M&A

Mohegan Gaming Preparing to Wrap up Control of Virgin Las Vegas

Virgin Hotels Las Vegas is taking over casino operations from Mohegan Gaming & Entertainment, marking a major shift in management — just as hundreds of hospitality workers prepare for a 48-hour strike over stalled contract talks.

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Virgin Hotels Las Vegas and Mohegan Gaming & Entertainment are undergoing a transition period, signaling Virgin's assumption of casino operations at the off-strip property.

Although specific details regarding the timeline and financial arrangements remain undisclosed, the move signifies the conclusion of Mohegan's involvement in the gaming venue's day-to-day management.

Virgin Las Vegas President Cliff Atkinson has expressed gratitude for the collaboration with Mohegan, emphasizing a commitment to maintaining a seamless resort experience for guests during the transition.

Since its inauguration in September 2019, Virgin Las Vegas has encountered challenges in cultivating a dedicated following despite its proximity to the Strip.

The property's distinctive approach involved outsourcing operations to multiple entities, including:

  • Mohegan for the casino

  • AEG Live for the theater

  • Betfred for the sportsbook

With Virgin assuming control, potential improvements are anticipated, although the exact impact of Mohegan's involvement in the property's struggles remains uncertain.

Mohegan's departure follows other strategic changes, including:

  • The termination of its management agreement at Resorts Casino Hotel in Atlantic City

  • Broader shifts in its operational strategy

However, amidst these changes, hospitality workers at Virgin Hotels are poised to initiate a 48-hour strike due to stalled contract negotiations, according to union officials.

Despite previous extensions granted for negotiations, progress has been insufficient, prompting the Culinary Local 226 to call for action.

The planned strike includes:

  • Approximately 700 unionized hospitality workers

  • A timeline from 5 AM Friday to 5 AM Sunday

  • Demands centered on fair wage increases and improved contract terms

Ted Pappageorge, the union's Secretary-Treasurer, emphasized workers' readiness to strike, while President Cliff Atkinson assured that casino operation changes will not impact hospitality workers.

Nevertheless, union officials stress the strike's significance, noting its potential impact on roles such as guest room attendants, servers, and cooks, as well as unionized restaurants within the property.

Negotiations with Virgin Hotels were previously extended, reportedly due to financial considerations following the property's rebranding as Virgin Hotels in March 2021.

This strike marks a notable labor action — the last Culinary strike occurred in 2002 at Golden Gate Casino in downtown Las Vegas.

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Gibbs Erik

News Reporter

Gibbs Erik News Reporter

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