MGM Resorts has agreed it will pay an extra $50m if the 97-acre property is issued with a license for live table games on or before 31 December 2022.
Empire City is located just 15 miles from Times Square in Manhattan and serves around 16 million eligible gaming customers in southern New York.
The casino offers gaming, racing, dining and entertainment, featuring over 5,000 slots and electronic table games, as well as live and virtual horseracing.
Jim Murren, Chairman and CEO of MGM Resorts, said: "Over the past three years, we have established a meaningful presence in the northeast with Borgata in Atlantic City, MGM National Harbor in Maryland, and MGM Springfield in Western Massachusetts.
"With this new addition to the MGM Resorts portfolio, we have now gained a foothold in the high-density New York City region."
James Stewart, CEO of MGM Growth Properties, said: "This is another excellent example of the power of our partnership with MGM Resorts."
