Maryland Live is the largest casino in Maryland, which accounts for the 76 percent casino revenue made in 2014. Horseshoe Baltimore, 13 miles from Maryland Live, opened in August 2014. With the opening of the new casino, a 60 percent drop was recorded on Maryland Live’s market share for a 10 month period. The announcement on June 14, 2015 stated competition is increasing with the expected MGM national Harbor. The casino is to open in 2016 with a location in Prince George’s County. MGM will take 7 percent of Horseshoe Balitmore’s business and another 16 percent from Maryland Live by 2019.
The projections of market share dispersal come from a December 2013 study created by Cummings Associates. The company was commissioned to conduct the survey, by the Maryland Lottery and Gaming Control Agency.
Alan Woinski, Gaming USA Corp president, stated, “Maryland has too many casinos in to close an area.”
There are five casinos in Maryland, with three in rural locations. Horseshoe and Maryland Live are the urban casinos with 74 percent of the slot machines and gaming tables housed in both casino locations. Maryland Live has 4,200 slot machines plus 189 gaming tables.
There are further projections that Maryland will see an increase in their casino industry between 2015 and 2016. This report was provided by Moody’s Investors Service in October 2014. Moody’s is a credit rating agency.
Despite the projections of revenue and losses, Maryland Live has performed better than expected based on the November 2013 Cummings Associates report. Maryland Live has an average of $51.5 million per month, which is double Horseshoe’s $22.4 million per month revenue report.
The April 2015 report from Maryland Live showed an income of $51 million, which was a 10 percent drop from April 2014. The company stated their revenue is on target for the fiscal year forecast. The Maryland Lottery and Gaming Control Agency expected more from Horseshoe than current revenue shows. The agency expected a 2015 fiscal year to generate $354 million. After six months the estimate has been set at $232 million for all of 2015.
Industry analysts believe it is the location of the two casinos that determine the outcome of revenue. Maryland Live is close to Arundel Mills Mall, which brings in thousands of consumers from Baltimore and Washington DC. It is also on a major highway. The casino is also an established location, whereas Horseshoe is still in its infancy. It still has a descent location being next to M&T Bank Stadium, which offers football events.
Football, a huge draw for Maryland residents, has a negative impact on the casino nearby.
MGM is also going to be a destination casino. It is advertising as a place to come from outside the state. Cummings Associates states MGM will have about 70 percent of its customers from outside of Maryland based on the amenities and resort style complex.