If New York is to see more casino projects, and it will, MGM Resorts International is qualified to fund such developments, an industry analyst said.
CBRE Credit Research issued a message to its clients outlining the resources that MGM Resorts could aim toward new projects around the world – including Empire City Casino in Yonkers.
Two CBRE analysts, Colin Mansfield and Connor Parks, determined that MGM’s recent sale of $850 million in corporate debt leaves the company positioned to take on new projects. The analysts wrote that the removal of that debt “clears out the 2025 maturities at MGM’s domestic box, with the next maturity being the $400 million due in late-2026.”
In simplistic terms: MGM is good to go to move forward with its ambitious plans.
MGM has ‘balance sheet flexibility’ to develop casinos
MGM has long aimed to revamp Empire City Casino, and doing so by obtaining one of three available downstate casino licenses would certainly do the trick, albeit with a minimum cost of $500 million for the license.
Still, CBRE analysts said MGM Resorts has “balance sheet flexibility” that would afford the gaming giant to take on more debt for a casino development, or even multiple projects.
That bodes well for MGM, which plans to debut a venue in Dubai, though it may not include gaming. Regardless, the company is in good shape to launch more than one project to expand its gaming footprint, even in New York.
That license becomes even more valuable once lawmakers legalize iGaming, as it will likely allow any recipient to offer NY online casino gaming when the vertical goes live.
Empire City continues plans to become full-scale NY casino
MGM previously revealed plans for development to expand the existing racino in Yonkers with more than 100,000 in additional gaming space, hundreds of hotel rooms, and the ability to host entertainment and business events.
Of course, Empire City would also boast a retail sportsbook complete with a 112-foot wrap-around LED screen, stadium seating, VIP areas, and self-serve betting kiosks.
According to MGM, turning Empire City into a fully fledged casino could generate more than $1 billion in new economic activity.
“MGM Resorts has a long and proud history of delivering world-class entertainment and gaming experiences, and we couldn’t be more excited to build on that track record at MGM Empire City,” Bill Hornbuckle, president and CEO of MGM Resorts International, said in November 2023.
“A full-scale casino and entertainment destination will provide unparalleled experiences, create thousands of jobs, boost the state’s economy, and be a game-changer for the entire region.”
