A large casino company shocked the gaming world on Tuesday by voluntarily bowing out of the race to run a casino in New York City.
MGM Resorts International, Empire City Casino operator in Yonkers, said it withdrew its commercial casino application with the New York Gambling Regulators. Las Vegas-based MGM resorts said it made the “difficult decision” to remove itself from predominantly because “the competitive and financial assumptions that form the basis for our application have been shifted”, since the license process formally began in June.
“The recently defined competition landscape – with four proposals grouped in a small geographical area – challenges the returns we originally foreseen from this project,” the company said in a statement. “We know that our decision will affect many individuals; we remain committed to running the property in its current format and believes that it will continue to enjoy success that serves customers in Yonkers and the surrounding communities.”
MGM and Empire City were generally considered favorites to secure one of three available Downstate Class III spell licenses. Racino, who only has electronic table games and video lottery terminal places, was the sixth most intriguing commercial property in the country outside Nevada and Mississippi last year, according to data from the American Gaming Association.
Last month, MGM and Empire City received support from an advisory committee for the local community to promote the project, a necessary step in the license process, which eliminated several potential competitors.
MGM also said that the conditions for securing a Downstate New York Pell license had changed.
“Our proposal to renovate and expand the Empire City Casino was due to the reception of a 30-year commercial casino license but based on newly published guidance from the state of New York, we now expect to qualify for only a 15-year-old license,” the company said Tuesday. “Overall, these events result in a proposal that is no longer in line with our commitment to asset management, nor to our real estate partner in Yonkers, Vici.”
With MGM’s withdrawal, there are only three remaining Downstate New York Casino License Applications.
Genting Group, a Malaysia-based conglomerate, suggests expanding Resorts World New York City on Aqueduct Racetrack in Queens to a full-fledged casinoort. Racino was the highly large commercial property in the country outside Nevada and Mississippi last year, based on AGA data. Genting also owns the world Las Vegas.
Hard Rock International and billionaire Steve Cohen received CAC support for their joint project, Metropolitan Park, in Queens. Metropolitan Park is a $ 8 billion complex that is proposed for an adjoining party near Citie Field, where Cohen’s New York Mets plays 81 home games. Hard Rock International and Seminole tribe in Florida are transforming the former Mirage Casino hotel into Hard Rock Las Vegas, as well as constructing the 660-foot high guitar tower hotel on the strip.
Rhode Island-based Bally’s Corp nailed down a CAC approval for its proposal to construct a casino location on Bally’s golf links near Ferry Point in Bronx. Bally’s recently revealed plans to build a way out on the former Tropicana Las Vegas site next to the Undergrand’s Athletics Major League Baseball Stadium on the strip.
Contact David Danzis at ddanzis@ theplayerlounge.com or 702-383-0378. Follow @AC2vegas_danzis at X.
