There are six bids left for the three downstate casino licenses in New York, including MGM Empire City. When the $2.3 billion proposal is put to a vote by the local Community Advisory Committee next week, the project will be doomed.
Caesars Palace Times Square and The Avenir were both rejected by their respective CACs this week, reducing the number of casinos in the downstate New York City area to six. The likelihood that MGM Resorts International, the longtime front-runner for one of the licenses, will transform its Empire City Casino into a full-fledged gaming destination featuring live-dealer table games, classic Las Vegas-style slot machines, and retail sports betting only gets better as a result.
There have been four meetings of the MGM Empire City Community Advisory Committee. The five-member panel will decide on the project during their fifth meeting, which is set for next Thursday, September 25. A three-fifths majority, or three of the five votes, must be in favor of the bid in order for it to move forward to the New York Gaming Facility Location Board, the state body that will eventually determine the locations of New York's downstate casinos.
The odds are favorable
Although local communities and government representatives have opposed many of the downstate New York casino bids, MGM's Yonkers play has largely been positively welcomed. For almost twenty years, Empire City, a racino with slot-like video lottery terminals (VLTs) and electronic table games, has been located in Yonkers.
The Rooney family sold the Westchester County property to MGM in January 2019 for $850 million in cash and stock. The acquisition was intended to provide MGM with a competitive advantage in securing a full-scale gambling license in the metropolitan area of New York City.
Although the three casinos were approved by state law in 2013, licenses may not be granted until 2023. Four upstate casinos in New York were to open during the 10-year embargo without facing competition from downstate casinos.
For over five years, MGM has been a solid community partner to Yonkers and Westchester County. Through its gambling profits, the casino firm has donated $1.6 billion to the state's education fund since it took over.
The MGM plan has the approval of Yonkers Mayor Mike Spano, whose office holds a seat on the CAC. Without a full-scale casino license, "it's very unlikely that Empire City will survive long-term," according to Spano.
Over 1,000 employment that Empire City currently offers, as well as millions of local tax revenues and related economic activity, would be at risk.
Empire City Plan by MGM
MGM says it will start a $2.3 billion transformational makeover of the racetrack casino as soon as it has a full-scale casino license. The casino floor would be completely refurbished and expanded to add BetMGM Sportsbook and a high-limit lounge. The plan would provide the site with a 5,000-seat entertainment center and conference rooms that could be used for special occasions like neighborhood graduations.
Existing food and beverage establishments would be renovated, and three new full-service restaurants would be opened. An additional feature would be a parking garage equipped with solar panels and space for electric cars.
"Empire City Casino and Yonkers Raceway have anchored the entertainment and tourism culture in downstate New York for more than a century. Achieving a full casino license will ensure this site will continue to be a cultural and economic force for generations to come,” said Bill Hornbuckle, president and CEO of MGM Resorts.
By the middle of 2029, MGM anticipates having finished the $2.3 billion investment.
