Horse racing at the historic Fair Grounds Race Course, New Orleans.
Churchill Downs, Inc. has notified the Louisiana State Racing Commission of its plan to surrender the racing license for Fair Grounds Race Course for the 2025-2026 season. This decision comes amid financial difficulties exacerbated by a recent Supreme Court ruling affecting revenue from historical horse racing. With rising operational costs and ongoing discussions regarding the future of the racetrack, stakeholders are concerned about the implications for the local economy and racing community in New Orleans.
New Orleans – Churchill Downs, Inc. (CDI), the owner of Fair Grounds Race Course, has formally notified the Louisiana State Racing Commission of its plan to surrender its racing license for the upcoming 2025-2026 season. This actions poses a significant threat to the future of one of the oldest racetracks in America, which dates back to 1837.
The notification was submitted on June 9, amid rising financial challenges stemming from a recent state Supreme Court ruling that has drastically impacted the track’s operational revenue. The ruling deemed historical horse racing (HHR) at Fair Grounds’ off-track betting facilities unconstitutional, necessitating local referendums for approval. CDI’s lawyer mentioned that the financial situation is “dire,” and without immediate legislative assistance, live racing at Fair Grounds may not continue this year.
The Louisiana State Racing Commission is scheduled to meet on June 24 to discuss the racing calendar for the 2025-2026 Thoroughbred meet at Fair Grounds. This follows a recent meeting between CDI officials and horsemen, which some have described as “productive” in addressing the potential for a future race meet. Ed Fenasci, executive director of the Louisiana Horsemen’s Benevolent and Protective Association, acknowledged the discussions but indicated that no concrete announcements have been made yet.
In a broader context, CDI also plans to surrender its slots and video poker licenses, which are essential for maintaining the revenue needed for live racing. The company’s total revenue from last year was reported at $2.7 billion, with $150 million generated specifically in Louisiana. However, CDI has experienced a significant reduction in income from HHR wagering, which has been crucial for covering operational costs, especially as competition for gambling revenues intensifies following the recent legislative actions.
In response to CDI’s challenges, Louisiana legislators have passed a bill aimed at preventing the closure of Fair Grounds by designating it as a “historic site.” Under this designation, CDI would require legislative approval to make any changes to its operations. Nonetheless, CDI officials have emphasized that the recent legislative measures have only exacerbated their financial difficulties.
High-profile figures in the community, such as Gayle Benson, the owner of the New Orleans Saints and Pelicans, have expressed their support for the horse racing industry and shown interest in potentially purchasing Fair Grounds. However, CDI has asserted that the racecourse is not currently for sale and remains focused on their sports franchises.
Amid these developments, the New Orleans City Council has taken steps to halt new land uses at Fair Grounds, further complicating the situation for CDI. The impending potential closure of Fair Grounds could have sprawling implications, not just for the horse racing community but also for jobs and local vendors in Louisiana, which thrive due to the racetrack’s operations.
The Louisiana State Racing Commission is expected to hold a special meeting to discuss CDI’s license surrender request. Any official surrender is not final until it receives approval from the Louisiana Gaming Control Board. As it stands, the fate of Fair Grounds remains uncertain, as stakeholders await further developments in this evolving situation.
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