This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

MGM Resorts Wins Key Maryland Gaming License

Stocks in this article: MGM PENN CZR

NEW YORK (TheStreet) -- Friday afternoon, Maryland's Video Lottery Facility Location Commission voted to assign the coveted Prince George's County casino license to MGM National Harbor. The new gaming resort will be operated by Las Vegas-based MGM Resorts International (MGM). The $925-million facility will feature approximately 3,600 video gaming devices and 140 table game and poker tables.

MGM, by virtue of the scale and location of its project, had been favored to win the license, so the Commission's decision did not appear to come as a major surprise to equity investors. At the time of publication, MGM's stock was up 0.7%, in-line with today's gain in the S&P 500. The shares of rival gaming operator Penn National Gaming (PENN), also in contention for the license, were up 0.2%.

For MGM, the casino license grant, while representing a small potential profit source in comparison to the company's Las Vegas and Macau resorts, would help develop a "northeast corridor" of sorts, for the gaming operator. MGM is also vying for a casino license in Springfield, MA. A parallel license victory in Massachusetts would enable MGM to access another important east coast leisure market.

Among existing Mid-Atlantic casinos, PENN has perhaps the most to lose as a result of MGM National Harbor's license win. National Harbor, which sits directly across the Potomac River from Alexandria, Va., is located just 70 miles from PENN's Hollywood Casino at Charles Town Races. PENN had recently earned about one-fifth of its annual EBITDA from its Charles Town racino.

PENN had hoped to score a victory of its own when Maryland rendered its licensing decision. PENN had proposed to build a $700 million Hollywood-branded property at its Rosecroft Raceway, about four miles from National Harbor. Should PENN have been granted the gaming license, it would have been able to preempt the development of a competitor's casino at National Harbor.

MGM National Harbor will not be permitted to open before the earlier of July 2016, or the 30th-month anniversary of the third-quarter 2014 opening of Horseshoe Baltimore, which is being developed by Caesars Entertainment (CZR). While MGM National Harbor's opening is some two-and-a-half years away, it has already garnered considerable media attention because of its proximity to the nation's capital.

Also in contention for the Prince George's County gaming license had been privately held Greenwood Racing, the operator of the successful Parx casino near Philadelphia, PA. A Parx-branded casino, which also had been slated for a Fort Washington location, would have entailed a budget of $760 million.

At the time of publication, the author held no positions in any of the stocks mentioned, although positions may change at any time.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

At the time of publication, the author did not own any of thestocksmentioned.

Follow @breakingcall

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs