Virgin has announced the launch of its latest venture, Virgin Gaming, which will allow players to compete against each other on a range of skill-based video games for real cash.

"Video games are bigger than ever," said Virgin chief Richard Branson. "There’s never been a better time to get back in."

Virgin Gaming is a joint venture between Branson and Canadian company WorldGaming.com and expects to make a profit by charging a 12 per cent fee on every tournament while also signing up corporate sponsors.