Perhaps it is fitting that the 150th anniversary of the Battle of Antietam has arrived. An advertising border war has erupted between Maryland and West Virginia. While one major casino company seeks to protect its stake in its operation in Charles Town, another has turned to bashing West Virginia to garner Maryland support.
The question: whether or not Maryland should amend its law to allow MGM to build a casino at National Harbor just east of Washington DC on the Potomac River.
The effort has pitted MGM resorts against Penn National Gaming. Penn could benefit from the proposed law's expansion of gaming because it operates a casino in Perryville, Maryland between Baltimore and Philadelphia. It also, however, operates the massive flagship gaming center Hollywood Casino at Charles Town. Both sides have invested a combined $20.5 million
“We’re prepared to spend what is necessary to make sure the truth about
Question 7 is not drowned out by a barrage of misleading ads put up by a
company protecting its West Virginia casino,” said Gordon Absher, a
spokesman for MGM.
The "Vote No on 7" website emphasizes that MGM Resorts would receive tax breaks while Marylanders have seen the state raise taxes and fees.
In 2010, nearly $900 million was spent at West Virginia casinos. Almost a third went to the state in taxes. Maryland saw almost $30 million spent. Understandably, they would like to cut into the Mountain State's gambling largesse.
At stake is the Montgomery County, Maryland market. This provides the bulk of Charles Town's business. MGM wagers that it would naturally turn to an in-state casino. Even if the measure passes, it is still much easier for residents there to travel over exurban expressways to West Virginia, rather than fight D.C. sprawl to get to National Harbor.
Some have argued that the proposed National Harbor casino will struggle to compete in other ways. While West Virginia allows operators to keep nearly 46 percent of revenues, Maryland only allows 33. This would put MGM at an immediate disadvantage, on top of having to deal with Maryland's stricter regulations and higher taxes. To counter this problem, it would have to sell National Harbor as a premier convention destination, despite the problem of not being connected to the area's Metrorail.
Another issue is the subtle undercurrent of negativity aimed at the Mountain State. The D.C. market has seen several ads run during NFL Sunday broadcasts trying to stir Marylanders' anger against West Virginia. They argue that Maryland gamblers going to Penn National casinos pay for West Virginia police and schools. Some even wrongly insinuate that the Wyomissing PA company is somehow based in West Virginia.
Marylanders will go to the polls in November to vote on a variety of issues besides electing candidates. They also will vote on gay marriage, the drawing of a congressional district, and gambling expansion. All of these will bring social conservative voters out, while the leads enjoyed by Democrats in the state, including Obama, will likely dampen liberal turnout.
Although the outcome remains in doubt, it is certain that MGM's house money will continue to bet that bashing West Virginia will help support its efforts.
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