LOUISVILLE, Ky. (WDRB) -- Churchill Downs Inc. is moving to shut down Fair Grounds Race Course in New Orleans — one of the oldest racetracks in America and the cornerstone of Louisiana horse racing — following a state Supreme Court decision and legislative moves the company says gutted its revenue and left no path forward.
In a letter to the Louisiana State Racing Commission, Churchill Downs CEO Bill Carstanjen said the company plans to relinquish its licenses to operate live horse racing, off-track betting, slot machines and video poker at Fair Grounds. The company has formally requested a hearing to begin the process, which could mark the end of live racing in New Orleans.
The tipping point came last month, when the Louisiana Supreme Court ruled that "historical horse racing" (HHR) machines — devices that use databases of past races to power slot-type wagering devices — were a new form of gambling not authorized by a local vote, effectively banning their use. According to Churchill Downs, that ruling wiped out nearly half the revenue from Fair Grounds' off-track betting network, long used to subsidize the cost of running live races.
Company officials also cited two recently passed bills as further threats: one that increases the number of video poker machines allowed at truck stops and bars, and another that legalizes fixed-odds betting on horse racing — a move CDI says will benefit out-of-state operators at the expense of in-state tracks.
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"Operating under the current status quo is no longer an option," Carstanjen wrote.
Without that revenue, Churchill says it cannot cover the approximately $9 million needed annually to maintain live racing operations. Company attorneys and executives had been seeking a legislative fix but say their efforts were ignored or rebuffed.
"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. "... To date, our efforts ... have been met with a combination of reluctance, indifference, apathy, and even opposition."
The Louisiana Racing Commission board is expected to call a special meeting after the legislative session ends June 12 to address Churchill's request. A formal voluntary surrender of licenses would also require action by the Louisiana Gaming Control Board.
Fair Grounds, founded in 1852, provides tens of millions in annual tax revenue to the state and pays out more than $30 million in racing purses. Its closure would be a body blow to Louisiana's equine industry, impacting hundreds of jobs and dozens of local vendors.
"This is not a decision we make lightly," a CDI spokesperson told WWL-TV in New Orleans. "But absent action from state leaders, this is the only remaining course."
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