MGM Details Plans To Expand Empire City In Yonkers

Representatives from MGM and Empire City Casino detailed plans Thursday for a proposed $2.3 billion makeover of their racino at Yonkers Raceway, highlighted by streamlined interior and exterior aesthetics for the property and dramatically expanded gaming space.

Empire City is considered an odds-on favorite among the eight applicants to secure one of the three $500 million downstate casino licenses being made available by the New York State Gaming Commission (NYSGC). Empire City has offered video lottery terminal play since 2006 and also offers electronic table games. MGM has operated gaming there since acquiring the property for $850 million in 2019.

Empire City will hold the first of its NYSGC-mandated minimum two public hearings regarding the proposal Monday night at the Grinton I. Will Public Library auditorium in Yonkers. The hearings are designed to let local residents comment on the plans and for both the applicant and Community Advisory Committee (CAC) to gauge feedback to potentially modify aspects of the applications.

The CAC requires a two-thirds majority — four votes — to advance the applicant to the New York Gaming Facility Board by Sept. 30. Should it fail to hold a vote by that date, the applicant is deemed rejected. The board would then make its selections for the licenses Dec. 1, which would be followed by the commission license consideration before the end of the year.

The raceway and Yonkers go way back

There was little in the way of surprise during the presentation led by Empire City Chief Operating Officer Louie Theros. MGM had begun unveiling its expansion plans as early as November 2023 prior to seeking rezoning approval and then detailed those plans further in June when submitting its application to the NYSGC.

Theros detailed the history of the relationship between the venue and the city, with Yonkers Raceway in operation for 125 years and casino gaming for 20. Including the purchase price, MGM has invested roughly $1 billion into the property, helping it become the sixth-largest gaming floor in the U.S.

That has enabled the property to generate $5 billion in gaming tax payments to the state, including $1.5 billion since MGM took over in 2019. The racino has generated an annual average of close to $20 million in tax receipts for the city of Yonkers. Theros said MGM has doubled the payroll of Empire City since acquisition, and approximately 35% of Empire City’s 745 employees are Yonkers residents.

“Empire has been, is and will continue to be the best and responsible corporate citizen it can be to Yonkers, its residents and the community,” said Theros, who called the employees “the celebrities of this pitch.” He added that 80% of the staff has been at the location for at least five years and 10% have received a promotion since MGM acquired the property.

Sleek architecture aesthetic promised

Mike Larson and Christine Faverio of JCJ Architecture discussed the makeovers to Empire City, with the goal of what Faverio called “unified architecture” that would give the property a look consistent with other MGM properties and provide a more attractive exterior for drivers traveling Interstate 87. In addition to the 5,000-seat multipurpose venue, there are plans for an eight-story, 4,800-car capacity parking garage that would connect to the venue.

The extensive makeover of the grounds also calls for the removal of five acres worth of asphalt to be replaced with landscaping and improved stormwater retention. There would also be improvements to ease traffic along Yonkers and Central Park avenues with new turn lanes into the property.

Inside, Empire City would have nine new restaurants and five new bars, highlighted by a steakhouse, an open kitchen Italian-themed restaurant, and a five-station food hall. Chia-Chia Yeh, executive director of food and beverage, said the price point for the food hall would be between $15 and $20. There would also be an Asian-themed noodles restaurant located near high-limit play areas, a nod to the popularity of baccarat.

Stone paths on the casino floor would lead to the walk-up center bar, and there will be a bar and lounge areas with table games available on the opposite side. Empire City would also have an MGM retail sportsbook.

Job creation and revenue projections

MGM projects a total of approximately 8,500 jobs to be created with the expansion, with 6,500 for construction. While there is no Peace Labor Agreement (PLA) in place, the expectation is the “vast majority” of construction labor will be union-based.

The total number of employees at Empire City would rise to 2,700, with the full-time count going from 700 to 2,200 as the gaming space expands to include more than 3,000 slots plus 183 table games and 177 automated table games. The average annual salary and benefits package would equal roughly $150,000, and MGM is pledging to have on-site child care.

Empire City’s tax revenue would be distributed differently than the Manhattan-based casinos, with 80% allocated to the state education fund and the remaining 20% being split among the city of Yonkers (10%), Westchester County (5%), and Putnam and Rockland Counties (5%). Jonathan Cocchiola, vice president of finance for Empire City, projected the city would receive $56 million annually from the venue, which is a doubling of all receipts currently received.

CAC Chair James Cavanaugh raised a concern about the possibility of Empire City shutting down should it not receive one of three licenses. In reviewing the independent economic study submitted with the application, Cavanaugh noted “the study says that the failure to get the license would be catastrophic” and pressed Theros on MGM’s own regional economic report in which it predicted the venue would close without the license.

Theros responded that “absent a substantial reduction in the tax rate that we pay, the multiple tax rates, which add up to 70 percent, with three other casinos that close, the viability [of Empire Casino] would be called into question.”