In many places the ice is not removed; the Basketball floor is placed over it. Of course, if they are not set up to put the floor over the ice, the ice is removed when going from Ice Hockey to basketball.
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It does. The STAPLES Center (and previously Forum) crews install the guards/retaining walls, flood the area, and freeze it. At a certain thickness, they stop and paint the lines, circle, logos, and goal crease. They continue to fill it to its prescribed thickness.
During the season, three layers of wood separate the ice from the playing floor (or walking surface) to ensure the floor doesn't "sweat". As an added bonus, STAPLES Center installed special piping to keep the ice at perfect temperature - even if there are hot humid days during the hockey season.
After the season ends, the ice is melted and is not returned until early September. The 2012 season is the first since 2001 where the ice will remain into May. (May 9, 2001, was the date the Colorado Avalanche eliminated the Kings from the second round)
Typically, they do not. They just cover the ice with an insulating board and lay the basketball floor on top.
They cover the ice with various layers then put the court boards down. It is very cool to watch!