MGM Empire City Advances For Downstate New York License

MGM Empire City became the first applicant to advance for consideration for a downstate New York casino license Thursday after its Community Advisory Committee unanimously voted 5-0 to forward its $2.3 billion expansion proposal to the state’s Gaming Facility Location Board.

All three Manhattan-based proposals — Freedom Plaza, The Avenir, and Caesars Palace Times Square — were previously voted down 4-2 by their respective CACs. The Coney is likely headed to a similar fate as four members of its CAC have already publicly signaled their intentions to vote down Thor Equities’ $3.4 billion proposed casino prior to a scheduled meeting to vote.

MGM Empire City is one of two incumbents among the original eight applicants vying for as many as three $500 million licenses that could be awarded by the New York State Gaming Commission. Empire City, long a favorite to land one of the licenses, has offered gaming via video lottery terminals (VLTs) at its Yonkers Raceway location since 2006, and MGM agreed to purchase the venue in May 2018 for approximately $850 million.

In addition to incumbency, MGM Empire City enjoys solid backing from Yonkers Mayor Mike Spano. The gaming venue was largely well-received by the local community during its two state-mandated public hearings overseen by the CAC.

MGM Empire City began releasing details of the expansion as far back as November 2023. It projects 8,500 new jobs over the course of building the venue, broken out into 6,500 construction jobs and 2,000 additional gaming positions as its casino workforce will grow from 700 to 2,700.

Amendments and comments

Similar to other CAC final committee hearings, MGM Empire City did submit amendments for consideration. Unlike the other committees, however, these were voted through as part of the application sent forward. The amendments also tracked in language similar to the Community Benefit Agreement the casino signed with the City of Yonkers that was approved by the city council.

Among the add-ons:

• $10 million to purchase and renovate a new library/community center
• $2 million to find small business facade improvements on Yonkers Avenue
• $1.5 million initial payment and $500,000 annual payment to the Yonkers Economic Development Council
• $2 million for Yonkers Avenue streetscape improvements
• $1.25 million for parks improvements

The amendments also included a $100 million commitment by MGM Empire City dedicated to improving traffic flow and drainage around the casino area.

All five members of the CAC provided context for their “aye” votes, with themes of being great for small businesses in Yonkers as well as acknowledging concerns of traffic, noise, and drainage issues emerging from multiple committee members.

Chair James Cavanaugh noted the two hearings featured 110 speakers, with a “majority in support” of the proposal. He said the CAC received 221 additional email comments, with 178 in favor of the casino pursuing a full license.

Cavanaugh, who was appointed to the committee by Spano, again pointed out this pursuit will be a make-or-break venture for the city.

“If Yonkers does not get one of the three full casino licenses, Empire Casino will wither and die,” he said matter-of-factly, citing figures of potential lost tax revenue and jobs without the expanded venue. “With three new casinos within a half-hour drive, all offering table games, sports betting, entertainment, and all the goes of a full-blown casino, who is going to continue going to an aging slot parlor that has none of these things?

“A casino license is a good deal for New York state, for Westchester County, and especially for Yonkers. For that reason, I join the rest of my fellow committee members and vote yes.”

The final countdown continues

The New York State Gaming Commission announced that the CACs for Bally’s and The Coney will hold their votes Monday.

The Metropolitan Park CAC has yet to announce when its vote will be held, but the deadline is Sept. 30.

A failure to hold a vote is assumed as a rejection of the applicant.