Virgin Hotels Las Vegas Instability Heats up amid Takeover Talks
The workers strike at Virgin Hotels Las Vegas continues, and a new wrinkle is emerging. There are talks of the property's executives pursuing approval to take over operations of the casino from Mohegan, the Connecticut-based tribal operator.
Virgin Hotels Las Vegas workers strike outside the venue. (Source: Las Vegas Review-Journal)
LISTEN TO THIS ARTICLE:During a meeting with the Nevada Gaming Control Board (NGCB) on December 4, Cliff Atkinson, the property's president and proposed casino operator, outlined plans to revitalize the financially troubled venue. Atkinson emphasized a renewed focus on sports, entertainment, and a value-driven approach to attract both locals and visitors, differentiating the property from its earlier days as the Hard Rock.
Related: Virgin Las Vegas Workers Not Backing Down as Strike Completes Second WeekThe proposed operational changes include reconfiguring the casino floor to better capture theater audiences and emphasizing local outreach through a robust loyalty program and incentives such as free parking. Unlike other resorts that are raising parking fees, Virgin Hotels Las Vegas aims to appeal to residents and regional drive-in markets while also targeting fly-in visitors from locations like the San Francisco Bay Area. The property's proximity to McCarran International Airport is seen as a key advantage in this strategy.
Atkinson highlighted the appeal of value-based gaming offerings, such as $10 table minimums and 3-2 blackjack, which stand out from the higher costs typical of the Las Vegas Strip. Additionally, plans are underway to develop a new loyalty program and launch a fresh sports betting operation to replace the existing partnership with Betfred. These efforts align with the broader goal of addressing deficiencies in the casino's previous management and positioning the property for sustainable growth.
The NGCB unanimously recommended that Atkinson and his partner take over casino management, pending approval by the Nevada Gaming Commission on December 19. If granted, the transition is expected to be completed by the end of the first quarter of 2025. Until then, the current operator, Mohegan, will continue managing the casino.
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A Work in Progress
The property recently terminated its management agreement with Hilton, transitioning to a Hilton franchise to reduce overall fees and streamline operations. Atkinson described this move as a key step in enhancing the value offered to customers.
The Virgin brand will continue to serve as a licensing entity, providing a recognizable name while allowing for greater operational independence. The focus remains on activating underutilized spaces, expanding entertainment offerings, and creating a cohesive relationship between the casino and hotel segments.
NGCB member George Assad raised concerns about the lack of integration between the casino and hotel in the past, particularly the failure to adequately cater to high rollers. Atkinson acknowledged these shortcomings and detailed plans to double the casino segment's presence within the hotel.
By addressing these issues, the management aims to retain valuable players who might otherwise seek more tailored experiences at nearby properties. Enhancements to non-gaming amenities and services are also expected to strengthen the property's competitive position.
This past summer, Virgin Hotels Las Vegas tested an upscale dayclub concept, which Atkinson plans to expand with longer hours and additional days of operation next year. Entertainment partnerships with organizations like AEG have already brought acts such as country singer Tanya Tucker to the venue, with plans for increased subsidization of performances if the proposed casino management transition is approved.
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