Rio ownership hints at what’s next for property

Gaming regulators got a glimpse of what’s in store for the Rio on Wednesday, and it has nothing to do with tearing the building down or turning the land into a baseball stadium.

The Nevada Gaming Control Board unanimously recommended a preliminary finding of suitability for Dreamscape Companies LLC executives Eric Birnbaum and Thomas Ellis. The board’s recommendation will go to the Nevada Gaming Commission for final approval Jan. 21.

Birnbaum said once Dreamscape begins operating the Rio sometime in the next two years the property would get “a monster refresh” and a re-examining of what food and beverage amenities make the most sense for the 2,500-suite off

Strip property that opened in 1990.

Dreamscape currently owns the property that is managed by Reno-based Caesars Entertainment Inc. Birnbaum’s company announced that it had

acquired the Rio for $516.3 million in September 2019. Under terms of the purchase agreement, Caesars would manage the property for two years and pay $45 million in annualized rent. There’s an option for a oneyear lease extension that would cost Dreamscape $7 million.

Caesars retained the rights to the World Series of Poker, a staple at the Rio since 2005.

In an interview after the deal was announced, Birnbaum dismissed reports that the Rio’s 90-acre campus that includes 22 acres of unused property would be developed into a major league baseball stadium in a bid to attract a franchise to Southern Nevada. There were also persistent reports that the building would be imploded for a new opportunity.

Birnbaum again dismissed those reports in his testimony before the Control Board on Wednesday.

“It’s amazing the rumors that get thrown out there,” he told board members. “I’ve heard everything about how we’re going to tear it down. I’m a big baseball fan so I was excited to hear we were recruiting the Oakland Athletics (to move to Las Vegas), but that was never the case.”

Birnbaum told board members that the COVID-19 pandemic has slowed his company’s plans to move quickly on upgrading the Rio.

He said he has enlisted the help of Cosmopolitan of Las Vegas CEO Bill Mcbeath as a consultant on gaming matters.

Once Dreamscape takes possession of the property Birbaum said he expects Plano, Texas-based Aimbridge Hospitality “to have an active role in running the hotel.” By that time, Birnbaum and Ellis will be required to apply for a more thorough finding of suitability.

Birnbaum said he hopes his company takes over the property before 2023.