The team was established in 1998 as a member of the Western Professional Hockey League (WPHL) and played its home games at the (now demolished) Memorial Coliseum, dubbed "The Igloo" by fans because temperatures in the Coliseum dictated a dress that included sweaters and jackets, even in Corpus Christi's mild winters.

Ken McRae coached the team from 2004 to 2008, and broadcasts featured the talents and vocal stylings of Josh Bogorad, a formerly a small-time radio celebrity in the Los Angeles area.

The first event held at the arena was the Rayz first game on October 22, 2004, against the Austin Ice Bats to a sold out crowd of over 7,500 fans, one of just four sellouts in franchise history at the American Bank Center.

Immediately following the 2007–08 season, the Rayz briefly suspended operations while failing to find a suitable owner to take over the team.

The new ownership also brought back the IceRays name and a redesigned logo featuring red, gold, and black as its primary colors.