Yonkers Mayor: Give New York Racinos Downstate Licenses Now

Yonkers Mayor Mike Spano said the two racinos pursuing New York downstate casino licenses should receive those licenses immediately and touted the economic benefits provided by one applicant, locally based MGM Empire City.

Spano’s pitch, which included MGM Empire City being “shovel ready,” comes after two gaming operators withdrew proposed casino bids before the June 27 deadline with the New York State Gaming Commission. MGM Empire City and Resorts World at Aqueduct are considered frontrunners for two of the three available licenses.

“We have two racinos whose owners are ready to pay the State a billion dollars in application fees today, and to start generating hundreds of millions of dollars in new taxes tomorrow,” Spano said in a statement on the City of Yonkers official website. “We all know that the cutbacks from Washington are going to cause holes in the State and local budgets by the end of the year, so let’s be proactive.”

Wynn Resorts announced Monday it was withdrawing from a proposal it had fronted with Related Companies to bring gaming to Hudson Yards in Manhattan, citing internet casino cannibalization concerns and persistent opposition among local residents. Sands withdrew from consideration for a project in Nassau County last month, also citing concerns about revenue being impacted by iGaming.

What Empire City brings to the table

MGM Empire City has conducted gambling since 2006 via video lottery terminals (VLTs) and electronic table games. It unveiled plans for expanding Empire City in Yonkers in November 2023.

Plans included a comprehensive overhaul of the 160,000 square feet of gaming space, which would feature live-dealer table games and the “newest” slot machines. The first phase of redevelopment would also include construction of a 5,000-seat entertainment venue and a retail sportsbook as well as high-end dining options.

During a first-quarter earnings call earlier this month, MGM CEO and President Bill Hornbuckle said the company “likes the plan we came up with” and noted its environmental impact studies was almost complete.

Spano’s statement also included the projected economic benefits of MGM Empire City’s proposed expansion, which included a near-doubling of annual funds the city of Yonkers receives to $34 million and up to 2,000 new jobs that would triple the current staff. His office also projects $340 million in tax revenue for the city over a 10-year period and $170 million over 10 years for Westchester County.

Resorts World proposed a $5 billion casino project for Aqueduct in February 2024 that includes a 350,000-square foot casino floor, a hotel with 1,600 rooms and a 7,000-seat entertainment venue. It claims the project would bring 5,000 permanent union jobs, half of which would start within the first 100 days of full casino operations.

“New York should move ahead right away with the two proposals that enjoy community support and are shovel ready to go,” Spano said. “We’ve already lost too much time. Let’s not lose any more.”

The NYSGC is not expected to name the three licensees until at least December. A total of eight bids are expected, with three currently proposing to build gambling venues in Manhattan.