Coffee with Crawford | Churchill deal expected to keep Fair Grounds running — but not everyone is happy

LOUISVILLE, Ky. (WDRB) – The Fair Grounds in New Orleans is one of the oldest racetracks in America. It’s got history, charm, and for many horsemen, it’s a lifeline during the winter months.

But right now, it’s something else: leverage.

And Churchill Downs Inc. isn’t shy about using it.

After signaling last month that it planned to walk away from its racing and gaming operations at Fair Grounds entirely, Churchill has now secured key concessions from Louisiana regulators — and is poised to continue racing at the historic track for another season.

But that deal could come at a cost.

The Louisiana Racing Commission is expected to approve a scaled-back operating agreement in an emergency meeting Tuesday morning that includes reduced purses and fewer live racing dates. While that might help Churchill's bottom line, horsemen in Louisiana say it will hurt theirs.

And that, too, is becoming a familiar story.

Churchill says it needs help to make its tracks profitable. In some states, that means tax breaks. In others, it's a cut of expanded gaming. In Louisiana, it may well be purse reductions and fewer racing days — after a warning that “the status quo is no longer an option.”

That line came from Churchill CEO Bill Carstanjen. And it came after several state-level decisions rocked the company’s Louisiana footprint:

• The Louisiana Supreme Court ruled that "historical horse racing" (HHR) machines — a key revenue source — must be approved by voters in each parish. That effectively shut down many of Churchill’s machines.

• Legislators passed bills to allow more video poker in bars and truck stops — meaning more gaming competition.

• And a new law allowing fixed-odds betting on horse races may further undercut traditional pari-mutuel wagering.

With its request for a state subsidy denied, Churchill threatened to exit. No racing. No licenses. No live meet at Fair Grounds.

That triggered emergency talks. Now, those talks have produced a deal — one many believe the Louisiana Racing Commission will approve, though details aren't yet available.

The Fair Grounds is one of the oldest tracks in America. It generates tens of millions in annual tax revenue and more than $30 million in purses. Its closure would ripple through the state’s equine industry — from breeders and grooms to vendors and vets.

But for Churchill, it’s one line item in a growing portfolio of tracks that increasingly rely on gaming subsidies to survive.

Whether Churchill is a necessary steward of a struggling sport, or a corporate juggernaut squeezing local markets for profit — well, that depends on who’s doing the talking.

But this morning, at the Louisiana Racing Commission meeting, it won’t be hard to tell who’s feeling the pressure.

Quick sips

• More reaction from around the industry to the news that D. Wayne Lukas has stepped away from his training operation as the result of a serious health crisis. WDRB's Joel Schipper talked to retired Bellarmine coach Scott Davenport about his relationship to the Hall of Fame trainer. A story from The Blood Horse collects other reaction here.

• It will be a quiet NBA Draft night for local teams, Rick Bozich writes, but don't expect that to be the case for long.

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