Change of Ownership at Rio Hotel Casino Leads to Layoffs
The Rio Hotel Casino in Las Vegas is undergoing significant changes following its recent change of ownership, which has led to a wave of layoffs. The layoffs come after Dreamscape Cos., a New York-based investment firm, officially took over operations of the property from Caesars Entertainment Inc.
The outside of the Rio Hotel Casino in Las Vegas at night. (Source: Getty Images)
LISTEN TO THIS ARTICLE:Caesars Entertainment had managed the Rio Hotel & Casino since its construction, overseeing its rise to prominence as a popular destination for both tourists and locals. The hotel-casino, which opened in 1990, is known for its distinct architectural style and has hosted numerous high-profile events over the years, including the World Series of Poker.
Dreamscape purchased the property from Caesars in 2019 for $516 million. Since then, it has embarked on a major $350 million renovation project aimed at revitalizing the resort, which has long been a fixture on the Las Vegas Strip.
Related: Caesars to Hand Over Operation of the Rio Hotel & Casino This FallA representative for Dreamscape Cos. confirmed the layoffs on Thursday, describing them as a "personnel adjustment" that was necessary following the transition in ownership. However, the company has not disclosed the exact number of employees affected by the layoffs, leading to speculation and concern among the local community and the broader hospitality industry.
The representative also addressed recent social media posts that claimed to know the number of laid-off workers. The individual referred to the posts as inaccurate, although no further details were provided.
The lack of specific information has left many questions unanswered, particularly among those directly impacted by the layoffs and their families. The Rio Hotel Casino has been a significant employer in Las Vegas, and any reduction in staff is likely to have a ripple effect on the local economy.
Despite the layoffs, Dreamscape Cos. has not yet filed a notice with the state of Nevada regarding the personnel changes, as required under certain circumstances by the federal Worker Adjustment and Retraining Notification Act (WARN Act). The WARN Act mandates that large employers give a 60-day notice in advance of mass layoffs or significant plant closings. Still, there is no indication that Dreamscape has made any such filing at the federal level either.
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A Change in Direction
The sale of the property to Dreamscape Cos. marked a significant shift, as Caesars Entertainment began to divest some of its non-core assets to focus on its more profitable ventures. The transition in management earlier this year was anticipated by industry insiders to bring about changes, but the recent layoffs have highlighted the uncertainty that often accompanies such transitions.
Eric Birnbaum, the CEO of Dreamscape Cos., has been at the forefront of the renovation efforts at the Rio, which include updating guest rooms, enhancing the casino floor, and improving the overall guest experience as part of a $350-million upgrade. However, the layoffs have cast a shadow over these efforts, raising concerns about the future of the workforce at the Rio and how the changes will affect the guest experience.
The Rio Hotel Casino's transformation is part of a broader trend in Las Vegas, where aging properties are being renovated or replaced in response to changing consumer preferences and market dynamics. The city's economy, heavily reliant on tourism and hospitality, is sensitive to fluctuations in employment within the sector. As such, any significant changes, such as the recent layoffs at the Rio, are closely watched by both industry analysts and local residents.
As of Thursday, there is still no word on whether further layoffs might be expected, or if Dreamscape plans to rehire any of the displaced workers once the renovations are complete. The company's decision to withhold details on the number of affected employees has only fueled speculation, making it a topic of ongoing concern and discussion within the Las Vegas community. For now, the focus remains on the extensive renovations and the company's vision for the future of the Rio Hotel Casino, even as questions linger about the true cost of these changes.
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