Boyd Gaming representatives state that the Las Vegas-based gaming company is completing arrangements for a new investment in Illinois, where it has managed the Par-A-Dice Hotel Casino in East Peoria since 1996.
During Boyd’s second-quarter earnings call on Thursday, Keith Smith, president and CEO, informed investors and analysts that the new Par-A-Dice vision is almost clear.
"We are working through the final design and regulatory approval process for a modern new entertainment facility that will replace our existing riverboat casino at Par-A-Dice,” Smith said.
Smith did not specify an exact site for the potential new casino or indicate whether it will be a physical establishment.
Chances Favor Crossing the River
The Par-A-Dice has been located in East Peoria along the southwestern shore of Peoria Lake and the Illinois River since local investors launched the gaming boat in the early 1990s. Boyd purchased the business in 1996 for $163 million in cash.
A 1991 agreement between Peoria and East Peoria specifies that riverboat casinos should be located on the east side of the river, while land-based casinos must be situated in Peoria. When the agreement was reached, Illinois law mandated that slot machines and table games function above water.
In 2019, legislators in Springfield modified the gaming law to permit riverboats to relocate inland. To move ashore, the riverboat must obtain authorization from the municipality where they intend to relocate and pay a $250K fee to the state.
Peoria has been urging Boyd to move its slots, tables, and sportsbook over the water. The city engaged Innovation Capital last year to provide guidance on how to support the transition.
Although Smith didn’t indicate the exact location for the design, it can be reasonably inferred that it’s aimed at Peoria. No industry expert like Smith would refer to a riverboat as a “modern” establishment, as these vessels are being phased out in Illinois and other states that once restricted gaming to above-water venues, such as Iowa and Mississippi.
"Assuming regulatory approvals are received later this year, we expect this project to begin in 2026,” Smith added.
In February's earnings call for the full year, Smith disclosed that the Illinois project would have an estimated cost of approximately $100 million. The Boyd leader stated the firm would be “replacing our 30-year-old riverboat … with an exciting new entertainment venue.”
Par-A-Dice Declining Income
Par-A-Dice is facing challenges, as numerous gamblers have chosen to move their business to newer, physical venues that offer more games and improved amenities.
The Illinois Gaming Board reports that in 2016, Par-A-Dice earned gross gaming revenue (GGR) of $82.5 million from over 866,000 admissions. In 2019, the riverboat's GGR dropped to $72.8 million with 696,500 admissions.
COVID-19 negatively impacted business, and unlike several other casinos in the state and nationwide, Par-A-Dice didn't see a post-pandemic surge. In 2022, GGR reached $60.7 million with a total of 432,334 admissions. GGR dropped to $60.5 million last year with 425,362 admissions.