Rio: The Rapid Rise, Slow Fall, and Possible Resurrection
Vegas’ old off-Strip legend hangs by a thread, and maybe that’s what could save it.
Aww, Rio. No secret I’ve been critical of you. You were once one of the few places in Vegas where weird worked, and now you’re the perfect example of what happens when a resort loses the things that made it great. The Masquerade Show in the Sky (closed 2013) and the Carnival World Buffet (closed 2020) are still the most-talked-about things about this property. For a place that’s struggling to return to glory, you’d think they might, I don’t know, maybe listen to people.
The Glory Days
When Rio opened in January 1990, it was fresh: all-suite rooms, big energy, and a location just off the Strip that offered a distinct escape. In 1997, the real fun happened, and an expansion gave it The Masquerade Village and its signature “The Masquerade Show in the Sky”. Think floats overhead with people showering beads like it’s Mardi Gras every night.. Think suite-parties, Brazilian-theme, zip-line across the casino floor. If you were in your 20s during the early 2000s, Rio was your playground.
It wasn’t just about staying there; it was about playing there. You walked into the samba-themed lobby expecting to live a little. It also had The Carnival World Buffet, where you figured you’d eat like you owned the place.
Rio was purchased by Harrah's / Caesars ($766 million) in 1999, and soon after, they had a free shuttle to Harrah’s for more Strip chaos. I remember gambling there while beads were thrown from hanging floats in the sky, stopping in for a drink at VooDoo Lounge, and then heading off to Palms for the later mayhem. For many, Rio was the spot. Tucked just enough away from the craziness with that shuttle giving strip access, you had a base you could call home and hang your hat before the night went sideways.
The Financing & Restructuring
Caesars sold the Rio to Dreamscape Companies (led by Eric Birnbaum) in December 2019 for about $516 million. Caesars stayed on till 2023 to operate it for a bit under lease while Dreamscape figured out what to do with their shiny (but tired) new toy.
So, what’s actually been done?
The first phase of renovations, reportedly totaling $340 million, wrapped in 2024 and covered a lot of ground:
Guest suites: Over 1,500 suites in the Ipanema Tower were remodeled with a new design inspired by Rio de Janeiro’s Ipanema Beach.
Food & Beverage: The new Canteen Food Hall opened alongside new venues and kept some of the old like Hash House A Go Go
Convention space: The 220,000 sq ft convention center got new carpet, modern digital signage, and a much-needed facelift.
Exterior & public spaces: The iconic marquees were updated with LED screens, and over three miles of programmable LEDs now wrap the building for a new, flashier exterior.
Casino floor: A portion of the casino floor got new games, carpet, and lighting.
Sounds impressive on paper, right?
But cash doesn’t fix everything. These upgrades are what I call “lipstick on a pig Vegas edition.”
Phase 2 will supposedly focus on the Masquerade Tower, but no timeline’s been shared. Which is fitting, because right now the tower’s vibe is “half renovated, half forgotten.”
Takeaway: You can spend hundreds of millions and still leave people wondering if it was worth it. Execution > budget. Always.
“RIO feels like an episode of Love It or List It when the owner ran out of money and could only renovate the family room.“ - Vegas Uncomped
The Bleed
Walking through Rio today, you’re confronted with the paradox. Yes, the bones are big. But you also see the cracks. You feel the aging. With a somewhat upgrade plan in place, this wouldn’t be so bad, except then you have the real issues. You have the surprises on bills. The lines. Service that doesn’t feel like service. All of it tells a story of decline masked by potential.
Let’s talk specifics:
A guest filed a complaint: “Stayed June 1 2025 … Our room reeked of cat urine & cigarette smoke. Check-in took nearly 40 minutes. We were charged $396.83 ($350 smoking fee) though we absolutely do not smoke.”
Another thread: “Room smelled like smoke, whole floor supposedly non-smoking, yet smoke lingered.
Several Guest complaints of smoking fees have surfaced, and BBB complaints have been filed. All with RIO responses saying it may have been an “isolated event”
Tier matching attempts caused more chaos than customer increase, with promotions abruptly stopping due to poor execution.
Dreamscape Companies Inc. President and Chief Financial Officer John Eder was denied a Gaming license because he was fired from Hard Rock for kickbacks.
Here’s the reality: Dreamscape has raised enough cash to buy a small island, $850 million in 2023, plus $176.5 million CPACE loan in 2025. And yet… walking through the Rio feels like someone started a Vegas HGTV pilot and quit halfway.
The Masquerade Village sits mostly empty: old, abandoned shops, a Smashburger (that closes at 8 pm... what?), a seating area with 1980s banquet chairs in front of a screen, and they recently added some slots in there. It all blends in with the KISS putt-putt thing.
My Take & Why It Might Still Work
I’m on record saying they should’ve torn it down, built the stadium, and moved on. But if they weren’t going to do that, then they should have doubled down on what made Rio fun in the first place and fixed the obvious problems. Instead, they seem stuck between eras: half-carnival, half-reno-zone, half-“bargain off-strip option.” Good news for them is, it’s not too late!
Here’s how Rio could flip the script:
Fix check-in: Make it fast, efficient. If guests wait 30–60 minutes, you’ve lost them before you’ve greeted them.
Stop the phantom smoking fines: Unless they show the sensor logs,and even if you do, is your tech accurate? How Many “isolated events” do you need to have? The charges feel predatory. Several complaints indicate that they are a problem.
Lean into nostalgia smartly: Masquerade floats, buffet parties, off-Strip value, use those as brand anchors, not shameful memories.
Keep weird shows: The Empire strips back? Great idea, but it needs a traffic driver. Rio could be doing so much with this fun, quirky show.
Penn & Teller: One of the longest-running shows in Vegas, what are they doing to use that? If audiences are big enough, why aren’t they capturing them?
And finally, FOCUS ON CUSTOMER SERVICE. Rio is off the strip and has a bad reputation for horrible customer service; that's a bad combination.
If they pull that off, they could become the smartest value play in Vegas: big rooms and off-Strip location, but still Vegas. But if not, they’ll be “almost there” forever.
Final Take
The Rio isn’t dead.
Not yet.
But it is stranded. With nostalgia as its only reliable branding at this point, the new ownership has the cash to make something happen if they treat guest experience like it matters.
Right now? I’m firmly in the “no thanks” status. I remember what it was. I see what it is. And unless they reconcile the two, there won’t be enough people betting on what it could be.
- Jason
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