New York Casino License Update: Big Surprise Regarding MGM Casino Withdrawal Applications in the Big Apple

In a surprising turn of events in the casino industry for 2025, MGM Resorts International (NYSE: MGM) has announced its casino withdrawal from the race to secure a casino license in New York. The operator of the Bellagio was seen by many as a top contender in the competition.

Citing shifts in economic conditions and related factors, the Las Vegas-based company expressed that it was a “difficult” decision not to proceed with its application for a license that would have allowed it to transform the Empire City Casino in Yonkers into a luxurious Vegas Strip-style facility.

In an official statement, MGM Resorts said, “Today, MGM Resorts made the challenging decision to withdraw its application for a commercial casino license in Yonkers, New York. Since we submitted our application in June, the competitive and economic assumptions that underpinned it have changed, altering our expectations of profitability for the proposed investment of $2.3 billion.”

Up until now, there were four competitors vying for three casino licenses in the southern part of the state: Bally’s, Hard Rock International, MGM, and Resorts World New York.

MGM Cites Geography in Withdrawal from New York Casino Bid

The geographical location seems to have played a key role in MGM’s decision to abandon its plans for New York. The operator noted that the four proposals were “concentrated in a small geographical area,” which put pressure on the economic projections initially associated with the possible conversion of Empire City.

The term “concentrated” can be subjective. Empire City is located approximately 37 kilometers from Resorts World New York, which is also regarded as a leading candidate for one of the licenses. MGM’s venue is about 27 kilometers from Citi Field, where the $8 billion Metropolitan Park project, which includes Hard Rock’s casino, would be situated if approved.

Bally’s proposal, located at Ferry Point Golf Course in the Bronx, is less than 20 kilometers away from MGM’s property in Yonkers.

MGM further added, “Additionally, our renovation and expansion proposal for Empire City Casino was based on receiving a 30-year commercial license, but according to the new regulations issued by the State of New York, we now qualify only for a 15-year license. Together, these factors have caused the proposal to no longer align with our commitment to responsible capital management, nor with that of our real estate partner in Yonkers, VICI.”

VICI Properties (NYSE: VICI) holds the real estate assets of Empire City.

Major Operators Bow Out from New York

With MGM’s announcement, all four of the largest publicly traded casino operators in the United States are now out of contention for the New York licenses. Las Vegas Sands (NYSE: LVS) and Wynn Resorts (NASDAQ: WYNN) abandoned their proposals before reaching the phase of community advisory committees (CAC), while Caesars Entertainment’s (NASDAQ: CZR) project for Times Square was rejected by a CAC.

With MGM’s exit, it seems that among the most recognized American brands, only Hard Rock will be able to operate a casino in New York City.

Another potential outcome, which many New Yorkers might not view favorably, is that former President Donald Trump could financially benefit. If Bally’s secures a license—something much more likely after MGM’s withdrawal—the regional operator will need to pay an additional $115 million to the Trump Organization, on top of the $60 million already paid for the leasing rights to the Ferry Point golf course.

Key Takeaways:

• MGM Resorts International has withdrawn its application for a gaming license in New York.
• Changes in economic conditions were cited as factors in the decision.
• Competition for the remaining licenses intensifies with MGM and other major operators out of the running.
• Details regarding the geographical concentration of proposals impacted MGM’s decision-making.

In summary, MGM’s decision to withdraw from the New York casino licensing process is a significant development in the gaming industry, influenced by a mix of economic factors and competitive pressures. The focus now shifts to the remaining operators as they scheme to capture a lucrative market that could dramatically reshape the gaming landscape in the region.