Econ 1010

Class project:
Riviera hotel, las Vegas
The economic history of the Riviera hotel and casino
a brief introduction to This a scale model of the Riviera
the Riviera's history
The casino was first proposed by Detroit
mobster William Bischoff as the Casa Blanca,
and received a gaming license in 1952.
Bischoff later withdrew from the project,
which was taken over by Miami businessman
Samuel Cohen. By March 1955, Cohen,
identified as a member of Miami's S & G
gambling syndicate, was no longer part of
the investment group, though rumors
persisted that he secretly maintained an
involvement. Marx Brothers Harpo and
Gummo held minority interests at the
opening.
it opened in 1955 on april 20.
Short fall
the Riviera went bankrupt in just three
months after its opening, which resulted in
output
numerous management changes, as well as
changes in ownership twice from 1968 to
1973

costs

three months after opening

the expantion
The Riviera filed for Chapter 11 bankruptcy protection in
1983.[19] Riklis pledged money to keep the business in
operation,[19] and appointed Jeffrey Silver as CEO to turn the output output

Riviera around.[20] Silver began shifting the Riviera's marketing

focus away from high rollers, and towards middle- and
[21]
working-class gamblers. He opened a Burger King franchise
in the building, the first fast food chain outlet in a casino; this
move inspired the phrase "Burger King Revolution" to refer to
the broader trend of Las Vegas casinos catering to
middle-class customers.[20][22]
[23]
The Riviera underwent an expansion from 1988 to 1990.
The project went significantly over budget, leading the parent costs costs
company to file again for Chapter 11 bankruptcy protection in high rollers as the consumer
[23][24] target. changing the consumer target to working and
1991. The business emerged from bankruptcy in 1993
middle class and adding a fast food chain in
as Riviera Holdings Corp., owned by the previous secured building
creditors.[24]
the Decline
output from
recent years
while the the Rivera did come back from
bankruptcy and did well from 1990, due to
the hotel being a ways away from the main
attractions, that new ones are being
added/built that tourist prefer to be closer to
them, that income has declined in recent
years.

income from recent years

2010 bankruptcy and closure

the Riveras income had started to decline in

recent years due to declining pedestrian foot
traffic in the vicinity as well as having its costs

neighbors(Stardust, New Frontier, and costs

Westward Ho) demolished hastened its
closure
the Rivera took on a 5 million dollar loan to
recover from its recent losses, but it
backfired and loss more than it gain and
Rivera was forced to close its doors. income income

1990-2000

2000-2010
closure and
demolition (2015-16)
In February 2015, the Las Vegas Convention and Visitors
Authority acquired the Riviera hotel and its associated land
for $182.5 million. The property was leased back to its
existing operators, Paragon Gaming, who officially closed
the establishment on Monday, May 4, 2015.[3] After winding
down operations the hotel was closed and demolished to
make way for a planned expansion of LVCVA's Las Vegas
keep the hotel standing
Global Business District exhibit and meeting center
and pay rent every year
project.[25] on property
Due to its size, the Riviera was demolished through two
separate implosions conducted in June and August 2016,
while smaller demolition work took place during the summer.
Much of the property was demolished during the first
implosion. Asbestos was discovered in the hotel's Monte demolish the hotel
Carlo tower and was removed prior to the implosion. and reuse the land for
Demolition cost a total of $42 million.[26] other projects

The 30-year analysis claims a potential loss of

$495 million in facility use rentals per year.