With properties in Las Vegas, New Jersey, and Macau, among several other locations, MGM Resorts International has certainly established itself as one of the leading operators of destination casino resorts.
The company has most recently cut the ribbon of the $1.4-billion MGM National Harbor, introducing the state of Maryland to the integrated resorts experience. Located just ten miles from Washington D.C., the 23-acre property was expected to draw customers from surrounding regions and to boost the state’s gambling industry significantly.
As monthly results provided by the Maryland Lottery and Gaming Control Commission show, the expensive casino resort has delivered on its goal during its first months of operation. MGM National Harbor opened doors on December 8, 2016 with a 135,000-square-foot casino, a 300-room hotel, a theater, a meeting hall, and multiple food and beverage facilities, among many other enticing options.
The property performed extremely well during its first three weeks of operation, generating casino revenue of more than $41.9 million from both its slot machines and table games. Here it is important to note that the gambling venue at the resort featured over 3,200 slot machines and 165 table games upon launch. This made it Maryland’s second largest casino in terms of gaming options offered, with Maryland Live! Casino being the largest one with its more than 3,900 slot machines and over 200 table games.
MGM National Harbor’s opening brought the state’s gambling revenue to a record high of $133.5 million in December 2016, up the impressive 40.2% year-on-year. Excluding revenue from the newly opened casino, the state’s monthly revenue dropped 3.8% from December 2015.
MGM National Harbor improved its performance in January 2017, its first full month of operation. It generated $48.8 million in gaming revenue, thus turning into the state’s most profitable casino that month. In comparison, Maryland Live! Casino reported revenue of nearly $44 million for January. Including contributions from MGM National Harbor, Maryland’s overall gaming revenue increased 42.8% year-on-year to $126.2 million. If it had not been for the newly launched gambling venue, overall gaming revenue would have dropped 12.4% year-on-year in January.
In February, MGM National Harbor was outpaced by Maryland Live! Casino in terms of revenue. The new casino venue generated $45.8 million, compared to its rival’s revenue of $46.3 million. Yet, MGM’s venue was once again the driver for a major increase of the state’s gaming revenue on a year-over-year basis. Maryland’s six casinos generated a total of $128.7 million in February, up 38% from the same month a year earlier. Excluding MGM National Harbor, revenue dropped 11.1% year-on-year.
As the most recently published report showed, March was a particularly good month for the newly opened casino. It regained its status of the state’s most profitable casino, generating monthly revenue of $51.2 million from 3,114 slot machines and 165 table games. In comparison, Maryland Live! Casino reported the amount of $46.6 million for March. The state generated overall record-breaking revenue last month. The amount of $141.1 million was reported for the state’s six casinos, up 44.3% from March 2016. Excluding MGM National Harbor, revenue would have declined 8.1% as compared to March 2016.
The opening of MGM’s Maryland property has clearly had positive effects on the state’s gambling revenue, driving record high monthly increases. Given the fact that it offers multiple other non-gambling options, including meeting and conference facilities, it has the potential to draw a wider and more diverse audience. This can certainly contribute to its future success on the Maryland gambling scene. Yet, it all shows that it is and will be challenged by Maryland Live! Casino, which is still the largest gambling venue in the state and having been in operation since 2012, it has built a solid and loyal customer base, something that MGM National Harbor is yet to do.
