Yonkers mayor calls for investigation after MGM drops casino license bid
There are calls for an investigation after gaming giant MGM dropped its bid to add Vegas-style table games at its slots-only casino in Yonkers.
The unexpected, wild card move in the competition for downstate casino licenses has been met with shock, anger and suspicion.
"It's really flabbergasting"
Yonkers thought this would be a banner year, with MGM Empire City seen as a favorite for getting one of up to three full-gaming licenses, unlocking a $2.3 billion upgrade.
Then Tuesday, MGM folded. A letter from the company cited vague concerns about the "competitive landscape."
Senior news analyst at Covers.com Ryan Butler says many in the industry are shocked.
"This really is like running a marathon, 26.2 miles, and pulling up after mile 26. Just the years of planning, meetings, logistics, financial investment," he said. "It's really flabbergasting."
MGM's decision leaves just three active casino applications: Bally's in the Bronx, Metropolitan Park near Citi Field, and Resorts World New York City in Queens. The state is expected to grant up to three new licenses before the year is out.
There is fear in Yonkers that MGM may close Empire City after new casinos open in New York City.
MGM says it's committed to keeping the location open, but when asked if it would commit to five or ten more years, the company declined to answer.
"Let's follow the money"
Yonkers Mayor Mike Spano accuses MGM of "betrayal," and he raises the possibility of political influence.
MGM exiting the competition helps Bally's Corporation, which agreed to pay the Trump Organization more than $100 million if it gets a license to build a casino at the former Trump Links site in the Bronx.
Gov. Kathy Hochul on Wednesday reacted to Spano's call for an investigation.
"I share the mayor's disappointment that this did not continue, but I, at this time, am not aware of any reason to launch an investigation," she said. "I have no evidence to suspect that there's any wrongdoing."
"I disagree with the governor. I think that we should have an investigation," Spano said. "Now, let's follow the money and let's see what's going on here."
A source tells CBS News New York the White House was not involved in any of this.
The Trump Organization responded to Spano's comments, saying in a statement:
"The Trump Organization had absolutely nothing to do with MGM's decision to withdraw its bid for a casino license in Yonkers. Even the slightest suggestion otherwise is completely false, irresponsible and pure speculation. According to a statement from MGM, the decision to withdraw its bid was due to what the company described as a 'shift' in the 'competitive and economic assumptions' underpinning their application -- including the fact that the state had reduced the length of the proposed license from 30 to 15 years. Instead of lodging false and unsubstantiated allegations, Mayor Spano may want to focus his energy on improving his own city and answering the persistent allegations of nepotism and conflict of interest that have plagued his administration for over a decade."