Steve Cohen’s Casino Nears Reality After MGM Drops Bid

New York Mets owner Steve Cohen is closer to getting his casino for the Metropolitan Park development after a surprising turn of events in New York’s bid for casino licenses.

MGM Empire City planned to open a $2.3 billion casino and resort in Yonkers and was seen as a favorite to land one of the three casino licenses (along with Resorts World, which already exists as a limited casino and race track). Cohen and Hard Rock’s bid and Bally’s Bronx bid were seen as competing for one of the final licenses.

However, MGM Empire City on Tuesday dropped its bid after years of planning, citing that the current plan “challenges the returns we initially anticipated from this project.” They also said that recent changes in guidelines would mean they’d only qualify for a 15-year license rather than a 30-year license.

Mayor Mike Spano, the mayor of Yonkers and primary city official overseeing the MGM Empire City bid, said MGM’s rescission was a “betrayal.” He also called on the company and decision to be investigated, noting that the Trump Organization would stand to earn a nine-figure sum if the Bally’s Bronx were granted a license.

The company dropping out means that there are three bids left for three licenses. However, that doesn’t mean all three licenses will be awarded.

From the New York Times:

“There has never been a requirement that all three licenses be issued,” said Lee Park, a spokesman for the New York State Gaming Commission, which controls the siting process. “It could be zero, one, two or three licenses that are issued in this process.”

Winners of licenses, the Times points out, would have to pay a $500 million fee and pay “a significant portion of their proceeds in taxes.”

The New York State Gaming Commission plans to review and vote on awarding the licenses in December. If Cohen gets a license, breaking ground on building Metropolitan Park could start as soon as January. Without a license, the whole project could collapse.

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