Caesars joins MGM Resorts in backing plan for Maryland casino growth

Caesars Entertainment Corp. has jumped into Maryland’s casino expansion campaign, siding with MGM Resorts International in supporting voter approval of a casino in suburban Prince George’s County.

Caesars, which heads an investors group that holds a license to build a casino in Baltimore, has increased its contributions to the "Yes on Question 7" campaign to $2.3 million.

Caesars isn’t thrilled about Maryland adding a sixth casino and increasing gaming competition. However, passage of a ballot referendum would allow the planned $300 million Harrah’s Baltimore to add table games and lower its tax rate.

MGM Resorts, which could be in line to build a $700 million hotel-casino complex in National Harbor if Question 7 passes, is leading the push for passage of the ballot measure. The company has contributed $8.4 million to the effort. The developer of National Harbor, a retail, dining, entertainment and residential complex along the Potomac River, has kicked in $400,000.

On the other side, Penn National Gaming has donated $9.5 million to an anti-expansion campaign committee.

Penn has argued that the expansion plan is unfair. The company owns Rosecroft Raceway, which would be eligible to bid for a Prince George’s casino license. But the company argues MGM Resorts has already lined up the deal.

Penn also operates a casino in Charles Town, W.Va. Analysts said the casino would lose business if Maryland gambling expands.

The total donations from the gaming companies, more than $20 million, have made Question 7 the most expensive campaign in ever in the state of Maryland.