"First, a quick history lesson. The largest operator of casino hotels on the Las Vegas Strip in 2018 announced an $850 million deal to buy Empire City Casino in Yonkers, New York, closing that transaction in January 2019. That acquisition was validated because MGM rapidly turned the slots-only venue into one of the highest-grossing regional casinos in the country, and in 2022, New York lawmakers approved plans to issue three licenses for Las Vegas-style gaming venues in the Big Apple."
"Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. That process ramped up in earnest last year, and throughout, consensus wisdom among gaming industry experts and Empire State political observers was that Empire City was a lock to land one of the three permits. After all, MGM has an established track record with state regulators and under its stewardship, Empire City delivered billions of dollars in tax receipts to state coffers."
"In other words, surprise may not even scratch the surface of MGM's decision -- a notion arguably amplified when considering that some analysts describe New York as the casino industry's biggest opportunity in years. Throw in speculation that the Big Apple's casino market could eventually exceed that of Las Vegas in revenue, and it's all the more stunning that MGM bowed out."
MGM Resorts abandoned its bid for a New York City casino license after acquiring Empire City Casino for $850 million in 2018 and closing the deal in January 2019. MGM converted the slots-only venue into one of the highest-grossing regional casinos, producing billions in tax receipts. New York authorized three Las Vegas-style casino licenses in 2022, and industry consensus viewed Empire City as a leading contender. Analysts view New York as a major domestic growth opportunity that could rival Las Vegas in revenue. The withdrawal is surprising but may allow MGM to save and redirect significant capital.
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