MGM Yonkers' Bold $2.3 Billion Empire City Casino Gamble: A High-Stakes Play in New York's Gaming Gold Rush

MGM Resorts has thrown its considerable weight behind a massive $2.3 billion expansion project that could transform its Empire City Casino in Yonkers into a premier entertainment destination. This ambitious proposal comes as part of the company’s bid for one of New York’s three coveted downstate casino licenses—a prize that industry experts believe could generate billions in annual revenue.

The gaming giant’s entrance into this high-stakes competition represents more than just another business venture; it’s a strategic move that aligns with MGM’s recent financial momentum and long-term growth strategy. With the company reporting record revenues of $17.2 billion in 2024 and strong first-quarter 2025 performance despite facing tough year-over-year comparisons, MGM appears well-positioned to execute this substantial investment.

Building on a Century-Plus Legacy

Empire City’s transformation represents the latest chapter in a storied history that dates back to the Civil War era. Racing has taken place at the Yonkers site for over 150 years, with the legendary Seabiscuit claiming victories at the track in 1937. This rich heritage provides MGM with a compelling narrative as it seeks to modernize the facility while honoring its historical significance.

The current Empire City Casino operates as one of New York City’s two “racinos,” combining harness racing with video lottery terminal gaming. MGM’s vision dramatically expands this concept, proposing a 160,000-square-foot gaming floor—one of the largest in the country—complete with live-dealer table games, poker rooms, and a state-of-the-art BetMGM Sportsbook featuring a 112-foot wrap-around LED screen.

The proposed entertainment complex will include a 5,000-seat theater designed to host major musical acts and other performances, positioning the venue to compete with premier entertainment destinations across the region. Three new restaurants will join enhanced existing dining options, while a multi-story parking garage equipped with electric vehicle charging stations and solar panels demonstrates MGM’s commitment to sustainability initiatives.

MGM’s Financial Foundation for Growth

MGM Resorts enters this competition from a position of financial strength that has been building steadily over recent years. The company’s 2024 performance showcased record consolidated net revenues of $17.2 billion, representing a 7% increase over the previous year. This growth was driven primarily by exceptional performance from MGM China, which posted record adjusted EBITDAR of $1.1 billion, reflecting the strong recovery in Macau’s gaming market.

The company’s Las Vegas Strip operations generated $8.8 billion in net revenue for 2024, maintaining stability despite challenging comparisons, while regional operations contributed an additional $3.7 billion. Particularly notable has been the turnaround of MGM’s digital ventures, with BetMGM achieving positive EBITDA performance in the first quarter of 2025 after years of investment.

MGM’s aggressive share repurchase program further demonstrates management’s confidence in the company’s prospects. The firm repurchased nearly 15 million shares for $494 million in the first quarter of 2025 alone, with the board authorizing a new $2 billion share repurchase program. Since 2021, MGM has reduced its share count by more than 40%, creating substantial value for continuing shareholders.

Technical and Fundamental Stock Analysis

From a technical perspective, MGM’s stock (NYSE: MGM) presents a mixed but generally constructive picture. Trading at approximately $34.37 per share as of late June 2025, the stock shows bullish momentum on the daily timeframe across most short and medium-term indicators. Moving averages for 5, 10, 20, and 50-day periods all signal bullish conditions, though the 200-day moving average remains bearish, indicating some longer-term headwinds.

However, traders and investors should be cautious, as the long term trend on the weekly timeframe chart is still bearish. The stock would need to confirm a trend reversal there and break and hold above $36 in order to confirm the beginning of a bullish uptrend. A break above the level at $41.40, and above the Weekly 100 Simple Moving Average (which currently sits at around $38.50), would further confirm the bullish prospects.

Fundamentally, MGM trades at attractive valuations relative to its earnings power. With a price-to-earnings ratio of 11.79 and a price-to-book ratio of 3.18, the stock appears reasonably valued compared to historical norms. The company’s return on equity of 29% demonstrates strong profitability metrics, though the return on assets of 2.54% reflects the capital-intensive nature of the casino business.

Analyst sentiment remains cautiously optimistic, with consensus price targets averaging $55.29 and ranging from $45 to $61 per share. Seven analysts covering the stock include one with a bullish rating and five with somewhat bullish outlooks, suggesting measured confidence in the company’s prospects.

Technological Innovation and Digital Expansion

MGM’s bid for the New York license comes as the company accelerates its digital transformation initiatives. The gaming giant has invested heavily in artificial intelligence, virtual reality, blockchain technology, and other emerging platforms to enhance operational efficiency and guest experiences.

