MGM withdraws application for downstate NY commercial casino license
In a statement, MGM said the “competitive and economic assumption” surrounding their bid shifted, “altering our return expectations on the proposed $2.3 billion investment.”
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MGM Resorts, considered the frontrunner to gain a downstate casino license, withdrew its application to the New York Gaming Commission and the Gaming Facility Location Boards.
News 12’s senior reporter Tara Rosenblum first reported the expected withdrawal.
In a statement, MGM said the “competitive and economic assumption” surrounding their bid shifted, “altering our return expectations on the proposed $2.3 billion investment.”
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“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."
MGM said that taken together, the proposition “no longer aligns” with its “commitment to capital stewardship” or its real estate partner, VICI.
In a statement, Yonkers Mayor Mike Spano said the decision by MGM "defies all logic."
"It’s nothing short of a betrayal to the people of Yonkers and Westchester County. I am calling on Governor Hochul to launch an independent investigation into this process, because the reasons MGM gives for its 180-degree reversal just don't add up."
Spano also alleged that MGM’s decision would directly benefit Bally’s proposal for a casino at the former Trump Links at Ferry Point:
“It's also no secret that Bally's has a deal with Donald Trump that they will pay him an additional $115 million if they can open a casino there. People need to be assured that there is no linkage between MGM's decision and the massive financial benefit to Donald Trump.”
Westchester County Executive Ken Jenkins shared in Mayor Spano’s dismay.
“Frankly, this decision makes little sense — especially after MGM had just been celebrating its advancement through the first round of the process,” he sad in a statement. “I share Yonkers Mayor Mike Spano’s concern that there appears to be more to this story — potentially political influence or pressure from the Trump Administration, or even the President himself, that forced MGM’s hand to default to Bally’s — a move that could result in a profit of roughly $115 million for Trump.”
At the end of September, an advisory committee voted unanimously to approve a proposal to expand the casino.
That proposal included a renovation and expansion of the current gaming area, three full-service restaurants, a parking garage and a new entertainment venue fit to hold a maximum of 5,000 people.
The proposal has been a divisive issue for people who live and work in the area.
Some have previously expressed concerns over traffic and other issues. Others have fully backed it, saying they were looking forward to the economic opportunities.
