In August 2024, Maryland’s casino industry reported impressive growth, contributing significantly to both the state’s revenue and the Education Trust Fund. The six casinos in the state generated a total of $173.9 million in gaming revenue, reflecting notable year-over-year and month-over-month improvements. Specifically, revenue increased 7.8% compared to August 2023 and was up by 2.4% from the previous month, July 2024.
Contributions to the state also saw a remarkable increase, amounting to $73.7 million in August. This was 8.1% higher than the same period in 2023. A significant portion of these contributions went to the Education Trust Fund, with allocations totaling $53.1 million, representing an 8.1% year-over-year growth. While some casinos reported substantial increases in gaming revenue, others experienced a decline, highlighting a varied performance across the state’s six properties.
Maryland’s Overall Casino Performance in August
The combined gaming revenue of Maryland’s six casinos reached $173.9 million in August 2024. This represents a 7.8% increase over the same month in 2023, an impressive figure that suggests robust growth in the state’s gaming sector. Additionally, the performance marked a 2.4% improvement from July, underscoring a consistent upward trend.
The state benefited significantly from this growth, with contributions reaching $73.7 million. These funds are essential for a variety of state programs, but most notably, they feed into Maryland’s Education Trust Fund, which saw $53.1 million allocated in August alone. The rise in gaming revenue directly impacts the amount of funding available for public education, a critical aspect of Maryland’s overall development strategy.
Top-Performing Casinos: MGM National Harbor, Live! Casino & Hotel, and Hollywood Casino
Three of Maryland’s casinos reported strong year-over-year growth in gaming revenue, driving much of the overall industry’s positive performance:
MGM National Harbor
Leading the pack, MGM National Harbor generated a staggering $75 million in revenue, marking a 9.7% increase compared to August 2023. As one of the largest and most well-known casinos in Maryland, MGM National Harbor’s growth plays a significant role in the state’s overall gaming industry. Its strategic location near Washington, D.C., and its extensive amenities attract high volumes of visitors, contributing to its dominant market share.
Live! Casino & Hotel
Following closely behind, Live! Casino & Hotel reported $61.9 million in gaming revenue. While the casino’s growth in percentage terms wasn’t as high as MGM National Harbor, it remains a vital contributor to Maryland’s gaming revenue. Its performance in August was a solid reflection of the property’s stability and broad appeal to both local and out-of-state visitors.
Hollywood Casino
Although smaller in scale compared to MGM National Harbor and Live!, Hollywood Casino also saw positive growth, reporting $7.7 million in revenue. This represented an increase year-over-year, positioning the casino as a steady performer within the state’s gaming landscape.
The collective growth of these three casinos was essential in offsetting the weaker performance from other properties, as they contributed significantly to Maryland’s total gaming revenue for August.
Struggling Casinos: Rocky Gap, Horseshoe, and Ocean Downs
While Maryland’s overall gaming revenue experienced growth, three casinos posted declines in August 2024 compared to the previous year:
Rocky Gap Casino
The biggest decrease came from Rocky Gap Casino, which reported $5 million in gaming revenue. This was a 6.9% decline compared to August 2023. Located in Western Maryland, Rocky Gap faces unique challenges due to its more remote location and smaller size relative to other casinos in the state. The decline in revenue raises concerns about its ability to compete effectively with larger, more centrally located properties.
Horseshoe Casino
Horseshoe Casino, one of Baltimore’s most prominent gaming establishments, saw its gaming revenue dip to $14.4 million, a 6.4% decrease compared to the same period last year. While the property remains an essential player in Maryland’s casino landscape, the decline suggests potential challenges in maintaining market share amidst growing competition from nearby casinos, particularly MGM National Harbor and Live!.
Ocean Downs Casino Resort
The final property to experience a downturn in August was Ocean Downs Casino Resort, which reported $9.9 million in gaming revenue. This was a 1.8% decrease from August 2023. Although the decline was less severe than that of Rocky Gap or Horseshoe, it reflects the competitive pressures within Maryland’s gaming industry. Ocean Downs, located near the Atlantic coast, relies heavily on seasonal tourism, which may account for the more modest drop in revenue.
A Closer Look at State Contributions and Educational Funding
Maryland’s casinos contribute a significant portion of their gaming revenue to state programs, with a particular focus on funding education. In August 2024, contributions to the state totaled $73.7 million, an 8.1% increase from the previous year. This is a crucial source of revenue for various state-funded initiatives.
Of this total, $53.1 million was allocated to the Education Trust Fund, marking a 8.1% rise compared to August 2023. These funds are used to support public schools, including initiatives such as school construction, teacher salaries, and educational programming. The growth in contributions to the Education Trust Fund is a direct result of the overall increase in gaming revenue, highlighting the positive impact of the casino industry on Maryland’s educational system.
Additionally, casino contributions support other state initiatives, including local community aid, infrastructure projects, and responsible gambling programs. The robust revenue from the casino industry thus plays a key role in funding essential services and enhancing the quality of life for Maryland’s residents.
Trends and Future Outlook for Maryland’s Casino Industry
The growth of Maryland’s casino industry in August 2024 highlights several key trends and points towards a promising future for the state’s gaming sector.
Sustained Growth
The 7.8% year-over-year increase in gaming revenue reflects the overall strength of Maryland’s casino industry. While individual properties experienced varying levels of success, the overall market has demonstrated resilience and an ability to grow, even in a competitive environment. The month-over-month growth of 2.4% from July 2024 further underscores this positive trend.
Market Dominance of MGM National Harbor
The impressive performance of MGM National Harbor, with $75 million in revenue, suggests that it will continue to be a dominant player in Maryland’s gaming industry. Its strategic location near the nation’s capital and its diverse range of gaming and entertainment options make it an attractive destination for both casual and high-stakes gamblers. This property is likely to remain a significant driver of overall state gaming revenue in the future.
Challenges for Smaller and Regional Casinos
The decline in revenue for Rocky Gap Casino, Horseshoe Casino, and Ocean Downs Casino Resort reflects the challenges faced by smaller or more regionally focused properties. These casinos may need to adopt new strategies to compete more effectively, such as enhancing their amenities, marketing to new customer demographics, or offering unique gaming experiences that differentiate them from larger competitors.
Educational Funding as a Priority
The growing contributions to Maryland’s Education Trust Fund reflect the state’s continued commitment to using gaming revenue for educational improvements. As gaming revenue increases, the potential for expanded educational funding also grows. This could lead to significant long-term benefits for the state’s public school system, improving educational outcomes for students across Maryland.
August 2024 was a positive month for Maryland’s casino industry, with total gaming revenue reaching $173.9 million, a 7.8% year-over-year increase. MGM National Harbor, Live! Casino & Hotel, and Hollywood Casino were the standout performers, driving much of the overall revenue growth. Meanwhile, other properties like Rocky Gap, Horseshoe, and Ocean Downs experienced challenges, reflecting the competitive nature of the market.
The state benefited significantly from these revenues, with $73.7 million in contributions supporting various initiatives, particularly the Education Trust Fund, which received $53.1 million. As gaming revenue continues to grow, so too does the potential for Maryland to fund critical programs, especially in education.
Maryland’s casino industry appears well-positioned for sustained growth. However, smaller properties may need to innovate and adapt to maintain their share of the market. Regardless, the positive performance in August suggests a promising future for both the state’s gaming sector and the communities that benefit from its contributions.