New York’s race for downstate casino licenses has moved in fits and feints, with two unanimous community approvals in September followed by a high‒profile withdrawal weeks later. The sequence sharpened expectations in Queens and narrowed the field elsewhere, while Atlantic City and nearby states weighed the risk of losing day‒trip patrons to a closer option.

Resorts World New York City in Queens and MGM’s Empire City in Yonkers each secured unanimous votes from their Community Advisory Committees, 6-0 and 5-0, respectively, signaling strong local support.

The approvals positioned both racinos to convert into full casinos, a step that analysts have long said could redirect a share of New Jersey and Pennsylvania play. In mid-October, MGM withdrew its application, citing economic reasons and the shortened license term. The exit reshaped the board for three available licenses and heightened attention on Resorts World’s multibillion-dollar proposal in Queens.

Local approvals, and a pivot

Resorts World’s vote reflected an absence of public opposition and the promise of construction and permanent jobs. In company statements, Genting executives emphasized the project’s borough‒wide footprint and pledged broader community benefits.

The Queens bid had already been considered a frontrunner, as reported by BonusFinder, because the property operates a large video lottery terminal floor, making the transition to table games an extension rather than a greenfield start.

Empire City’s bid appeared equally well-positioned after its 5-0 committee vote. MGM then withdrew, pointing to changes in competitive assumptions and a reduced license term that altered its return expectations on a proposed $2.3 billion investment. The departure compressed the slate of contenders and redirected political scrutiny to the remaining bids clustered around Queens, the Bronx, and Flushing Meadows.

Atlantic City’s Exposure

Industry panels in recent years have projected a 20 to 30 percent hit to Atlantic City’s casino revenue if multiple New York City properties open with table games. Executives pointed to the overlap in customer origin, particularly upstate New Jersey and the outer boroughs.

New Jersey’s overall gambling revenue reached records on the strength of internet gaming and sports betting. However, brick-and-mortar performance at several properties still lags behind pre-pandemic levels, underscoring the sensitivity to local competition.

Operators in Atlantic City have rotated through renovation cycles and entertainment-led strategies, building out non‒gaming attractions and high‒end dining to lengthen stays. The approach has helped smooth volatility, although the market continues to rely on weekend peaks and marquee events to balance softer midweeks.

Neighbors on the watch list  

Pennsylvania’s eastern casinos draw heavily from North Jersey and New York commuters. A full casino in Queens, paired with arena‒scale entertainment, would challenge that funnel and could compress promotional budgets on the Pennsylvania side.

Connecticut’s legacy resorts remain destination plays; yet, a Queens venue that books arena concerts and offers premium hospitality would test the regional calendar.

Signals for regulators and investors  

The Community Advisory Committee’s votes clarified the political runway for conversions at existing racinos. The ensuing withdrawal by MGM signaled that license structure and term length carry outsized weight in capital planning. The process remains pointed toward a December decision by the Gaming Facility Location Board, with Resorts World presenting a multibillion-dollar budget and community benefit package that resonates with local officials.

Economic Context and Timelines

License fees and capital commitments have framed the debate as much as neighborhood politics. Applicants have floated packages in the hundreds of millions for the license itself, with multibillion-dollar construction budgets that push payback periods across a decade. The shortened license term discussed this fall adjusted those models and, in practice, added weight to the cost of capital. That calculus helps explain why a unanimous community vote did not guarantee a final submission from every frontrunner.

The formal decision timeline indicates that recommendations are expected by December from the Gaming Facility Location Board. Even with favorable rulings, construction lead times and union schedules suggest any meaningful displacement of trips to Atlantic City would arrive gradually. The runway gives New Jersey operators time to refine entertainment calendars and loyalty programs, even as marketing teams prepare for sharper competition from Queens.

What operators say

Resorts World executives have emphasized the borough-wide impact, citing the absence of public opposition at the committee hearing and the opportunity to expand an already busy gaming floor into a more comprehensive resort footprint. The project narrative focuses on providing permanent jobs, offering a broader range of table games, and featuring a live entertainment lineup designed to keep guests on site for longer periods.

MGM’s statement on its withdrawal pointed to a different set of facts on the ground, including changing competitive assumptions and a reduced license term that diminished returns on a $2.3 billion plan. The company emphasized its long history in Yonkers while indicating that the revised framework no longer met its investment thresholds. The pivot underscored how policy design can redirect capital, even for operators with strong local support.

Atlantic City counter-strategies

Atlantic City’s shift toward hotel tower upgrades, conference space, and non-gaming attractions mirrors redevelopment initiatives aiming to capture visitor and investment flows seen in neighbouring regions, such as the ongoing Welch Building project in Westfield.

Atlantic City properties have already been repositioning themselves toward a destination play, with investments in hotel towers, conference space, and chef-driven restaurants that alter the value equation. The extensions aim to lengthen stays and incorporate non-gaming spend, a hedge against day-trip erosion. Operators also continue to derive momentum from internet gaming, where New Jersey’s market has posted record annual totals, helping offset uneven foot traffic on midweeks.

The practical focus centers on creating events that a neighborhood casino cannot easily replicate. Summer concert series on the beach, shoulder-season food festivals, and integrated sportsbook activations during NFL and NBA peaks remain staples. If Queens adds an arena-scale magnet, the Boardwalk will lean harder on the ocean and the resort corridor, selling the weekend as the product.

Final Thoughts

The reshuffled field places Queens at the center of New York’s downstate casino conversation and keeps Atlantic City watching the border. The scale of any shift will depend on final awards and construction timelines.

For now, the approvals, the exit, and the remaining bids have set clear markers for how money and foot traffic could move in 2026 and beyond.