Did MGM Exit New York Casino Race to Benefit Trump? Mayor Calls for Investigation

The US gaming industry was taken aback Tuesday night when MGM Resorts International abruptly canceled its $2.3 billion plans to transform its Empire City Casino in Yonkers into a full-fledged casino including live-dealer table games, sports betting, and slot machines reminiscent of Las Vegas.  Mike Spano (D), the mayor of Yonkers, was not satisfied with MGM's justification for its withdrawal.

For one of the three downstate New York casino licenses up for grabs, MGM was the clear favorite.  At the moment, Empire City is a video lottery racino that exclusively offers electronic table games and slot machines that resemble VLTs.

In 2019, MGM paid $850 million to acquire Empire City.  The purchase was widely perceived as MGM's strategy to secure a concession at a downstate casino, which was formerly highly sought after.

MGM has now given up on its NYC effort, despite having previously said that Empire City cannot thrive without a complete gaming license.  Spano is looking for clarification.

“This decision by MGM defies all logic, and it’s nothing short of a betrayal to the people of Yonkers and Westchester County,” Spano said. “I am calling on Governor Kathy Hochul to launch an independent investigation into this process, because the reasons MGM gives for its 180-degree reversal just don’t add up.”

MGM's Justifications

After the competition was reduced to four proposals, MGM stated that its Empire City pursuit was no longer appealing.  With two bids left for Queens and a third in the Bronx, the Bellagio operator referred to the "clustered" remaining offers.

Yonkers is farther away from Manhattan than any of the three non-MGM bids.  It seems like a good reason: a bunch of partygoers who decide they want to bet after dining and drinking in Manhattan late at night are much more likely to take a quick taxi to Queens than to do the more than 30-minute drive to Empire City.

Additionally, MGM mentioned the unfavorable tax circumstances and the fact that it anticipated being granted a 15-year gaming license rather than the more attractive 30-year concession.

According to Spano, there is more to the story, and it involves President Donald Trump.

Trump's Hand Gets Better 

With MGM's departure, there are just three bids left for the downstate area, and they are all located in New York City.  These include Hard Rock and Steve Cohen's $8 billion greenfield development at Willets Point in Queens, which is next to the billionaire's Citi Field Ballpark, Resorts World's $5.5 billion renovation of its VLT racino at the Queens Aqueduct Racetrack, and Bally's Bronx's $4 billion project at Bally's Links Golf Links at Ferry Point in the Bronx.

In 2023, the Trump Organization reportedly paid $60 million to Bally's Corp. for the lease of the city-owned Bronx golf club.  The sale was seen as Bally's official entry into the New York casino race, much like MGM's acquisition of Empire City.

A clause in the 2023 terms stipulates that Bally's must pay the Trump Organization, which is owned by President Donald Trump and run by his sons while he is in Washington, DC, an extra $115 million if the company wins the right to construct a casino resort on the parkland in the future.

"It’s no secret that the big winner from this reversal will be Bally’s for a casino at the former Trump Links. It’s also no secret that Bally’s has a deal with Donald Trump that they will pay him an additional $115 million if they can open a casino there,” Spano said.

“People need to be assured that there is no linkage between MGM’s decision and the massive financial benefit to Donald Trump,” Spano continued. “The people of Yonkers deserve to know if this process was tainted or manipulated in any way.”

By vetoing a City Council resolution to deny a land-use proposal to permit a commercial company development on the city-owned property, NYC Mayor Eric Adams saved the Bally's Bronx venture on his own.  Adams has come under fire for allegedly taking use of his lame duck days to increase his chances of getting a position in the Trump administration in 2026.

Steve Witkoff, the special envoy to the Middle East and Peace Missions, is the most prominent of several consultants on the Bally's team who have ties to Trump.  After selling it to Koch Real Estate Investments in 2021, Witkoff was the owner of the unfinished casino resort on the Las Vegas Strip that would eventually be called Fontainebleau.