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With Wynn Out, Spano Says NY Should Approve MGM, Genting Casinos

As Wynn Resorts becomes part of an expanding group exiting the New York City casino race, Yonkers Mayor Mike Spano is urging state regulators to grant licenses for slots-only establishments in his city and in Queens, postponing the distribution of the third downstate permit. 

The locations Spano mentions are Empire City Casino in Yonkers, owned by MGM Resorts International, and Resorts World New York in Queens, operated by Genting. It is commonly thought that both are “grandfathered” into two of the three downstate licenses that state regulators have not yet granted, although this has not been officially confirmed.

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

He commented a day after Wynn revealed it was abandoning plans to seek a casino license on Manhattan’s West Side, due to “ongoing opposition.” Wynn became part of Las Vegas Sands and Saks Fifth Avenue as the latest exits from the New York City casino competition. 

Empire City, RWNY Have Generated Revenue for New York 

A key reason for the prevalent belief that Empire City and Resorts World New York are virtually guaranteed to obtain two of the three downstate permits is their status as two of the top-grossing regional casinos in the United States. 

This indicates the venues have served as major sources of income for the state. Since MGM purchased the Yonkers gaming facility in 2019, it has provided over $5 billion in revenue to New York K-12 public schools. MGM has indicated that if it receives approval to transform the venue into a conventional casino, 2,500 jobs would be established, producing increased revenue for both the city and the state. 

“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,” added Spano in the statement.

Last year, Genting announced it would invest $5 billion in Resorts World New York to upgrade the venue and transform it into a traditional casino if it secures one of the licenses, not counting a $1 billion tax commitment the Malaysian firm offered to the state, provided it obtains one of those permits. 

In a move to potentially take advantage of Wynn leaving the race, Genting revealed its plan to collaborate with a property developer to create 50,000 affordable housing units throughout the five boroughs, joining the group of casino applicants committed to providing affordable homes. 

Spano Might Be onto Something 

Spano has a vested interest since Yonkers would gain if Empire City becomes a Las Vegas-style casino, yet he makes a valid argument by urging regulators to grant Genting and MGM two of the licenses now. 

Industry observers have criticized the slow progress of the downstate casino process, and lawmakers contend that the more extended it takes, the greater the revenue New York foregoes. Empire City and Resorts World can alleviate that challenge as they can more quickly transition to conventional casinos compared to new constructions. 

Bids for the licenses will be submitted next month, anticipating that regulators will declare the winners by the year's end.