Riviera (hotel and casino) Informations

Riviera (colloquially, "the Riv") was a hotel and casino on the Las Vegas Strip in Winchester, Nevada, which operated from April 1955 to May 2015. It was last owned by the Las Vegas Convention and Visitors Authority, which decided to demolish it to make way for the Las Vegas Global Business District.

The hotel had more than 2,100 rooms, fewer than half of which were located in a 23-story tower. The casino had 110,000 sq ft (10,000 m2) of gaming space.

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 and 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.

The Riviera opened on April 20, 1955 as the first high-rise at 9 stories, and the ninth resort on the Las Vegas Strip. The resort was designed by Miami architects Roy F. France and Son. Liberace cut the opening ribbon, and became the first resident performer. The Riviera became one of the oldest and most famous casino resorts in Las Vegas Valley. The Riviera also broke new ground in its design: previously, Strip resorts resembled roadside motor courts.

The opening of the Riviera, along with The Dunes and the Royal Nevada casino resorts within a month were the subject of a famous issue of Life magazine, on June 20, 1955 with a Moulin Rouge showgirl on its cover. The headline was "Las Vegas—Is Boom Overextended?" and a story about how Las Vegas had built too many hotel rooms to be profitable.

The Riviera casino went bankrupt just three months after opening. A group of former Flamingo Hotel managers led by Gus Greenbaum took over operation of the property, leasing it from the ownership group. Greenbaum had recently retired, and it was widely suspected that he was coerced to return to work by threats from Chicago mob boss Tony Accardo.

Among Greenbaum's staff was entertainment director William Nelson, who was soon discovered to be mob informer Willie Bioff, leading to his murder in November 1955.

Greenbaum's drug and gambling addictions led to his embezzling from the casino. In December 1958, Greenbaum and his wife were murdered in their Phoenix, Arizona home, reportedly on the orders of either Meyer Lansky or Tony Accardo.

An 8 story expansion was made off the south side of the original 9 story tower in 1959. It was designed by Los Angeles architect Welton Becket. A 12 story tower was added off the south west side of the 8 story tower in 1965. The new tower expansion was designed by Harold W. Levitt with Ernest W. Le Duc and William H. Farwell as consulting architects.

Mob fixer Sidney Korshak played a major role in the property's management. Law enforcement agencies suspected that he represented the Chicago Outfit's interest in the Riviera, and was responsible for skimming the casino's revenue and delivering the proceeds to Chicago.

The Riviera was purchased in June 1968 by a group including bankers E. Parry Thomas and Jerome Mack, and investors tied to the Parvin-Dohrmann Corp., owner of the Aladdin, Stardust, and Fremont casinos. In 1969, a deal was made to sell the Riviera to the Parvin-Dohrmann Corp., but the sale was blocked by the Nevada Gaming Control Board due to the company's previous failure to report a change of ownership.

Dean Martin was hired in 1969 to perform in the casino's showroom, and was given a 10% interest in the Riviera. Martin left in 1972, after management refused his request to cut his performance schedule from two nightly shows to one; the Riviera bought back his shares.

In 1973, the Riviera was purchased for $60 million by AITS Inc., a Boston-based travel company controlled by Meshulam Riklis and Isidore Becker. The Riviera is the setting for the movie Fake-Out (aka. Nevada Heat, 1982), which was financed by Riklis and starring his wife, Pia Zadora.

The 17 story Monte Carlo Tower was constructed circa 1974. The tower was designed by Martin Stern Jr. and Associates. The 6 story San Remo Tower also a Stern design was constructed in 1977 by the Del E. Webb Corporation.

The Riviera filed for Chapter 11 bankruptcy protection in 1983. Riklis pledged money to keep the business in operation, and appointed Jeffrey Silver as CEO to turn the Riviera around. Silver began shifting the Riviera's marketing focus away from high rollers, and towards middle- and 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.

The Riviera underwent an expansion from 1988 to 1990 this included the 24 story Monaco Tower also designed by Martin Stern Jr. and two parking garages. The project went significantly over budget, leading the parent company to file again for Chapter 11 bankruptcy protection in 1991. The business emerged from bankruptcy in 1993 as Riviera Holdings Corp., owned by the previous secured creditors.

On July 12, 2010, Riviera Holdings filed for Chapter 11 bankruptcy. Its bankruptcy included a reorganization plan under which secured lenders, led by Starwood Capital Group, would receive new debt and stock. The plan was negotiated with holders of 2/3 of the secured debt worth over $275 million, which included a $225 million term loan, unpaid interest and amounts owing on a swap agreement. Riviera Holdings listed assets and liabilities of $100 to $500 million each.

Under the terms of the agreement negotiated by Starwood, secured lenders would receive a new $50 million loan plus 80% of the new stock. Lenders who provide $20 million in a so-called new money loan would receive 8% of the new stock plus warrants for another 10%. Creditors who provide a $10 million working capital loan would receive 7% of the new stock. The last 5% of the new stock goes to the lenders in return for providing a backstop insuring availability for the $30 million in loans. Existing Riviera shareholders received nothing.

The Riviera lost $4.5 million on income of $30.8 million in the first quarter of 2010. The decline in popularity of the Riviera was caused in part by the decline of pedestrian foot traffic in the vicinity. Previously, the Riviera was surrounded by the Stardust, New Frontier, and Westward Ho, properties which were demolished to make room for new construction. A shutdown in the new construction in progress at the adjacent Fontainebleau Resort Las Vegas and Echelon Place contributed to the Riviera's decline. The company had 1300 employees in Las Vegas and 260 employees in Black Hawk, Colorado.

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. After winding down operations the hotel was closed and demolished to make way for a planned expansion of LVCVA's Las Vegas Global Business District exhibit and meeting center project.

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