Peoria Drops Lawsuit After Boyd Agrees to Build Riverboat Casino on Barge

^{The Par-A-Dice Hotel and Casino is currently a land-based structure located in East Peoria, Ill. (Photo: Par-A-Dice Hotel and Casino / Boyd Gaming)}

The city of Peoria has dropped its lawsuit against Boyd Gaming after the casino firm has changed its plans and will now build its new casino on a barge on the Illinois River, rather than what the city considered a land-based location.

The lawsuit also named the city of East Peoria and the Illinois Gaming Board as defendants.

Peoria Accused Boyd of Skirting Riverboat Agreement

At issue was Boyd’s plan to build a new casino in East Peoria. The company planned to construct a new 29,000-square-foot building to house the casino on land that currently houses the parking lot of the current Par-A-Dice Casino. Boyd planned to build above a shallow pool of water siphoned off from the Illinois River, then call the new facility a riverboat casino as a result.

The city of Peoria argued that this plan violated both the Illinois Gaming Act and an agreement between the city an East Peoria that required any land-based casinos to be located within Peoria’s city limits.

Earlier in February, the Peoria City Council narrowly rejected a proposal from Boyd Gaming that would have given the city 2.25 percent of the new casino’s adjusted gross revenue, provided the city halted its challenge to the facility. The councilmembers were split on the proposal, voting 5-5 with one absence. Revenue for Peoria under the proposal was estimated at $1.8 million annually.

“I can’t help but to say I’m disappointed,” Peoria Mayor Rita Ali said at the time. “This was a rare opportunity for us.”

Barge Plan Surprises Divided City Council

Those who voted to accept the proposal cited the financial windfall – as well as the costs associated with fighting Boyd even when the company had no plans to build a casino in the city of Peoria in any case.

“If we’re going to avoid spending all those attorneys’ fees and waiting years to even building a casino, whether here or there, I’m more inclined to take it,” Councilmember Mike Vespa said at the time.

But on Feb. 5, Boyd Gaming presented new plans to build its casino on a barge rather than on the manmade basin. That plan, which the Illinois Gaming Board is scheduled to consider on Feb. 26, would not violate state law or any agreements between the two cities.

While Peoria officials were surprised by the announcement, which might suggest that Boyd had been working on a backup plan to build the new casino on a barge for some time, the city agreed to drop its lawsuit – provided Boyd doesn’t pivot again and attempt to build its casino on land.

The current Par-A-Dice riverboat casino was opened in May 1993. It has been docked permanently in East Peoria since 1999, when Illinois law was changed to no longer require riverboat casinos to cruise.