MGM Resorts hints at plans for multibillion-dollar New York casino
Las Vegas might be the casino capital of the U.S., but now the Big Apple — or rather the area right above its northernmost borough — is attracting the largest operator of Sin City megaresorts.
The state of New York plans to issue three commercial gaming licenses that would allow a casino resort to operate in or around New York City, and MGM Resorts International is one of several companies vying for a permit. Other companies in the running include major brands like Wynn Resorts and Las Vegas Sands.
For more TPG news delivered each morning to your inbox, sign up for our daily newsletter.
MGM already has a foothold in the region with the Empire City “racino,” a horse racetrack that has expanded to include various electronic lottery games. Should it earn one of the licenses, the company would significantly expand the facility by adding billions of dollars' worth of upgrades, including table games, slot machines and amenities found at its various resorts around the world.
“We had hoped to invest up to a couple of billion [dollars] in the first round to put us into the table games business, to expand some of the amenities and put in a much-needed parking garage there, to put an entertainment facility there and potentially some other things,” MGM Resorts CEO and President William Hornbuckle said on an investor call this week.
Hornbuckle didn't offer more specifics as to just how many billions of dollars would go into the upgrade in Yonkers, which is a roughly 15-mile drive from Times Square in Manhattan.
Each of the winning bids is likely to see billions of dollars in development to justify the hefty license fee — expected to run at least $500 million just to operate a casino in the region. Hornbuckle claimed the fee is the “highest [licensing fee] of the industry by five times.”
The MGM leadership team did provide a few details on what kind of overhaul the 97-acre Empire City Casino would receive if the company earns the right to develop a full-scale gambling operation there. The video lottery terminals — which are preprogrammed to pay a set number of times — would get swapped out for actual slot machines, which are unpredictable and operate on a game of chance.
Table games would be added as well as other amenities; however, Hornbuckle didn’t elaborate on what kind of offerings beyond the gambling hall and parking facility were under consideration. It appears MGM is approaching the project as one that would likely cater more to local and regional gamblers rather than bring in gamblers from around the world, like its Las Vegas resorts.
“We think that will attract the kind of market that's available to us both in the neighborhoods and the surrounding areas,” Hornbuckle said.
Many of the various project sites under consideration, from Queens to Coney Island, are likely to attract a similar mix of regional and local gamblers.
But various Manhattan sites like Times Square and the East River waterfront have been floated. Those would be easier-to-reach destinations for tourists and likely see the highest revenues, but they are also likely to face the most difficult road to approval amid various political and neighborhood pressures.
Back in the MGM Resorts C-suite, Hornbuckle appears to be taking a slow and steady approach to the potential project in Yonkers.
“We had to ultimately get our head around the master plan, which we're working on diligently now,” he said. “But it's a couple of billion dollars, and we're going to be thoughtful about how quickly we do go when it's all said and done.”
Of course, winning the bid is the most important part of moving forward on that master plan.
Top offers from our partners
How we chose these cards
TPG featured card
Rewards
3X | Earn 3X Miles on Delta purchases and purchases made directly with hotels. |
2X | Earn 2X Miles at restaurants worldwide, including takeout and delivery in the U.S. and at U.S. supermarkets. |
1X | Earn 1X Miles on all other eligible purchases. |
Intro offer
Annual Fee
Recommended Credit
Why We Chose It
Build your loyalty to Delta by applying for the carrier's mid-tier card option, the Delta SkyMiles Platinum card. The annual fee is quickly recouped by the card's travel perks, such as an application credit to Global Entry or TSA Precheck, annual companion certificate and so much more. Plus you can fast-track to elite status simply through card spend.Pros
- Earn bonus Medallion® Qualification Miles (MQMs) and an Medallion Qualifying Dollar (MQD) waiver when you hit specific spending thresholds with your card within a calendar year
- Receive a Domestic Main Cabin round-trip companion certificate each year
- Statement credit for TSA PreCheck/Global Entry fee (up to $100)
- First checked bag free
Cons
- Doesn't make sense if you don't fly Delta
- SkyMiles aren't the most valuable airline currency
- Earn 90,000 bonus miles after you spend $4,000 in purchases on your new Card in your first 6 months.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. Payment of the government imposed taxes and fees of no more than $80 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights. Plus enjoy Main Cabin 1 Priority Boarding and settle into your seat sooner.
