MGM Drops Yonkers Casino Proposal on Deadline Day

MGM Resorts has walked away from its Empire City Casino expansion plan in Yonkers after determining that the project no longer met its financial goals. The decision came right on the deadline for submitting tax rate proposals to the New York Gaming Commission, reshaping the race for the city’s three available casino licenses.

Good to Know

• MGM cited a change in projected returns and license duration as the main reasons for its withdrawal.
• The Empire City property will continue to operate as a video lottery terminal facility.
• The remaining contenders are Resorts World, Metropolitan Park, and Bally’s Bronx.

MGM announced on Tuesday that it would not move forward with the proposed $2.3 billion expansion of Empire City Casino into a full-scale resort:

“Today, MGM Resorts made the difficult decision to withdraw its application for a commercial casino license in Yonkers, New York.”

The operator explained that recent guidance from the state shortened the expected license term from 30 years to 15 years. That, combined with heavy competition from nearby proposals, created a less appealing return profile:

“The newly defined competitive landscape—with four proposals clustered in a small geographic area—challenges the returns we initially anticipated from this project.”

MGM added that the shorter license “no longer aligns with our commitment to capital stewardship, nor to that of our real estate partner in Yonkers, VICI.”

A Setback for Yonkers Development Plans

Empire City, a historic venue that opened as a racetrack 126 years ago, had been seen as one of the strongest candidates for a full casino license. MGM took over the site in 2019, with plans to introduce live-dealer gaming, new entertainment spaces, and major infrastructure upgrades worth $100 million.

Local leaders had supported the bid, giving it a unanimous 5–0 community committee vote in late September. Many believed the project would create thousands of jobs and help safeguard tax revenue from the existing facility, which currently contributes around $30 million annually to Yonkers.

MGM stated:

“The property has generated more than $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.”

Now What

Without MGM in the race, three finalists remain: Resorts World, Metropolitan Park, and Bally’s Bronx. Each group must now submit a blind tax rate proposal to the Gaming Facility Location Board. Their models will consider different competitive scenarios over three years, balancing potential gross gaming revenue with local tax expectations.

The New York Gaming Commission is expected to select up to three winners by early December. If timelines hold, new construction and renovation plans could begin in 2026, finally bringing full-scale casino gaming to the downstate region.

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