Gambling Revenues of Maryland Casinos Almost the Same as a Year Ago
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According to wtop.com, it appears that the Maryland casino industry is slowly bouncing back despite operating at 50 percent capacity. Casinos in the city have suffered many losses because of their closure in early March this year.
Although they are operating at 50 percent capacity, their revenue for this month is less than one percent lower than what they got in October last year. In October 2020, Maryland casinos got as much as $142.7 million from the six casinos.
Does it mean that Maryland casinos at full capacity would have doubled $142.7 million operating at maximum capacity from their six casinos?
Likely Reasons for Increased Patronage at Maryland Casinos
Typically, with the rate at which the pandemic ravaged the entire economy, no one will expect that at 50 percent capacity that Maryland casino’s revenue will be higher than what they got by October last year. However, according to the revenue index of Maryland casinos in September, they were up by one percent. This was according to the Maryland Lottery and Gaming Control Agency.
Nonetheless, this points to the fact that they are gradually getting more patronage from their customers.
Not to mention, the major increase in revenue was recorded in three smaller casinos in Maryland. They are:
Hollywood Casino – Increased by 19.9 percent
Ocean Downs Casino – Recorded a 4.2 percent increase
Rocky Gap Casino – Revenues were up by 10.2 percent
If you observe closely, you will realize that these casinos are located in the populated areas of Maryland. So apart from the population, most people residing in the areas that recorded an increase in revenue have more interest in land-based casinos.
Other factors may include the low rate of the spread of COVID-19 pandemic in these areas.
COVID-19 Pandemic Regulations Compliance by Maryland Casinos
To a large extent, casinos in Maryland have been resilient in ensuring that both staff and customers comply with the COVID-19 casino online regulations. Not to mention, the COVID-19 guidelines were set up to curb the spread of the pandemic.
Like you already know, casinos in Maryland had to reduce their capacity to 50 percent. Other regulations that Maryland casinos had to comply with are:
Closure of bars and restaurants
No operation of retail stores
No sale of alcoholic beverages
Erecting of barriers between players
Wearing of face mask or shield
No land-based casino in Maryland currently has its bars and restaurants operating at the moment.
Effect of the Pandemic on Maryland Casinos
No doubt, Maryland Casinos had recorded losses during the lockdown. Most casinos in Maryland have not recovered from the three months lockdown.
For instance, because of the pandemic, a lot of casinos in Maryland had to lay off some of their staff. Don’t forget, virtually all the casinos in Maryland have restaurants and bars closed. So it will be very difficult to keep paying wages since they are not operational.
MGM National Harbor has laid off 779 staff permanently. A few months ago, MGM National Harbor had announced that it would sack 18,000 staff before the end of August 31st, 2020. Also, before the pandemic, MGM National Harbor employed more than 70,000 people.
The Implication of the Revenue Increase for the Maryland Government
Obviously, the Maryland government will earn additional revenue from the increased earnings of the casinos. During the lockdown, Maryland’s revenue dropped drastically. This was very noticeable because about 20 percent of the state’s revenue comes from the taxes paid by land-based casinos.
Meanwhile, from the $142.7 million generated by casinos in October, the state collected $59.9 million. However, out of the $59.9 million, the state allocated $43.6 to the Maryland Education Trust fund.
The state is entitled to about 45 percent of the entire monthly generated revenue by Maryland casinos. In other words, an increase in Maryland casino revenues will also boost the state’s income.
The Future of Maryland Casinos
From the revenue index of October 2020, the future seems bright for Maryland casinos. However, this may not be for long. The pandemic has made a lot of land-based casinos to switch focus to online gambling real money. Several studies have shown that the revenues of online casinos didn’t drop as much as the land-based during the lockdown.
Therefore, land-based casinos should incorporate online gaming into their services to remain in business for a long time. A notable businessman once said that any business that is not online in the next ten years would stop existing.
Finally, if casinos in Maryland can earn as much as $142.7 operating at 50 percent, then at 100 percent capacity, they will make more.