Casino War on the Illinois River

The Par-A-Dice Hotel Casino in East Peoria could close if Boyd Gaming and their neighbors across the Illinois river succeed in relocating the facility. (Image: courtesy of Discover Peoria)

Recently many states have begun to see the advantages of casino gaming. Added revenues into the state’s coffers are the first thing looked at, but the location of the casino is also vitally important. In Illinois, the question of where a casino should be is now dividing two neighboring cities vying for the single casino license that is available in their region. 

A Tale of Two Cities

According to WMBD Radio in Peoria, city officials have been in discussions with Boyd Gaming, which operates the Par-A-Dice Hotel Casino located in East Peoria, just across the Illinois River. The casino is the only operation of the sort within approximately 125 miles. (The next closest gaming locations are in Joliet.) 

With 18 table games (including blackjack, craps, baccarat and roulette), sports betting and over 550 slot machines, Par-A-Dice provides a full slate of gaming activities for Central Illinois. It is also hamstrung by being on a “riverboat,” as per gaming laws when the casino license was granted in 1991. 

The moves by the City of Peoria and Mayor Rita Ali have caught the attention and consternation of East Peoria Mayor John Kahl. In an email to Ali, Karl reportedly said that he was “disappointed” to learn about the City of Peoria’s discussions with Boyd Gaming about moving the casino to a land-based operation in the city. WMBD also reports that not only is Boyd Gaming considering the offer from the City of Peoria, but also it has completely left the City of East Peoria out of any conversations on the subject. 

Casinos.com reached out to Boyd Gaming and were told they had no comment on the matter at this time.

The City of Peoria reportedly is trying to convince Boyd Gaming that a land-based operation on the other side of the river would be more profitable for them. If that happens, East Peoria would lose its biggest entertainment draw.

Casino gaming in the greater Peoria market currently generates about $6 million per year in tax revenue, which is equally shared by Peoria and East Peoria. Any new agreement with Boyd Gaming could potentially nullify the current profit-sharing agreement that has kept the two cities sharing the casino fortune for more than 30 years.

A River Runs Through It

The Illinois River, which feeds the Mississippi, runs between the two Peoria municipalities.

The City of Peoria (pop. 111,000) has museums, TV stations, a cathedral, music festivals, Bradley University, a zoo and a USDA research lab where penicillin was developed. Several hospitals make Peoria the health-care hub for central Illinois. The only thing it doesn’t have is a casino.

East Peoria is more of an industrial suburb (pop. 22,000). It was home to and corporate headquarters for Caterpillar, the construction and mining equipment manufacturer, since 1910. While many factories remain, the company relocated its corporate headquarters to Deerfield, Illinois, in 2017 (and then Irving, Texas, in 2022). 

The biggest attraction in East Peoria is the Par-A-Dice casino and hotel. In addition to the three-deck casino riverboat, the dock has a 220-room hotel with a steakhouse and music lounge, making it the fanciest place in town. 

Par-A-Dice Lost?

Casino gaming in the area goes back to 1991, when the state granted the original license to both Peoria and East Peoria. This was a year after Illinois allowed casino gaming on riverboats, which at the time had to actually leave shore and take passengers on a “cruise” up and down the river to gamble. 

From November 1991, while the Par-A-Dice riverboat dock and hotel were being built in East Peoria, casino gaming launched aboard the renovated Spirit of Peoria paddleboat, which docked in Peoria. It was just temporary, and approved by gaming authorities as the shared gaming license passed back and forth across the river.

The current East Peoria location opened in May 1993. 

In 1994, the Spirit of Peoria would be replaced with a more modern vessel. In 1996, Las Vegas-based Boyd Gaming bought the Par-A-Dice for $163 million. 

In 1999, gaming cruises along the Illinois River stopped, as changes to Illinois law allowed casinos riverboats to remain docked. 

Peoria, Illinois, is considerably more cosmopolitan than its struggling neighbor to the east. (Image: Sean Pavone / Alamy)

From Water onto Land

Illinois’ gambling laws would continue to evolve over the next 20 years, culminating in a 2019 change that not only added sports betting, but also allowed all former riverboat licensees to move fully onto land. 

Yet through more than a decade’s worth of gaming expansion, Illinois never granted a second license for the Peoria/East Peoria area. So Boyd got to remain the lone casino operator in the area, and no longer was water-bound.  

In 2019, by ending regulations that kept casino gaming on water, the Illinois General Assembly opened the floodgates to several new operations across the Land of Lincoln. 

It also sparked the City of Peoria’s interest in potentially bringing casino gaming back to their shores. In 2020, WMBD reports, Peoria officials traveled to Las Vegas to quietly meet with Boyd Gaming officials to discuss what the new regulations made possible.

Will Boyd Gaming be able to do better if they abandon ship in East Peoria and try to build something on land in Peoria? (Image: MapQuest)

In March of this year, Boyd Gaming met with the Illinois Gaming Board for what looked to be a simple regulatory license extension. In that meeting, Boyd and Par-A-Dice were granted a license extension for four years, but they were also tasked with developing plans for a “new casino facility” within two years. Boyd agreed to those conditions, but no firm plans have come to fruition at this time. 

That is what has sparked the City of Peoria’s interest in moving the Par-A-Dice Hotel Casino back across the river, and Boyd’s apparent willingness to abandon East Peoria. 

As of now, neither the City of Peoria, the City of East Peoria, nor Illinois politicians and gaming officials are willing to talk about the future of casino gaming in that city. 

Suffice it to say that the battle for Par-A-Dice has begun in Central Illinois.