The MGM National Harbor has had a major revenue rise while cannibalising the Maryland casino market since its opening in December 2016.
US.- MGM Resorts opened its MGM National Harbor casino resort in December 2016 and has seen a revenue rise of 37.8 percent ever since. Whilst having such great results, the facility has cannibalised the casino market in Maryland, causing a decline in the other five casinos in the State, whose revenue have dropped 11.8 percent instead.
According to a report by onlinepoker.net, the casinos closest to the MGM facility have been the most affected, with the Horseshoe Casino in Baltimore reporting a 9.4 percent drop in its revenue and the Maryland Live in Anne Arundel County with an even bigger dip of 16.6 percent since the US$1.4 billion complex opened in December. Meanwhile, the MGM National Harbor has been increasing its revenue, generating profit of US$50 million every month.
Finance director of Cordish Companies (owner of Maryland Live) Jonathan Cordish said: “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.”
The Cordish facility is undergoing a US$200 million expansion development in order to stay competitive with its MGM counterpart. On the other hand, the Horseshoe Casino hopes that the attractive player loyalty and rewards program offered by Caesar Entertainment (its parent company) will help its business, in addition to Baltimore government’s efforts to create an entertainment hub in the area.
Erin Chamberlin, the casino’s senior VP, showed some enthusiasm about the future and said: “As the southern gateway expands and becomes a diverse entertainment district, Horseshoe is poised to take advantage of the significant growth and development.”
The State is also trying to help casino’s to stay competitive against the massive MGM facility as it has tried to ease the burden on Maryland Live and the Horseshoe and has given them a preferential tax rate compared to MGM National Harbor’s.