Executives with Virgin Hotels Las Vegas seeking approval to take over operations of the property’s casino from Mohegan laid out their plans to the Nevada Gaming Control Board Wednesday for turning the financially troubled property around.
“Within the next year, we plan to launch heavily around sports and entertainment and eat, drink, play, and have fun,” said Cliff Atkinson, the off-Strip property’s president and one of the proposed casino operators. “It’s not going back to the Hard Rock days. That brand is going down the street in a few years. Ours is being innovative in the way we have an opportunity with. It was very successful years ago before the neighborhood casinos like the Durango, Green Valley Ranch, and Red Rock. Getting back our mojo and our innovation remains a priority for us.”
Some changes to the layout of the casino floor will capture the theater audience when they come and go. There will be a renewed focus on local residents, promoting the loyalty program and free parking, whereas resorts are raising their parking fees.
“We want to grow the local market,” Atkinson said, “but also the value drive-in market, people getting hit with parking and resort fees, and fly-ins from other markets. We’ll target things like the San Francisco Bay Area and our proximity to the airport. Playing to those strengths in a real opportunity.”
Value in gaming is also an attraction. Atkinson said they offer $10 minimum at tables and 3-2 blackjack, which is a draw different from the Strip.
The opportunity also centers on developing a new loyalty program and a new sports-betting operation by taking over from Betfred, but Atkinson added that the full-time focus is on the casino and addressing past deficiencies.
“There has been a larger effort of terminating Hilton management, which we did successfully earlier this year upon refinancing the property,” Atkinson said. “We’re now a Hilton franchise. The goal there is to reduce the overall fee load. We have Virgin as a licensing brand and a brand that we would be able to take to the market as a gaming entity.”
“That’s how we spend our every living moment,” Atkinson said in response to their focus on the turnaround. “The headline is to give people a reason to come by activating our dark spaces, getting our entertainment going, and giving people value, which is why I’m focusing on the loyalty program. There’s an opportunity in the market to capture not only visitors, but locals, in a value-driven way with a quality property. The amount of money put into this property in 2019 and 2020 is substantial.”
Board member George Assad noted the previous lack of a symbiotic relationship between the casino and hotel, specifically comping high rollers. “It’s very important to take care of those players, because they can just go down the street and get whatever they need based on their play.”
Atkinson said that was a big part of the changes made over the past year. “Our plans are to double the amount of the casino segment within the hotel.” That’s why he wanted to highlight changes not related to gaming, such as terminating Hilton’s management contract and being part of a franchise.
“We’ve been able to enact those changes and provide better value to our customers,” Atkinson said. “It’s really our non-gaming cooperation between the tenant and landlord that we see as our opportunity.”
Atkinson also plans to go after the dayclub business, though but not the nightclub business like in the past. The property tested an upscale and more refined dayclub this past summer will open for longer hours and more days next summer.
The Theater at Virgin Hotels Las Vegas partners with AEG and is working to bring more acts into the property. It has country singer Tanya Tucker this week as part of the National Finals Rodeo.
“If we get control of the casino, we would subsidize more and better entertainment,” Atkinson said.
Assad reminded him that the Mirage doesn’t reopen as the Hard Rock Las Vegas until 2027, so there’s time to get those older customers back for the next two-plus years.
“We know there’s a ticking clock. Our former brand going down the street isn’t lost on us,” Atkinson said. “That’s why we need to innovate and be different. Artists are going to be a big part of that. With all the new buildings, what can’t be replicated is the history of our building. When people go into the VIP entrance and see all the pictures of everyone who has performed, we believe that’s an untapped opportunity from a marketing standpoint to drive this property.”
Atkinson said they’ve taken control at some of their food and beverage outlets and also changed management throughout the property for marketing and security. They will also be bringing in a casino partner.
When it comes to the new sportsbook, Atkinson said they’re evaluating all options and have a short-term agreement with IGT. He said there’s a lot of sportsbook players, including new ones, that they’re considering since Betfred is going away by the end of the year.
Assad talked about how casinos that serve locals have lines out the door. Good food and drink deals, along with a good gamble, will bring in foot traffic.
“Those are staples of Las Vegas and locals love them. Unfortunately, a lot of them went away with COVID,” Assad said. “Casinos that bring them back are doing really well.”
