Illinois: Peoria mayor demands Boyd Gaming build land-based casino in Peoria or sell license

Peoria Mayor Rita Ali has made it clear that Boyd Gaming must either build a land-based casino within Peoria city limits or sell its Par-A-Dice Riverboat Casino gaming license to an operator who will.

In a February 4 letter to the Illinois Gaming Board, Ali insisted Boyd must follow a 1991 agreement requiring any new land-based casino in the area to be located on Peoria’s side of the Illinois River, the Journal Star reported.

"If Boyd is not prepared to develop land-based gaming and related facilities in Peoria, we ask that the IGB require Boyd to sell the Par-A-Dice gaming license to another casino operator that is prepared to develop a land-based gaming facility in Peoria," Ali said in the letter.

Boyd Gaming currently runs the Par-A-Dice casino in East Peoria and has hinted at upgrading the facility by 2026. However, Peoria officials reject the casino remaining in East Peoria or being redefined as anything other than land-based if moved.

The letter also criticized East Peoria’s opposition to the casino relocation. Ali warned against attempts by Boyd or East Peoria officials to manipulate legal definitions of “riverboat” and “land-based” gaming in ways that would violate the intergovernmental agreement.

“It is, and always has been, the intention of all concerned that if Par-A-Dice gaming operations were to move off of the existing moored vessel in East Peoria to a facility on land, those land-based operations must be in Peoria,” said Ali.

Tensions between Peoria and East Peoria have simmered amid the ongoing debate over the casino’s future. East Peoria Mayor John Kahl, speaking at the Par-A-Dice during his February State of the City address, acknowledged the heated exchanges with Ali but reiterated he would not dictate where a private business operates.

"Let Peoria keep running their mouth on whatever they hope to do, hope to see, can't speak for them,” Kahl told reporters.

The Illinois Gaming Board responded by acknowledging the 1991 agreement but stated Boyd has not officially committed to building a land-based casino. The board said Boyd must submit a viable plan that complies with laws and rules, but did not require a land-based facility.

Boyd Gaming CEO Keith Smith previously mentioned plans for a $100 million replacement casino similar to a new land-based property they had opened in Kenner, Louisiana. 

In a letter, Illinois Gaming Board Administrator Marcus Fruchter also rejected Ali’s suggestion that the IGB had imposed new requirements for a land-based casino or additional amenities like a hotel or conference center.

Boyd Gaming has three options under state law: operate a propelled excursion boat, a permanently moored non-operational barge, or build a land-based facility.

In a follow-up letter on July 1, Fruchter reaffirmed that the IGB expects Boyd to comply with state law concerning gaming locations, balancing the allowance for river-based gaming in East Peoria and land-based gaming in Peoria.

"The IGB will ensure the casino redevelopment project proceeds in a manner that satisfies Illinois law and IGB rules and upholds the integrity and safety of Illinois gaming," Fruchter said. "The IGB remains committed to a casino redevelopment plan approval process that is compliant, transparent, and conducted in good faith."