![Title: Churchill Downs Threatens Exit from Fair Grounds Over Slot Machine Ruling
Churchill Downs, Inc. (CDI), which in recent seasons has ended racing at such high-profile tracks as Arlington and Calder over alleged profitability issues, on Tuesday threatened to pull out of Fair Grounds over a recent court ruling that bars it from using a certain type of slot machine, saying the ban would cause it to lose money at the New Orleans track and 13 off-track-betting outlets it owns.
Reporting by Anthony McAuley and Tyler Bridges at NOLA.com first broke the news, which emerged out of an “emergency” Louisiana Racing Commission meeting May 13.
According to the NOLA.com story, a CDI attorney, Ozair Shariff, told the 12 commissioners that the company would not proceed with the 2025-26 season scheduled to run November through March unless the state legislature comes up with a workaround to a Louisiana Supreme Court ruling in March that upheld a lower court’s ruling from 2021 deeming historical horse racing to be unconstitutional.
According to NOLA.com, Shariff said the Supreme Court ruling made it impossible for the Kentucky-based gaming corporation to cover the costs of conducting racing at Fair Grounds.
According to NOLA.com, “the court determined that HHR constitutes a new form of gaming, distinct from traditional pari-mutuel wagering on live horse races, and therefore requires prior approval from voters in each parish where it would be implemented.”
NOLA.com reported that Churchill Downs executives stated that the loss of HHR machines eliminated 46% of the firm’s annual revenue and 74% of after-tax profit in Louisiana. The NOLA.com report stated that the annual operation and capital spending for Fair Grounds was million.
NOLA.com reported that Louis Roussel III, a longtime Louisiana-based racehorse breeder and former owner of Fair Grounds, testified at the meeting that CDI was trying to bully the state and he urged the commission to call its bluff.
“Don’t let them come here and poor-mouth you,” NOLA.com quoted Roussel as saying. “Do what is right for the horsemen, breeders, and more importantly, the citizens of the state and New Orleans.”
NOLA.com reported that “state legislators have been working to try and find a way to make up for the lost revenue for others affected by the loss of HHR, mainly by expanding an existing form of gambling, video poker.”
NOLA.com reported that a bill that passed in the Louisiana House on Monday earmarks “the first million in tax revenue from the additional machines [to] boost purses at the four horse racing tracks in Louisiana,” referring also to Louisiana Downs, Delta Downs and Evangeline Downs.](https://i1.wp.com/www.thoroughbreddailynews.com/wp-content/uploads/2021/10/Fair_Grounds_scenic_grandstand_morning_Joe_Sharp_horse_SKA_9854_PRINT_Sarah_Andrew.jpg?w=696&resize=696,0&ssl=1 "Title: Churchill Downs Threatens Exit from Fair Grounds Over Slot Machine Ruling
Churchill Downs, Inc. (CDI), which in recent seasons has ended racing at such high-profile tracks as Arlington and Calder over alleged profitability issues, on Tuesday threatened to pull out of Fair Grounds over a recent court ruling that bars it from using a certain type of slot machine, saying the ban would cause it to lose money at the New Orleans track and 13 off-track-betting outlets it owns.
Reporting by Anthony McAuley and Tyler Bridges at NOLA.com first broke the news, which emerged out of an “emergency” Louisiana Racing Commission meeting May 13.
According to the NOLA.com story, a CDI attorney, Ozair Shariff, told the 12 commissioners that the company would not proceed with the 2025-26 season scheduled to run November through March unless the state legislature comes up with a workaround to a Louisiana Supreme Court ruling in March that upheld a lower court’s ruling from 2021 deeming historical horse racing to be unconstitutional.
According to NOLA.com, Shariff said the Supreme Court ruling made it impossible for the Kentucky-based gaming corporation to cover the costs of conducting racing at Fair Grounds.
According to NOLA.com, “the court determined that HHR constitutes a new form of gaming, distinct from traditional pari-mutuel wagering on live horse races, and therefore requires prior approval from voters in each parish where it would be implemented.”
NOLA.com reported that Churchill Downs executives stated that the loss of HHR machines eliminated 46% of the firm’s annual revenue and 74% of after-tax profit in Louisiana. The NOLA.com report stated that the annual operation and capital spending for Fair Grounds was million.
NOLA.com reported that Louis Roussel III, a longtime Louisiana-based racehorse breeder and former owner of Fair Grounds, testified at the meeting that CDI was trying to bully the state and he urged the commission to call its bluff.
“Don’t let them come here and poor-mouth you,” NOLA.com quoted Roussel as saying. “Do what is right for the horsemen, breeders, and more importantly, the citizens of the state and New Orleans.”
NOLA.com reported that “state legislators have been working to try and find a way to make up for the lost revenue for others affected by the loss of HHR, mainly by expanding an existing form of gambling, video poker.”
NOLA.com reported that a bill that passed in the Louisiana House on Monday earmarks “the first million in tax revenue from the additional machines [to] boost purses at the four horse racing tracks in Louisiana,” referring also to Louisiana Downs, Delta Downs and Evangeline Downs.")
Churchill Downs, Inc. (CDI) has threatened to withdraw from Fair Grounds, citing a recent Louisiana Supreme Court ruling that prohibits the use of certain slot machines, which CDI claims is essential for its profitability. During an emergency meeting of the Louisiana Racing Commission, CDI attorney Ozair Shariff stated that without legislative intervention to address the ruling, the company would not participate in the upcoming racing season, which is scheduled from November to March.
The court’s decision deemed historical horse racing (HHR) unconstitutional, categorizing it as a new form of gaming that requires voter approval in each parish. This ruling has significant financial implications for CDI, as it reportedly accounts for 46% of the company’s annual revenue and 74% of its after-tax profit in Louisiana, with Fair Grounds’ operational costs estimated at $9 million annually.
In response to CDI’s concerns, state legislators are exploring options to compensate for the lost revenue, including expanding video poker gambling. A recent bill passed in the Louisiana House aims to allocate the first $22 million in tax revenue from additional gambling machines to enhance purses at various horse racing tracks in the state. Meanwhile, local racehorse breeder Louis Roussel III criticized CDI’s stance, urging the commission to prioritize the interests of horsemen and the community over corporate pressures.
