Ellis Park Sold for Second Time in a Year

After receiving regulatory approval to offer Thoroughbred racing and historical gaming, a subsidiary of Laguna Development Corporation of Albuquerque, N.M., is expected to complete an $11 million deal in the coming days to purchase Ellis Park in Henderson, Ky.

It would mark the second time the track has been sold in the past 12 months as last summer Saratoga Casino and Hospitality Group, of Saratoga Springs, N.Y., completed a deal to purchase Ellis Park from Ron Geary. The Saratoga Casino group had previously been a 30% owner of Ellis before fully purchasing the track last July.

Founded in 1998, Laguna Development Corporation operates three casinos and a number of travel centers as it is involved in gaming, retail, entertainment, and hospitality for the Native American tribe Pueblo of Laguna.

Saying the Evansville, Ind., wagering market is under-served, the prospective new owner of Ellis Park outlined an ambitious plan to invest nearly $60 million in the racing and historical racing facility at the Henderson, Ky., track in the next couple of years.

After hearing those plans and no staff concerns about the principals in the new ownership group, the Kentucky Horse Racing Commission June 18 at its regular meeting unanimously approved the new owner, Laguna subsidiary Ellis Entertainment LLC, to purchase all assets of Ellis Park. With the commission's approval for the new owner to offer racing and historical gaming in place, the transaction is expected to be finalized in the next few days.

Ken Mimmack, one of four board managers of Ellis Entertainment, said that through working with the current owner $2 million-$3 million already has been invested in the track to demolish some barns in disrepair, resurface the main track, and improve drainage.

The new owner plans to invest $50 million-$55 million in the next couple of years on a new historical gaming facility, widening the turf course, installing lights for the track, improving barns at the track, and adding restaurants throughout the facility. The historical gaming facility, at a price tag in the $45 million range, is scheduled to be completed in November 2020 while the $6.2 million in track upgrades include the addition of lights and widened turf course expected to be ready for the 2020 summer meet.

Mimmack said the racing at Ellis Park can be an attraction that will help separate the facility from a nearby full casino in Indiana.

"We have 700,000 people a fairly short distance away from Ellis Park," Mimmack said. "We just think upgrading the facility will help and, what we have that they don't have is a racetrack facility. It's important racing, important to the Kentucky circuit. So we're going to use that as best we can."

With the Ellis racing season starting June 30, the current owner will continue to operate the racetrack during the 2019 racing season through a management agreement with the New Mexico-based buyers. Ellis Entertainment will operate the Historical Horse Racing (HHR) facility and immediately begin maintenance and facility upgrades as part of a comprehensive remodeling and expansion plan.

The new group also is bringing in Doug Reed, former University of Arizona Race Track Industry Program director and longtime racing executive, to represent the new owner in managing operations this year and going forward.

"We remain committed to the upcoming racing season at Ellis Park and ensuring that it is one of the most successful the property has seen in years," said Daniel Gerrity, president of Saratoga Casino and Hospitality Group. "We look forward to working closely with Ellis Entertainment in the coming months to ensure a seamless transition of ownership."

The new owner said after meeting with track management, it decided that widening the turf course would allow for bigger fields. The plan is to move the inside rail to widen the course. The new owner plans to keep current track executives in place and they also recommended the addition of lights, which would give the track options to dodge some of summer's high temperatures by racing in the evening.

"We are both honored and excited for the opportunity to purchase Ellis Park, one of Kentucky's oldest and most revered racetracks," said Kevin Greer, managing partner for Ellis Entertainment. "We appreciate the knowledge and support the Kentucky Horse Racing Commission has provided us while we prepare to restore Ellis Park to its rightful place as one of the Bluegrass State's premier racing facilities."

Plans call for the new historical gaming facility to be located in front of the current facility. Currently Ellis Park is not using all of the 300 games it has been approved. The new owner received approval from the KHRC Tuesday to offer as many as 1,200 games.

Should the new investment prove fruitful, the new ownership group envisions the addition of a hotel and entertainment space down the road. This will be the first racing venture for the ownership group, which also has pursued an open racing license in New Mexico.

"Ellis Entertainment brings a vastly experienced group of professionals to this project who will work alongside the track's current management team to ensure our guests have a first-class experience," Greer said. "We will follow our parent companies' longstanding and highly successful commitment to quality, service, and value. We look forward to being productive and engaged members of the local business community."