MGM Withdraws $2.3 Billion Yonkers Casino Bid for New York License

Financial and Competitive Justifications

The Las Vegas-based operator cited a shift in economic and competitive factors that no longer supported the expected return on its proposed $2.3 billion investment. MGM detailed two main reasons for its decision.

MGM’s proposal was based on receiving a 30-year concession. New state guidance suggested the company would only receive a 15-year permit. MGM stated the reduced term did not align with its “commitment to capital management.”

Additionally, the firm pointed to a “newly defined competitive landscape,” noting that four proposals were focused on a small geographic area. MGM suggested this dense competition “undermines the returns we originally expected from this project.”

Despite the withdrawal of its full casino application, MGM confirmed it will continue to operate the slot machine parlor at Yonkers Raceway.

Local Fallout and Remaining Bids

The sudden exit was surprising, given that the MGM proposal had recently secured unanimous support from the local Community Advisory Committee. This was the first New York-area proposal to pass the committee vote.

Yonkers Mayor Mike Spano strongly criticized the decision, calling it a “betrayal.” Spano dismissed MGM’s stated reasons, asserting they “simply don’t sum up.” The mayor has formally requested that Governor Kathy Hochul launch an independent investigation into the licensing process. Spano suggested the withdrawal might be connected to a potential $115 million payment to the Trump Organization should Bally’s Corp. win a license for its proposed site in the Bronx.

With MGM out, the race for the three available licenses is down to three remaining candidates in the Outer Boroughs:

The final decision is now in the hands of the five-member Gaming Facility Location Board and is expected by December 1. Proposals are being judged on four criteria, with economic and business development accounting for 70% of the overall evaluation.