MGM suddenly withdraws New York gambling license application
MGM Resorts, owner of BetMGM, sent shockwaves through the gambling industry on Tuesday, October 14, after announcing its withdrawal from the race for a New York casino license.
Word comes by way of an official press release, which cites changing “economic and competitive challenges” as the primary forces behind this sudden retreat.
As a result, the operator’s $2.3bn Empire City Racino renovation plans will not be fulfilled.
What MGM’s casino withdrawal means for New York
MGM currently oversees Empire City racino, located in Yonkers, through an agreement with VICI Properties.
Having led Empire City’s operations since 2019, MGM planned to carry out a complete takeover of the venue – and intended to transform Empire City into a fully-fledged commercial casino. In addition to slots, the organization anticipated installing live table games, sports betting, restaurants and other entertainment facilities.
The company submitted a casino license application in June 2025 to prepare for this proposed overhaul, joining seven competitors battling for one of three certificates.
Despite being one of four entities whose applications were unanimously approved by a community advisory committee (CAC) in September, MGM has now opted to pull back.
It’s also worth noting that this backing down was revealed on the same day that MGM had planned to publish a revamped application to the New York Gaming Facility Location Board.
This leaves New York with three remaining bidders: Steve Cohen’s Metropolitan Park near Citi Field, Resorts World at Aqueduct Racetrack and Bally’s Bronx at Ferry Point.
These companies must earn approval from the state gaming board and satisfy local CACs before being accepted. And, crucially, MGM’s departure paves the way for all three competitors to obtain one of the three available licenses.
Why MGM has withdrawn its New York casino bid
MGM’s decision to pull out was influenced by several factors. First, the organization believes that the proximity of venues proposed by rival entities restricts the total revenue initially forecast by the Group.
Second, MGM presented its application on the assumption that, if successful, it would be granted a 30-year commercial casino license. In the four months since its submission, the operator says it now expects “to qualify for only a 15-year license.”
What is not mentioned in MGM’s statement is tax, and for good reason. Bidders were implored to propose new tax rates within their applications, and with MGM already paying 55% on all gross gaming revenue (GGR), in-house strategists may have determined that escalating that levy – along with a $2.3bn investment – would prove unwise.
Despite this reversal, MGM confirmed that it will continue to serve players visiting its Yonkers Empire City racino:
“MGM Resorts has been a proud partner of the City of Yonkers and the State of New York since we purchased Empire City Casino in 2019. The property has generated more than $5bn for New York State education, including $1.6bn under our ownership.
“We know our decision will impact many individuals; we remain committed to operating the property in its current format and believe it will continue to enjoy success serving customers in Yonkers and the surrounding communities.“
