Churchill Downs Inc. (CDI) has announced its intention to surrender its racing license at Fair Grounds Race Course in Louisiana, citing financial unviability without historical horse racing (HHR) gaming terminals. The company’s CEO, Bill Carstanjen, highlighted that recent legislative and regulatory changes, including a Louisiana Supreme Court ruling invalidating the statute authorizing HHR without local voter approval, have severely impacted CDI’s operations. CDI claims that HHR accounts for nearly half of its off-track betting revenue and that its racing operations are currently losing millions, with gaming profits offsetting those losses. Despite CDI’s financial struggles at Fair Grounds, former owners dispute these claims, arguing the track remains profitable and criticizing CDI’s accounting practices and lack of legislative lobbying efforts to legalize HHR through referendums.

Legislative efforts to support horse racing purses through expanded video poker and fixed-odds wagering face opposition from CDI, which fears these measures would cannibalize its revenue. The bills are favored by horsemen but not racetrack operators, and a veto by Governor Jeff Landry is considered unlikely. The future of Fair Grounds remains uncertain, with debates over its value as a racing venue versus potential real estate development. CDI has a history of closing racetracks that fail to meet profit expectations, as seen with Arlington Park in Illinois. While CDI is not currently discussing a sale of Fair Grounds, it expresses little confidence in passing new legislation to reinstate HHR, citing strong opposition and the high risks involved.