By:  Ilana Siyance

There seems to be a hiccup in the closely watched race for three coveted casino licenses being doled out in the New York City area.

As reported by the NY Post, there may be a change in the long talked about narrative in which the current Empire City Casino in Yonkers and the Resorts World Casino at the Aqueduct Race Track in Queens would receive two of the three casino licenses to upgrade to full-table games.  Till last week, all the other bidders were in essence competing for the one remaining license, taking it as a given that two licenses would be given to the two current casinos in the state-run process that’s slated to announce a final decision by next spring.

In particular, sources say that MGM Grand, which owns and operates the Yonker’s Empire City Casino, is now at risk of being cut from the plans.  This relates to news that Scott Sibella, former head of the MGM Grand casino in Las Vegas, was ousted on Friday as president and operating chief of Resorts World.  Sibell had joined Resort World from MGM in 2019.  Per the Post, federal agents are probing whether employees at MGM Grand, where Sibella was president in 2017 and 2018, used company assets to pay off gambling debts to infamous bookie Wayne Nix.  Last year, Nix had pleaded guilty to operating a massive, illegal gambling operation and falsifying tax returns, as per the Nevada Current.

In a statement to the Post, Resorts World said that Sibella’s thunderbolt termination from the company was “effective immediately” over Sibella’s “failing to disclose certain information required under company policies.”  Resorts World declined to provide more details.

Resorts World, which took swift action against Sibella, is not expected to face backlash in the state’s decision for the downtown NYC casino license.  Sources close to the Gaming Commission say, however, that MGM, will be on the hook to answer questions about the occurrence which took place several years ago.  This may hurt its standing in the race for a lucrative license. “This is a bigger problem for MGM because they were [allegedly] involved in the conduct,” said a source for the Post who recently advised the New York Gaming Commission. “But Resorts World would need to get rid of the stain.”  “You’d have to think this investigation into Sibella reflects badly on MGM,” added the source, who is not advising any of the casinos in this process.  “Ethics is going to be a huge deal in deciding who gets the licenses,” the source noted. “The ethics and the relationships with the communities where they are putting their casinos is where this is going to be fought and won.”

Representative for MGM did not reply to the Post’s requests for comment on Monday.  Sibella also did not comment.

The news may be seen as a positive by the casino bidders who have been vying for their chance at the licenses.  Bidders include billionaire hedge fund manager Steve Cohen, who owns the New York Mets and has proposed building a casino in the Citi Field parking lot.