Strategic Efforts to Streamline Operations
The change in Virgin's leadership is part of the property's plan for operational efficiency. This comes after Mohegan Gaming exited as the casino's operator, which was highlighted as a significant challenge for the resort since its re-opening in 2021.
Atkinson, an industry veteran, emphasized the need for changes at Virgin Hotels, stating, "Since re-opening…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." He explained that the new leadership structure plans to target Nevada locals, increase entertainment variety, and establish a customer loyalty program to boost business performance.
Konrad also expressed commitment to this vision. "We both have a similar belief in the property, 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," he expressed to the NGCB.
Ongoing Labor Dispute
Virgin's operational transition occurs when the casino faces an escalating labor dispute with hospitality workers. Culinary Union Local 226, representing a significant portion of the striking workforce, continues to lay down tools in a labor action that began on November 15th, 2024.
The strike, now the longest in the Culinary Union's history, began with an impasse that lasted 18 months over a contract deadlock. The Union insists Virgin's owners, including Richard Branson-led Virgin Group and Juniper Capital Management (a Canadian pension fund), can afford to meet their pay and benefit demands. It challenged Virgin's unwillingness to match contracts comparable to similar properties like Sahara and Westgate.
Regulatory Due Diligence
NGCB Chair Kirk Hendrik glossed over the Union's concerns, stating an extensive investigative report into Virgin's leadership and ownership was underway. The casino also expressed frustration with the Union members, saying that they were opposed to meaningful negotiations. Nevertheless, the property insisted that its primary focus was "reaching a reasonable agreement that secures a brighter future for all of our 1,170 team members and their families."