As Maryland politicians wrangle over holding a special session to expand gambling, the state's newest casino surged out of the gate, reporting revenue of more than $1 million a day in its first month.
Gambling operations at Maryland Live Casino brought in $28.5 million during the facility's first 25 days, or nearly 70 percent of the state's total gaming revenue in June, the Maryland Lottery announced Tuesday.
The operation's gross gambling revenue was $359.27 per day per machine — a figure that lottery director Stephen Martino expects to decline in the coming months.
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7002 Arundel Mills Cir, Hanover, MD 21076, USA
"My guess is it's not sustainable over the long term," said Martino, explaining that per-machine revenue will likely drop as the casino's novelty wears off and the number of machines at the facility grows.
Maryland Live estimated that the casino had 500,000 visitors in June. Joe Weinberg, managing partner and president of gaming for the Cordish Cos., which built and operates the casino, said the June results were "right in line with projections."
The casino, which opened the evening of June 6 at Arundel Mills mall in Anne Arundel County, currently has 3,171 games. By the end of September, it is expected to have 4,750 slot machines and electronic table games, Weinberg said.
A live entertainment venue is expected to open there by September, and an upscale steak house — the casino's finishing touch — will open by early November, Weinberg added.
James Karmel, a gaming analyst and Harford County Community College history professor, said that while it's difficult to judge based on one partial month, the numbers from Maryland Live suggest it is drawing business away from the casino-racetrack complex in Charles Town, W.Va. The per-machine take is strong by industry standards, he said.
"So far, Maryland Live has had a successful debut as far as opening earlier than expected, attracting a lot of media and creating something of an image of a big-time casino," Karmel said.
The new casino paid out more than $169 million in winnings in June, with about $6.8 million paid in jackpots of $1,200 or more, according to a statement Tuesday from Maryland Live.
Two-thirds of casino gambling revenue is paid to the state in taxes, with nearly half of the revenue going to the state's education trust fund, which collected $94.3 million in fiscal year 2012. Maryland's three casinos generated revenue of $194.5 million during the fiscal year, which ended Saturday. The Maryland Lottery tracks gross gambling revenue, which does not include winnings paid out.
Maryland Live paid just under $19.1 million in gaming taxes to the state for June's operations, the casino reported Tuesday. The casino's share after state taxes is about $9.4 million.
With two-thirds of its gaming operations up and running, and over a partial month, Maryland Live paid $13.8 million toward the education trust fund. If revenues continue at this rate, taxes collected will be below pre-opening estimates by the Cordish Cos., which projected the fully operational facility would generate $400 million for the education trust fund annually.
The revenue rate will increase once all the slot machines are in operation, Weinberg said.
The remaining gambling taxes collected help the state's horse-racing operations, fund local impact grants, and support small businesses and minority- and women-owned companies.
Two percent of casino gambling revenues go to the Maryland Lottery to pay for oversight of the casinos' operations.
The state's other two casinos had a mixed June. Combined, their revenue was down 2 percent compared with June 2011.
That decrease is largely a result of Maryland Live siphoning revenue from its nearly 2-year-old competitor, Hollywood Casino Perryville, Martino said.
Hollywood, about an hour's drive north of Maryland Live, brought in $8 million in gambling revenue in June, down 9.8 percent from June 2011. The Cecil County casino, which opened in September 2010, has 1,500 video gambling units. In June, its gross gambling revenue per machine per day was $176.84.
"It's not a surprise that Maryland Live is taking some business from the Hollywood table," said Karmel, adding, however, that 10 percent is higher than he expected.