- MGM pulls New York Metropolis on line casino utility, citing shifting financial assumptions
- Firm additionally talked about probability of receiving a 15-year license, half of what was initially anticipated
- It’s among the many on line casino business’s most stunning information this yr
In what’s arguably among the many most beautiful on line casino business information of 2025, MGM Resorts Worldwide (NYSE: MGM) is out of the New York Metropolis on line casino competitors — one wherein the Bellagio operator was broadly considered as one of many leaders.
A rendering if MGM’s Empire Metropolis in Yonkers as a Las Vegas-style venue. The operator surprised the gaming world by exiting the New York on line casino race. (Picture: MGM Resorts Worldwide)
Citing shifting economics, amongst different components, the Las Vegas-based gaming firm made the announcement Tuesday afternoon, calling it a “troublesome” choice to not pursue a license that will have allowed Empire Metropolis On line casino in Yonkers to be transformed to a Strip-style gaming venue.
At the moment, MGM Resorts made the troublesome choice to withdraw its utility for a business on line casino license in Yonkers, New York,” mentioned MGM in a press release. “Since submitting our utility in June, the aggressive and financial assumptions underpinning our utility have shifted, altering our return expectations on the proposed $2.3 billion funding.”
Coming into immediately, there have been 4 contenders for the three downstate on line casino permits — Bally’s, Exhausting Rock Worldwide, MGM, and Resorts World New York.
MGM Mentions Geography in Scrapped NYC On line casino Bid
Geography seems to have performed a component in MGM abandoning its New York ambitions with the operator noting 4 bids “clustered in a small geographic space” pressured preliminary financial assumptions pertaining to the attainable Empire Metropolis conversion.
“Clustered” could also be subjective on this case. Empire Metropolis is situated about 23 miles from Resorts World New York, which can also be considered as one of many high contenders for one of many downstate licenses. The MGM venue is roughly 17 miles away from Citi Discipline, which is simply blocks away from the place the $8 billion Metropolitan Park, together with the Exhausting Rock on line casino, can be situated if it wins a allow.
Bally’s bid, located on the Ferry Level golf course within the Bronx, is situated lower than 12 miles from the MGM Yonkers property.
“Additionally, our proposal to renovate and broaden Empire Metropolis On line casino was predicated on the receipt of a 30-year business on line casino license however primarily based on newly issued steerage from the State of New York we now count on to qualify for under a 15-year license,” provides MGM. “Taken collectively, these occasions end in a proposition that not aligns with our dedication to capital stewardship, nor to that of our actual property associate in Yonkers, VICI.”
VICI Properties (NYSE: VICI) owns the property property of Empire Metropolis.
In NYC On line casino, Practically All Massive Names Are Out
With MGM’s announcement, all 4 of the most important publicly traded US-based on line casino operators are out of the New York competitors. Las Vegas Sands (NYSE: LVS) and Wynn Resorts (NASDAQ: WYNN) beforehand deserted bids earlier than shifting onto the group advisory committee (CAC) course of whereas Caesars Leisure’s (NASDAQ: CZR) Instances Sq. proposal was rejected by a CAC.
With MGM out, the implication is that of the recognizable US gaming manufacturers, solely Exhausting Rock will run a New York Metropolis gaming venue.
One other outcome may nicely be one thing many New Yorkers don’t need: President Donald Trump getting a bit wealthier. Ought to Bally’s win a license — odds of which dramatically shortened with MGM’s departure — the regional on line casino operator would owe the Trump Group one other $115 million on high of the $60 million already paid to the enterprise entity to accumulate the lease rights to Ferry Level.
