News Summary
Churchill Downs Inc. is in discussions with Louisiana officials regarding the future of Fair Grounds Race Course in New Orleans after announcing plans to surrender its racing license due to financial challenges. Recent legal changes have caused significant revenue losses, prompting a potential closure. State legislators are working to preserve the venue, emphasizing its historical importance. The financial viability of Fair Grounds is in jeopardy, highlighting ongoing debates about its management and the sustainability of Louisiana’s horse racing industry.
New Orleans – Churchill Downs Inc. (CDI) is currently in active discussions with Louisiana Governor Jeff Landry’s office regarding the future operations of Fair Grounds Race Course in New Orleans. This communication follows CDI’s announcement of its intention to surrender its racing license for the 2025-’26 live meet season due to financial difficulties stemming from recent legal changes affecting its revenue. In addition, CDI plans to relinquish its slots and video poker license, a move that underscores the company’s ongoing struggle with declining revenues.
CDI Vice President of Corporate Communications, Tonya Abeln, acknowledged Governor Landry’s involvement in these discussions, which also include key stakeholders such as the Louisiana State Racing Commission and the Louisiana Horsemen’s Benevolent and Protective Association. The discussions are centered around finding a pathway to sustain racing activities at Fair Grounds, which is a vital component of Louisiana’s equine industry.
A recent ruling by the Louisiana Supreme Court complicated matters for CDI when it deemed that historical horse racing (HHR) at off-track betting locations was unconstitutional without local voter approval. This ruling has resulted in significant revenue losses for the company, with reports indicating nearly half of the revenue from off-track betting has been impacted. CDI has remarked that without legislative support, it is unlikely that the Fair Grounds meet will occur.
On June 12, state legislators took a proactive step by advancing a bill aimed at preventing the closure of Fair Grounds, designating the venue as an “historic site.” This legislation requires that any actions concerning the demolition or cessation of racing at Fair Grounds receive legislative approval. As CDI’s operational strategy has relied heavily on HHR machines for revenue generation, the recent changes in state law pose a considerable challenge to its financial viability.
CEO Bill Carstanjen previously indicated in a letter dated June 9 that sustaining operations under the current conditions is unfeasible. CDI faces a financial gap of approximately $9 million annually required to maintain live racing operations without HHR revenue. As legislative efforts continue, CDI officials have expressed frustration, stating that calls for assistance from lawmakers have met with reluctance and opposition.
The Louisiana Racing Commission is anticipated to address CDI’s request for closure of Fair Grounds in an upcoming special meeting. Closure of this historic racing venue would not only disrupt local equine industries but also result in considerable job losses and a decline in tax revenue generated by racing and associated events.
Despite CDI’s claim of financial instability without HHR, there is opposition from former owners who argue that Fair Grounds could operate profitably without HHR revenue. This ongoing debate highlights the contention surrounding the financial management of the race course and raises concerns about its potential historical preservation and the continuity of racing operations in the state.
The outcome of ongoing discussions and legislative actions will play a critical role in determining the future of Fair Grounds Race Course. As various stakeholders work together, the fate of one of Louisiana’s iconic racing venues hangs in a delicate balance, reflecting the broader challenges facing the state’s horse racing industry.
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Additional Resources
- WDRB: Churchill Downs Moves to Shut Down Fair Grounds
- Wikipedia: Fair Grounds Race Course
- NOLA: Fairgrounds Horseracing and Churchill Downs
- Google Search: Churchill Downs Fair Grounds closure
- BloodHorse: Uncertain Future for Fair Grounds
- Encyclopedia Britannica: Horse Racing
- WDSU: New Orleans Fairgrounds Horse Racing
- Google News: Fair Grounds Race Course
- Thoroughbred Daily News: CDI Surrenders Fair Grounds License
- Google Scholar: Fair Grounds Race Course