Recent technological partnerships demonstrate MGM’s commitment to innovation. The company’s collaboration with Cisco through a multi-year Whole Portfolio Agreement provides access to advanced cybersecurity, software-defined networking, and machine learning applications. This technology foundation will support location-based services and next-generation guest engagement tools across MGM’s portfolio.

The company’s partnership with Playtech has created unique live dealer gaming experiences, with studios broadcasting directly from MGM Grand and Bellagio floors to international online markets. This hybrid approach combines the excitement of Las Vegas gaming with digital accessibility, creating new revenue streams while maintaining the authentic casino atmosphere that MGM properties are known for.

MGM’s digital gaming subsidiary LeoVegas has expanded through strategic acquisitions, including the purchase of a majority stake in UK-based Push Gaming Holding Limited, strengthening the company’s online gaming capabilities. These investments position MGM to capitalize on the growing intersection between traditional casino gaming and digital entertainment platforms.

Competitive Landscape and Strategic Positioning

The battle for New York’s downstate casino licenses has attracted some of the gaming industry’s biggest names, creating intense competition that has already seen several high-profile withdrawals. Wynn Resorts and Las Vegas Sands both pulled their applications, citing concerns about project economics and regulatory requirements.

The remaining contenders represent a diverse mix of established gaming operators and ambitious newcomers. Caesars Entertainment, partnering with Jay-Z’s Roc Nation and SL Green Realty, has proposed a $2.5 billion Caesars Palace Times Square project. This high-profile bid includes $250 million in community benefits and would transform an existing office building into a 992-room luxury hotel with world-class gaming and entertainment facilities.

Bally’s Corporation has gained momentum after securing New York City Council approval for zoning changes that would allow conversion of the former Trump Golf Links at Ferry Point in the Bronx into a casino and entertainment complex. Hard Rock International, despite operating a casino just eight miles away in New Jersey, has confirmed its intention to bid for a New York license, citing the market’s substantial size and growth potential.

Resorts World New York City, operated by Genting, submitted its $5.5 billion proposal to expand its existing Queens racino into a full-scale resort. Like MGM’s Empire City bid, this proposal leverages an existing gaming operation’s track record and community relationships.

Economic Impact and Community Benefits

MGM’s proposal promises substantial economic benefits that extend far beyond the immediate Yonkers area. The company projects the creation of thousands of new jobs, with construction employment followed by permanent positions in gaming, hospitality, entertainment, and support services. Given that casino salaries typically exceed those offered by other local businesses, these opportunities could significantly improve living standards for area residents.

The revenue-sharing structure proposed by MGM demonstrates a commitment to regional economic development. Under the plan, Yonkers would receive 10% of tax funds generated by the expanded casino, while Westchester County would receive 5%, and an additional 5% would be shared between Rockland and Putnam counties. This distribution model ensures that economic benefits extend beyond the immediate host community.

Since beginning casino operations in 2006, Empire City has contributed over $5 billion to New York’s education fund, including $1.6 billion since MGM’s 2019 acquisition of the property. This track record of substantial tax generation provides a strong foundation for projecting future contributions from an expanded facility.

MGM’s corporate social responsibility initiatives have already benefited surrounding Bronx and Westchester communities through hundreds of thousands of dollars in grants and donations. The company’s “Focused on What Matters” program supports public education, addresses food insecurity, promotes workforce development, and funds environmental sustainability initiatives.

Tourism and Regional Development

The proposed Empire City expansion could serve as a catalyst for broader tourism development throughout the Hudson Valley region. MGM’s entertainment programming strategy, which has proven successful at properties like MGM Grand Las Vegas and Bellagio, would bring world-class performers and events to the New York metropolitan area.

The 5,000-seat entertainment venue planned for the expansion would position Empire City to compete with major regional venues for touring acts, Broadway productions, and special events. This entertainment component could drive hotel occupancy not just at the casino resort but throughout the broader region, as visitors extend their stays to explore local attractions.

The casino’s location provides strategic advantages for tourism development. Situated just minutes from Manhattan via public transportation, Empire City offers easier access than many competing proposals while maintaining the space necessary for a comprehensive resort experience. The site’s proximity to major highways also facilitates access from throughout the Northeast corridor.

Politics and the Social Scene

The expansion of casino gaming in New York raises important social and political questions that extend beyond economic considerations. Research examining casino proximity effects in urban areas has found mixed results, with some studies suggesting that closer distances to gaming facilities may influence poverty levels and other socioeconomic factors.

However, proponents argue that regulated, well-managed casino operations can provide substantial community benefits when coupled with appropriate safeguards and support programs. New York’s gaming tax revenue already supports problem gambling prevention and treatment programs, with $6 million annually allocated specifically for these purposes.

