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.
