Maryland Casino Market Posts a Record $156.5m in May

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Thursday, June 7th, 2018 | Written by Charles Washington

Maryland’s casino market has posted a new all-time monthly high, with the $156.5 million collected in May representing a 14.7% increase compared to the same month in 2017, and smashing the previous revenue record set in March by $6.5 million. Furthermore, all of the state’s casinos posted gains for the first time since MGM National Harbor opened its doors for business a year and a half ago, and commenting on the impressive result, Maryland Lottery and Gaming Director Gordon Medenica stated:

“As our casino partners continue to innovate and add new amenities, it’s exciting that all six properties saw year-over-year increases in May. We congratulate them on an excellent month and we’re looking forward to their continued success.”

Breaking down last month’s numbers, the state’s slots segment generated $96.5 million in revenue, up by 15% year-on-year, while table games, too, noted an impressive performance with revenue jumping by 14% to $60 million, according to the latest figures released by the Maryland Lottery and Gaming Agency.

Gains All Across the Board

Leading Maryland’s casino market in May was the MGM National Harbor, whose revenue of $62.3 million was 23% more than a year earlier. It was also a new all-time high for the $1.4 billion casino resort, beating the prior record set in March 2018 by a massive $2 million.

Since opening in December 2016, MGM National Harbor has become the domestic market’s dominant force, to the chagrin of Live! Casino & Hotel and Horseshoe Casino Baltimore, whose bottom lines have been negatively impacted by its operation. Nevertheless, May brought some much needed relief for these beleaguered properties with Live! Casino seeing its revenue soar by 13.4% to $52 million, and Horseshoe Casino Baltimore noting a slight 2% improvement to $24.1 million, representing the property’s first year-on-year increase since National Harbor opened up just 42 miles from its doorstep.

Also reporting year-over-year revenue gains was Maryland’s three smaller operations, with Hollywood Casino Perryville higher by 6.7% at $6.8 million, Ocean Downs Casinos soaring by 21% to $6.4 million, and Rocky Gap posting a 3.9% gain to $4.9 million.

Five Months of Gains

Maryland’s casino market has enjoyed a blistering start to the year, posting five consecutive months of growth so far in 2018, including recording a 1.2% improvement in January, 6% in February, 6.3% in March, 6% in April, and now a double-digit 14.7% gain in May.

This in turn has helped provide a significant boost for the state’s essential projects and assistance programs, such as the Education Trust Fund, General Fund, horse racing industry, and local impact grants, which receive 40% of all gross gaming revenue (GGR) generated in Maryland.

Live! Casino Opens $200M Hotel

Since seeing its market share slip on account of MGM National Harbor, the Live! Casino in Hanover has been innovating its offering to better compete with its formidable rival. Last month, for instance, the venue opened its Orchid Gaming & Smoking Patio, which is the state’s very first outdoor smoking area offering the full range of gaming products. As a result, gamblers can now smoke and drink in its 8,000-square-foot space, while having access to its 150 slot machines and 40 table games.

Live! Casino, which previously offered 250 rooms via its Live! Lofts boutique hotel, has also completed its $200 million hotel tower. In addition to the extra 310 rooms provided by its construction, other facilities featured at the property include a spa, fitness center, concert hall, retail shops and restaurants, as well as 1,000 additional car parking spaces.

“With Orchid, we have created a completely unique environment with a blend of gaming, music, design, and an upscale bar. Combine this amenity with the new luxury Live! Hotel, opening this month, and you have a destination unlike any other in Maryland,” said Rob Norton, president of Cordish Global Gaming.

Horseshoe Baltimore Area Development

Increased competition from MGM National Harbor is not the only challenge facing the Horseshoe Baltimore, which has seen its revenue hit by the area’s soaring crime rate, and its unenviable reputation for being the USA’s most dangerous city. So far this year, there have been more than 100 murders, with one of the most recent cases involving a police officer who was responding to a burglary.

Plans are currently afoot to improve the area, though, with industrial buildings, parking lots and other buildings being purchased in an attempt to develop the district, and form an entertainment corridor linking the Horseshoe Baltimore casino with other local attractions, such as its sports stadiums and the Inner Harbor.