The team was established in 2009 and joined the IHL for the 2009-10 season. The team was named after the original Dayton Gems of the original International Hockey League. Their acceptance into the IHL was officially announced on June 9, 2009. On June 15, 2009 the Gems named John Marks head coach.
On December 2, 2009 the IHL Board of Governors announced that the Board had terminated the ownership group of the Dayton Gems and that the board has taken ownership of the team and a new local ownership group is being pursued.
The Dayton Gems was taken over by a local ownership group GDHP, LLC which is led by Rob Garfield in January 2010. The other two owners are Kathy Rupp and Dr. Paul Nitz. On April 1, 2010 the IHL came into town to check on how the team has been doing.
On April 23 the Gems owners announced that John Marks was fired as head coach after one season.
On June 1 the International Hockey League announced that they are joining the Central Hockey League.
The CHL on June 10 announced the teams for the 2010-2011 season.
On July 7, 2010 the Dayton Gems announced that Brian Gratz would become the new Head Coach/GM.
On July 19, 2010, the 2010-2011 Dayton Gems jerseys were announced and they were voted by the fans  Also, the Gems announced the first ten players signed for the upcoming season 
On May 17, 2012, the Dayton Gems ceased operations. The Gems will be replaced by the relocating Brooklyn Aviators of the Federal Hockey League for the 2012-13 season.1