Revenue from Maryland 's casinos
Not that I am a fan of casino-driven "revitalization,", but recent media coverage ("Maryland casino revenue declines for second month," Baltimore Sun) of a fall off in monthly revenues from Maryland's casinos is too quick to draw big conclusions for my taste, not that there is a long time frame from which to evaluate results.
It's foolish to expect that revenues will increase month after month for a few reasons:
- there is a saturation point/ceiling on revenues because only certain segments of the in-resident and visitor consumer markets are interested in consuming gambling as part of their entertainment expenditures
- rather than expecting a continuous rise in revenues, there are monthly and seasonal fluctuations as a cursory examination of historical data from Nevada demonstrates
- as more casinos open in Maryland, customers will shift their preferences, in part based on proximity and transportation convenience, which will impact individual casinos--most will drop in sales with the addition of new casinos, as has been the case since the Horseshoe Casino opened in Baltimore
- the addition of casinos in neighboring states will reduce the impact of non-resident visitation as a significant share of revenues for Maryland casinos, excepting those locations set up to focus on visitor segments.