MGM Resorts International has withdrawn its commercial casino license application in New York, leaving just three bidders left in the process.
The company had planned to invest $2.3 billion to transform the Empire City Casino at Yonkers Raceway into a commercial casino and entertainment destination, while continuing to operate its historic horseracing track and parimutuel operations.
In a surprise announcement Tuesday, MGM confirmed the withdrawal of its license application to the New York Gaming Commission and the Gaming Facility Location Board.
“Since submitting our application in June, the competitive and economic assumptions underpinning our application have shifted, altering our return expectations on the proposed $2.3 billion investment,” said the company. “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.”
Since opening in October 2006, Empire City Casino has generated more than $5 billion for New York State education, including $1.6 billion since MGM Resorts assumed ownership in 2019.
“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,” added MGM.
The withdrawal of MGM Yonkers’ bid leaves just three bidders remaining for the state’s three downtown casino licences – Metropolitan Park, Bally’s Bronx and Resorts World New York City.
Shares in MGM Resorts International (NYSE:MGM) closed 2.79 per cent higher at $32.45 per share in New York Tuesday.