Yonkers Casino Shock: MGM Unexpectedly Withdraws $2.3 Billion Expansion Bid

The dreams of a major casino resort in Yonkers have been shattered for now. MGM Resorts unexpectedly announced its withdrawal from the bidding process for a full commercial casino license in New York State. This is a severe blow to the residents and city administration of Yonkers, who had firmly counted on the expansion of the existing Empire City site. The project, which involved investments of $2.3 billion, was intended to economically transform the region. Now, the site remains a pure racino, offering video lottery terminals but prohibited from introducing real table games with live dealers.

The decision came in the middle of the final phase of the selection process. Local decision-makers were caught off guard by the news, especially since the Yonkers Community Advisory Committee had voted in favor of the project shortly before. However, the competition in the New York metropolitan area was immense, and MGM faced four competitors in a small area. While MGM retreated, other operators celebrated success. On December 1, 2025, the responsible Siting Board made its choice and awarded licenses to competitors in the neighborhood.

Numbers and facts

The scale of the failed project is evident through the hard facts. MGM planned to install 183 live dealer tables to offer games such as baccarat, blackjack, and roulette. The licensing fee for operators was at least $500 million. A major sticking point was the term of the concession. MGM originally assumed a 30-year security. However, new state guidelines only held out the prospect of 15 years. For a $2.3 billion investment, this period was simply too short for management to generate an appropriate return.

Subsequently, other projects were awarded the contracts. Bally's is allowed to open a casino at Ferry Point in the Bronx, while Hard Rock Metropolitan Park secured a 20-year license for a site next to Citi Field in Queens. The third winner is Resorts World New York City at Aqueduct in Queens, which opened over 200 live dealer games on April 28, 2026. This made Resorts World the first true full casino within the city limits of New York City, while Yonkers went empty-handed.

Background

The conflict between the city of Yonkers and casino giant MGM continues to simmer. Mayor Mike Spano expressed outrage at the short notice of the withdrawal. He emphasized that citizens deserve answers and called for an investigation, as MGM's reasoning did not seem plausible to him. The city is losing enormous potential revenue due to the failure. Currently, Yonkers takes in about $30 million per year through the racino. With the full license, this amount could have risen to over $50 million annually.

"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." - MGM Resorts, Official Statement

The difference between the current status and a full casino is massive. Currently, Empire City operates video lottery machines that look like slots but are connected to a central state system. A real casino would have created hundreds of dealer jobs, which would have been particularly attractive for commuters from Yonkers. Now, these workers must continue to take long trips to Queens or the Bronx.

Why it matters for German players

For German gambling fans, the New York example shows how important clear legal frameworks are. While in the USA there is debate over license terms of 15 or 30 years, the German State Treaty on Gambling 2021 (GlüStV 2021) provides a strict but reliable structure. German players should ensure they play exclusively with providers on the official whitelist of the Gemeinsame Glücksspielbehörde der Länder (GGL). Strict protective measures apply there, such as the monthly deposit limit of 1,000 euros, monitored via the LUGAS system, and the stake limit of 1 euro per spin on virtual slot machines.

Anyone in Germany looking for live table games like baccarat or roulette will currently only find them in the state-run casinos of the federal states, as online live casinos are not yet finally licensed in many regions. Foreign websites, which often lure players with aggressive advertising in other languages like Thai, do not hold a German license and offer no legal certainty or player protection according to German standards.

What it means for GGL-licensed casinos

Licensed operators in Germany can learn from the MGM case that economic calculations are closely linked to political regulation. In Germany, the GGL ensures fair competitive conditions by actively taking action against illegal secondary lotteries and black market providers. For legal providers, this means greater planning security as long as they meet the strict requirements for IT security and addiction prevention. MGM's withdrawal shows that even global giants like MGM stop projects when regulatory screws are tightened too much without offering economic compensation.