The political landscape surrounding casino licensing has evolved significantly over recent years. State Senator Joseph Addabbo Jr., who chairs the Racing, Gaming and Wagering Committee, has made expediting the downstate licensing process a priority while also working to address regulatory gaps in the gaming market. His efforts to combat unregulated sweepstakes casinos demonstrate the state’s commitment to maintaining a well-regulated gaming environment.

Local political support has been crucial for casino proposals throughout the licensing process. Yonkers Mayor Mike Spano has been a vocal advocate for MGM’s Empire City expansion, arguing that existing racinos should receive priority consideration given their established community relationships and proven economic contributions.

MGM China Success and International Experience

MGM’s experience with large-scale casino development projects extends globally, with the company’s Macau operations providing valuable insights for the New York expansion. MGM China reported record-high revenue of HK$31.4 billion in 2024, reaching 138% of pre-pandemic levels and capturing a 15.8% market share.

The success of MGM Cotai, which opened in 2018 as a $3.4 billion integrated resort, demonstrates the company’s ability to execute complex development projects while navigating challenging regulatory environments. The property’s combination of gaming, luxury accommodations, high-end retail, and world-class dining has established it as a premier destination in one of the world’s most competitive gaming markets.

MGM China’s achievement of seven Five-Star awards from Forbes Travel Guide in 2024 reflects the operational excellence that the company brings to its premium properties. This attention to service quality and guest experience represents a competitive advantage that MGM can leverage in the New York market.

A Look Into the Future

The New York casino licensing process reflects broader trends in the American gaming industry, where states increasingly view casino development as a tool for economic development and tax revenue generation. The American Gaming Association reports that commercial and tribal gaming operations contribute $328.6 billion annually to the U.S. economy, including $52.7 billion in tax revenue to federal, state, and local governments.

New York’s approach to casino licensing, which requires substantial license fees ($500 million per license) and significant capital commitments (minimum $500 million in development costs), ensures that only well-capitalized, experienced operators can participate. This high barrier to entry should help maintain market stability and ensure that winning projects can deliver on their promises.

The timing of New York’s casino expansion coincides with evolving consumer preferences in entertainment and hospitality. Modern casino resorts increasingly emphasize non-gaming amenities, recognizing that successful properties must appeal to diverse demographic groups and provide multiple entertainment options. MGM’s proposed entertainment venue, dining options, and integrated resort concept aligns with these market trends. This approach aims to offer a totally different experience that competing online crypto gambling platforms.

Environmental and Sustainability Initiatives

MGM’s commitment to environmental sustainability, demonstrated through the proposed solar panels and electric vehicle charging stations at Empire City, reflects growing industry focus on responsible development practices. The company’s broader environmental initiatives include LEED certification for new construction projects and comprehensive waste reduction programs across its portfolio.

The adaptive reuse approach taken by several casino bidders, including the Caesars Times Square proposal to convert an existing office building, represents a sustainable alternative to ground-up construction. MGM’s Empire City expansion, building upon existing infrastructure while adding new facilities, similarly minimizes environmental impact compared to entirely new developments.

Financial Projections and Investment Thesis

MGM’s $2.3 billion investment in Empire City represents approximately 13% of the company’s current market capitalization, making it a substantial but manageable commitment for the gaming giant. The company’s strong balance sheet, with $5.91 billion in cash and equivalents, provides adequate liquidity to fund the project while maintaining operational flexibility.

Industry analysts project that successful New York casino licenses could generate annual revenues of $1-2 billion for major integrated resort projects, suggesting attractive returns on MGM’s proposed investment. The company’s proven ability to generate strong margins from its Las Vegas Strip properties, which achieved segment adjusted EBITDAR of $3.1 billion on $8.8 billion in revenue, provides a template for potential New York performance.

The construction timeline through mid-2029 aligns with MGM’s broader capital allocation strategy, which has emphasized share repurchases and debt reduction in recent years. The multi-year development period will allow the company to phase investments while maintaining its focus on operational improvements and margin expansion across existing properties.

With eight formal applications submitted by the June 27, 2025 deadline and final decisions expected by year-end, MGM faces intense competition but enters the process with significant advantages. The company’s existing Empire City operations, established community relationships, proven development capabilities, and strong financial position create a compelling case for license approval.

The transformation of Empire City Casino represents more than just a business expansion—it embodies MGM’s vision of creating world-class entertainment destinations that drive economic growth while honoring local heritage and community values. As New York prepares to make its final licensing decisions, MGM’s combination of experience, resources, and commitment positions the company as a formidable contender in this high-stakes gaming competition.