Peoria City Council Rejects Casino Settlement, Dispute Could Move to Court
Posted on: February 3, 2026, 07:56h.
Last updated on: February 3, 2026, 07:56h.
- The City of Peoria has rejected a motion to terminate its challenge of a new casino in East Peoria
- Boyd Gaming has proposed a “modernized riverboat” that is land-based, aside from a 1,000-gallon water basin under a part of the casino floor
In a split 5-5 decision, the Peoria City Council rejected a settlement offer presented by Boyd Gaming and the City of East Peoria to resolve a dispute about a new Par-A-Dice casino.
On Monday evening, the Peoria City Council considered ending its opposition to a new casino in East Peoria that it claims violates its 1991 intergovernmental agreement. The 1991 document mandates that any riverboat gaming operate in East Peoria, while any land-based casino would need to relocate across the Illinois River to Peoria.
Las Vegas-based Boyd Gaming has proposed a “modernized riverboat” on the site of its Par-A-Dice hotel parking lot, just inland from its current docked riverboat. By all accounts, the modernized riverboat is a land-based structure, with the exception being a 1,000-gallon water basin underneath the brick-and-mortar casino floor.
Agreement Support
Peoria and East Peoria have always split Par-A-Dice’s 5% local gaming tax, but all property, hotel, sales, food and beverage, and other taxes generated and paid by the casino remain in East Peoria.
Boyd Gaming’s proposed paying Peoria 2.25% of all non-gaming revenue to Peoria in exchange for the city ceasing its challenge of the redevelopment. Estimates suggest that would deliver Peoria about $1.8 million annually.
Peoria Councilor Michael Vespa, who voted in favor of the resolution, opined that $1.8 million is likely more than what Peoria would collect if the entire casino resort were moved west of the river. Another benefit, Vespa opined, is that keeping the casino in East Peoria keeps crime there, too.
“Something we wouldn’t get with this casino is the increased crime that comes with a casino. People go into casinos, lose their life savings. I don’t want them stumbling straight into our bars and restaurants,” Vespa said.
Mayor Rita Ali, who also supported the resolution, said $1.8 million is not “crumbs or peanuts.” The mayor said the city would receive almost $50 million over 25 years.
Vespa asked city attorney Patrick Hayes whether the Illinois Gaming Board (IGB) will approve Boyd’s “modernized riverboat” plan.
I don’t want to denigrate the board or its abilities, but it was clear to us in speaking on many occasions with the administrator of the board that there is a significant risk that the board will approve Boyd’s proposal,” Hayes explained.
Hayes added that if the city were to appeal the IGB’s approval of the Boyd overhaul in East Peoria, the process could take a year to 18 months through state appellate courts. If the matter moves to the Illinois Supreme Court, which Hayes said would be likely, the legal fees could top $1 million.
Resolution Opposition
Councilor Alex Carmona wasn’t fazed by Hayes’ projected legal costs.
There certainly is risk from us as a city fighting this out in court, but it’s a calculated risk, because we’re the ones who are right. We’re worried about worst-case scenarios about spending around a million dollars to get this litigated to prove that we are right,” Carmona said.
“I want to fight for a better settlement agreement than what we have now,” Carmona declared.
With the motion failing, the City of Peoria will need to determine its next steps, whether that entails sitting down with Boyd in hopes of amending the settlement or moving towards litigation.
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