Urban One, the media conglomerate centered on Black audiences located in Silver Spring, Md., which attempted but failed to create a casino resort in Richmond, Virginia, remains optimistic about the commercial gaming sector and is preparing its next bet.
In contrast to its attempts in 2021 and 2023 to acquire a casino resort worth over half a billion dollars in Richmond, Urban One is currently concentrating on iGaming. Alfred Liggins, the CEO of Urban One and the son of founder Cathy Hughes, stated in the company's earnings call last week that they are interested in a venture related to online gaming.
"We like that business,” Liggins said in response to a question regarding Urban One’s business mindset regarding casino gambling. “iGaming is a great business.”
Urban One collaborated with Peninsula Pacific Entertainment and subsequently Churchill Downs for a casino project in Richmond. City leaders selected Urban One as their gaming partner and promoted the plan as the first Black-owned casino resort in the nation.
City voters, on the other hand, rejected the project twice, with more prosperous, predominantly white neighborhoods in the capital metro being held responsible for the majority of the “no” votes.
State lawmakers then enacted a law prohibiting Richmond from holding a third casino referendum and approved the transfer of the gaming license to Petersburg. Last autumn, voters in that area sanctioned a $600 million casino from The Cordish Companies and Bruce Smith Enterprises named Live! Virginia Casino & Hotel.
Revival of the Gaming Industry
Urban One had prior experience in the gaming industry before collaborating with Richmond. Although the company lacked previous experience in constructing or managing a casino, Urban One was an investor in MGM Resorts’ MGM National Harbor located in Oxon Hill, Md., just near Washington DC.
To enhance its chances of securing a casino license in Maryland through minority business enterprise inclusion, MGM engaged Urban One as an investor. Urban One contributed $40 million to the $1.2 billion project. In March 2023, it realized its investment for $145.5 million. MGM National Harbor ranks as one of the most successful casinos beyond Las Vegas.
Legislators in Maryland have deliberated on iGaming during recent legislative sessions, including this year; however, House Bill 17, put forth by Del. Vanessa Atterbeary (D-Howard) and its Senate counterpart, Senate Bill 340, introduced by Sen. Ron Watson (D-Prince George’s), were both rejected in their respective committees.
The legislation would have enabled the Maryland State Lottery and Gaming Control Commission to grant iGaming licenses to online casino platforms associated with one of the state's six physical casinos.
“For the last two [legislative] sessions, they’ve been contemplating trying to introduce iGaming. We’d like to position ourselves to be in that business, so we’ve been lobbying to be part of the legislation,” Liggins said.
Stock Liquidation
After Urban One's aspirations to construct and operate a casino in Richmond fell through, the company's stock value has dramatically decreased.
Prior to the November 2021 referendum, Urban One stock prices surged to nearly $7. They fluctuated between $5 and $6 until a steady, gradual drop started after the 2023 referendum.
As of Monday afternoon, the share price stands at approximately 70 cents. The market capitalization of the company is $37 million.