Posted on: December 6, 2024, 10:28h.
Last updated on: December 6, 2024, 10:44h.
A new entity got initial regulatory approval this week to manage daily operations at Virgin Hotels Las Vegas.
The Nevada Gaming Control Board (NGCB) on Wednesday backed having an operation called “C&C 4455” take over routine management at the off-Strip property, according to the Las Vegas Review-Journal.
C&C 4455 is led by Cliff Atkinson, the hotel’s president, and Chad Konrad, its chief financial officer. Atkinson will become the entity’s CEO and Konrad will remain the CFO.
Before the management change can take effect, the proposal must also get okay from the Nevada Gaming Commission (NGC).
Prior Management Struggled
The new entity makes sense given the challenges, officials told the regulators.
“Since reopening, the property has struggled. I think that’s pretty public and well known,” Atkinson said during Wednesday’s NGCB meeting.
Virgin Hotels was previously was run by Mohegan Gaming & Entertainment.
The deal with Mohegan simply did not work,” Atkinson said. “The reason we are here [seeking approval of C&C 4455] is to successfully turn the gaming operations around.”
Atkinson said current plans include increased marketing to local players and visitors, adding more entertainment and amenities, and expanding customer loyalty programs, the Review-Journal reported.
“We both have a similar belief in the property, in the casino specifically, and in our ability to really drive this casino from a performance standpoint forward and to keep this thing running, keep the doors open on this thing,” Konrad added.
Members of the Culinary Union Local 226, who went on strike at the Virgin Hotels Las Vegas on November 15, also spoke at the NGCB meeting.
Unfortunately, we have a company that is unwilling to settle the standards that we have negotiated in Las Vegas. They are the final remaining company that has not come to the table with a fair contract,” Culinary Union Secretary-Treasury Ted Papageorge told the NGCB.
The property is owned by both Juniper Capital Management, a Canadian-based pension fund, and Richard Branson’s Virgin Group.
Owners Not at Meeting
One union member, Paul Catha, wondered why no one from the ownership group attended Wednesday’s meeting.
Why would Nevada not require the owners of Virgin Las Vegas to be included in a review of the resort’s own licensed casino operation application,” Catha told the NGCB.
“We believe Nevada gaming regulators should ask broader and deeper questions about sources of funds and ultimate control at Virgin Las Vegas,” he added.
The Culinary Union is seeking salary increases and other increased benefits for hospitality workers at the Virgin Hotels, similar to what was given recently to employees at other Las Vegas Strip and downtown Las Vegas properties where the union also represents hospitality workers.
Virgin Hotels Las Vegas, meanwhile, contends the Culinary Union is bargaining in bad faith.
“The Culinary Union has not seriously countered any of our economic proposals, nor even brought our latest offer to their members for a formal vote,” the casino said in a statement.