Maryland’s Newest Casino Cannibalizing MarketJune 20, 2017 9:57 am
Since MGM National Harbor opened its doors in December of 2016, Maryland’s casino market has seen its revenue soar by a huge 37.8 percent. The news isn’t good all across the board, though, as the Free State’s other five casinos have seen their business slide by 11.8 percent as the huge resort continues to cannibalize their customers.
Affected most by MGM’s opening has been those casinos situated closest to the huge $1.4 billion integrated resort, with the Horseshoe Casino in Baltimore reporting a 9.4 percent dip in its revenue, and Maryland Live in Anne Arundel County down by 16.6 percent since December. May’s results were even more dramatic for these venues, too, with Maryland Live down by 22.3 percent at $46 million, and the Horseshoe lower by 18.1 percent at $24 million.
By contrast, MGM National Harbor has been generating in excess of $50 million each month since its launch, and commenting on the situation, Jonathan Cordish, finance director of the company which own Maryland Live, stated:
“Obviously, the presence of a new casino in Maryland has an effect on the revenues of the existing casinos. We will continue to compete and reinvest for the long term.
As a result, Maryland Live is currently in the midst of a $200 million expansion development that should see a range of facilities added to the venue next year, including a 17-story hotel, a convention center, live entertainment and new restaurants. Meanwhile, the Horseshoe Casino is pinning its competitive hopes on the attractive player loyalty and rewards program offered by its parent company Caesar Entertainment, as well as the city of Baltimore’s efforts to create an entertainment hub in the immediate area. Expressing his optimism for the future, Erin Chamberlin, the casino’s senior VP, explained:
“As the southern gateway expands and becomes a diverse entertainment district, Horseshoe is poised to take advantage of the significant growth and development.”
In addition, the state has tried to ease the burden on Maryland Live and the Horseshoe by giving them a preferential tax rate compared to MGM located in Prince George’s County.