Nevada gaming regulators on Wednesday approved a new casino operator for Virgin Hotels Las Vegas as a prolonged labor dispute with striking workers intensifies, with unions taking advantage of the situation to urge Nevada gaming regulators to scrutinize the ownership’s ability to meet employee demands.
The Nevada Gaming Control Board gave preliminary approval to C&C 4455, a newly formed entity led by Virgin’s top executives Cliff Atkinson and Chad Konrad, to oversee casino operations. Atkinson, the property’s president, will step into the role of CEO, while Konrad remains CFO. The Nevada Gaming Commission must finalize the decision for the change to take effect.
Atkinson said: “Since reopening (as Virgin Hotels Las Vegas in 2021), the property has struggled. The deal with Mohegan simply did not work. The reason we are here is to successfully turn the gaming operations around.”
The leadership plans to target locals, activate unused spaces, introduce new entertainment options, and create a customer loyalty program to attract business and stabilize operations.
The approval comes as members of Culinary Union Local 226, who represent a significant portion of the casino’s workforce, remain on strike. The labor action, which began on Nov. 15, marks the longest demonstration of its kind in recent Las Vegas history.
Union officials argue that Virgin’s ownership group—which includes a Canadian pension fund, Juniper Capital Management, and Virgin Group, led by British billionaire Richard Branson—has ample resources to meet their demands for a contract comparable to those at other off-Strip casinos like Westgate and Sahara.
“These companies have extremely deep pockets,” said Ted Pappageorge, the union’s secretary-treasurer. “The idea that these Canadian economic entities would come to Las Vegas to try to destroy our standards of living that we’ve worked for decades to build is just unacceptable.”
Union representatives also criticized the absence of ownership representatives at the regulatory 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?” asked Paul Catha, a union member and Virgin employee.
Nevada Gaming Control Board Chair Kirk Hendrick indirectly addressed union concerns, noting that the board had conducted extensive due diligence on the executives and ownership group, including reviewing a thick investigative dossier.
In response to union claims, Virgin Hotels Las Vegas accused the union of refusing to negotiate in good faith, stating that their demands are financially unsustainable.
“Despite Virgin Hotels Las Vegas agreeing to many of the Culinary Union leadership’s demands and showing flexibility on critical sticking points, 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.
For now, the strike continues, with no resolution in sight.
C&C 4455 executives reiterated their focus on ensuring operational stability while addressing the casino’s longstanding challenges. “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,” Konrad said.
Original article: https://www.yogonet.com/international/news/2024/12/05/87579-new-virgin-hotels-las-vegas-casino-operator-approved-as-labor-dispute-escalates
