Peoria Aims to Attract Boyd Gaming with Investment Banking Support
Peoria Aims to Attract Boyd Gaming with Investment Banking Support
The City of Peoria is making significant efforts to attract Boyd Gaming and its Par-A-Dice Hotel Casino to relocate across the Illinois River. This initiative marks a pivotal moment in Peoria’s gaming landscape.
During a recent joint City Council and Town Board meeting, Peoria city officials unanimously approved hiring the investment bank Innovation Capital, LLC. This boutique investment firm specializes in gaming and hospitality and is tasked with crafting a compelling bid designed to entice Boyd Gaming to establish a new, land-based version of the Par-A-Dice Hotel Casino in Peoria.
Investment Banking Support for Casino Development
Innovation Capital, based in Florida, will provide crucial investment banking services to develop a viable proposal supporting the new casino operations. According to the city council’s proposal, retaining a financial advisor with expertise in the intricacies of Illinois gambling laws is imperative for navigating the capital structure and legalities involved in such a project.
Scope of Services
Under the agreement, Innovation Capital is committed to conducting a thorough analysis to persuade Boyd Gaming that transitioning from a riverboat casino in East Peoria to a new brick-and-mortar facility in Peoria is a strategic investment. The firm will receive a minimum of $10,000 monthly, which could increase based on the complexity of the services required. Notably, senior management at Innovation is compensated at $750 per hour, indicating the premium nature of their offerings.
The contract extends for six months but is subject to renewal, with the below city attorney indicating the project timeline could exceed a year.
Proposed Relocation of the Casino
Innovation Capital will play a vital role in generating significant proposals for Boyd Gaming as well as attending important meetings and advising on financial structures. Should Boyd decide to relocate to Peoria, the City will compensate Innovation with a transaction fee of $250,000.
Background on Peoria’s Gaming Landscape
Since the legalization of riverboat gaming in Illinois in 1990, Peoria, alongside East Peoria, secured a contract for one of the state’s gaming concessions. Initially set to operate a riverboat casino in East Peoria, both cities agreed that a transition to a land-based casino would occur should state laws allow it.
In 2019, Illinois updated its gaming regulations, now permitting riverboats to operate inland, provided a fee of $250,000 is remitted.
- Declining Admissions: The Par-A-Dice has seen its patronage dramatically decline, with admissions plummeting from over 776,000 in 2017 to 442,000 in the past year.
- Advantages of a Brick-and-Mortar Casino: Land-based casinos can offer more extensive amenities than riverboats, including fine dining and varied entertainment options.
As Peoria collaborates with Innovation Capital, both entities are focused on creating a comprehensive strategy that highlights the benefits of further investment in the regional gaming sector.
Opposition from East Peoria
Despite Peoria’s concerted efforts, city officials in East Peoria oppose the relocation initiative. They are expected to challenge the proposal from both Peoria and Innovation Capital, illustrating the competitive dynamics in the local gaming industry.
Conclusion
Peoria is dedicating resources and expertise aimed at attracting Boyd Gaming to establish a land-based Par-A-Dice Hotel Casino. With the support of Innovation Capital, city officials hope to navigate hurdles and enhance the region’s gaming offerings amidst opposition from neighboring East Peoria. The outcome of this strategic venture will significantly shape the future of casino gaming in Central Illinois.
