Revenue From Maryland Live! Rises, Perryville Casino Lags

The Maryland Lottery said the state's three casinos brought in $48 million in July, with about $33 million going to the state. Maryland Live! saw revenue rise by 25 percent in its second month.

Action at the Maryland Live! casino drove record gambling revenues to the state in July, but revenue lagged at one of the other facilities in the state, the Maryland Lottery reported Monday.

The three casinos in Maryland brought in $48 million in revenue in July, paced by $35 million from the new Maryland Live! facility at Arundel Mills.

The overall casino revenue in the state increased by about $8 million. But revenue dropped at the Hollywood Casino in Perryille, which has seen its income drop by nearly one-third in the last 12 months.

In July, Maryland Live! saw revenue grow 25 percent, up from from $28 million in June. (The casino opened on June 6.)

Casinos kept about $15.8 million of the revenue in July, with the rest distributed to Maryland’s Education Trust fund, the horse racing industry, the Maryland Lottery, and local businesses.

The casinos funneled $23.3 million to the education trust fund, up from $19.8 million in June.

Maryland Live! officials said revenues were in line with their projections.

The casino paid out $195.6 million to casino customers in July, with $8.7 million in jackpots of $1,200 or higher.

Casino revenue is expected to rise further this year, as Maryland Live! collects added on July 27. (It is now up to 3,171 terminals.) The casino is also building a concert stage and additional restaurants.

But July figures suggest that increases in revenue from Maryland Live! could be offset at least partially by losses elsewhere.

Revenue from Hollywoo Casino in Perryville fell from $7.9 million in June to $6.9 million in July. It also declined about $3.3 million—or 32 percent—from July of 2011.

Officials from the Cordish Companies, which operates Maryland Live!, said the loss of casino revenue at Perryville underscores their concern that the addition of more casinos in the state will lead to oversaturation. They have opposed efforts by Gov. Martin O’Malley and the state legislature to approve a license for a new casino at National Harbor in Prince George’s County.

Maryland currently has three operational casinos. A license has been granted for a fourth facility in Baltimore City and another in Allegeny County.

The legislature will meet in a special session beginning Friday.

“The July numbers reinforce it is premature for the State to consider an expansion of gaming before ensuring that Maryland can actually support the five existing licenses,” said Joe Weinberg, Managing Partner of the Cordish Companies, in a press release. “Maryland Live!’s results show approximately 50 percent of its customer base is from the District of Columbia, Virginia, Prince George’s and Montgomery Counties, markets located within 30 miles of Maryland Live! Actual data clearly shows the State risks undermining the health of the entire Maryland gaming industry by adding a 6th mega casino in Prince George’s.”

