Embittered state horse racing regulators approved a license Tuesday for Arlington International Racecourse, begrudgingly handing down 2020 race dates to the 91-year-old track as its corporate owner asked for “patience” in the wake of its controversial decision not to pursue the newly authorized casino license it had sought for decades.
Churchill Downs Inc. general counsel Brad Blackwell insisted to the Illinois Racing Board the gambling giant hadn’t intended to threaten shut down Arlington or move the track after 2021 due to burdensome taxes under the state’s new gambling law.
“We’re still trying to figure this out,” Blackwell told board members. “We can’t go into specifics here in this forum. We don’t have all the answers now, but we’re committed to finding them. We would appreciate your patience as we do so.”
Racing Board Commissioner Thomas McCauley subjected Arlington President Tony Petrillo and Blackwell to another hour of pointed questions on their corporate strategy, most of which Blackwell said he couldn’t discuss publicly.
But in the end, board members unanimously opted to grant the dates in the interest of saving industry jobs, chairman Jeffrey Brincat said.
The Illinois Racing Board had delayed issuing its licenses and racing dates last week to give Churchill Downs time to consider whether it “wants to signal to the world at once and for all it’s only a gaming software company, and no longer a horse racing enterprise,” according to a board resolution.
That decision drew the wrath of Illinois horsemen and the Racing Board, which demanded to hear from Churchill Downs directly as it could have denied Arlington’s 68 thoroughbred racing dates for 2020.
“The loss of Arlington would be devastating to the community of Arlington Heights as it is the city’s largest employer seasonally,” track owners said in a statement.
Last month, Churchill Downs blamed high taxes and a “hyper-competitive” Illinois gambling market as reasons it decided not to become a “racino” by pursuing a newly authorized license under the state’s massive gambling expansion to launch up to 1,200 slots and table games at the Arlington Heights track.
The corporate gambling giant had lobbied for years in Springfield for exactly such a license, along with other Illinois horse racing interests who have viewed casino gambling revenue as a financial lifeline for the struggling industry.
The stunning decision led critics to accuse Churchill Downs of protecting its investment in Rivers Casino in Des Plaines, which it also owns just 11 miles away from the track. The corporation is also vying to open a newly authorized casino in Waukegan.
Churchill Downs instead has said it would invest in a sports-betting license at Arlington once those are launched but wouldn’t commit to live racing dates beyond 2021 — and threatened to move to another Illinois locale. McCauley last week called that a “preposterous” suggestion that isn’t even legal.
Petrillo has told the Racing Board he hasn’t been involved in higher-level Churchill discussions but noted “exorbitant” licensing fees “and the incredible amount of infrastructure that’s required to support racing at Arlington” made the racino concept unfeasible for a track with a 3.6% profit margin.
The board, which must issue racing dates by the end of September under state law, also approved dates for Hawthorne Race Course in Stickney and downstate Fairmount Park, which have both applied for casino licenses. A new racino proposed for Tinley Park by Hawthorne general manager Tim Carey and video gambling developer Rick Heidner also got the green light.
Louisville-based Churchill Downs — owners of the historic namesake home of the Kentucky Derby — also controls numerous online gaming interests and brick-and-mortar casinos.
