Published on: October 14, 2025, 05:06h.
Updated on: October 14, 2025, 05:06h.
- MGM steps back from New York City casino proposal, citing changes in economic forecasts
- Company highlighted a reduced likelihood of obtaining a 15-year gaming license, significantly less than initially anticipated
- This marks one of the most unexpected developments in the casino sector this year
In what is being considered one of the most surprising revelations in the casino industry for 2025, MGM Resorts International (NYSE: MGM) has withdrawn from the competition for a New York City casino license—an arena where the Bellagio operator was regarded as a frontrunner.
On Tuesday afternoon, the Las Vegas-based gaming giant announced its choice to withdraw, attributing the decision to evolving economic conditions that have altered expectations regarding the potential conversion of Empire City Casino in Yonkers into a Strip-style gaming venue.
“Today, MGM Resorts made the challenging decision to retract its application for a commercial casino license in Yonkers, New York,” stated MGM officially. “Since our application submission in June, the competitive landscape and economic factors have evolved, changing our anticipated returns on the proposed $2.3 billion investment.”
Prior to this announcement, four candidates were in the running for three downstate casino permits—Bally’s, Hard Rock International, MGM, and Resorts World New York.
MGM Cites Geographic Considerations in Abandoning NYC Casino Plans
Geographical factors seem to have influenced MGM’s decision to forgo its New York aspirations, as the company noted that multiple bids were “clustered in a small geographic area,” which affected initial economic projections for the possible conversion of Empire City.
What constitutes “clustered” may vary. Empire City is approximately 23 miles from Resorts World New York, which is also considered a strong contender for one of the downstate licenses. Additionally, the MGM facility is roughly 17 miles from Citi Field, just blocks away from the prospective $8 billion Metropolitan Park, where the Hard Rock casino will be, if it secures a permit.
Bally’s proposal, located at the Ferry Point golf course in the Bronx, is under 12 miles from MGM’s Yonkers site.
“Furthermore, our plans to upgrade and expand Empire City Casino were based on receiving a 30-year commercial casino license; however, new guidelines from the State of New York indicate that we can only anticipate a 15-year license,” MGM stated. “Together, these developments result in a scenario that no longer aligns with our commitment to capital management, nor that of our real estate partner in Yonkers, VICI.”
VICI Properties (NYSE: VICI) is the owner of the property assets associated with Empire City.
Major Casino Players Exit NYC Market
With MGM’s withdrawal, all four of the major publicly traded casino entities in the U.S. have exited the New York competition. Las Vegas Sands (NYSE: LVS) and Wynn Resorts (NASDAQ: WYNN) had withdrawn their bids prior to engaging in the community advisory committee (CAC) process, while Caesars Entertainment’s (NASDAQ: CZR) proposal for Times Square was turned down by a CAC.
Now, with MGM stepping away, it appears that of the major U.S. gaming brands, only Hard Rock will operate a gaming venue in New York City.
This also raises the possibility of an outcome many New Yorkers may not favor: President Donald Trump potentially increasing his wealth. If Bally’s secures a license—an outcome that has become more likely with MGM’s exit—the regional casino operator would owe the Trump Organization an additional $115 million, on top of the $60 million already paid for the lease rights to Ferry Point.