Peoria Reaches Deal with Casino Operator for Revenue Sharing

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The City of Peoria has reached a potential settlement with Boyd Gaming regarding the new Par-A-Dice casino in the neighboring city of East Peoria. Under the deal, Peoria would drop its objections to the casino in exchange for a share of the gaming revenue. This reflects broader trends in the casino industry, as states and local governments seek to maximize tax revenue and adapt to increased competition from online gaming and sports betting.

Why it matters

The Peoria-East Peoria dispute highlights the evolving dynamics of the casino industry, where rigid location restrictions are giving way to more flexible approaches that prioritize revenue generation. This settlement represents a compromise that aims to balance economic development with concerns about the potential impact on local businesses.

The details

The potential agreement centers around a 1991 pact that dictated casino locations. As the gaming landscape has expanded nationwide, with the rise of tribal casinos, racinos, and online platforms, states and cities are recognizing the need to loosen restrictions to capture tax revenue. The revenue-sharing model, where casinos directly compensate local governments, is becoming more common as a way to mitigate the economic impact on non-gaming businesses.

• The 1991 agreement between Peoria and East Peoria dictated casino locations.
• In the 2023-2024 fiscal year, Pennsylvania's casinos and online gaming generated over $5.4 billion in total revenue.

What they’re saying

What’s next

The judge in the case will decide on Tuesday whether to approve the revenue-sharing agreement between Peoria and Boyd Gaming.