Yonkers Mayor Mike Spano is demanding a full investigation. “Something doesn’t add up here. The people of Yonkers deserve answers. This decision by MGM defies all logic, and 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,” he said.
“The people of Yonkers deserve to know if this process was tainted or manipulated in any way,” he added. “MGM has publicly acknowledged that Empire City cannot survive without a full gaming license, so why are they signing their own death warrant?”
MGM Yonkers’ plans had included the full renovation and expansion of Empire City Casino’s existing gaming areas, an expansive high-limit lounge, and the addition of a state-of-the-art BetMGM Sportsbook offering retail sports betting. The plan also envisioned the addition of a 5,000 maximum capacity entertainment venue and accompanying meeting space and three new full-service restaurants.
The operator said: “MGM Resorts made the difficult decision to withdraw its application for a commercial casino license in Yonkers, New York. Since submitting our application in June, the competitive and economic assumptions underpinning our application have shifted, altering our return expectations on the proposed US$2.3bn 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.”
The venue already operates 4,700 of slots, electronic three card poker, blackjack, craps, roulette, baccarat and sic bo table games.
Westchester County Executive Ken Jenkins added: “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 US$115m for Trump.”
MGM added: “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 $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 withdrawal means just three operator bids remain, meaning all will get licenses if the four-member panel issues all three of the licenses on December 1. The three remaining bids are Bally’s Bronx, Hard Rock’s plans next to Citi Field in Queens, and the existing Resorts World New York City, situated at Aqueduct Racetrack in Queens.
Source: G3 Newswire
