CEO Alfred Liggins says his company’s final $35 million investment in the MGM casino in National Harbor, Maryland, will be made just before it opens at the end of this year. Eventually, Radio One will own 6.6% of the casino. Liggins said, “It’s now real.”
Liggins expects to book dividend income from the casino in 2017. The annual gaming revenue projections from the casino are $700 to $750 million. Radio One gets 1% of that revenue after promotions. “We’re using the number of about $7 million of revenue dividend. This is a great diversification play for Radio One. This is going to be a top-notch Vegas-style resort.”
Radio One also gets $1 million in advertising revenue from the casino for five years.
