A major legal battle is unfolding as the City of Peoria sues to block a $160 million redevelopment project for the Par-A-Dice Hotel Casino in neighboring East Peoria. At the heart of the dispute are conflicting interests over casino licensing laws and regional agreements that date back decades.
Key Takeaways
- Peoria files lawsuit against Boyd Gaming, Par-A-Dice Gaming Corporation, Illinois Gaming Board, and City of East Peoria
- Dispute centers on the legality of a proposed land-based casino expansion
- The redevelopment would modernize the riverboat casino with new facilities
- Peoria cites a 1991 agreement mandating new casinos be built within its limits
- The Illinois Gaming Board is set to rule on the proposal soon
Background of the Casino Redevelopment Dispute
Boyd Gaming, a Nevada-based company operating the Par-A-Dice Hotel Casino, has proposed a sweeping redevelopment of the property. The $160 million project would create a new and expanded gambling venue on the existing casino grounds in East Peoria. Boyd characterizes this as a “riverboat modernization,” with construction planned over a basin connected to the Illinois River.
Legal Arguments and Regional Agreements
The heart of Peoria’s lawsuit lies in both state gaming laws and a regional accord struck in 1991. According to city officials, the agreement between Peoria and East Peoria mandates that any new land-based casino operations within the area must be established in Peoria. The new project, they argue, violates this longstanding accord in addition to gaming license requirements in Illinois law.
City Council Divisions and Rejected Settlement
Peoria’s city council revealed divisions over how to proceed. A settlement proposal was offered that would have seen Boyd Gaming pay 2.25% of adjusted gross casino revenues—estimated at $1.8 million annually—to Peoria. However, a split council rejected this compromise on Monday, pointing toward a more adversarial path.
Next Steps: Awaiting Illinois Gaming Board’s Decision
As legal proceedings advance, all eyes turn to the Illinois Gaming Board, which will review Boyd’s proposal in an upcoming meeting. East Peoria, meanwhile, remains publicly silent on the specifics of the lawsuit, with Mayor John Kahl declining to comment due to ongoing litigation. The outcome could have repercussions for the region’s economy and the future of casino gaming along the Illinois River.
