MGM Resorts has withdrawn its commercial casino license application to expand its Yonkers casino into a full-scale integrated resort, citing changes to the competitive landscape due to the proximity of the three other remaining license candidates.
The shock announcement was issued early this morning (Asia time), leaving just three operators in the running for the three licenses on offer: Genting Malaysia’s Resorts World New York City in Queens, Hard Rock’s Citi Field proposal and Bally’s Bronx plan.
“Today, MGM Resorts made the difficult decision to withdraw its application for a commercial casino license in Yonkers, New York,” the company explained.
“Since submitting our application in June, the competitive and economic assumptions underpinning our application have shifted, altering our return expectations on the proposed US$2.3 billion investment.
“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 Resorts has been a proud partner of the City of Yonkers and the State of New York since we purchased Empire City Casino in 2019. The property has generated more than US$5 billion for New York State education, including US$1.6 billion under our ownership. 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MGM’s departure from the New York race comes after four other proposals were recently withdrawn by the operators or rejected by local community groups, including Wynn Resorts in The Hudson Yards, Caesars in Times Square, Mohegan in Manhattan and a Coney Island development backed by Chicksaw Nation. Las Vegas Sands abandoned its bid to develop an IR in Nassau County in April.
MGM is currently developing a US$10 billion IR in Osaka, Japan and is pursuing a casino license in the UAE.
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