HORSEPLOP.COM
General Category => Harness Racing => Topic started by: Calhoun on May 14, 2025, 11:45:27 AM
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I spend a week or so most years in New Orleans in late winter or early spring. I go to the Fair Grounds a couple of time when I'm there. It's a very cool place.
Today I read Churchill Downs is threatening to close the Fair Grounds unless further welfare/gaming revenue is approved by the legislature.
Churchill claims they just can't cover costs otherwise. They've already killed Hollywood Park, Calder and Arlington.
As an aside, CDI made $423,000,000 in profit last year.
https://www.nola.com/news/business/nola-fair-grounds-race-track-owner-threatens-to-leave-state/article_8e63eba5-47c2-421e-be3d-307656030468.html
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what I found a bit humorous was the fact that Louisiana gave FG the dates when CDI didn't even apply
CDI makes a ton of cash on those historical racing machines and the state said that needs legislation--which means the state wants a payoff
https://www.drf.com/news/churchill-downs-opposes-number-dates-awarded-fair-grounds
doesn't look good for Fair Grounds
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They can run slot machines but not HHR machines not sure why they just wouldn’t switch.
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They make way more on them and don't want to go back. Trying to bully and blackmail
their way back to them returning or receiving subsidies.
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They can run slot machines but not HHR machines not sure why they just wouldn’t switch.
CDI owns the company that makes the HHRs
they say racing loses money there
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You are never going to get transparency from CDI. Just won't happen. Forget anything they say and just watch what they do. I know a little something about the FG situation only because a few years ago a group expressed interest in buying the FG, had discussions with CDI, and I was offered an opportunity to invest and be a limited partner in the deal. I can't explain anything about the alleged "loss of revenue." How much their handle and OTB revenue has decreased since 2021, I have no idea. But, all this was fine until last week? Come on. In one week they know it's 46% of the OTB revenue and 74% of the OTB (EBITDA). Seems like typical posturing and leverage to me. Ironically the legislature is in session currently.
Ironically, the 25-26 race dates which were applied for by the HBPA, were approved-----the the FG didn't even apply. Louie Roussel, who spoke on behalf of Governor Landry said that CDI presented no evidence of any loss of funds, but did ask for a subsidy. Roussel said Bill Carstanjen, CEO of CDI, threatened to “padlock the track” if they didn’t get their way. That's not a surprise to me. CDI has long been a bully. Allegedly Gov. Landry has said there is no state subsidy for CDI.
Let's see what happens if the FG doesn't open/run the meet and the approved race dates----or if they try and prove financial/economic distress-----and if they get hit with fines.
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The article said they lose money from racing like Papillon said. I know real shocker right lol. Maybe Churchill is trying to recoup some money or raise money for their 1 billion dollar renovation of Churchill Downs, which I read recently that some of that has been put on hold temporarily.
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You are never going to get transparency from CDI. Just won't happen. Forget anything they say and just watch what they do. I know a little something about the FG situation only because a few years ago a group expressed interest in buying the FG, had discussions with CDI, and I was offered an opportunity to invest and be a limited partner in the deal. I can't explain anything about the alleged "loss of revenue." How much their handle and OTB revenue has decreased since 2021, I have no idea. But, all this was fine until last week? Come on. In one week they know it's 46% of the OTB revenue and 74% of the OTB (EBITDA). Seems like typical posturing and leverage to me. Ironically the legislature is in session currently.
Ironically, the 25-26 race dates which were applied for by the HBPA, were approved-----the the FG didn't even apply. Louie Roussel, who spoke on behalf of Governor Landry said that CDI presented no evidence of any loss of funds, but did ask for a subsidy. Roussel said Bill Carstanjen, CEO of CDI, threatened to “padlock the track” if they didn’t get their way. That's not a surprise to me. CDI has long been a bully. Allegedly Gov. Landry has said there is no state subsidy for CDI.
Let's see what happens if the FG doesn't open/run the meet and the approved race dates----or if they try and prove financial/economic distress-----and if they get hit with fines.
this sums it up
I am sure the video slots they have at the 13 OTBs in the state show a profit--but they are viewing as we could be making $xxx more if they allowed us historical racing machines, which we own.
as stated earlier--they are just playing the bully. The Rams are playing at Hollywood Park land and The Bears will be playing where Arlington was. I don't think Louisiana will give in-so CDI may just be looking to sell if they don't get their precious historical racing machines approved.
This will also help their growing horse population at Turfway Park if they are allowed to not race at FG.
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https://www.thoroughbreddailynews.com/report-cdi-threatens-to-pull-out-of-racing-at-fair-grounds-over-recent-court-ruling-on-slots/
Interesting.
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I posted this a few months ago
Churchill Downs-CDI-successfully closed Arlington and Calder--Fair Grounds is next
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Let's see if LA stands up to them. I hope so.
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I hope they don't. Give them what they want. They have shown that they 'WILL'
close tracks and I love the Fairgrounds.
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I hope they do, and I have zero interest in the FG, LOL.
Giving anyone a chance to close, not run dates, or whatever, without accountability is simply wrong in my mind.
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They're slippery. They didn't actually apply for dates, therefore I would think that would relieve
them of any obligation to fulfill them. Time will tell.
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They're slippery. They didn't actually apply for dates, therefore I would think that would relieve
them of any obligation to fulfill them. Time will tell.
perfectly said tmbz1
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They're slippery. They didn't actually apply for dates, therefore I would think that would relieve
them of any obligation to fulfill them. Time will tell.
