Illinois: Peoria takes first steps to secure land-based casino as Boyd Gaming considers expansion

Peoria, Illinois is positioning itself as the host for a potential land-based casino, should Boyd Gaming move forward with plans to expand its operations in the region. The city is set to hire financial and legal experts to assist in negotiations and strategy development regarding Boyd Gaming’s Par-A-Dice Casino, currently operating as a riverboat casino in East Peoria.

City staff have proposed engaging Innovation Capital LLC, an investment banking firm, and attorney John Elias to provide financial and legal guidance. The agreements are scheduled for a vote at the Peoria City Council meeting on Tuesday.  

Peoria Mayor Rita Ali expressed strong support for the proposed hires. "Some expertise is needed here in terms of these discussions and negotiations, and that's really the purpose of bringing in the consultant," Ali said.  

Boyd Gaming revealed during a March hearing with the Illinois Gaming Board that it plans to present a proposal for a new casino facility by 2026. With this in mind, the City of Peoria is looking to take steps toward luring the casino from the riverboat to the city.

While the company did not specify whether the facility would be land-based, the announcement prompted Peoria officials to remind Boyd Gaming of a longstanding agreement from the early 1990s. This agreement states that any land-based casino in the area must be located within Peoria’s corporate limits.  

East Peoria, which currently hosts the Par-A-Dice Casino, has also expressed interest in Boyd Gaming’s expansion plans. This has led to disagreements between Peoria and East Peoria officials, with the two cities holding differing views on the appropriate location for a new facility. Peoria has also pointed to provisions in the state’s Gambling Act, which support its claim to host any land-based casino in the region.  

To strengthen its position, Peoria is preparing to retain Innovation Capital on a six-month contract. The firm would receive a $10,000 monthly retainer and a $250,000 transaction fee if a development agreement is reached. Attorney John Elias would be compensated at an hourly rate of $395. The funding for these contracts would come from the city’s legal department budget for outside counsel.  

Assistant City Manager Kimberly Richardson highlighted the importance of these hires in ensuring a thorough and strategic approach to the casino discussions. "We are looking at a feasibility study, so we want to bring in a financial advisor to assist us with understanding what the investment will look like and some of the financial aspects of it, if a casino came to the city," Richardson said.

"Then you have the legal aspects of just understanding the gaming law and making sure that as this progresses, we are doing things through the Illinois Gaming Board correctly."  

The current Par-A-Dice Casino generates gambling tax revenue that is shared between East Peoria and Peoria. Should Boyd Gaming move to build a land-based casino in Peoria, city officials anticipate substantial economic benefits, including increased tax revenue and tourism.  

While speculation has arisen regarding potential sites for a new casino in Peoria, Mayor Ali dismissed rumors that the recently acquired downtown PNC Building could be a candidate. “It is doubtful that the PNC Building is fit for a possible casino site,” Ali stated, adding that further discussions with Boyd Gaming would help clarify requirements and preferences for a new location.  

East Peoria, meanwhile, is exploring the creation of a new tax-increment financing district encompassing the current Par-A-Dice Casino and hotel site, signaling its own efforts to retain the casino within its jurisdiction. 

The Illinois Gaming Board has granted Boyd Gaming a four-year license renewal, requiring the company to present its expansion plans by 2026.