Following a record-setting December with the second-highest revenue in state history, Maryland’s casino sector experienced a universal decline in earnings in January, both on a month-to-month and year-to-year basis, as per the latest figures released by Maryland Lottery and Gaming.
January Sees a Significant Dip in Casino Revenue
Maryland’s six casinos reported a total revenue of $153.2 million in January, marking a decrease of approximately $14 million from the state’s gaming revenue in December 2023. This represents a 7.4% decline. The beginning of the year was particularly challenging for Rocky Gap Casino, which saw a staggering 28% drop in revenue. Hollywood Casino Perryville also faced considerable difficulties, with a 19.6% reduction in revenue during the same period.
A Tough Start to the Year Compared to 2023
The dip in January’s revenue was not solely due to an exceptionally profitable December; the figures also fell short when compared to January 2023. Rocky Gap experienced the most significant decline, with revenues plummeting by 36.6%. Horseshoe Casino Baltimore wasn’t far behind, enduring a 17.12% decrease in revenue. Across the board, every casino in Maryland reported a downturn in their financial performance.
Despite these widespread declines, Horseshoe Casino Baltimore experienced the largest absolute monetary loss, with revenues dropping by more than $3 million compared to the previous year. In contrast, Live! Casino & Hotel managed to somewhat mitigate the impact, with a modest 2.5% decrease year-on-year, which is notably less than the state-wide average decline of 8.4%.
Slot Revenue Holds Up Despite Challenges
The start of the year brought in $98.3 million in slot machine revenue for Maryland casinos. Notably, MGM National Harbor and Live! Casino & Hotel, which together host over half of the state’s slot machines, contributed over $75 million to this total. Although MGM and Live! reported similar gross revenue from slots, MGM National Harbor stood out with significantly higher revenue per slot machine, attributed to its smaller inventory of approximately 1,600 slots, showcasing its efficiency in generating revenue from each unit.
This period of adjustment for Maryland casinos underscores the volatile nature of the gaming industry, where fluctuations in revenue can be influenced by a variety of factors, including seasonal trends, economic conditions, and competitive dynamics within the state’s gaming market.