MGM YONKERS WITHDRAWS COMMERCIAL CASINO LICENSE APPLICATION IN NEW YORK

Rhea-AI Summary

MGM Resorts (NYSE: MGM) announced on October 14, 2025 that subsidiary MGM Yonkers withdrew its commercial casino license application in New York.

Management cited changed competitive and economic assumptions that altered return expectations on a proposed $2.3 billion renovation and expansion of Empire City Casino, plus newly issued state guidance reducing the expected license term from 30 years to 15 years. MGM said Empire City has generated more than $5 billion for New York State education, including $1.6 billion since MGM bought the property in 2019, and that it will continue operating the property in its current format.

Positive

• Empire City generated >$5.0B for New York education
• MGM contributed $1.6B to state education since acquiring Empire City in 2019
• Company will continue operating Empire City in current format

Negative

• Withdrew pursuit of a proposed $2.3B renovation and expansion
• Expected license term reduced from 30 years to 15 years, lowering long-term returns
• Competitive clustering of four proposals in Yonkers undermined project returns

YONKERS, N.Y., Oct. 14, 2025 /PRNewswire/ -- MGM Yonkers Inc., a subsidiary of MGM Resorts International (NYSE: MGM), today withdrew its commercial casino license application to the New York Gaming Commission and the Gaming Facility Location Board.

MGM Resorts issued the following statement:

"Today, MGM Resorts made the difficult decision to withdraw its application for a commercial casino license in Yonkers, New York. Since submitting our application in June, the competitive and economic assumptions underpinning our application have shifted, altering our return expectations on the proposed $2.3 billion investment. 

"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. Taken together, these events result in a proposition that no longer aligns with our commitment to capital stewardship, nor to that of our real estate partner in Yonkers, VICI.

"MGM Resorts has been a proud partner of the City of Yonkers and the State of New York since we purchased Empire City Casino in 2019. The property has generated more than $5 billion for New York State education, including $1.6 billion under our ownership. We know our decision will impact many individuals; we remain committed to operating the property in its current format and believe it will continue to enjoy success serving customers in Yonkers and the surrounding communities."

Forward Looking Statements
Statements in this release that are not historical facts are forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, and involve risks and/or uncertainties, including those described in the Company's public filings with the Securities and Exchange Commission. Forward-looking statements can be identified by the use of forward-looking terminology such as "believes," "expects," "could," "may," "will," "should," "seeks," "likely," "intends," "plans," "pro forma," "projects," "estimates" or "anticipates" or the negative of these words and phrases or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. The Company has based forward-looking statements on management's current expectations and assumptions and not on historical facts. Examples of these statements include, but are not limited to, the Company's expectations regarding the commercial casino license application in New York and its Empire City Casino. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise, and the Company may not be able to realize them. These forward-looking statements involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated in such forward-looking statements include risks related to the economic and market conditions in the markets in which the Company operates and competition with other destination travel locations throughout the United States and the world, the design, timing and costs of expansion projects, risks relating to international operations, permits, licenses, financings, approvals and other contingencies in connection with growth in new or existing jurisdictions and additional risks and uncertainties described in the Company's Form 10-K, Form 10-Q and Form 8-K reports (including all amendments to those reports). In providing forward-looking statements, the Company is not undertaking any duty or obligation to update these statements publicly as a result of new information, future events or otherwise, except as required by law. If the Company updates one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those other forward-looking statements.

MGM RESORTS CONTACTS

News Media:
BRIAN AHERN, Executive Director of Communications
media@mgmresorts.com

View original content:https://www.prnewswire.com/news-releases/mgm-yonkers-withdraws-commercial-casino-license-application-in-new-york-302584000.html

SOURCE MGM Resorts International

FAQ

Why did MGM (MGM) withdraw its Yonkers commercial casino license application on October 14, 2025?

MGM cited shifted competitive and economic assumptions that lowered return expectations and new state guidance reducing the expected license term from 30 to 15 years.

How large was the planned MGM investment for the Empire City renovation tied to the Yonkers license?

The planned project was a proposed $2.3 billion renovation and expansion of Empire City Casino.

What revenue has Empire City generated for New York education under MGM ownership?

Empire City has generated more than $5.0 billion for New York education overall, including $1.6 billion since MGM bought the property in 2019.

Will MGM continue operating Empire City after withdrawing the license application?

Yes. MGM said it will continue to operate Empire City Casino in its current format.

How did the change from a 30-year to a 15-year license affect MGM's decision (MGM)?

MGM said the shorter license term, combined with increased local competition, materially reduced expected returns and conflicted with its capital stewardship standards.

What immediate shareholder or project impacts did MGM cite with the October 14, 2025 withdrawal?

MGM highlighted altered return expectations on the $2.3B project and an anticipated 15-year license term as the primary impacts prompting withdrawal.