MGM Resorts International has withdrawn from the race to operate a casino in the New York metropolitan area, narrowing the field to three remaining bidders, including Genting Group, Bally’s Corp, and a consortium led by billionaire Steve Cohen.
The Las Vegas-based company cited economic challenges and changes in the state’s licensing framework, particularly the shorter-than-expected licence duration, as reasons for its withdrawal.
“The newly defined competitive landscape — with four proposals clustered in a small geographic area — challenges the returns we initially anticipated,” MGM said in a statement on Tuesday.
MGM’s original proposal involved a US$2.3 billion (RM9.72 billion) expansion at its Yonkers Raceway site. The group will continue operating its slot machine parlour there.
Under newly issued state guidelines, casino licences could run for 15 years instead of 30, with longer permits tied to higher investment commitments. The remaining licences will allow table games and sports betting.
Cohen, owner of the New York Mets, has teamed up with Hard Rock International to develop an US$8.1 billion entertainment complex adjacent to Citi Field in Queens. Their bid includes a US$500 million licence fee and proposed tax rates of 25% on slots and 10% on table games — the state’s minimum.
Genting Group’s Resorts World is proposing a US$5.5 billion integrated resort next to the Aqueduct racetrack, where it already operates slot machines. Its plan includes a US$600 million licence fee, and tax rates of 56% on slots and 30% on table games.
Meanwhile, Bally’s Corp has submitted a US$4 billion proposal to build a casino resort at its Bronx golf course property, formerly owned by the Trump Organization. Should Bally’s win, Trump’s company would receive US$115 million under a prior agreement.
Yonkers Mayor Mike Spano criticised MGM’s sudden withdrawal, calling it “a betrayal to the people of Yonkers and Westchester County” and urged Governor Kathy Hochul to launch an independent investigation into the decision.
The New York casino licensing process stems from a 2013 referendum allowing up to seven non-tribal casinos in the state. Four upstate licences have already been granted, leaving three for the New York City area.
Earlier this year, Las Vegas Sands Corp and Wynn Resorts Ltd also exited the race. The remaining proposals will be reviewed by the five-member Gaming Facility Location Board, which is expected to make final recommendations by Dec 1.
According to the Tax Foundation, New York has one of the highest gambling tax rates in the US — matching New Hampshire and Rhode Island with a 51% levy on online sports wagering. The state generated US$2.3 billion in casino tax revenue last year, second only to Pennsylvania.
