Peoria Hires Investment Bank in Effort to Lure Boyd Gaming Across Illinois River
The City of Peoria is fully committed to attracting Boyd Gaming and its Par-A-Dice Hotel Casino located just across the Illinois River.
At Peoria’s joint meeting of the City Council and Town Board on Tuesday, city leaders unanimously approved an ordinance to engage a well-known boutique investment bank specializing in gaming and hospitality to assist in preparing its proposal to attract Boyd to relocate across the river and Peoria Lake.
Peoria engaged Florida’s Innovation Capital, LLC. to offer investment banking services concerning a possible land-based casino.
"In order to develop a project proposal to support a land-based casino operation within the City of Peoria, City staff recommends the City retain a financial advisor to assist with the capital structure for that proposal and legal counsel with experience in Illinois Gambling Law and facility approvals with the Board,” the proposal read before the vote.
Innovation is a top provider of investment banking services catering to midmarket clients in the gaming sector. One of its most prominent agreements was when the company acted as the sole financial advisor to Bally’s Corp. in its efforts to acquire a $1.7 billion integrated resort casino in Chicago.
Company Range
With the signed agreement, Innovation will support Peoria in persuading Boyd Gaming that moving its riverboat casino from East Peoria to a new physical location in Peoria is a strong investment.
Innovation will receive a minimum payment of $10K each month, although the monthly amount could be significantly greater. At Innovation, managing directors earn $750 for each hour worked, while directors and VPs are charged at $500 per hour, and associates and analysts at $200 for 60 minutes.
The agreement lasts for six months but may be renewed. Peoria City Attorney Patrick Hayes states that the project may require more than a year.
Throughout the term, Innovation "will offer … on a best efforts basis, guidance and support" in efforts to relocate Boyd Gaming to the western bank of the Illinois River. Innovation will aid in delivering a proposal to Boyd and East Peoria, participating in pertinent meetings to offer insights and guidance, and negotiating the conditions and financial framework of a potential relocation.
Should Boyd choose to relocate west, the City of Peoria will compensate Innovation with a $250K transaction fee.
1991 Accord
Following the legalization of riverboat gaming by Illinois lawmakers in 1990, Peoria and East Peoria entered into an agreement in 1991 to secure one of the gaming licenses. The agreement specified that a riverboat would function in East Peoria, but if state law were to change to permit land-based casinos, the venue would be located in Peoria.
In 2019, Illinois revised its gaming regulations to permit riverboats to relocate inland for a fee of $250K.
Par-A-Dice has experienced a significant decline in its operations over the last few years. Its enrollments fell from over 776K in 2017 to 700K in 2019, and to under 442K last year.
Physical casinos enable gaming operators to provide additional features such as upscale dining and entertainment that riverboats cannot accommodate all together. Peoria and Innovation will collaborate to create a strategy to persuade Boyd that additional investment in the area is justified.
East Peoria officials are against Peoria's attempts to relocate the casino to the west. They are anticipated to resist Innovation and Peoria’s proposal.
