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Peoria City Council refuses Boyd Gaming settlement over possible casino relocation
A legal dispute over the proposed inland move of the Par-A-Dice casino riverboat will continue after a split vote regarding Boyd's offer on tax revenues.
The potential relocation of the Par-A-Dice casino riverboat in East Peoria could involve a formal lawsuit from the City of Peoria after a compromise offered by the casino's operator, Boyd Gaming, was rejected by the Peoria City Council. The dispute involves language in the an intergovernmental agreement between East Peoria and Peoria that could block Boyd's plans to construct an inland facility.
Split vote amounts to rejection of Boyd proposition
According to Joe Deacon of WCBU, the vote on Boyd's settlement proposal went five in favor, five against, with one member of the Peoria City Council absent. As a result, the motion to accept Boyd's offer failed.
Boyd had offered Peoria 2.25% of the new gaming facility's annual gross revenue. However, a stipulation in the agreement regarding casino gaming in the area between East Peoria and Peoria could entitle Peoria to a larger share.
That agreement states that while East Peoria can host any riverboat facilities, Peoria is the site for any casinos on land. Boyd, though, has a proposal for a new casino in East Peoria which will primarily be on dry ground.
In exchange for the 2.25% of revenue concession, Peoria would have agreed to not challenge Boyd's renovation in court. Under Illinois law, host municipalities are entitled to 5% of physical casinos' gross revenue annually.
Deacon quotes Council Member John Kelly as stating, "I'm in favor of fighting this out." However, the contingent of the council in favor of the proposal voiced other concerns.
Proponents of settlement cite litigation cost among concerns
There is no legal way to play real money online casino games in Illinois, so brick-and-mortar casinos are still the best legal means to enjoy such games in the state. As a result, municipalities like Peoria attempt to maximize their tax gains from gaming in the absence of revenues from iGaming like the BetMGM Casino app.
The financial ramifications of fighting Boyd's plans in court came into the conversation during the meeting. Deacon reports that Peoria City Attorney Patrich Hayes estimated a prolonged legal battle could cost the city millions of dollars.
In light of that information, Peoria Mayor Rita Ali expressed doubts about the rewards of that expense.
"Even if we go to court, spend millions of dollars, spend years, even if we win, what does that look like?" Ali asked. "It doesn't get us a riverboat; it doesn't get us a land-based casino in Peoria. It still doesn't get us that casino, it doesn't guarantee us that. It just means we were right. That's not a win, for me."
With Boyd's renovation plan up for consideration before the Illinois Gaming Board on Feb. 5, the threat of litigation from Peoria puts Boyd in somewhat of an undesirable situation in the short-term. At this time, Illinois courts will probably have the duty of mediating this dispute should Boyd move forward.
