Illinois Horsemen Sue Arlington Over Purse Money

Must Arlington International Racecourse Illinois immediately give horsemen more than three-quarters of a million dollars in purse underpayments from 2021 or can it hang onto that money in the hope it eventually will go toward purses at a new track somewhere else in Illinois sometime in the future?

It's up to the U.S. District Court now as the Illinois Thoroughbred Horsemen's Association, as expected, has formalized its quest for the money through a lawsuit.

Both sides seem to agree $775,000 is involved. There also seems to be general agreement that Arlington is "defunct." After that, agreement is tough to find.

The issues now before the court include interpretation of the meaning of the word "TRACK" in the contract between the ITHA-Arlington contract and, possibly, determination of how long Arlington could hold the cash if the term "TRACK" is broadly defined.

Arlington, and owner Churchill Downs Inc., have said repeatedly they are in active search for a site for a new track to replace the plush northwest suburban Chicago showpiece now tentatively set to be sold to the Chicago Bears and presumably bulldozed.

The word "TRACK" in reference to succeeding race meetings, Arlington argues, should be held to mean any track which might eventually bring CDI back into the business in Illinois. Retention of the 2021 overpayment is important to jumpstart a purse account at such a track, Arlington argues.

"Until Arlington knows that it will not hold a future succeeding Race Meeting, it is not required to deliver the amounts held in the purse account to the ITHA," Arlington said in a letter to the horsemen dated March 23, 2022, cited in the suit.

CDI has given no details or timeline relative to a site search other than to indicate a new track likely would require gaming—a major stumbling block in the current Illinois political environment.

The horsemen's suit looks at the language of the contract differently.

"Contrary to Arlington LLC's assertion, the phrase 'at TRACK' or 'the TRACK' is used numerous times in the contract—including but not limited to the requirement to deliver to ITHA underpayments if there is to be no succeeding race meeting at the track—in a context that can only refer to Arlington Park (the now defunct physical racetrack)," the suit says.

As to how long Arlington can hold the purse money if it prevails on the definition question, the March 23 letter, signed by Joseph Quinn, corporate counsel, says only:

"Arlington acknowledges that it cannot retain the amounts in the purse account indefinitely and will notify the ITHA of any material updates. In the meantime, we are happy to discuss further."

The horsemen also note Arlington has demanded payment of $150,000 from the ITHA to help fund purses for state-bred races as provided in the 2021 contract. Payment of that amount simply would add to the total owed by Arlington, the suit says.

The suit seeks payment of all outstanding purse account money plus punitive damages "in an amount to be established at trial."

With Arlington "defunct" and on the sale block, Hawthorne Race Course is the only remaining track in the Chicago area.

Hawthorne this year is splitting its operations between Thoroughbred and Standardbred racing while political machinations proceed relative to the construction of a harness racino authorized in the 2019 gaming expansion legislation. Hawthorne also awaits approvals from the Illinois Gaming Board to clear the way for construction of its own racino, which will significantly boost purses.