"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."
"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 bought Empire City Casino in Yonkers in 2019 after an $850 million deal announced in 2018. MGM converted the slots-only venue into one of the highest-grossing regional casinos, delivering billions in tax receipts. New York lawmakers approved three Las Vegas-style casino licenses in 2022, and Empire City was widely viewed as a frontrunner. MGM pledged a $2.3 billion revamp if awarded a license, and permits are expected to cost about $500 million each. MGM ultimately withdrew from the New York license competition, conserving cash and allowing reallocation of resources, a move that could be positive for long-term investors.
Read at The Motley Fool
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