Casino Licensing and Regulatory Oversight: Governor Defends MGM New York Exit Amidst Political Controversy

• New York Gov. Kathy Hochul won’t probe MGM’s decision to fold on its Yonkers casino plan.
• The Trump Organization is denying any role in the shocking announcement.

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MGM Resorts’ shocking decision to withdraw from the downstate New York casino bidding process has sent ripples through the industry, specifically raising questions regarding the complexities of the casino licensing landscape. This sudden exit has left many stakeholders concerned about the future of competitive gaming in the region, with Yonkers Mayor Mike Spano expressing confusion and disappointment over the explanations provided. While the setback complicates the path toward securing a new casino licensing agreement for the area, the state governor has decided against launching an investigation into the matter.

After MGM folded on its $2.3 billion plan to convert its Yonkers racino into an entertainment hub akin to those in Las Vegas, the mayor called for an independent investigation into the abrupt decision to overhaul Empire City Casino into a full-scale casino featuring slot machines, live dealer table games, and sports betting.

I have no evidence to suspect that there’s any wrongdoing in this decision-making. I think MGM made their own, probably financial, decision based on what their needs are.

— New York Gov. Kathy Hochul

MGM’s withdrawal has improved the chances for Bally’s Bronx, previously considered a long shot, to gain one of the permits for downstate casinos.

Trump Connection

In 2019, President Donald Trump’s family business group, The Trump Organization, sold the management lease of a golf course owned by the city of New York in the Bronx for approximately $60 million. If Bally’s manages to secure permission to develop a casino at the Ferry Point Golf Links, they would owe the Trump Organization an additional $115 million.

Some allege that MGM’s exit might have been influenced by external pressures connected to the White House. Steve Witkoff, a close adviser to the president concerning Middle Eastern policies, is linked to Bally’s bid.

The President, through his organization, has categorically denied any involvement in MGM’s decision.

The Trump Organization had absolutely nothing to do with MGM’s decision to withdraw its bid for a casino license in Yonkers. Even the slightest suggestion otherwise is completely false, irresponsible, and pure speculation,” a statement from The Trump Organization read.

MGM indicated their exit was based on a ‘shift’ in competitive and economic assumptions that underpinned their application. Notably, the state reduced the proposed license length from 30 years to 15.

Three Bids Remain

Despite MGM’s exit, there are still competitive bids on the table:

• Bally’s $4 billion bid in the Bronx.
• Resorts World aims to invest $5.5 billion to transition its Queens Aqueduct racino into a full casino.
• A partnership between billionaire Steve Cohen and Hard Rock sees an $8 billion investment at Citi Field Ballpark in Queens.

The New York Gaming Facility Location Board is expected to award licenses by the end of the year.