An aerial view showcasing the Fair Grounds Race Course & Slots, a vital part of New Orleans' horse racing culture.
Fair Grounds Race Course & Slots in New Orleans faces a challenging future after the Louisiana Supreme Court ruled a law allowing Historical Horse Racing machines unconstitutional. This decision jeopardizes critical revenue sources for the racecourse and its parent company, Churchill Downs, Inc. Urgent legislative action is being sought to avoid disruptions in the upcoming racing season, as the financial implications extend beyond Fair Grounds, impacting the entire horse racing industry in Louisiana.
Fair Grounds Race Course & Slots in New Orleans is facing a precarious future following a ruling by the Louisiana Supreme Court which has branded its financial outlook as “dire.” The court’s decision declared a 2021 law permitting Historical Horse Racing (HHR) machines unconstitutional, significantly affecting revenue streams critical for the operations of the racecourse and its associated facilities.
Churchill Downs, Inc. (CDI), the parent company of Fair Grounds, emphasized the urgent need for legislative intervention to address the fallout from the ruling. During an emergency meeting of the Louisiana Racing Commission, CDI attorney Ozair Shariff indicated that without swift action from state lawmakers, the upcoming racing season for 2025-2026 may not take place at all. The stakes are high, as CDI has reported a staggering 46% drop in off-track betting (OTB) revenue, which serves as a vital financial lifeline for Fair Grounds.
The elimination of HHR machines has created a substantial financial void, hindering CDI’s ability to maintain the $9 million required annually for operational capital at the Fair Grounds. Revenue generated from slot machines and HHR has been crucial for sustaining the racecourse, which has been struggling to break even. The HHR machines allowed punters to bet on anonymized replays of past races, and their sudden removal has left a significant gap in income, leading CDI to express serious concerns about the viability of its operations going forward.
Currently, the Louisiana legislature is in session until June 12, and CDI officials are actively discussing potential solutions with legislative leaders to combat the loss of their revenue stream. The economic implications extend beyond Fair Grounds, impacting the broader horse racing and breeding industry across Louisiana, which relies heavily on the revenue generated by the racecourse. The commission, while acknowledging CDI’s concerns, approved racing dates from November 20 to April 9 for the 2025-2026 season but warned that CDI must provide evidence of financial distress to prevent economic penalties for failing to operate as scheduled.
Notably, the future of racing in the state may also hinge on the potential expansion of video poker revenue as lawmakers evaluate ways to counterbalance losses stemming from the HHR ruling. While the CDI executives estimate that the loss of HHR machines has resulted in a 74% reduction in after-tax profits in Louisiana, some former industry figures dispute this narrative. Louie Roussel III, a former owner of Fair Grounds and prominent horseman, challenged CDI’s claims, suggesting that their fortunes were favorable prior to the introduction of HHR machines.
As discussions continue and the June 15 meeting of the Louisiana Racing Commission approaches, stakeholders are keeping a close eye on the evolving situation. Roussel has urged the commission to reject CDI’s requests for financial relief and to enforce penalties if CDI is unable to fulfill its racing commitments. The delays in solidifying a financial pathway forward have raised alarm among horse racing advocates, who emphasize the urgent need for a sustainable solution that preserves the integrity and continuation of horse racing in Louisiana.
Governor Jeff Landry’s office has yet to comment on the ongoing dispute surrounding CDI and Fair Grounds, which adds another layer of uncertainty as the legislative session draws to a close. The outcome of these discussions will play a critical role in determining the survival of Fair Grounds Race Course & Slots and its impact on the larger horse racing ecosystem in Louisiana.
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