The upcoming horse racing season at New Orleans’ historic Fair Grounds Race Course is at risk after Churchill Downs Inc., the track’s owner for two decades, announced plans to relinquish its racing and gaming licenses. This decision follows a Louisiana Supreme Court ruling that curtailed the operation of lucrative Historic Horse Racing (HHR) slot machines without voter approval in each parish, resulting in a significant revenue loss for Churchill Downs. Efforts to secure a state subsidy to offset these losses have stalled amid legislative reluctance, compounded by new laws expanding video poker machines at truck stops and bars, further threatening the track’s profitability.

Churchill Downs’ potential exit raises uncertainty about the future of the Fair Grounds racing season, which is vital to Louisiana’s $2.5 billion horse racing industry and includes key events like the Louisiana Derby. While lawmakers resist subsidizing a profitable private company, speculation grows about possible buyers, including Saints and Pelicans owner Gayle Benson, who has shown interest in the racing industry. The situation echoes past disruptions, such as the post-Katrina season relocation, and highlights tensions between preserving historic racing venues and adapting to evolving gaming regulations and market pressures.