Ellis Projects HHR Facility to Add $6M a Year in Purses

Ellis Park is moving forward with an application for an extension facility in Owensboro, Ky., that will host historical horse racing gaming and simulcasting. The extension is estimated to produce an additional $6 million in purses per year for the Henderson, Ky., track.

Tim Perkins, vice president and chief operating officer of Laguna Development Corporation and a member of the board of managers for Ellis Entertainment, a subsidiary of LDC which bought Ellis Park in 2019, laid out plans for the extension facility and other upgrades at Ellis Park during a videoconference meeting of the Kentucky Horse Racing Commission Oct. 26. Ellis Park already offers HHR on-site at the track.

The slot-like HHR devices, whose results are based on previously run horse races, have generated sizable revenue for racetracks and their properties in the state. A portion of their revenues fund purses.

Earlier in the meeting, the commission approved licenses to conduct live horse racing, simulcasting, and pari-mutuel wagering for 2022, which included Ellis Park's request for a non-contiguous facility. That approval paves the way for Ellis to complete an application for its extension.

Perkins said Ellis will renovate a current structure for the extension facility. Once approval is given, which could come at the KHRC's December meeting, it is expected to take about a year for the facility to get up and running. Ellis Entertainment plans to invest $16.7 million in the facility.

"The results of the feasibility study made it clear that our targeted location that we had picked out would be the best use of funds allowing for the fastest speed to operations," Perkins said. "It also provides the best return on investment almost immediately because we're going to be renovating an existing structure rather than doing a greenfield type project. Our total investment in Owensboro right now is targeted at almost $17 million.

"With over 60,000 square feet, we'll initially offer 600 HHR units and also a robust simulcast area next to a sports-themed bar and restaurant. The building's in an excellent location on Owensboro's main commercial strip and it has very easy access for guests from all of the surrounding communities. The project's going to positively impact the local economy and it will significantly boost purses for the Kentucky racing product.

"We really feel that once it's completed, the Ellis Park Owensboro property will be something that Ellis Park, Owensboro, and the state of Kentucky will be proud of."

Perkins added that with the square footage, Ellis will be able to "rapidly convert to upward of 800 to 900 HHR units if needed." The facility is expected to bring over 100 new jobs to the local economy and allow for continued capital expansions at Ellis. 

Perkins and Ellis Park general manager Jeff Inman also discussed projects at the racetrack. Track lighting, which is currently in progress, is expected to be in use for the 2023 meet and will allow for twilight racing. Ellis Park will also widen its turf course by 20 feet and add a new tote board system; the expansion of the turf course will require a four-acre pond for irrigation purposes. The turf expansion will not interfere with turf racing for the 2022 meet, Inman noted.

Other planned projects at the track Perkins mentioned included horse wash stations to meet Ellis' commitment to the Environmental Protection Agency and prevent runoff into the Ohio River; a new HHR and simulcast tracking system; a refresh of the winner's circle and the paddock along with other curb-appeal projects; and improved food and beverage product, which includes converting the Gardenia Room into the Dade Park Grill, which will be a full-service, three-meal restaurant, and adding a full-service bar to the simulcast area. 

The 2022 meet will mark the centennial of Ellis Park. Perkins said in order to honor the anniversary, next summer's meet will be a summer-long celebration that will involve entertainment along with promotional events.

Ellis Entertainment has invested $3.52 million to date in Ellis Park since purchasing the track two years ago and plans to invest $14.2 million for improvements and upgrades.