MGM’s Empire City Casino in Yonkers has sent a letter to the Gaming Commission indicating that it is dropping out of the race for a state gaming license.

On Tuesday, MGM Resorts issued a statement saying, in part, “The newly defined competitive landscape – with four proposals clustered in a small geographic area – challenges the returns we initially anticipated from this project.”

The company was planning to spend more than $2 billion to expand the existing casino into a full-fledged resort.

Only three casino proposals remain: Resorts World and Metropolitan Park in Queens, and Bally’s in the Bronx.

Up to three casino licenses will be awarded by the state at the end of the year.

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