Bright Lights, Big City: Meet the expected winners of the race for New York City casinos

[Empire State Building and New York City skyline at night]
Yongyuan Dai

The casino sector was jolted late on Tuesday when MGM Resorts International (MGM [https://seekingalpha.com/symbol/MGM]) announced that it withdrew its application to the New York Gaming Commission and the Gaming Facility Location Board for a commercial casino license in Yonkers, New York.

The exit by MGM Resorts (MGM [https://seekingalpha.com/symbol/MGM]) means the race for three New York City–area casino licenses has narrowed to three leading contenders after months of political maneuvering, rejections, and corporate withdrawals. The remaining applicants are Genting Group's Resorts World New York City, Bally Interactive's (BALY [https://seekingalpha.com/symbol/BALY]) Bally Bronx Casino, and Metropolitan Park, backed by New York Mets owner Steve Cohen and Hard Rock International. The New York Gaming Commission is expected to issue the three commercial casino licenses by the end of this year.

The shocking development followed a long competitive stretch that saw as many as eight companies jockey for position for the coveted casino licenses. Wynn Resorts (WYNN [https://seekingalpha.com/symbol/WYNN]) was among the first to exit, abandoning its Hudson Yards West project in May of this year after citing unrelenting community opposition and a convoluted rezoning process. Similarly, Caesars Entertainment's (CZR [https://seekingalpha.com/symbol/CZR]) Times Square proposal, developed with SL Green Realty (SLG [https://seekingalpha.com/symbol/SLG]) and Jay-Z’s Roc Nation, was voted down by its Community Advisory Committee in September after pushback from Broadway leaders who feared congestion and cultural dilution. Meanwhile, Las Vegas Sands (NYSE:LVS [https://seekingalpha.com/symbol/LVS]) initially attempting to build at the Nassau Coliseum site, also dropped out, citing the uncertain economics of downstate licensing. Finally, the Coney Island bid by Thor Equities was also rejected after local backlash regarding infrastructure strain and seasonal business viability.​

Looking ahead, Resorts World's proposal envisions transforming the existing facility at the Aqueduct Racetrack in Jamaica, Queens, into a full-scale casino resort, adding live table games, luxury hotel rooms, and entertainment spaces. Bally’s (BALY [https://seekingalpha.com/symbol/BALY]) Bronx project at Ferry Point is a planned redevelopment of the former Trump Golf Links site along the East River. Metropolitan Park in Flushing, Queens, is set up to be a casino complex adjacent to Citi Field, featuring entertainment venues, restaurants, and public green space.