New York Casino Race Narrows to Three

The years-long competition for three downstate New York casino licenses has entered its most uncertain phase yet, after MGM Resorts International unexpectedly withdrew its bid this week.

MGM’s decision to abandon its $2.3 billion plan to convert and expand its Empire City racino in Yonkers has reshaped a process already mired in delays, political intrigue, and shifting economics. The withdrawal leaves only three bidders standing: Bally’s Bronx, Resorts World New York City, and Metropolitan Park—each now vying for one of the most coveted gaming licenses in the U.S.

Final New York Casino Bidders — Key Details

Bidder	Proposed Investment	Slots Tax Rate	Tables Tax Rate	Projected Licence Term	Timeline / Notes
Bally’s Bronx	$4.0 billion	30%	10%	~15 years	No timeline provided
Resorts World NYC	$5.5 billion	56%	30%	~20 years	Initial launch targeted July 2026
Metropolitan Park (Hard Rock)	$8.0 billion	25%	10%	~20 years	Construction noted to begin in January; multiyear build
Licence fees offered: Metropolitan Park $500M; Resorts World $600M; Bally’s did not specify. GFLB recommendations due 1 December.

 

MGM’s Surprise Exit

MGM’s departure stunned state officials and industry observers. Once viewed as a frontrunner due to its established Yonkers footprint and speed-to-market advantage, the company said the project’s economic potential “declined over the course of the process.” The bid had called for a July 2027 opening, but lacked major public amenities such as a resort hotel or housing elements featured in rival proposals.

The company also cited concerns over competition, noting that four proposals—now three—were clustered within a 30-mile radius. MGM’s application had been contingent on a 30-year commercial license, which the company later learned it was ineligible for based on its capital investment.

Despite strong local political support, including Yonkers Mayor Mike Spano’s endorsement and unanimous approval from its Community Advisory Committee (CAC), MGM abruptly pulled out rather than revise its bid or negotiate a custom tax rate. Two days later, MGM announced the $546 million sale of its Ohio racino, MGM Northfield Park, to private equity firm Clairvest Group—fueling speculation about whether Empire City might eventually be sold as well. The company denied such plans, pledging to continue racino operations in Yonkers.

 

Remaining Contenders and Mounting Costs

The three remaining bidders submitted revised applications this week, with capital investments ranging from $4 billion to $8 billion. Bally’s Bronx estimates a $4 billion build, Resorts World NYC plans to invest $5.5 billion, and Metropolitan Park—backed by billionaire Steve Cohen and Hard Rock International—tops the list at $8 billion.

Resorts World, already operating as a racino in Queens, proposes to open its full casino by July 2026. Bally’s and Metropolitan Park, both greenfield projects, have longer construction horizons. The Gaming Facility Location Board (GFLB) must now assess each proposal’s financial, environmental, and labor commitments ahead of its December 1 recommendation deadline.

The bidding process has not been free from political controversy. Mayor Eric Adams twice intervened on Bally’s behalf during New York City Council proceedings, while Cohen’s Metropolitan Park sidestepped local opposition from State Senator Jessica Ramos by seeking legislative support elsewhere. Similar friction drove other operators away. Wynn Resorts exited the race in May, citing “years of persistent opposition,” while Las Vegas Sands withdrew in April over concerns that potential legalization of online gaming could erode market returns.

The remaining applicants face a challenging financial landscape marked by rising construction costs, inflation, and lender caution. Bally’s, which is simultaneously developing large-scale projects in Chicago and Las Vegas, has faced skepticism over its highly leveraged balance sheet. The company claims it now has “over $1 billion” in available funding following a merger with gaming supplier Intralot, and lists Gaming and Leisure Properties Inc. (GLPI) as a potential $2.5 billion investor. However, GLPI has clarified that no formal agreement exists and that it is also open to working with other bidders.

Resorts World’s parent company, Genting Berhad, has likewise been restructuring its global portfolio to manage liquidity, including a $6.8 billion expansion in Singapore. In contrast, Cohen’s Metropolitan Park may be the most financially secure, backed by Cohen’s $23 billion personal fortune. Wells Fargo Securities managing director Duane Bouligny said downstate casino financial projections remain “aggressive.” “The properties actually get there,” he said, “it just takes longer to hit those cash flow numbers. Costs will likely go up, not down.”

 

Tax Rates and License Terms Add Complexity

Applicants were allowed to propose their own tax rates, with minimums set at 25% for slots and 10% for table games. Resorts World offered the most aggressive rates—56% for slots and 30% for tables—while Bally’s proposed 30% and 10%, and Metropolitan Park opted for the state minimums. Licensing terms now scale with capital investment: projects under $1.5 billion qualify for a 10-year term, while those exceeding $10 billion can earn 30 years. Based on current figures, Bally’s would receive a 15-year license, and both Resorts World and Metropolitan Park would receive 20-year terms.

The process now rests with the five-member GFLB, a body deliberately composed of non-gaming professionals to ensure impartiality. Four members were appointed this year, with Chair Vicki Been—the sole holdover from 2022—emphasizing her detachment from casino interests. The board has met twice in October, though no substantive public records or meeting transcripts have been released. Its recommendations are due by December 1, with state regulators expected to issue final license awards by year’s end.

 

MGM’s withdrawal underscores how volatile and politically complex the New York casino licensing process has become.

 

A High-Stakes Finish

As the casino field narrows, uncertainty continues to cloud New York’s $10 billion gaming expansion effort. MGM’s exit underscores how volatile the process has become—financially, politically, and operationally.

Whether the remaining three bidders can satisfy both fiscal expectations and public scrutiny may determine not only who wins the licenses, but also whether New York’s long-delayed downstate casino plan delivers the economic jolt state leaders have promised.