Illinois Horsemen Say Arlington out of Compliance

Illinois' leading horsemen's group, irate over the decision by track owner Churchill Downs Inc. not to apply for a casino license for its Arlington International Racecourse, started the new year with a charge that the Chicago-area track is out of compliance with a new provision of the state's racing and gaming laws.

The law, signed in June 2019 by Gov. J. B. Pritzker, requires that each track awarded dates for a calendar year have a signed agreement with the local horsemen's association "before the beginning of each calendar year." Previously, an agreement was required 90 days prior to the start of a race meeting.

The Illinois Thoroughbred Horsemen's Association said Jan. 2 it has an agreement in place with Hawthorne Race Course but not with Arlington.

Arlington did not immediately reply to requests for comment.

Horsemen's consent has been a frequent point of contention in the past, sometimes requiring mediation at the direction of the racing board chairman. The law provides no penalties or remedies for failure to comply with the new provision, although it's likely the IRB would consider the issue.

"We're very cognizant of (the) year-end deadline and are following this very closely," said IRB chairman Jeffrey Brincat. "Controversy between the horsemen and the licensees is never a good thing for Illinois racing."

Brincat noted the deadline for an agreement has been missed several times in recent years.

With Hawthorne closed to Thoroughbred racing this spring during construction of its casino, Arlington is scheduled to begin its season May 1.

The relationship between Arlington and the ITHA went south this summer when Churchill Downs Inc. declined to apply for a casino license at the facility. Arlington for years had worked to win legislative approval for racinos at Illinois tracks, and gaming at Arlington was expected to generate millions of dollars annually in new purse money.

Citing the current casino landscape in Illinois, including tax rates and the percentage of casino money track operators would have to commit to horsemen's purses, CDI did not apply for a casino license for Arlington in 2019.

On Jan. 2, the ITHA said CDI used the industry to garner support for casino gaming in the state but then failed to use the new wagering to support Arlington.

"Churchill Downs Inc. deceived Illinois elected officials and our state's racing industry when it leveraged the support of horsemen and other racing stakeholders to win passage of a gaming expansion measure that will boost the profits at its Rivers Casino—only to then abandon its years-long plan to develop a racino at Arlington Park," the ITHA said in a statement. "Now Churchill is threatening the future of live racing at Arlington by refusing to commit to a contract with the Illinois Thoroughbred Horsemen's Association that will adequately fund overnight purses in 2020."

CDI is a majority owner of Rivers, the state's most profitable casino, located less than 15 miles from Arlington, and a bidder for a new casino license in Waukegan, north of Arlington.

The ITHA said it expects overnight purses at Arlington this summer to average about $130,000 while an "adequate" figure would be $200,000. With gaming revenue off the table as an added funding source, the horsemen suggested Arlington subsidize purses by forgoing some or all of the money it takes for "recapture" of losses to simulcast wagering—$4.47 million in 2019; fund the three grade 1 races on Arlington Million Day from corporate funds rather than the purse account; or divert proceeds from an expected sports betting franchise to purses.

The first IRB meeting of 2020 is scheduled Jan. 21.