KHRC Approves Sale of Turfway Park to Churchill Downs

The Kentucky Horse Racing Commission unanimously approved the sale of Turfway Park to Churchill Downs Inc. at its Oct. 8 meeting at the Kentucky Horse Park in Lexington, Ky., as CDI announced it would double purses from an average of $12,000 to $24,000 for Turfway's 2019-2020 meeting that begins in December.

The approval had been widely expected after CDI announced Oct. 3 its intention to buy Turfway for $46 million, reconstruct the facilities, and add slot-like historical horse racing devices at a total cost of $150 million. This move came after CDI had said in mid-September that it wanted to build a new track and gaming facility in the Northern Kentucky area where Turfway is located, plans that were scrapped following the sale of Turfway to CDI.

When the sale closes as early as Oct. 9, CDI will have added two tracks in the state within the past year, the other being a new harness track in the southwestern part of the state called Oak Grove Racing & Gaming, scheduled to open in the first half of next year. Like CDI's plans at Turfway, the driving force behind that endeavor is the swelling popularity of HHR devices, which have been a boon for the company and supplemental purse money in the state. Only pari-mutuel licensees can operate HHR machines in Kentucky.

Accrued purse funds from CDI's Louisville HHR gaming facility, Derby City Gaming, will supplement this winter's purse structure at Turfway while not affecting the levels in place at Churchill Downs, according to CDI. The total purse money transferred is estimated to be several million dollars, Churchill Downs president Kevin Flanery said.

"We want to send a clear signal we are in this for the long haul, that we want Kentucky's horsemen to stay here year round as much as they can," he told racing commissioners.

Aside from increased purses, no major changes are expected for Turfway's winter meet, which begins Dec. 4 and concludes March 28, 2020. Then CDI intends to demolish the existing grandstand, after which construction of its gaming and racing facility can begin for a grand reopening in the summer of 2021 under the name Turfway Park Racing & Gaming.

Churchill's announcement of elevated purses and improvements was met with enthusiasm by horsemen representatives and KHRC commissioners, some of whom had been critical of the track's past ownership, Jack Ohio, an affiliate of JACK Entertainment. Under JACK, which operates a casino in nearby Cincinnati, Turfway had not benefited from major investment, nor had the track installed HHR devices that had been operational at other racetracks in the state.

In a presentation to commissioners, Flanery outlined rough construction plans for the new facility, which would include 1,500 HHR machines and updated grandstand amenities. A seven-furlong dirt track inside the existing one-mile synthetic Polytrack surface is also planned, provided Turfway's infield lake does not make it logistically difficult.

"I'm very encouraged by having Churchill come up and investing money in Northern Kentucky, especially in that particular facility," said KHRC vice chairman Mark Simendinger, a past executive at Turfway Park. "Their commitment to tear down the grandstand and do things right, and to address the years of neglect in the barn area I think is great."

Flanery envisions the dirt track being an option for more than training, potentially for racing and mentioning the Turfway's signature race, the Jeff Ruby Steaks (G3), as a race that could be moved from Polytrack to dirt as a prep for the Kentucky Derby Presented by Woodford Reserve (G1).

"We want that to be an important steppingstone for horses that want to make it to the Derby," he told commissioners.

Also Tuesday in a separate commission meeting, the KHRC dates committee issued a recommendation to the full commission to award Kentucky Downs seven racing days in 2020, up from its customary five-day season from past years. 

Ellis Park, which runs in Kentucky during the summer, opposed Kentucky Downs' request to have seven days in September, believing it could negatively impact purses and the horse population from which it fills its race cards in its final weeks. Kentucky Downs had sought the extra days partially as a means to offset fixed costs associated with its short meet.

Commissioners asked representatives of the two tracks to come to terms before the KHRC has its full meeting Oct. 29, at which point a binding determination on race dates by the KHRC will be made.