- New: Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide including takeout and delivery in the U.S., and at U.S. supermarkets.
- Earn 1X Mile on all other eligible purchases.
- Enjoy a per-visit rate of $50 per person for Card Members and up to two guests to enter the Delta Sky Club when traveling on a Delta flight.
- Fee Credit for Global Entry or TSA PreCheck® after you apply through any Authorized Enrollment Provider. If approved for Global Entry, at no additional charge, you will receive access to TSA PreCheck.
- Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs up to two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees
Rewards Rate
3X | Earn 3X Miles on Delta purchases and purchases made directly with hotels. |
2X | Earn 2X Miles at restaurants worldwide, including takeout and delivery in the U.S. and at U.S. supermarkets. |
1X | Earn 1X Miles on all other eligible purchases. |
Intro Offer
Earn 90,000 bonus miles after you spend $4,000 in purchases on your new Card in your first 6 months.Earn 90,000 Bonus Miles50,000 Bonus MilesAnnual Fee
$250Recommended Credit
Credit ranges are a variation of FICO© Score 8, one of many types of credit scores lenders may use when considering your credit card application.670-850Excellent/Good
Why We Chose It
Build your loyalty to Delta by applying for the carrier's mid-tier card option, the Delta SkyMiles Platinum card. The annual fee is quickly recouped by the card's travel perks, such as an application credit to Global Entry or TSA Precheck, annual companion certificate and so much more. Plus you can fast-track to elite status simply through card spend.Pros
- Earn bonus Medallion® Qualification Miles (MQMs) and an Medallion Qualifying Dollar (MQD) waiver when you hit specific spending thresholds with your card within a calendar year
- Receive a Domestic Main Cabin round-trip companion certificate each year
- Statement credit for TSA PreCheck/Global Entry fee (up to $100)
- First checked bag free
Cons
- Doesn't make sense if you don't fly Delta
- SkyMiles aren't the most valuable airline currency
- Earn 90,000 bonus miles after you spend $4,000 in purchases on your new Card in your first 6 months.
- Receive a Domestic Main Cabin round-trip companion certificate each year upon renewal of your Card. Payment of the government imposed taxes and fees of no more than $80 for roundtrip domestic flights (for itineraries with up to four flight segments) is required. Baggage charges and other restrictions apply. See terms and conditions for details.
- Enjoy your first checked bag free on Delta flights. Plus enjoy Main Cabin 1 Priority Boarding and settle into your seat sooner.
- New: Card Members get 15% off when using miles to book Award Travel on Delta flights through delta.com and the Fly Delta app. Discount not applicable to partner-operated flights or to taxes and fees.
- Earn 3X Miles on Delta purchases and purchases made directly with hotels.
- Earn 2X Miles at restaurants worldwide including takeout and delivery in the U.S., and at U.S. supermarkets.
- Earn 1X Mile on all other eligible purchases.
- Enjoy a per-visit rate of $50 per person for Card Members and up to two guests to enter the Delta Sky Club when traveling on a Delta flight.
- Fee Credit for Global Entry or TSA PreCheck® after you apply through any Authorized Enrollment Provider. If approved for Global Entry, at no additional charge, you will receive access to TSA PreCheck.
- Earn up to 20,000 Medallion® Qualification Miles (MQMs) with Status Boost® per year. After you spend $25,000 in purchases on your Card in a calendar year, you can earn 10,000 MQMs up to two times per year, getting you closer to Medallion® Status. MQMs are used to determine Medallion® Status and are different than miles you earn toward flights.
- No Foreign Transaction Fees.
- $250 Annual Fee.
- Terms Apply.
- See Rates & Fees