MGM Abruptly Exits New York Casino Race, Leaving Three Finalists

In a move that reshaped the future of New York’s casino expansion, MGM Resorts International withdrew its $2.3 billion proposal to convert Empire City Racino in Yonkers into a full commercial casino. The decision, announced on 14 October 2025, came as a shock to both industry observers and local officials who had long viewed MGM as a leading contender for one of the three available downstate casino licenses.

The withdrawal came just hours before MGM was expected to file its updated application with the New York State Gaming Facility Location Board (GFLB). Rather than revising its economic projections, the company abruptly stepped out of the process, citing changes in financial expectations and increased competition within the market.

Known globally for its luxury resorts and online gaming presence, MGM also operates one of the top US online casinos, offering digital gaming options that complement its land-based operations across multiple states.

License Terms and Competitive Pressure

The state’s new guidance limiting commercial casino licenses to a 15-year term was a key factor in MGM’s decision. The company had structured its Yonkers expansion around a 30-year license, which would have allowed it to recover its investment through decades of operation. A shorter licensing window, combined with a dense concentration of competing casino projects across the New York City area, made the revised economics less attractive.

Four major proposals had been clustered in nearby regions, each vying for overlapping audiences. MGM’s project, which relied on long-term market stability, became harder to justify when analysts began forecasting slimmer returns due to shared customer bases.

For MGM, the shorter license period reduced its ability to amortize a large capital outlay, while competitive clustering raised the risk of slower profitability. The combined impact effectively changed the project’s risk profile and rendered it inconsistent with the company’s broader investment priorities.

Local Backlash and Disappointment

The decision was met with immediate frustration from Yonkers officials and community leaders who had supported MGM’s bid. Mayor Mike Spano expressed disappointment, noting that the city had invested considerable effort in preparing infrastructure, workforce initiatives, and local partnerships to support the expansion.

Community advocates who participated in the review process also voiced concern about the impact on employment opportunities and regional development. Empire City Racino has long been viewed as a major local employer and tax contributor, and the transition to a full casino license was expected to bring thousands of new jobs and expanded tourism revenue.

Without the upgrade, Yonkers will continue to operate under its current video lottery terminal model, which provides stable tax income but lacks the draw of live table games, resort facilities, and major entertainment events.

A Changing Casino Landscape

MGM’s withdrawal leaves three contenders for the three available licenses: Resorts World in Queens, Bally’s in the Bronx, and Metropolitan Park near Citi Field in Queens. Each project offers a different vision of how casino gaming could integrate into New York’s broader economic and urban fabric.

Resorts World plans to expand its existing racino at Aqueduct Racetrack into a full casino resort with live gaming, luxury accommodations, and entertainment venues. Bally’s is pursuing a redevelopment of the former Trump Golf Links at Ferry Point, converting it into an integrated gaming and leisure complex. Meanwhile, Metropolitan Park proposes an entirely new development adjacent to Citi Field, backed by Hard Rock International and Mets owner Steve Cohen, with a focus on large-scale entertainment and hospitality.

The Gaming Facility Location Board is expected to review the final applications through 1 December 2025, with recommendations sent to the New York State Gaming Commission later in the year. Licenses could be issued by year-end, although further review periods remain possible.

The Business Logic Behind MGM’s Surprise Withdrawal

MGM’s decision to exit the New York casino race was shaped by practical financial and regulatory realities rather than short-term sentiment. The company’s Empire City expansion had been designed around a long-term business model that assumed consistent growth, stable taxes, and a multidecade operating license. When state regulators shortened the potential license period, the company’s internal projections no longer met expected investment thresholds.

At the same time, a surge in competing bids within a small geographic area raised concerns about market overlap. MGM anticipated that multiple large-scale casinos opening within a limited radius could dilute revenues and hinder each operator’s ability to achieve profitability targets.

The company’s management has consistently prioritized disciplined capital deployment, focusing on projects that combine sustainable returns with measured risk. With significant resources already tied to developments in Japan, Dubai, and Las Vegas, the new terms in New York introduced too much uncertainty to justify further expansion. From a business standpoint, the withdrawal was a strategic realignment rather than a retreat.

Uncertain Future for Empire City

MGM acquired Empire City in 2019, inheriting a property that had already generated billions in tax revenue for New York State since its original licensing in 2006. The racino has been a steady performer, contributing approximately $5 billion in taxes and fees over the years and supporting thousands of regional jobs.

However, its reliance on video lottery terminals limits growth potential compared to full-service casinos offering live table games and broader entertainment. MGM had argued throughout the process that Empire City could not remain competitive in a landscape where other properties would have more expansive gaming rights.

Despite the setback, the company stated it will continue to operate the property under its existing license, maintaining current operations and employment levels. MGM executives have indicated that Empire City will continue serving Yonkers and surrounding communities as a successful regional entertainment venue, though expansion plans are now indefinitely paused.

What Happens Next

With MGM’s departure, the licensing process is now far simpler in structure but still complex in execution. The three remaining applicants must complete environmental assessments, zoning approvals, and community advisory reviews before the Gaming Commission’s final decision.

Each project faces its own set of challenges, from transportation concerns to financing commitments. However, with three candidates and three available licenses, the likelihood of all being approved is stronger than ever.

For Yonkers, the outcome is less specific. While Empire City will remain operational, the city’s hopes for a full-scale casino and the economic revitalization that might have followed are on hold. MGM’s exit highlights the challenges of balancing state regulations, community expectations, and private-sector investment in one of the country’s most competitive gaming markets.

As the year-end deadline approaches, the focus now turns to the remaining bids and whether New York’s evolving casino framework can deliver the jobs, tax revenue, and tourism growth that state leaders have envisioned since the process began.