The city of Richmond, Virginia recently rejected casino development proposals from the Pamunkey Indian Tribe and the Poarch Band of Creek Indians. That leaves ONE, the Cordish Companies and Bally’s Corp. in the competition. However, ahead of three community meetings to address the proposals, questions have been raised about those companies’ commitments to minority investment and ownership.
A low point came with the appearance on social media of an anonymous flyer implying the casino should be built near predominantly black and Latin neighborhoods. The flyer read, “More traffic. Higher crime. Lower quality of life for us. Tell them to build it over there.” The flyer quickly drew criticism. It wasn’t clear where it originated but observers said it appeared to imply the casino should be located in the 70 percent black 8th District, where black-owned media conglomerate Urban One is planning to build.
Amy Wentz, a community activist and former city council candidate in the 8th District, said the flyer gave the wrong impression of Richmond.
“We’re building a narrative of Richmond as a progressive city, moving past the painful history of the Confederacy, taking down monuments and building equity in our policies. Everyone is on this wave of thinking and then here we go with this. People don’t value our neighborhoods equally,” she said.
Wentz said most people she’s spoken to in the proposed Urban One casino area are ambivalent or supportive. They hope it could lead to related benefits such as new sidewalks and stormwater drainage system improvements. She said she’s concerned that too many public statements from elected officials for or against the proposals could have negative effects.
Washington, D.C.-based Urban One proposes a $517 million casino resort, partnering with Peninsula Pacific Entertainment, the Los Angeles-based owner of Virginia’s Colonial Downs racetrack and Rosie’s gaming emporiums. Their project would be built on property owned by Philip Morris USA in the 8th District. Urban One would be the majority investor in the only majority black-owned casino in the country.
Urban One President and CEO Alfred Liggins said, “Richmond is the last opportunity for some big African American representation to happen. The city of Richmond is going to end up with the most lucrative of all the casino licenses,” he said. Liggins strongly denied that Peninsula Pacific would be in control. “Absolutely, an unequivocal hard no,” he said.
Urban One would pay Peninsula Pacific to develop and operate the casino resort, but Liggins said he and his company would provide more than $60 million of the $75 million in common equity for the project and borrow money from Credit Suisse to build the project. “It’s not any billionaires at all. The majority of the capital is coming from my company, as well as myself and my mother,” who founded and chairs Urban One.
The Cordish Companies proposes a $600 million casino resort on the 17-acre Movieland property in the 2nd District, also 70 percent black. Officials said the company is offering 50 percent minority ownership. The company already operates casinos under the Live! brand in Baltimore, Philadelphia, Pittsburgh and Tampa and Hollywood, Florida. One of its investors is former National Football League star defensive lineman Bruce Smith, a Virginia Beach businessman and a former member of the Washington Redskins (now the Washington Football Team), which calls Richmond its home for training camp.
Bally’s Corporation proposes a $650 million development in South Richmond’s 4th District, which is 65 percent white and nearly 29 percent black. The company operates 11 casinos across seven states. Investors include two former National Football League superstars including NFL linebacker Willie Lanier.
Interestingly, Urban One’s Liggins said he discussed possible minority investment in casino projects with both Cordish and Bally’s, as well as MGM, the majority owner of MGM National Harbor, Maryland. Urban One has a $40 million stake in the MGM project, or 7 percent. “Peninsula Pacific came up far and away the best partner for us because they know Virginia better than anybody,” he said.
The flyer provoked responses from local political leaders, residents and community groups. Richmond city council members Katherine Jordan, 2nd District, and Kristen Larson, 4th District, who represent the areas around the Cordish and Bally’s proposals, respectively, issued statements opposing the projects in their districts.
Residents near the Bally’s site close and the Cordish site have begun organizing and collecting input from their neighbors. Ginter Park resident Randee Humphrey said she and several neighbors started circulating a survey to measure how people in the area fell about the Cordish proposal. She said 1,000 have responded, and 85 percent oppose the casino. Humphrey said she would have advised against posting the divisive flyer, noting, “This process, it’s sort of been set up for us to be against each other. It’s unfortunate.”
State Delegate Betsy Carr recently issued a statement opposing the Bally’s project over constituents’ concerns about traffic congestion. She also said she hoped the city would choose the Urban One proposal, calling it an opportunity for “economic justice.”
Carr’s support of Urban One brought criticism from Councilman Mike Jones, who’s running against Carr for the Democratic nomination in the 69th House district. Jones said he isn’t opposed to the Urban One project or the prospect of a casino in the city. He said, “It’s not about a casino. It’s about white privilege and NIMBY-ism. It’s being made manifest in this casino deal. We all know what this is about. We’ve seen this playbook before: ‘Don’t put it in our neighborhood, put it in their neighborhood.’”
Carr said Jones’ response was a political attack. She said she stood by her comments, noting the jobs the casino would create. “I listen to my constituents. What is said in much of South Richmond is jobs are needed. Good paying, easy-to-reach jobs that will help support families,” Carr said.
City spokesman Jim Nolan said council members are welcome to comment on the casino proposals. “We simply request that all city officials involved in the process be mindful of the impact their comments can have on the city’s negotiating position so we can negotiate the best resort casino project possible to put before voters in November,” he said.
In related news, Bally’s Corp. recently joined the Virginia Council on Problem Gaming. Council President Carolyn E. Hawley, Ph.D., said, “We are extremely pleased that Bally’s has joined our council as a platinum member. Their support helps our efforts to keep gambling in the Commonwealth of Virginia recreational. It’s important that industry stakeholders take the forefront to ensure gambling doesn’t become harmful or perceived as a form of investment for people who may be prone to problem gambling behaviors.”
