Urban One has been silent on its casino aspirations since November 2023, when its referendum for a Richmond, VA, development was voted down again. Now, CEO Alfred Liggins confirms the broadcaster has officially backed away from brick-and-mortar casino development.
The decision, confirmed during the company’s Q4 2024 earnings call, comes as the company sharpens its focus on debt reduction and strategic media consolidation in a challenging industry landscape.
“It’s safe to say [the casino process is over] given that they’ve actually broken ground on the casino in Petersburg,” said Liggins, in response to an investor’s question.
Urban One’s $562 million project Richmond Grand Resort & Casino was rejected by 61% of voters in its last referendum, despite partnering with Churchill Downs Incorporated and investing approximately $10 million in campaigning. In response to this setback, CEO Alfred Liggins indicated a shift in strategy. Prior to the vote, he stated should the vote fail, “This project will go somewhere else.” He identified Petersburg, located just 23 minutes from the original site, as a potential alternative.
However, that Petersburg property was instead awarded to Cordish Companies.
While Urban One is stepping back from land-based casinos, it hasn’t abandoned the gaming space entirely. “We like that business,” Liggins said. Urban One has been lobbying for inclusion in Maryland’s iGaming legislation in hopes of securing a digital gambling license. “Our Maryland effort was not around brick-and-mortar casino, it was around their iGaming legislation. It died again this year, but iGaming is a great business, as well. And it’s only in six states… versus 37 or 38 states that actually have brick-and-mortar casinos.”
For now, the company’s attention is on balance sheet repair. Urban One repurchased approximately $160 million in debt in the last year. “95% of our money will go to continued debt reduction,” Liggins said. “We’re not going to just have it sitting around in hopes that an acquisition comes along.”
Still, Liggins said Urban One is evaluating media M&A opportunities, especially in light of potential deregulation that could accelerate radio consolidation. “I believe that you’re going to see further consolidation in the radio sector. You need to see it,” he said. Urban One has acted as both a buyer and a seller in recent years, most recently consolidating in Indianapolis and Houston.
“We’ve trimmed our portfolio in places that weren’t working for us and put that capital to work in either debt reduction or more creative acquisitions,” said Liggins. “I think that we’re probably in better shape than a number of other folks in the sector in terms of our leverage profile, which I think gives us an advantage to be proactive in terms of opportunity.”
He cautioned, however, that new capital entering the industry remains a challenge. “Even with consolidation, you’re still dealing with a negative trend line on the top line revenue number,” he said. “Even if you get dereg, having new capital come into the industry will probably be a challenge.”
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