The Nevada Gaming Commission Thursday enthusiastically backed a new top casino for real money games operator at the financially troubled Virgin Hotels Las Vegas amid the ongoing strike from union workers.
New Management Takes Over Casino Operations
Current hotel president Cliff Atkinson and chief financial officer Chad Konrad have partnered to take over casino operation from Connecticut-based Mohegan. Atkinson will be CEO, Konrad the CFO of the new entity, C&C 4455 LLC.
Timeline For Transition
The casino management change is expected to be completed by the end of March.
Ownership And Operational Details
The hotel is owned by British-based Virgin Group, along with an investment management firm and Canadian pension fund. JC Hospitality is the operating company for the landlord.
Reason For Management Change
Atkinson, a former MGM Resorts executive, told the Commission that nearly $400 million was put into renovating before reopening “in one of the most difficult times in Nevada’s history.” Virgin has struggled since then.
Breakdown Of The Deal With Mohegan Sun
The reason for the change is that the deal between the ownership and Mohegan Sun “simply didn’t work,” Atkinson said. In March, the tribe provided notice of termination, prompting the partnership between the two hotel executives.
Plans To Revive The Property
Atkinson said they have many plans to maintain jobs and grow the business, including rolling out a new loyalty program, a sports-betting operation, and “bringing life back to the property through entertainment and food and beverage areas. The casino is one piece in the overall property turnaround.”
Financial Strategy And Future Steps
Atkinson said the property was refinanced earlier this year, “key to getting to this point in time.” It also moved from a Hilton-managed property to a Hilton franchise agreement. “Today is one the last pieces to put in place to keep the property moving forward.”
Support From Commissioners
Commissioner George Markantonis called what they’re doing an “extremely well-thought-out plan. It’s good to see you’re not feeling hampered by the distance (of one mile) from the Strip, which I think has been a challenge for the property for the last 20 to 30 years.”
Marketing Strategy And Future Opportunities
Commissioner Brian Krolicki called it a great story, but a difficult one. He commended management for trying to save the jobs and “make a special property a success.” He said the marketing approach, keying in its proximity to Harry Reid International Airport, will help.
Entertainment And Local Engagement Plans
Konrad agreed. “We don’t have the foot traffic that walks by the building like the Strip does, but we do have the airport, the Convention Center, and Sphere on our side of the Strip. We’ll have a baseball stadium on our side of the Strip as well, hopefully soon.”
Focus On Entertainment Partnerships
Atkinson cited AEG as a partner in the theater. Other venues are being programmed to bring in more acts, including two residencies in the past year and live music with no cover. “It’s about bars and entertainment and reasons to come to the property,” Atkinson said. “It’s a big part of our turnaround strategy.”
Konrad’s Experience And Future Plans
Konrad has worked at the property for 25 years in every finance capacity, including six years as CFO. He worked said his experience there will help in the future plans. “This transition is a challenging one. We have our work cut out for us, but there’s opportunity too. Cliff and I decided to step up and enter into this because we have a similar passion for the property. We believe in what the property can do and our abilities to move this casino forward.”
Surprise Renovations Planned
Renovations planned for the property will be a surprise to people when they’re unveiled, Konrad said.
Importance Of Serving Local Residents
Silver said it’s important to cater to local residents, like the property has done in the past. Locals are a big part of the strategy as the Strip evolves, Atkinson responded, adding they offer free parking and other things that matter.
Closing Remarks From Commissioner Krolicki
Krolicki ended the hearing by saying that Atkinson and Konrad “have the experience and passion to make it happen.”