East Peoria Unveils Plans for New Par-A-Dice Casino, Sparking Inter-City Dispute

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Boyd Gaming has revealed ambitious plans to construct a new $160 million casino in East Peoria, Illinois, intended to replace the existing Par-A-Dice Riverboat Casino. This development, however, has reignited a long-standing dispute with the neighboring city of Peoria over a 1991 intergovernmental agreement concerning land-based casino operations. The proposal, presented to the Illinois Gaming Board, hinges on a novel interpretation of "water-based" gaming to circumvent restrictions that would mandate a land-based facility be built in Peoria.

Key Takeaways

Boyd Gaming proposes a $160 million land-based casino in East Peoria, dubbed a "modernized riverboat."
The plan involves a 1,000-gallon water basin beneath the casino floor to meet "water-based" regulations.
The City of Peoria argues this violates a 1991 agreement requiring land-based casinos on its side of the river.
The Illinois Gaming Board is expected to make a determination in February.

A "Modernized Riverboat" Emerges

Boyd Gaming’s strategy to keep the new casino in East Peoria involves constructing a land-based facility that sits atop a basin filled with 1,000 gallons of Illinois River water. The company refers to this as a "modernized riverboat," asserting it complies with state regulations that permit riverboat gambling on waters within Illinois. Renderings presented to the Illinois Gaming Board depict a new building rather than a traditional riverboat, connected to the existing Par-A-Dice Hotel. The proposed facility would feature approximately 29,000 square feet of casino space, a 20,500-square-foot ballroom, a steakhouse, and a gastropub. Boyd Gaming anticipates construction will take 16 months, with completion targeted for late 2028.

Inter-City Tensions Flare

The plan has immediately drawn criticism from Peoria officials, who contend that Boyd Gaming is exploiting a loophole in the 1991 intergovernmental agreement. This agreement stipulated that while water-based casinos could operate in East Peoria, any land-based casino must be built within Peoria’s city limits. Peoria city leaders have long feared such a scenario, especially after Illinois legalized land-based casinos in 2019. Attorneys for Peoria have previously warned East Peoria against assisting Boyd Gaming in relocating the casino to a land-based site within East Peoria, citing the agreement. Peoria City Manager Patrick Urich stated that the city is still reviewing Boyd Gaming’s presentation and evaluating its options.

Economic Implications and Historical Context

East Peoria Mayor John Kahl has publicly supported Boyd Gaming’s proposal, highlighting the casino’s significant economic contributions to the region. Since 1991, the Par-A-Dice Casino has generated substantial gaming revenue, with both cities splitting the local share of state gaming taxes. However, East Peoria retains additional tax revenue from hotel operations, dining, and entertainment. Boyd Gaming notes that revenue from the current Par-A-Dice has declined, necessitating modernization. The Par-A-Dice Casino first opened in 1991, initially docked in Peoria before moving to its permanent East Peoria location in 1993. The current riverboat was commissioned in 1994. The dispute underscores the financial stakes involved, as property, hotel, restaurant, and sales taxes remain with the host community.

The Path Forward

The Illinois Gaming Board has not yet made a determination on Boyd Gaming’s proposal and is expected to revisit the matter in February. The decision will likely hinge on the interpretation of "water-based" gaming and the validity of Boyd’s "modernized riverboat" concept in light of the 1991 intergovernmental agreement between Peoria and East Peoria.