Posted on: August 9, 2024, 03:00h.
Last updated on: August 9, 2024, 01:54h.
The Rio Hotel & Casino is going through a reduction in headcount. Owner Dreamscape Cos. confirmed layoffs at the off-Strip property to Las Vegas media on Thursday.
New York-based Dreamscape did not mention a specific number of positions that were eliminated at Rio. As of late Thursday, the company has not filed a Worker Adjustment and Retraining Notification (WARN) Act notice with the Nevada Department of Employment, Training and Rehabilitation (NDETR).
As the resort undergoes extensive construction and remodeling, we now have a better understanding of the staffing levels Rio Las Vegas needs to provide guest service and operational efficiency. We deeply appreciate the unwavering commitment and diligence of all our team members and extend our heartfelt gratitude to those directly affected by the adjustments,” said Dreamscape in a statement provided to Las Vegas media outlets.
The company said the layoffs are the result of it getting a better handle of Rio’s staffing needs following the 2023 acquisition of the operating rights from Caesars Entertainment.
Layoffs Not Permeating Gaming Industry…Yet
Economic data, including the July jobs report, indicate the US economy is cooling, but to date, the most notable headcount reductions in the gaming industry have occurred at digital units, not land-based casinos.
Still, the industry by far the largest private sector employer in Nevada and news of the Rio staff paring comes as the state’s jobless rate is 5.2% — tied with California for the worst state unemployment rate in the country, according to the Bureau of Labor Statistics (BLS). Washington, DC has a jobless rate of 5.4%.
However, none of the major casino operators in Las Vegas have announced significant layoffs this year. If anything, gaming companies struggled with staffing shortages over the past several years with some boosting wages and starting pay to lure more job applicants.
This year, the only WARN noticed filed by a gaming entity in Nevada was attributable to the Mirage, which temporarily closed for new construction. Bally’s, the operator of Tropicana, provided compensation packages to workers affected by the closure of that casino hotel and attempted to find new positions for some.
Dreamscape Rio History
Following a December 2019 $516.3 million sale-leaseback deal struck between Dreamscape and Caesars, the former owned the property assets of the integrated resort, while the latter operated it. That arrangement ended in the fourth quarter of 2023 when the real estate investment trust (REIT) took over operational control of the casino resort.
Earlier that year, Dreamscape raised $850 million in capital, and some of those proceeds will be directed to enhancing the property, which is more than three decades old. Rio features 2,522 suites and 117,300 square feet of gaming space.
“Today’s travelers are looking to experience Las Vegas in a new way. Dreamscape believes the city’s next-gen clientele will demand something different, something deeper, something unexpected and something seamless. With this in mind, the Rio will soon offer an entirely refreshed suite of dynamic and broader programming,” according to Dreamscape.
