Why NY Should Approve MGM and Genting to Secure Essential Casino Licenses After Wynns Exit

Comments made a day after Wynn scrapped New York casino bid
Spano asserts Empire City, Resorts World New York are “shovel ready”
Regulators could allocate third license in the future

Following Wynn Resorts’ recent exit from the New York casino competition, Yonkers Mayor Mike Spano is urging state regulators to swiftly award casino licenses to Empire City and Resorts World New York in Queens, addressing the future of the casino business. Spano is keen that the third downstate permit be allocated at a future date.

City development — Image by fietzfotos from Pixabay

Spano’s remarks come in response to the notion that both venues, MGM’s Empire City Casino and Genting’s Resorts World New York, are expected to be favoured candidates for two out of the three yet-to-be-awarded downstate licenses due to their established presence and support within the community.

“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.”

His call to action followed Wynn’s announcement of dropping their plans to pursue a casino license in Manhattan due to ongoing opposition. This news follows a trend of notable departures in the New York City casino race, including Las Vegas Sands and Saks Fifth Avenue.

Empire City and Resorts World: Financial Powerhouses

Empire City and Resorts World New York are two of the highest-grossing regional casinos in the United States, making a compelling case for their candidacy. These venues have been significant contributors to New York’s tax revenue—Empire City has provided over $5 billion to the state’s K-12 public education since MGM’s acquisition in 2019.

Spano emphasised that they are prepared to pay the state a billion dollars in application fees immediately, with a commitment to generate hundreds of millions in new taxes promptly.

Furthermore, Genting is prepared to invest $5 billion into Resorts World New York for further enhancements and to transition to a full casino, separate from their $1 billion tax pledge to the state assuming they gain one of the licensure approvals.

Genting has also announced plans to partner with a real estate developer to construct 50,000 affordable housing units throughout the five boroughs, bringing additional community benefits into the conversation.

The Pressing Need for Action

Spano’s vested interest is clear, as Yonkers stands to profit significantly from the transformation of Empire City into a Las Vegas-style casino. Critics of the regulator’s sluggish approach highlight that each delay in the licensure process equates to lost revenue for New York.

“The existing properties like Empire City and Resorts World can more rapidly convert to traditional casinos than new, ground-up builds,” Spano mentioned.

Next Steps

License submissions are expected next month, with regulators anticipated to announce the chosen operators by the end of the year. The industry will be keenly watching how this situation unfolds.

In summary, Yonkers Mayor Mike Spano’s push for immediate licensing for MGM and Genting Casinos highlights the urgency and potential financial benefits of expediting these approvals. With the landscape rapidly changing due to competitors dropping out, New York has the chance to leverage its existing popular venues to generate much-needed revenue and create jobs.