MGM Yonkers, a subsidiary of MGM Resorts International, has withdrawn its application for a commercial casino license in New York, ending plans for a $2.3bn redevelopment of Empire City Casino in Yonkers.
The decision follows changes to state licensing terms and increased competition in the downstate market.
In its statement, MGM said the "competitive and economic assumptions" underpinning its application had shifted since submission in June. The operator cited a newly defined market landscape - with four proposals clustered within a small region - and a reduction in the expected license term from 30 years to 15 years as primary factors behind its withdrawal.
MGM stated that these changes made the project's financial outlook inconsistent with its "commitment to capital stewardship" and that of its real estate partner, Vici Properties.
The company added that while it would not pursue the commercial license, it remains committed to the Yonkers property, which will continue operating as Empire City Casino.
Since MGM's acquisition of Empire City in 2019, the venue has contributed over $1.6bn to New York's education funds, part of more than $5bn generated for the state since 2006.
MGM's withdrawal comes just weeks after local advisory committees expressed support for both its and Resorts World New York City's expansion plans.
With MGM exiting the process, Resorts World's $5.5bn Queens project is now viewed as one of the frontrunners for one of three new downstate casino licenses, which are expected to be awarded in 2026.
Analysts have suggested Genting's position has been strengthened as a result of this withdrawal
