Like a Virgin

Back when Morgans Hotel Group paid a $770 million king’s ransom for the Hard Rock Hotel & Casino it became the poster child for overpriced assets. Now that Brookfield Asset Management has had enough, it fits right in with Virgin Hotels‘ “acquire distressed properties in North America cheaply” philosophy. Sir Richard Branson evidently thought the price was right and accordingly pounced. Negotiations are said to be “in an advanced state,” although the sale price remains under wraps. However, a deal is evidently so close that HRH executives are examining designs of the Virgin logo that would displace the Hard Rock one.

Since Branson has no experience in the casino industry, Warner Gaming‘s sinecure at the HRH is probably secure. The new operating mantra is expected to be “geared toward the female business traveler,” which would be one way of making the HRH stand out from pack (other than that scuzzy Rehab pool party).

Here’s an idea of what to expect. The Virgin way of doing things would be a refreshing change from the nickel-and-diming habits of contemporary Las Vegas casinos. For example, would it kill the competition to let you choose your own check-out time. And if Virgin really wants customers beating a path to its doors, it could make a big point of eschewing resort fees, a winning strategy for sure.

If the Canandians at Brookfield sell to Branson, he’ll inherit a National Labor Relations Board complaint against the former for allegedly maintaining “overly-broad and discriminatory rules in its employee handbook.” The HRH has already knuckled under to the Culinary Union, admitting “the casino broke federal labor law by putting out anti-union literature trying to convince workers that it would be futile to select a union to represent them—even making the implicit threat that they would lose everything they already had.” This newest complaint will be heard on April 17.

* Analysts Andrew Klebanow and John English have taken a hard look at what will be required for sports betting to flourish outside of Nevada. They have pinpointed the following items: a reasonable rake (Nevada’s is 6.75%); secure but convenient access, including geofencing, and low tax rates (Pennsylvania‘s 34% is cited as an example of what not to do). Existing state lotteries are recommended as distribution channels for sports betting. Casinos are warned that parimutuels will want exclusive sports-betting rights. Slot routes also might be adapted to accommodate wagering. The hardest path is faced by tribal casinos, which will have to renegotiate their compacts in order to take advantage of this new revenue stream.

* China is banning tattoos and hip-hop from TV. I know I should disapprove but feel too curmudgeonly to do so.