Virgin has joined forces with WagerWorks, the technology group, to launch a business called Virgin Games, accessible through Virgin.com. It is headed by Simon Burridge, who led Sir Richard’s £20 million People’s Lottery bid, and Oscar Nieboer, a former vice-president of MGM Mirage Online.

The company, which has secured a casino licence in Alderney, the Channel island, and a fixed-odds betting licence in Britain, will initially offer games ranging from roulette to black jack, bingo, poker and slots. This year it is hoping to sign up a partner to add sports betting to the offering.

Mr Burridge, a former managing partner of J Walter Thompson, the advertising agency, rejected suggestions that Virgin was coming late to an overcrowded market, claiming that its focus on entertainment would give it a different slant to established rivals such as Ladbrokes and Casino.Net.

“Most websites have a rarified offer for the few rather than an entertainment-based offer for the many,” he said. “Too much of it is about money rather than entertainment, and that’s where we hope to score. We see ourselves as an entertainment brand rather than a gambling brand.”

Mr Burridge pointed to the growing popularity of internet gambling among housewives as proof of the market for Virgin Games.

“It’s aimed at those who want to spend half an hour having fun while not having to risk too much money. It’s about giving people an enjoyable time even if they lose.”

Virgin Atlantic is already the only British airline running a direct service to Las Vegas, and Mr Burridge said it was planned that Virgin Games customers would be linked to the airline’s loyalty scheme. Points earned gambling would be redeemable against Virgin flights as well as Virgin train journeys and wines.

Mr Burridge said that although there were no plans for fully fledged Virgin casinos in either Las Vegas or Britain, it may eventually be possible for punters flying to Las Vegas to gamble on Virgin Games during their flight.

Although Virgin will own the business outright, profits will be shared with WagerWorks, which is providing all the investment in the back-end systems. Virgin is investing about £1.5 million in set-up costs, licensing and marketing.

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