Maryland Casino Revenue Dips in September

In September, Maryland’s casino revenue hit $159.5 million, a figure that, while impressive, marks an 8.3% decline from August’s numbers. Despite this drop, revenue was up by 2.8% year-over-year, according to Maryland Lottery and Gaming (MLG). This trend of monthly revenue exceeding $150 million for nine consecutive months in 2024 reflects a stable but fluctuating casino industry in the state. However, the discussion around the legalization of online casinos (iGaming) looms large, with predictions suggesting that Maryland could see its casino revenue rise significantly if online gambling were allowed.

 

Maryland's Casino Revenue in Context

Maryland’s September revenue, while over $159 million, was notably lower than August's $173.9 million, a fall of more than $14 million. Every casino in the state saw a decline, with the Hollywood Casino Perryville suffering the largest loss at -13.75%. However, compared to September 2023, revenue was up by $4.4 million, signaling a slight upward trend year-over-year. This mixed performance suggests Maryland’s land-based casino industry remains strong, though it is vulnerable to monthly fluctuations.

The six casinos—MGM National Harbor, Live! Casino & Hotel, Horseshoe Casino Baltimore, Ocean Downs, Hollywood Casino Perryville, and Rocky Gap Casino—have all played pivotal roles in driving the state's gaming revenue. MGM National Harbor and Live! Casino & Hotel account for the lion's share of the revenue, with September figures of $66.9 million and $59.6 million, respectively. These two properties alone represent a significant portion of Maryland's gaming economy, but they also recorded declines, especially MGM National Harbor, which dropped by 10.74% from August.

As online casinos remain banned in Maryland, the state’s gaming operators are missing out on a potential goldmine. PlayUSA estimates that if online casinos were legalized, Maryland could generate $108 million per month from iGaming alone. In comparison, Pennsylvania, a state with a similar population and legalized online casinos, brought in $225 million in August 2024 from online operations. These numbers suggest Maryland could more than double its monthly revenue by allowing online casinos.

This potential for growth has been stifled by previous legislative efforts to pass an iGaming bill, which have faced pushback from unions and influential stakeholders like Cordish Cos. The ongoing debate has high stakes: Maryland is leaving an estimated $1 billion in annual revenue on the table by not embracing online casinos. For a state already seeing consistent growth in land-based gaming, this represents a missed opportunity for further economic development.

 

Analyzing the Performance of Maryland's Casinos

Each of Maryland’s six casinos experienced monthly revenue declines in September. MGM National Harbor, the state’s largest gaming property, saw the steepest drop in total dollar value, losing over $8 million. However, percentage-wise, Hollywood Casino Perryville was hit hardest, down nearly 14%. On the other end of the spectrum, Live! Casino & Hotel recorded the smallest decrease, dipping just 3.7% from August.

September 2024 vs. August 2024 Casino Revenue Performance:

• MGM National Harbor: -10.74%
• Live! Casino & Hotel: -3.69%
• Horseshoe Casino Baltimore: -9.06%
• Ocean Downs Casino: -11.40%
• Hollywood Casino Perryville: -13.75%
• Rocky Gap Casino: -11.61%

The commonality of declines across all properties suggests a statewide downturn that may be tied to seasonal trends or consumer behavior. Despite this, Maryland’s casinos are in a stronger position than they were a year ago, with the 2.8% growth indicating resilience.

The Potential Impact of iGaming on Maryland’s Economy

The legalization of online casinos could dramatically reshape Maryland's gaming landscape. PlayUSA’s projections for Maryland are based on the performance of other states with similar demographics and economic conditions. States like New Jersey, Pennsylvania, and Michigan have all seen substantial revenue from online casinos, with per-capita revenues in these states ranging from $11.33 (West Virginia) to $21.33 (New Jersey).

Given Maryland’s population of 6.2 million, PlayUSA’s projected per-capita online casino revenue of $17.42 could lead to a monthly boost of $108 million, in addition to the land-based casinos’ consistent $150 million-plus earnings. This added revenue could support state programs, improve infrastructure, and reduce reliance on other forms of taxation.

 

Conclusion

Maryland’s land-based casino industry has shown consistent performance, but September’s decline reminds us of the challenges that physical casinos face. The year-over-year growth is a positive indicator, but the potential for online casinos could take Maryland’s gaming revenue to the next level. With estimates pointing to an additional $1 billion annually from iGaming, the conversation around legalizing online casinos is not just about growth—it’s about economic opportunity.

While legislators have yet to greenlight iGaming, the sustained success of Maryland’s casino industry suggests that if the state does legalize online gambling, it could emerge as a major player in the national gaming scene. For now, the state’s operators will have to navigate the challenges of a land-based-only environment, while advocates for iGaming push to unlock Maryland’s full revenue potential.