MGM says it no longer believes it will see the return on investment it expected when it first submitted its application for a full gaming license in June. New York is set to award up to three gaming licenses to downstate locations by the end of the year. MGM had proposed a $2.3 billion project to transform Empire City from a slot machine parlor into a full-scale gambling venue with restaurants and entertainment.
But with three other proposals also vying for licenses in New York City, MGM says it is no longer sure whether an upgraded Yonkers casino could compete. The resorts chain also listed new state guidance that would have qualified them for only a 15-year license, rather than the 30-year license they were expecting.
Yonkers Mayor Mike Spano isn’t buying it. Speaking with WAMC, the Democrat acknowledges the switch-up from a 30-year license to a 15-year term was sudden — he says they got the news from the state about six days ago — but he doesn’t understand why MGM would pull the plug before talking to him first. He says the chain’s other concerns, about competition, have always been something they were able to talk through. Instead of calling him before a 4 p.m. paperwork deadline Tuesday, however, Spano says MGM waited until after the deadline to say the project was dead.
“I’m really disappointed that MGM pulled the rug out from under us, and I’m suspect of the way it was done," he says. "They chose to tell us after it was too late for us to do anything about it.”
Spano is calling on New York Governor Kathy Hochul to launch an independent investigation into whether MGM faced any pressure to withdraw, or whether there was any “linkage between MGM's decision and the massive financial benefit to Donald Trump.” One of the remaining bids — Bally’s in the Bronx — is at the site of a former Trump golf course. Bally’s bought the license to operate the property from the Trump Organization in 2023. As part of that deal, Bally’s agreed to pay the Trump Organization $115 million in the event the site was turned into a casino.
“So that makes me wonder, what’s going on?" adds Spano. "That’s why I’ve asked the governor to please investigate this matter.”
WAMC has reached out to the White House for comment. MGM declined to comment beyond its announcement Tuesday.
Spano is not the only local official who is skeptical of MGM’s decision. In a statement Tuesday, Westchester County Executive Ken Jenkins, a fellow Democrat, said he shared Spano’s concern, adding: “Frankly, this decision makes little sense.”
Asked about the situation this morning, however, Hochul says she’s not ready to open an investigation.
“I share the mayor’s disappointment that this did not continue, but I at this time am not aware of any reason to launch an investigation. I have no evidence to suspect that there is any evidence of wrongdoing in this decision-making," says Hochul. "I think MGM knows — they probably made their own financial decision based on what their needs are. So, the process will move forward with the three bidders at this point, and we know how that is likely to go.”
In past conversations with WAMC, the mayor was very optimistic about the city’s odds of winning one of the three licenses, calling it a “sure bet.” The project’s Community Advisory Committee unanimously approved MGM’s plan last month. The project was expected to bring hundreds of jobs and tens of millions of dollars in tax revenue to the city of Yonkers. MGM had also agreed to a $100 million community benefits agreement to mitigate traffic concerns around the casino, improve stormwater drainage, and help construct a new library.
In announcing its decision Tuesday, MGM says it remains committed to operating Empire City in its current form. Throughout the application process, however, Spano says the chain described the upgrades as crucial to the casino’s long-term survival. Before approving the plan last month, Community Advisory Committee Chair James Cavanaugh warned Empire City would “wither and die” without a full gaming license.
"With three new casinos within a half-hour drive, all offering table games, sports betting, entertainment, and all that goes with a full-blown casino, who is going to continue going to an aging slot parlor with none of these things?” asked Cavanaugh.
Spano says he doesn’t understand why MGM would effectively sign the “death warrant” of its own casino. He’s hopeful but concerned for the future of the site.
“I will say this: it’s a valuable piece of property, probably the most valuable piece of property that exists between Manhattan and Albany," he tells WAMC. "Yonkers will be OK, but we negotiated in good faith and MGM pulled the rug out from under us. And we want to know why.”
