NY Governor Won’t Investigate MGM’s Decision to Drop Yonkers Casino Bid

New York Governor Kathy Hochul has stated that she will not launch an investigation into MGM’s shocking decision to withdraw an application for a casino license in Yonkers.

MGM was considered a leading candidate for one of up to three casino licenses becoming available in New York. It planned for a $2.2 billion upgrade and renovation of its existing Empire City site in Yonkers, which presently operates as a racino.

However, the company made the surprising decision to withdraw its application earlier this week, citing changing economic conditions brought on by other competitors and a shorter license term than anticipated. 

Yonkers Mayor Shocked by MGM Withdrawal

Following the announcement, Yonkers mayor Mike Spano told “Mornings on 1,” a local New York news show: “I got a call of the rumor that they might not be putting their paperwork in, 10 minutes to 4 p.m., and I said, ‘There’s no way that’s true.’”

Spano stated that he only discovered the news from the press release, which had criticized the decision from the New York State Gaming Commission to cut the license period in half, saying: “The newly defined competitive landscape – with four proposals clustered in a small geographic area – challenges the returns we initially anticipated from this project. 

“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.”

Spano concurred with that view, stating: “The gaming commission proposed changes to the contracts six days ago. It took Yonkers and said, ‘You know what, the max you can have now is a 15-year license.’ And with a lot of unanswered questions, that made it very difficult for MGM to put together a business plan.”

Spano then called for an investigation into the gaming commission’s handling of the process.

New York Governor Rejects Investigation Calls

However, responding to the request, Gov. Hochul stated: “I would also say 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’s any wrongdoing in this decision-making. I think MGM knows, you know, they made their own, probably financial decision based on what their needs are.”

Along with the commission, Spano also implied that Bally’s, another bidder for one of the three licenses, and President Donald Trump were involved in the withdrawal.

“It’s no secret that the big winner from this reversal will be Bally’s proposal for a casino at the former Trump Links in Whitestone,” said Spano. “It’s also no secret that Bally’s has a deal with Donald Trump that they will pay him an additional $115 million if they can open a casino there.”

The Bally’s bid includes use of a golf course that was previously purchased from the Trump Organization in 2023, with an agreed $115M payment should the casino bid be accepted. The payment was described by Bally’s chair Soo Kim as “essentially a deferred purchase price,” and that “the value that he’s receiving is ultimately a very small piece of the value of this project.”

The Trump Organization also released a statement refuting Spano’s claims, saying: “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. 

“According to a statement from MGM, the decision to withdraw its bid was due to what the company described as a ‘shift’ in the ‘competitive and economic assumptions’ underpinning their application — including the fact that the state had reduced the length of the proposed license from 30 to 15 years.

“Instead of lodging false and unsubstantiated allegations, Mayor Spano may want to focus his energy on improving his own city and answering the persistent allegations of nepotism and conflict of interest that have plagued his administration for over a decade.”