MGM Resorts Abruptly Exits New York Casino Race

MGM Resorts International has withdrawn its bid for a coveted downstate New York casino license, abruptly ending plans for a $2.3 billion expansion and renovation of its Empire City property in Yonkers. The move, announced Tuesday afternoon, marks a stunning retreat in a years-long process that had positioned MGM as one of the leading contenders in New York’s highly anticipated casino race.

The decision came on the very day revised applications were due to the New York Gaming Facility Location Board (GFLB). MGM’s proposal—one of eight initially submitted and one of four to pass the local committee stage—was widely viewed as a frontrunner, backed by strong community support and an aggressive timeline targeting a June 2027 opening.

Yet the company’s announcement underscored a changing economic calculus and growing unease about the evolving regulatory and competitive environment. “The newly defined competitive landscape – with four proposals clustered in a small geographic area – challenges the returns we initially anticipated from this project,” MGM said in a statement.

“Our proposal… 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.”

 

Item	Status	Estimated Cost	License Term	Location
MGM Empire City	Withdrawn	$2.3B	Expected 15 years	Yonkers, NY

 

A Third Major Exit in a Shifting Race

MGM becomes the third major operator to withdraw from the downstate licensing process this year, following earlier exits by Las Vegas Sands and Wynn Resorts. Sands cited uncertainty over potential online gambling legislation, while Wynn blamed what it described as a politicized and unpredictable regulatory environment.

For MGM, the tipping point appears to have been the combination of shortened license duration and intensified local competition—four proposals, including its own, were centered in or near the New York City metropolitan area.

MGM CEO Bill Hornbuckle had hinted at growing frustration during a banking conference in September, questioning the viability of major capital investments tied to a 15-year license term. He also raised concerns about tax burdens, noting that Empire City’s new license would have required maintaining its current 55% rate on slot revenue—significantly higher than typical commercial casino rates. MGM’s decision also reflects broader capital discipline across the gaming industry. The company is simultaneously pursuing large-scale projects in Japan and Dubai and has committed to a costly remodel of its MGM Grand property in Las Vegas.

Among the four New York finalists, MGM’s $2.3 billion project carried the lowest estimated construction cost—compared to $4 billion for Bally’s Bronx proposal, $5.5 billion for Resorts World’s expansion, and $8 billion for the massive Metropolitan Park development.

That leaner budget was once seen as an advantage, but with reduced licence terms and mounting uncertainty over return on investment, MGM’s financial calculus shifted sharply.

 

Implications for Remaining Bidders

With MGM’s exit, only three applicants remain vying for three available licenses—a development that could reshape the dynamics of the competition. Bally’s, Resorts World, and the Metropolitan Park consortium are now expected to move forward unopposed, pending review by the GFLB through December 1.

In a statement to industry publication iGB, Bally’s expressed confidence in its position: “We have submitted our supplemental and feel confident that we have put a compelling proposal for the State to consider… Bally’s is ready and willing to bet on the Bronx.” Hard Rock, another major player that had shown early interest in New York, declined to comment.

The withdrawal leaves the future of Empire City Casino in limbo. The property, originally a video lottery terminal (VLT) racino, has contributed roughly $5 billion in state taxes since 2006. MGM acquired the site in 2019 with the expectation that a full commercial license would eventually be granted, allowing table games and broader casino operations. Without that license, Empire City remains a limited VLT facility facing new competitive pressures from forthcoming full-scale casinos in the region.

Community leaders in Yonkers expressed disappointment following the announcement. James Cavanaugh, chair of the local Community Advisory Committee that had unanimously approved MGM’s proposal, previously described Empire City as “an aging slot parlor” in need of revitalization. Mayor Mike Spano had long championed MGM’s bid as a key driver for local economic growth and job creation. MGM acknowledged the local impact of its decision but pledged to maintain operations.

 

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.

 

A Broader Warning

MGM’s withdrawal raises new questions about the viability and structure of New York’s casino expansion strategy. Once seen as a gold rush for global operators, the downstate licensing process has now seen three of the industry’s most prominent names walk away—each citing concerns about regulation, economics, or political risk.

As the GFLB reviews the remaining bids, analysts say the state faces a delicate balance: ensuring strong economic returns while maintaining investor confidence in a process increasingly marked by volatility. For now, MGM’s exit stands as a cautionary tale about the limits of ambition in a crowded and uncertain casino landscape.