Illinois Cities Disputing the Future of Boyd Gaming's Par-A-Dice Casino in Peoria
In the heart of Illinois, a long-standing dispute between the cities of Peoria and East Peoria continues to unfold, centering around the Par-A-Dice Hotel Casino. The casino, located in East Peoria, has been a source of contention since Peoria's Mayor Rita Ali demanded that casino operator Boyd Gaming either relocate the casino to land-based premises within Peoria city limits or sell its gaming license to another operator willing to comply.
The basis for this demand can be traced back to a 1991 agreement, which stipulates that any land-based casinos must be built on Peoria’s side of the Illinois River. Boyd Gaming, however, has hinted at potential upgrades for the existing Par-A-Dice casino in East Peoria by 2026 but has not committed to relocating it.
East Peoria officials, led by Mayor John Kahl, oppose Peoria's demands, arguing that they should not dictate where a private business operates. They view Peoria’s actions as mere rhetoric. As of August 2025, the tension between the two cities remains unresolved, with no public commitment from Boyd Gaming to move the casino into Peoria.
The Par-A-Dice Hotel Casino, which features approximately 550 slot machines, 18 table games, and a FanDuel Sportsbook, has experienced a significant decline in gross gaming revenue (GGR) over the past decade. In the first half of 2025, the casino's GGR was $31.11 million, down from the same period in 2024.
Mayor Ali wrote a letter to the Illinois Gaming Board (IGB) in February, asking Boyd Gaming to sell its gaming license if it isn't willing to build a land-based casino in Peoria. East Peoria, on the other hand, keeps all other local tax revenue incurred at the Par-A-Dice Hotel property, including sales, hotel, and food and beverage taxes, while Peoria and East Peoria split the 5% tax on Par-A-Dice casino revenue that is allocated as the "local share."
Concerns have been raised that East Peoria may be attempting to keep the casino by orchestrating a way to continue calling the gaming facility a riverboat while allowing it on land. The plan to replace the Par-A-Dice riverboat casino is in the final design stages. Boyd Gaming President and CEO Keith Smith confirmed the plan to replace the existing riverboat casino at Par-A-Dice.
Illinois authorized land-based casinos in 2019, and Boyd Gaming bought the riverboat that operates as the Par-A-Dice Hotel Casino in 1996 for $163 million. In 2022, the casino's GGR was $60.7 million, and it was down to $60.5 million in 2023. The intention, as stated in the Intergovernmental Agreement, is that if Par-A-Dice gaming operations move to a facility on land, it must be in Peoria. The Par-A-Dice riverboat is the third-smallest casino in Illinois among the 17 properties.
The dispute heavily involves regulatory interpretation of the terms "riverboat" versus "land-based" gaming and contractual obligations from the 1991 agreement. Peoria aims to enforce the latter to strengthen its economic position, while East Peoria hopes to retain the casino that currently operates within its jurisdiction. The outcome of this dispute could set a precedent for future negotiations between cities and casino operators in Illinois.
- The long-standing dispute between Peoria and East Peoria revolves around the Par-A-Dice Hotel Casino in East Peoria, with Peoria's Mayor Rita Ali demanding either relocation or the sale of the gaming license to an operator willing to build a land-based casino in Peoria.
- Boyd Gaming, the operator of the Par-A-Dice Casino, has hinted at potential upgrades for the East Peoria casino but has not committed to relocating it, sparking continued tension between the two cities.
- East Peoria officials argue against Peoria's demands, stating that they should not dictate where a private business operates, viewing Peoria’s actions as mere rhetoric.
- As of August 2025, the dispute remains unresolved, with no public commitment from Boyd Gaming to move the casino into Peoria, and East Peoria keeping all local tax revenue incurred at the Par-A-Dice Hotel property while Peoria and East Peoria split the 5% tax on Par-A-Dice casino revenue allocated as the "local share."
- Concerns have been raised that East Peoria may be attempting to keep the Par-A-Dice casino by calling it a riverboat while allowing it to operate on land, as the plan to replace the riverboat casino is in the final design stages.
