Churchill Downs Inc. is preparing to close Fair Grounds Race Course in New Orleans, the second-oldest racetrack in America, due to financial unsustainability following a Louisiana Supreme Court ruling that struck down the use of Historical Horse Racing (HHR) machines without local voter approval. These machines had previously supplemented racing revenues, but their removal leaves Churchill Downs unable to cover the $9 million annual maintenance costs. Despite lobbying efforts, the company sees no legislative compromise and plans to relinquish its racing and betting licenses, which will severely impact Louisiana’s equine industry, local economy, and hundreds of jobs.

This closure reflects a broader decline in the geographic footprint of horse racing in the U.S., even as marquee events like the Kentucky Derby and Belmont Stakes enjoy record viewership. Several historic tracks, including Hollywood Park, Golden Gate Fields, and Laurel Park, have recently closed or face uncertain futures. The survival of horse racing increasingly depends on supplemental gambling revenues, and without them, many racetracks are struggling to remain viable, signaling a challenging future for the sport outside of major events.