Benzinga | May 20, 2021 01:13PM EDT

City of Richmond, Virginia Selects RVA Entertainment As Preferred Casino Gaming Operator; Upon Referendum Passage, RVA To Commence ONE Casino + Resort Construction, Urban One Capital Investment Expected To Be ~$100M

On May 20, 2021, the City of Richmond, Virginia (the "City") announced that it has selected the Company's wholly owned unrestricted subsidiary RVA Entertainment Holdings, LLC ("RVAEH"), as the City's preferred casino gaming operator to develop and operate a casino resort in Richmond. Pursuant to the Virginia Casino Act, the City is one of five cities within the Commonwealth of Virginia eligible to host a casino gaming establishment, subject to the citizens of the City approving a referendum, which is anticipated to be held in November 2021. Prior to requesting a Virginia court to order the referendum, the City is required to (i) select the City's preferred location for the Casino, which must be listed on the referendum, (ii) select a preferred casino gaming operator to develop and operate the Casino (the "Preferred Casino Operator"), and (iii) submit the Preferred Casino Operator to the Commonwealth for pre-certification. If the voters approve the referendum then the Commonwealth may issue one license permitting operation of a casino in Richmond.



Upon passage and certification of the referendum, RVAEH, along with its management and development team, including Peninsula Pacific Entertainment ("P2E") would commence development and construction of the casino resort to be named ONE Casino + Resort. The project is estimated to cost approximately $563 million and Urban One's aggregate capital investment in RVAEH is anticipated to be up to approximately $100 million. The Company's investment will be sourced from a combination of cash on Urban One's balance sheet and/or capacity from the Company's undrawn $50 million revolver. The Company also anticipates investment from local investors in the amount of $11.5 million dollars as well as a personal investment by Alfred C. Liggins, III the Company's Chief Executive Officer.