Peoria’s Bold Move: Hiring Investment Bank to Bring Boyd Gaming’s Casino to the West Side of the River
Peoria, Illinois, is intensifying its efforts to attract Boyd Gaming to establish a new brick-and-mortar Par-A-Dice Hotel Casino, moving across the Illinois River from East Peoria. During a recent joint City Council and Town Board meeting, city officials approved an ordinance to engage the services of Innovation Capital, LLC, a specialized boutique investment bank that focuses on gaming and hospitality transactions.
Engaging an Investment Banking Firm
The decision to hire Innovation Capital was made unanimously, indicating a strong commitment from Peoria’s leadership to persuade Boyd Gaming to relocate its operations. The current Par-A-Dice Casino operates as a riverboat in East Peoria, but city officials believe a land-based casino would provide significant advantages, including expanded amenities and increased revenue potential.
Innovation Capital, based in Florida, is known for its expertise in midmarket investment banking services related to gaming. The firm’s impressive track record includes advising Bally’s Corporation in the development of a $1.7 billion integrated resort casino project in Chicago.
The firm’s responsibilities will include helping Peoria draft a compelling proposal for the potential land-based casino and offering strategic financial advice. According to the proposal presented to the council, hiring a financial advisor with knowledge of capital structures and legal experts familiar with Illinois Gaming Law is essential for the project.
Financial Arrangement and Project Timeline
Under the terms of the agreement, Peoria will pay Innovation a base fee of $10,000 per month, with a potential for higher compensation based on the services rendered. The hourly rates for the firm’s managing directors and vice presidents range from $500 to $750, while analysts will bill at $200 per hour. The initial contract is set for six months, but it may be extended, reflecting the long-term nature of the project, as noted by Peoria City Attorney Patrick Hayes, who indicated that the planning and negotiations could take over a year.
During this period, Innovation Capital will provide advice and assistance aimed at persuading Boyd Gaming to consider the advantages of relocating its East Peoria riverboat casino to Peoria’s western bank. The firm will also play a vital role in negotiations, attend key meetings, and present this proposal to both Boyd Gaming and East Peoria governance.
Should Boyd Gaming decide to proceed with the move, Peoria would owe Innovation Capital a transaction fee of $250,000.
Historical Context and Local Dynamics
The talks concerning the relocation of the casino are set against a backdrop of historical agreements and changes in state legislation. In 1991, Peoria and East Peoria entered into a pact after the Illinois legislature legalized riverboat gaming in the state. This agreement established that a riverboat would operate in East Peoria, albeit it also stated that should state laws evolve to permit land-based casinos, Peoria would secure the right for such a facility.
The state’s gaming laws underwent significant amendments in 2019, enabling riverboat casinos to transition inland by paying a fee of $250,000. Since those changes, the Par-A-Dice experience has notably declined, with admissions plummeting from over 776,000 in 2017 to less than 442,000 in the last year.
The expansion to a brick-and-mortar casino is anticipated to lure more visitors, facilitate enhanced gaming options, and create a comprehensive entertainment environment featuring fine dining and other attractions that are currently limited aboard riverboats.
However, Peoria’s initiative faces opposition from city officials in East Peoria, who are likely to resist the proposal and the efforts made by Peoria and Innovation Capital. The outcome of these negotiations will be closely watched by both local communities and industry stakeholders as Peoria seeks to reshape its gaming landscape.