A divided Peoria City Council couldn't come to an agreement on a proposed deal that would have given the city millions of dollars over many years. The deal was for allowing a new Par-A-Dice Casino to be built across the river.
After a debate that lasted more than an hour and a half, the council voted five in favor and five against the settlement. They needed a majority to approve it.
"I can't help but say I'm disappointed," Mayor Rita Ali told 25 News Now. She couldn't persuade most of the council to see the settlement as a "victory." The deal would have ensured an annual payment to the city in exchange for not opposing Boyd Gaming's plan for a new casino near the current Riverboat casino in East Peoria.
 Instead, half of the council decided to risk a long, potentially expensive legal fight over what counts as a land-based casino. It's a plan that has been talked about for months.
The Controversy
The controversy stems from a 1991 agreement that allocated gambling rights between Peoria and East Peoria.
Peoria filed an objection with the Illinois Gaming Board, concerned that the redevelopment might infringe upon its land-based casino rights and affect local tax revenues.
Had the settlement been approved, Peoria would have agreed to drop its legal objections in exchange for a share of the casino's future gaming revenues. Specifically, Peoria would have received 2.25% of the adjusted gross gaming revenues from the redeveloped facility—an arrangement that could yield approximately $1.8 million annually, contingent on the casino's financial performance.
But that won't happen. At least for now.
The Redevelopment Plan for Par-A-Dice
The redevelopment plan for the Par-A-Dice Casino includes:
- Modernizing the facility by expanding the gaming floor.
- Introducing new dining options such as a steakhouse and a gastropub.
- Implementing a creative solution to maintain or "modernize" its riverboat casino status in compliance with Illinois gaming laws.
To maintain its riverboat casino status, as mentioned in the third bullet point, the redevelopment will have to involve channeling water from the Illinois River beneath the casino's gaming floor. In short, the new casino development would be built on top of a 1,000-gallon man-made basin filled with water drawn from the river.
Had the council approved the plan, it would have acknowledged the potential benefits of securing ongoing revenue while avoiding a costly legal battle. Despite some reservations over the project's workaround involving piped river water, it was thought that the agreement would be deemed a constructive compromise.
That was not the case.
History of Gambling in East Peoria
Gambling has played a significant role in East Peoria's economic landscape since the early 1990s.
The Par-A-Dice Casino first opened its doors in 1991 as a riverboat casino, taking advantage of Illinois laws that permitted riverboat gambling. Over the years, the facility has become a major entertainment destination, attracting visitors and revenue to the region.
This development marked a turning point for East Peoria, transforming it from a largely industrial zone to a vibrant hub for tourism and leisure. The casino has been pivotal in shaping the city's economy, contributing to local tax revenues and providing employment opportunities.
What's Next for the Peoria Casino Plan?
Rejecting the settlement might lead Boyd to propose a deal with better terms for the city. With the agreement, Boyd Gaming could have moved forward with its plans to redevelop the current site in East Peoria.
The project is expected to bring major economic benefits by providing the area with larger gaming facilities, new restaurants, and event spaces. Construction was set to start soon if approved, but now finishing by the late 2028 deadline seems unlikely.
Both sides will need to return to the negotiating table.
In the meantime, residents of Illinois have other gaming options, as sweepstakes casinos are legal in the state. These platforms offer a legal alternative for those interested in casino-style games, providing opportunities to play for both fun and prizes.