Actually, that's not the way it works in LA. Under LA state law, any licensed track awarded dates, whether they apply for them or not, must run those dates-----barring severe economic problems-----or face economic consequences. Here, the horsemen's association applied for the dates, with CDI's full knowledge. They chose to say nothing at that time.
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Actually, that's not the way it works in LA. Under LA state law, any licensed track awarded dates, whether they apply for them or not, must run those dates-----barring severe economic problems-----or face economic consequences. Here, the horsemen's association applied for the dates, with CDI's full knowledge. They chose to say nothing at that time.
CDI will padlock the track and file suit vs the state of Louisiana .
they don't want to race outside Kentucky
Hollywood, Calder, Arlington all were sold for land.
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CDI will padlock the track and file suit vs the state of Louisiana .
they don't want to race outside Kentucky
Hollywood, Calder, Arlington all were sold for land.
That will be interesting. I don't doubt they'll do it, but it will be interesting. Perhaps "winning" that suit will take changing the law.
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That will be interesting. I don't doubt they'll do it, but it will be interesting. Perhaps "winning" that suit will take changing the law.
the whole situation is interesting and possibly sad.
CDI has experience is selling tracks and they haven't failed yet.
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The loss of those historic machines will show current losses from the prior status but does it prove hardship?
Past owner says bullshit and that they aren't losing $$. I wouldn't call their bluff if they want racing there.
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Churchill Downs Inc. has informed the Louisiana Racing Commission that it intends to give up its racing and gambling licenses for Fair Grounds Race Course in New Orleans and its offtrack betting parlors because of dissatisfaction over a recent state Supreme Court ruling and its own unsuccessful efforts to gain relief from the legislature.
Bill Carstanjen, CDI’s chief executive officer, said in a letter sent to the commission on Monday that the company does not anticipate legislation being passed this year that would mitigate the effects of a Supreme Court decision in March invalidating the operation of historical horse racing machines. Churchill, which owns a company that manufactures and operates the devices, had installed the machines at all 13 of its OTBs in the parishes surrounding New Orleans in 2022.
“This is not the path CDI wishes to proceed down, but the inaction from elected officials to offer any sort of compromise has made this the only possible outcome,” Carstanjen wrote in the letter. “Closing one of the nation’s oldest racetracks, and the most important track in Louisiana, will be a devastating blow to Louisiana’s equine industry and the New Orleans economy.”
The letter was first reported by The Paulick Report but subsequently obtained by Daily Racing Form.
Fair Grounds is the most important track in Louisiana on the national racing scene. The track hosts a series of races in the winter and early spring that provide a path to the Kentucky Derby, and it’s a popular winter destination for many Midwestern horsemen.
In May, Churchill officials appeared at a racing commission meeting to reject the commission’s award of racing dates for Fair Grounds for the 2025-26 racing season, citing its dissatisfaction with the Supreme Court ruling. Ozair Sharif, an attorney for the company, said that the ruling would have a “dire” impact on the company’s Louisiana operations.
“Faced with this reality, operating under the current status quo is no longer an option,” Shariff said, while reading from a prepared statement.
The Supreme Court ruling only applied to HHR machines and not to various other forms of gambling that are legal in the state. No other racetrack in the state other than Fair Grounds relies on HHR machines at its OTBs, instead operating video-poker machines. All of the racetracks, including Fair Grounds, have slot machines at their racing facilities.
Horsemen and Louisiana Gov. Jeff Landry have pushed back on Churchill’s threats to close the track, contending that the company could install video-poker machines at its OTBs to make up for the loss in revenue from HHR machines. Churchill also could push for local approval for HHR machines in the parishes where its OTBs are located to comply with the Supreme Court ruling.
The letter from Carstanjen did not present either of those as an option, instead referring to a lack of cooperation from the legislature on unspecified measures to address the ruling.
“For the last few months, CDI has attempted to engage in good faith discussions with elected officials and various other industry stakeholders to find a path toward long-term economic viability for the Fair Grounds,” the letter said. “To date, our efforts to engage elected officials have not led to meaningful discussions and, confoundingly, CDI’s efforts have been met with a combination of reluctance, indifference, apathy, and even opposition.”
Churchill has closed and sold a number of tracks over the last two decades, most recently Arlington Park outside of Chicago. The company sold Arlington to the Chicago Bears after the legislature refused Churchill’s demands to change the tax structure for a casino that would be located at the track. The track was torn down, and the property remains undeveloped.
The Louisiana Racing Commission had already scheduled a meeting for June 15 to discuss options for the Fair Grounds. The letter from Carstanjen said that CDI officials plan to appear at the meeting to “discuss the timeline and next steps” for the surrender of the Fair Grounds licenses.
The state legislature is scheduled to adjourn Thursday.
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https://paulickreport.com/news/the-biz/left-with-no-choice-churchill-downs-inc-moves-to-relinquish-fair-grounds-license-in-louisiana
OK, interesting move.
https://paulickreport.com/news/the-biz/gayle-benson-to-our-knowledge-fair-grounds-is-not-for-sale
Not for sale?
And now this.....
https://paulickreport.com/news/the-biz/unorthodox-louisiana-legislature-moves-to-block-cessation-of-racing-at-fair-grounds
Looks like the legislature ain't playing around.....or it's a hell of a bluff.
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The real winners in this whole deal will be the lawyers. Maybe they should be but I don't think
the Churchill people are intimidated.
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so when LA found out CDI wanted out after the HHRs ruling--the state suddenly made up and jammed in an amendment 2 days later
i would say CDI has the upper hand--and there will be plea deal allowing CDI to close the track and sell the land
maybe the state should takeover racing
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https://www.drf.com/news/churchill-downs-inc-agrees-run-2025-26-fair-grounds-meet