CASINO

Maryland casino revenue rises seventh straight month but fails to top $100m

TAGs: Maryland, Maryland Live!

maryland-live-expansionMaryland casinos posted a year-on-year revenue gain in June, continuing a hot streak that has lasted since late last year.

Figures released Wednesday by the Maryland Lottery and Gaming Control Agency showed the state’s five casinos generated combined gaming revenue of $93.3m last month, up 2.1% from the same month last year and the seventh straight month of year-on-year gains. Slots rose 6.6% to $370m while table games improved 17.5% to $211m.

While still in positive territory, June’s increase was smaller than that of recent months. June’s gains also failed to sustain the two-month streak in which revenue topped $100m. Over the first half of 2016, the year-to-date revenue numbers are up 8.5% to $581.1m.

As always, market leader Maryland Live led the pack in June with $53.6m, although this was up a mere 1.4% from June 2015. Perennial runner-up Horseshoe Casino Baltimore enjoyed a more robust 5.8% gain but still finished well back of the lead with $24.4m.

Hollywood Casino was one of the month’s two losers, dropping 6.9% to $5.9m, while Ocean Downs was also in the red, falling 4.1% to $5m. Rocky Gap rounded out the chart with $4.1m, up 12.5%.

MARYLAND LIVE BULKS UP TO HANDLE MGM NATIONAL HARBOR
With business booming, Maryland Live’s owners Cordish Cos. are taking the opportunity to expand their business to better compete with MGM Resorts’ in-development property MGM National Harbor, the final casino authorized by the state, which is slated to open in August.

Maryland Live is spending $200m to build a new 17-story hotel and conference center that will include a 1,500-seat theater, a day spa and a raft of new dining options, all intended to convince customers not to drive the 35 miles up the road to MGM’s $1.3b property. The work is expected to be done sometime next year.

Maryland Live easily withstood the challenge presented by Horseshoe Baltimore, which opened in August 2014. But consulting firm Cummings Associates believes Maryland Live could lose as much as 17% of its current business to the MGM casino, while Horseshoe Baltimore stands to lose around 7%.

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