MGM has promising plan for casino in Prince George’s County

The casino is not permitted to open any sooner than mid-2016. Cynics may point to the fact that MGM provided a considerable amount of financial muscle, reportedly about us$ 40 million, to a successful 2012 statewide referendum that allowed for expanded gaming in Maryland -- in particular, live table games for all the state's gambling halls and a sixth casino to be placed in Prince George's County.

To round out the picture, Penn National opposed Maryland's expanded gambling referendum - some observers said it did so to protect its interests at its casino in Charles Town, W.Va. - before joining the chase for the sixth Maryland license. But to say it's not a shock that the Maryland Video Lottery Facility Location Commission chose MGM in a 5-2 vote is not necessarily to give credence to the skeptical viewpoint, but rather to acknowledge the quality of MGM's proposed project.

The MGM casino-hotel, with a sleek and modern design evocative of the monuments across the Potomac River, will have the advantages of setting. At National Harbor, it will be part of an already popular waterfront complex of retail, dining, conference space, hotels and condos.
As with any regional casino, the MGM at National Harbor will cater largely to a local clientele. But with the existing infrastructure of the complex where it will reside, as well as D.C.'s natural draw for tourists and conferences, it should pull more out-of-area patronage than the average regional casino.

Maryland's point of view, MGM will also import dollars from both D.C. and Virginia. For the time being, it appears that Virginia is steadfast in remaining one of 11 states without casino gaming, and that should be a boon to the Prince George's County casino and Maryland taxpayers.

MGM's pedigree is well established. Its Las Vegas portfolio includes the Bellagio, the Mirage and the CityCenter complex on the Strip. At National Harbor, MGM plans a us$ 925 million casino resort with an 18-story, 300-suites hotel; a theater for concerts; restaurants carrying the nameplates of celebrity chefs; a reflecting pool; 3,600 slots; and 140 table games. In contrast to MGM's vision, its competitors' plans had price tags that weren't as grand.

Among MGM's advantages will be a local customer base that may prove impervious to economic pressures. The lucrative northern Virginia market, buoyed by federal government employment, offers the promise of a steady stream of customers with discretionary spending firepower.

Some casino executives think that when the MGM at National Harbor is up and running during the second half of the decade, it will be among the most successful casinos outside of Las Vegas.

Before all that happens though, the Horseshoe Baltimore Casino, operated by another company with plenty of gaming background, will open in 2014. Caesars Entertainment, one of the world's largest casino companies, is building that casino, located south of M&T Bank Stadium on Russell Street.

When the Horseshoe opens, it will put a dent in the revenues of Maryland Live! Casino, a gambling operation at Arundel Mills Mall in Hanover. Still, Maryland Live! is projected to generate revenues of more than $550 million per year, even after the Horseshoe comes online, according to an impact study that state officials commissioned.

When MGM begins operations, there will be more revenue impact on Maryland Live!, according to another state-commissioned report. Total statewide casino revenue is estimated at about us$ 1.8 billion by fiscal year 2019. In 2012, five states with commercial casinos had revenues of us$ 1.8 billion or more, according to the American Gaming Association.