Churchill Downs Inc., which owns and operates Fair Grounds Race Course & Slots, has reached an agreement with Louisiana horsemen for racing to continue at Fair Grounds from around Thanksgiving until early next spring. The New Orleans racetrack will keep its customary schedule of race dates from late November until late March, pending anticipated approval from the Louisiana Racing Commission during an emergency meeting scheduled June 24.
The future of racing at the historic track had been in doubt after CDI threatened to surrender its racing license without legislative relief following court rulings and advancement of legislation that CDI viewed as financially detrimental.
Central to CDI's concerns was a Louisiana Supreme Court ruling in March that declared the statute authorizing historical horse racing gaming unconstitutional without first requiring local voter approval. CDI previously said the cessation of HHR meant the elimination of 46% of its off-track betting parlor revenue associated with Fair Grounds.
HHR devices, which resemble slot machines, have been highly profitable for track operators such as CDI and a boon for purses, even more so than video poker machines on a terminal-by-terminal basis. Video poker can be utilized at OTBs in Louisiana, but is not restricted to racetracks and OTBs.
One bill that cleared the legislature in Louisiana this spring would expand the permitted number of video poker machines at truck stops from 50 to 60 and at bars from three to four, while establishing a fund to allocate revenue from the additional video poker machines to support the horse racing industry. A second bill would permit fixed odds wagering on horse racing while generating a purse supplement fund. These pieces of legislation are considered favorable to purses and participating horsemen, but not as much to racetrack operators.
Some stakeholders believe the expansion of video poker across the state could ultimately replace lost purse generation from HHR or even generate more for purses than HHR did. Gaming operations are instrumental in Fair Grounds' profitability, according to CDI.
Bill Carstanjen, CEO of CDI, wrote in a June 9 letter to the Louisiana Racing Commission and political leadership in the state that, "To date, our efforts to engage elected officials have not led to meaningful discussions, and confoundingly, CDI's efforts have been met with a combination of reluctance, indifference, apathy, and even opposition."
He added that the latest video poker legislation "will lead to significant cannibalization of revenue from our OTB network in and around greater New Orleans."
Tonya Abeln, vice president of corporate communications for CDI, acknowledged progress in a June 17 email, writing CDI was pleased to have reached the agreement with Louisiana HBPA, which followed "productive conversations" with Louisiana Gov. Jeff Landry and Louisiana Senate President Cameron Henry.
"We remain committed to productive collaboration in pursuit of positive outcomes for the horse racing industry in Louisiana and look forward to continuing to move forward—our focus is firmly on the future," she continued.
She did not respond to what specifically changed for CDI to change its position in the past week, and what purse levels would be for the upcoming season, writing that she was told those details would be outlined in the upcoming commission meeting.
Benard Chatters, president of the Louisiana Horsemen's Benevolent and Protective Association, said, "We're gonna take a slight decrease in purses, but we'll be creative to try to make some things happen ... I think we'll be running for close to the same thing we ran for last year."
He said he was part of a group of horsemen led by Louisiana HBPA executive director Ed Fenasci that spoke with CDI representatives. An email attributed to Fenasci that circulated online noted that stabling at Fair Grounds would begin on Sept. 12 and training on Sept. 19—a little more than a month before the meet is to begin.
Starting and ending dates for the meet will be discussed at next week's LRC meeting, according to LRC executive director Stephen Landry. Also on the agenda is a discussion of Fair Grounds' paddock improvements that CDI previously agreed to make.
The recent agreement between CDI and horsemen follows action taken last week by the New Orleans City Council and state lawmakers to protect the property from development. The City Council created an interim zoning district to ensure the property remains a racetrack, and state lawmakers passed legislation to designate the Fair Grounds as a historic site, requiring legislative approval for major changes like demolition or ending horse racing.
Fair Grounds, established in 1837, is one of the oldest tracks in the United States. Its current enclosed grandstand opened in 1997 after a fire destroyed the old grandstand in 1993. A casino is also now on the property.
CDI has previously divested from its less profitable racetrack properties, most recently selling Arlington International Racecourse to the Chicago Bears of the National Football League in 2021. The Bears have torn down the facility and used the land as a bargaining measure for an NFL stadium there or for improvements at Soldier Field, where the team currently plays.
Speaking of the protective actions of city and state political leaders, Chatters said, "I'd like to say it helps in the long term for horse racing and the sustainability of horse racing in New Orleans. It lets everybody know that Louisianians and New Orleanians are serious about horse racing and horsemen in the state of Louisiana. They're looking out for the best interests of the Fair Grounds. So we're very thankful to the legislators and city councilmen in New Orleans who helped us."
