Reevaluated the economics
In a stunning turn of events, MGM has withdrawn from the race for one of three casino licenses for downstate New York. In a press release, MGM Yonkers, Inc. said, “….the competitive and economic assumptions underpinning our application have shifted, altering our return expectations on the proposed $2.3 billion investment.”
“The newly defined competitive landscape – with four proposals clustered in a small geographic area – challenges the returns we initially anticipated from this project,” the company added. “Also, our proposal to renovate and expand Empire City Casino was predicated on the receipt of a 30-year commercial casino license but based on newly issued guidance from the State of New York we now expect to qualify for only a 15-year license.”
MGM’s Empire City Casino was expected to become one of the three licensees, as it is already a large, established slot parlor, making for an easier transition to a full-fledged casino than building an entire casino resort from the ground up.
Resorts World NYC a lock?
MGM’s retreat leaves just three casino proposals for the three New York City licenses. That would naturally lead one to believe that they will all get them, and that the competition is effectively over. It might be, but Lee Park, a spokesman for the New York State Gaming Commission (NYSGC), told The New York Times that the Commission is not required to issue all three licenses. In fact, it doesn’t have to issue any if it doesn’t feel any are up to snuff.
Of the three, the one that does seem to be a shoo-in is Resorts World NYC, which, like Empire City, is a pre-existing gambling venue, with nearly 6,000 slot machines and electronic table games. It has long been considered an obvious choice, but it still needs approval from the NYSGC.
Politics and billions of dollars
The other two candidates still in contention are one from New York Mets owner Steve Cohen, in collaboration with Hard Rock International, next to Citi Field in Queens, and Bally’s Golf Links at Ferry Point in the Bronx. Both had to overcome their fair share of hurdles.
State Senator Jessica Ramos, who represents the district where the $6.4 billion Citi Field casino would be, blocked the necessary rezoning of parkland. But State Senator John Liu introduced rezoning legislation, which passed. Ramos’ representative on the local Community Action Committee (CAC) voted for the casino plan.
Bally’s approval by its CAC by a 5-1 vote was even more political. The company acquired the land from the Trump Organization in 2023 for $60 million. Part of that deal included a clause that guarantees the Trump Organization $115 million should Bally’s win one of the New York casino licenses.
In April, the City Council voted against land use changes for the casino, which could have killed Bally’s efforts. But New York City Mayor Eric Adams vetoed it, rescuing the plan and leading to where it is now. Some are skeptical of Adams’ motives, however: the Trump administration got federal corruption and fraud charges against Adams dropped in exchange for concessions on immigration, even though Adams is a Democrat in the heavily-Democratic city.
The New York State Gaming Commission is expected to make its casino licensing decisions by the end of the year.
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