Richard Branson might be extending his golden touch and the Virgin brand to the Hard Rock Hotel and Casino in Las Vegas.
According to Vital Vegas, a deal has been arranged for Virgin to acquire an off-Strip property. This news follows months of speculation about the sale of Hard Rock, as well as a public statement in November that Virgin was assessing an unnamed casino for potential purchase.
Official announcement of Hard Rock sale forthcoming
Vital Vegas reported the sale based on insider information, adding that they anticipate an official announcement to be made soon.
Almost a year ago, the first rumors of a sale began, with the story being picked up by mainstream media last summer. Brookfield Asset Management, the global firm that assumed control of the property in 2011, is its current owner.
The Nevada casino’s major disadvantages have always included the location of Hard Rock off Las Vegas Blvd. Therefore, amidst revenue concerns, it’s unsurprising that Brookfield would consider selling.
Virgin previously announced plans to get into Vegas
Virgin Hotels confirmed last fall that it was undergoing the due diligence process for a property in Las Vegas, in collaboration with both Bosworth Hospitality Partners, LLC, and Juniper Capital Partner, LLC.
If the deal is successful, this will be Virgin’s first land-based casino, though it’s not the company’s initial venture into the gambling industry.
Currently, Virgin Casino operates online under the online casino license of Tropicana Casino in New Jersey. The site provides a broad range of online slots and casino games, but does not offer online poker.
When Virgin initially declared its plans in Vegas, rumors quickly pointed to Hard Rock as the probable competitor. Considering Virgin’s tendency to buy properties at a low cost, the casino definitely matches the profile.
Can the Virgin strategy work in Las Vegas?
Branson’s strategy in the airline industry significantly contributed to Virgin Airlines’ resounding success. However, the airline is not the only investment of the venture capital firm. The group engages in a wide variety of business ventures, ranging from book publishing to balloon rides.
Virgin outlines six elements that characterize its business model on the company website:
- Identify opportunities in geographical areas or market segments where consumers are not being adequately served.
- Work together with entrepreneurs to find and promote innovative new services, business models, and technologies.
- Provide financial, operational, and marketing expertise to our portfolio companies to foster rapid growth, whether it’s organic, through acquisitions, or driven by brand turnarounds.
- Promote the sharing of best practices and collaboration among portfolio businesses by offering access to Virgin’s worldwide network.
- Use the Virgin brand and its connection with Sir Richard Branson to speed up customer acceptance of newly started businesses.
- Implement the unique Virgin approach, goal-oriented strategy, and customer service proficiency to businesses in the portfolio.
In a city such as Vegas, customer service is paramount. Considering that this has been Virgin’s trademark over the years, it seems plausible that a casino under the Virgin brand could thrive in the competitive market.
Additionally, by establishing itself as a physical entity, it has the option to penetrate the online gaming market in Nevada. Even though online poker is predominantly controlled by WSOP.com and the sports betting app market is quite crowded, if there is any entity that can create a niche for itself, it is Branson.
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