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George August 06, 2012 at 07:42 PM
"Officials from the Cordish Companies, which operates Maryland Live!, said the loss of casino revenue at Perryville underscores their concern that the addition of more casinos in the state will lead to oversaturation.:" Funny. He sure wasn't concerned about the impact on Perryville when he was trying to build his place. Or the impact on Laurel Park. Good try Mr. Cordish but your analogy is as apples and oranges as it is disingeniune. Perryville is on the border of Delaware and not far from Atlantic City so there's not many people headng in that direction who will stop there. Its just too easy to keep driving north for the better venues nearby. The National Harbor faces NO compeition from the south and is easily accessibe to Northern VA and DC tourists. Unlike Cordish's glamourized parking garage, the National Harbor offers a real promise of out of state money which is what MD really needs.
John August 06, 2012 at 08:58 PM
And I'l state again that our schools will see none of this. Our legislators will lie, saying it goes into the education fund when it actually goes into the general fund and gets pissed away. You don't have to believe me. Wait a few years and see if your local school get a single red cent out of this.
R Painter August 07, 2012 at 12:13 AM
What is the 'education trust fund'? Anyone?
Sean R. Sedam August 07, 2012 at 12:31 AM
Created as part of the gambling legislation passed during the 2007 special session, the Education Trust Fund is "to be used for the Bridge to Excellence in Public Schools Act funding (including the Geographic Cost of Education Index), public school construction, and public higher education construction, including community colleges," according to a fiscal note written by state budget analysts. The special session was called to address Maryland's $1.7 billion structural budget deficit. Under the legislation, 50 percent to 52.5 percent of all slots revenue is to be dedicated to the Education Trust Fund. For more information, click here: http://mlis.state.md.us/2007s1/billfile/hb0003.htm and click here: http://mlis.state.md.us/2007s1/fnotes/bil_0003/hb0003.pdf
Greg T August 07, 2012 at 01:44 AM
If the state really wants the most money, they ahould have National Harbor and Rosecroft bid against each other for the license. A back room deal potentially will cost the state hundreds of millions of dollars.
Ironboar August 07, 2012 at 02:20 AM
The news about Perryville's losses come as little surprise. On my one and only stop earlier this year, the slots were so tight, Ben Franklin screamed as he got sucked up.
MAW August 07, 2012 at 11:26 AM
If National Harbor happens, and the the Baltimore City casino is built. (Not that I care if they are built or not.) We will be subsidizing the Cordish casino with tax breaks and bailouts before you know it. Because he will be crying about losing money. (This I will care about.)
G-Man August 07, 2012 at 11:55 AM
So, Maryland gets 67% of gross income from all casinos. A so called "emergency" session to add one more casino in National Harbor. Also, the Maryland Lottery had record sales this year and provided Owe'Malley $556 million that goes into the "discretionary fund"? My point is how can the casinos operate on 33% of revenue? Also where is all of this money going when it goes into Owe'Malley's cofers? Gambling is fine in my opinion but the state is sucking the casinos and Marylanders before they even have a chance. Same goes with the high corp. taxes. Why are the big companies leaving?
Brian C. August 07, 2012 at 12:08 PM
Well MAW COrdish casino already pays 67% tax.
George August 07, 2012 at 12:31 PM
Don't feel sorry for the casinos. They are making plenty of money and will continue to regardless of whether adidtional casinos are built. Don't forget, people essentially come in and throw money at them for nothing. Folks aren't walking out the door with goods or services like most businesses. The casinos' only expense is infrastructure, security(which is heavily augmented by county cops), staff and minimal maintenance. Just ask yourself, if it wasn't a highly profitable business (even with the tax), why would they pay so much and fight so hard to get approval? Ask the poeple of Kentucky about Cordish and his promises. Of course, after his puppet Leopold ends up in the pokie, fewer and fewer politicians will want to be seen supporting him.
Brian C. August 07, 2012 at 12:31 PM
It looks like at this point the special session is just to tie up the loose ends. The license for the Baltimore Casino has been awarded to Caesars group and they plan on putting a Harrah's type casino in the harbor by 2014.
John August 07, 2012 at 01:32 PM
If anyone thinks there's a correlation with gambling and "great" schools, just do a bit of research. Research the Las Vegas school system, Atlantic City, etc...What you'll find it the school systems around any gambling location are completely trashed.
G-Man August 07, 2012 at 03:01 PM
I don't feel sorry for the casinos. It just hard to understand the enormous amount of cash the state is getting and the keep wanting more. Where is it all going? How can they be broke?
jag August 07, 2012 at 05:46 PM
My brain hurts from the ridiculousness of this comment.
jag August 07, 2012 at 05:46 PM
Well said.
Jim Davis August 07, 2012 at 06:52 PM
And the reason for Perryville's drop in revenue is Cordish. Perryville also wants to return 400-500 machines to the State. Our "legislators" would screw up the march order of a one car funeral. I have no sympathy for anyone in the casino business. They knew the rules before they came in and now they want to change them purely for their own pocket.
Brian C. August 07, 2012 at 07:11 PM
Not a problem to return the machines. The state paid to put them in there anyway. Perryville knew there was more that just license up for bid and should have planned for it. The newness of the Perryville casino has worn away. Of course they have lost players.
Locate Baltimore August 24, 2012 at 07:25 AM
Indeed casinos need to learn some money management. Because more often than not its the rich that go broke rather than the poor. Find some Great Deals at www.locatebaltimore.com .


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