to the next phase of review by the state’s Gaming Facility Location Board (GFLB), which will evaluate up to three casino licenses. The GFLB faces a December 1 deadline to issue recommendations, with the state gaming commission scheduled to make final awards by December 31.

Empire City’s approval stands out against the broader trend of local resistance. Three previous casino bids failed to secure CAC support, leaving MGM as the only operator so far to advance. Committee chair James Cavanaugh, appointed by Yonkers Mayor Mike Spano, argued that a full license was essential for the racino’s survival. “If Yonkers does not get one of the three full casino licences, Empire Casino will wither and die,” Cavanaugh said before casting his vote. He added that no one would choose “an aging slot parlor” over a full-service casino.

MGM’s location outside New York City may have worked in its favor. With seven other proposals clustered in the five boroughs, committee members appeared persuaded by the company’s argument that it would struggle to compete if all three licenses were awarded closer to Manhattan.

What Comes Next

To advance, MGM must now submit a $1 million application fee. The GFLB, chaired by NYU law professor Vicki Been, will then weigh the proposal against strict evaluation criteria. The board’s analysis will focus primarily on projected revenue impact, while also scoring each application in four categories:

• Economic Activity & Business Development (70%)
• Local Impact Siting (10%)
• Workforce Enhancement (10%)
• Diversity Framework (10%)

The process also includes a distinctive feature: bidders are permitted to propose their own tax rates, provided they begin at 25% for slot revenue and 10% for other games. MGM’s current video lottery terminal rate is closer to 55%, and company executives have acknowledged they are expected to match that level while continuing to fund horse racing purses. MGM also distinguished itself from other bidders by submitting amendments that were accepted by its CAC. Filed September 17, the revisions included commitments on public safety, infrastructure investment, a guaranteed revenue baseline for the city, and reimbursement of municipal construction costs.

Other bidders, including Bally’s Bronx and The Coney, have also filed late amendments but have yet to secure approval. Resorts World New York City, widely considered a strong contender due to its existing Queens racino, has not submitted any changes.

If Yonkers does not get one of the three full casino licences, Empire Casino will wither and die.

Competitive Field Ahead

Industry observers have consistently ranked MGM and Resorts World as leading candidates for downstate licenses. Both operators have extensive facilities and long records of tax contributions. However, the GFLB process is expected to place heavy emphasis on economic impact projections, leaving room for debate about which projects can generate the most sustainable returns for the state. For now, MGM has secured a key first-mover advantage. With CAC approval in hand, the company is positioned as the first racino to test its case before state regulators in what is set to be one of the most closely watched gaming license races in the country.