Hawthorne Wins Right to Quiz Fairmount Park Under Oath

Hawthorne Race Course and a creditors committee have won the right to question Fairmount Park officials under oath about alleged attempts by Fairmount to interfere with Hawthorne's efforts to emerge successfully from Chapter 11 bankruptcy. Judge Timothy Barnes, at a May 27 hearing, approved a motion authorizing Hawthorne and unsecured creditors "to issue subpoenas for the production of documents from, and for depositions from" Fairmount. The order also provides similar authority to pursue sworn depositions from the Illinois Department of Agriculture, agriculture director Jerry Costello II and John P. Costello, the director's brother and a lobbyist for Fairmount's horsemen's association, about recent cuts in state funding for Hawthorne purses. Michael Brandess, attorney for the creditors committee, said that group and Hawthorne will reach out to Fairmount and the Agriculture Department to determine how and when to proceed with the subpoena process. Hawthorne filed for bankruptcy protection Feb. 27. The track has struggled to fill fields for its summer meeting, and president and CEO Tim Carey alleged in a court filing May 20 that Fairmount is exacerbating the situation by threatening to retaliate against its horsemen if they ship to race at Hawthorne. The tracks, the only remaining live racing venues in Illinois, are about 275 miles apart in a straight shot along Interstate 55. Horsemen from both tracks in recent years have shipped back and forth to optimize racing opportunities, and the Illinois Racing Board has encouraged that by pushing for coordinated racing dates. Carey's motion, however, indicated that spirit of cooperation has ended. "On or about May 9, 2026, I became aware of a text message that Fairmount Park circulated to one of its external distribution lists which said in part '(A)ny horse entered at another track when a similar race has recently went or is offered here, the horse may not be allowed back on the grounds. If Fairmount Park is your home, you need to support and participate in racing here, not elsewhere." Another message, Carey said, boasted of purse increases at Fairmount, promised more of them and added, "Unlike other racetracks that are in serious, and possible fatal declines, Fairmount Park is on a definite upward swing that will continue!! Come race will (sic) us where the future is bright!" Fairmount CEO Vince Gabbert declined comment. Hawthorne added the loss of shippers from Fairmount would undermine its chances for a successful meeting and that, in turn, would hurt chances to emerge from bankruptcy as an ongoing operation. Carey has said previously that prospective purchasers include developers who want to demolish the track for commercial purposes and others who want to continue racing and move forward with a long-delayed racino at the facility. Judge Barnes noted the arguments that Fairmount's alleged actions could negatively affect the tenuous budget funding the current Hawthorne meeting and the sale process. "The motion falls within the categories of the rule," he said, referring to Bankruptcy Rule 2004, which authorizes investigations of action affecting bankruptcy proceedings. "I see no reason not to grant the motion." Barnes also noted neither Fairmount nor the Department of Agriculture was represented at the hearing, which was available to them both in the Chicago Loop and electronically. The flap also surfaced May 26 in the state capitol in Springfield, where the Illinois General Assembly is in the final scheduled week of its spring session. Carey's filing also cited decisions by the Department of Agriculture to cut funding earmarked for Hawthorne purses. While the filing did not make specific allegations about the cuts, it did charge they were "influenced" by John Costello. John Costello termed such suggestions "false and any suggestion of impropriety is defamatory," per the Chicago Tribune.