Latest news with #FairGrounds
Yahoo
2 days ago
- Business
- Yahoo
‘Left With No Choice': Churchill Downs Inc. Moves To Relinquish Fair Grounds License In Louisiana
'Left With No Choice': Churchill Downs Inc. Moves To Relinquish Fair Grounds License In Louisiana originally appeared on Paulick Report. Doubling down on statements made last month about not opening Fair Grounds Race & Slots in New Orleans for a live horse racing meet this fall, Churchill Downs Inc.'s chief executive officer informed the Louisiana State Racing Commission the company plans to 'begin the next steps' to relinquish its live racing and OTB license, along with its slots and video poker licenses, at the racing commission's next meeting. In a June 9 letter to racing commission officials – obtained by the Paulick Report – Bill Carstanjen, the chief executive officer of CDI, said the loss of historical horse racing (HHR) revenue, following an adverse state Supreme Court ruling, and newly enacted legislation has forced the company's hand. Advertisement Related: Situation 'Dire': Fair Grounds May Not Run 2025-'26 Race Meet Without Legislative Help 'Given the legislature's ease with which it approved legislation that is directly adverse and harmful to the economic interests of Fair Grounds, the opposition by elected officials to engage in meaningful solutions in collaboration with the Fair Grounds, and the forthcoming adjournment of the legislative session,' Carstanjen wrote, 'CDI is left with no choice but to request an appearance before the LSRC to begin the next steps for voluntarily surrendering the racing license held by the Fair Grounds.' Carstanjen added: "This is not the path CDI wishes to proceed down, but the inaction from elected officials to offer any sort of compromise has made this the only possible outcome. ... Closing one of the nation's oldest racetracks, and the most important track in Louisiana, will be a devastating blow to Louisiana's equine industry and the New Orleans economy. It will also have an immediate detrimental impact on the livelihoods of the hundreds of employees, local vendors, and community surrounding the Fair Grounds." At an emergency meeting of the Louisiana commission on May 13, Ozair Shariff, an attorney for CDI, warned commissioners that without some form of legislative assistance to make up for the loss of HHR revenue, Fair Grounds would not apply for racing dates in the fall, calling the situation 'dire.' Reading from a statement at the May meeting, Shariff said: 'Fair Grounds' overall profitability is dependent on revenue generated from its OTB network, specifically video poker and historical racing – until last week (when the Supreme Court decision on HHR took effect). The elimination of 46 percent of the OTB revenue and an even more significant 74 percent of OTB EBITDA does not allow Fair Grounds to cover its required $9 million average annual maintenance operating capital. Faced with this reality, operating under the current status quo is no longer an option.' Shariff said efforts to engage members of the Louisiana legislature, whose session ends on June 12, was a priority, in hopes of getting some type of relief. Shariff was rebuked at the meeting by Louie Roussel III, a prominent New Orleans businessman who formerly owned Fair Grounds and is a longtime Thoroughbred owner and trainer. Roussel, who said he was speaking on behalf of Gov. Jeff Landry, addressed the commission, telling them, 'Do not allow these people to do this. … If they tell you they don't want to race, fine them $50,000 or $100,000 a day for every day they don't race. 'There will be no state subsidy for this racetrack,' Roussel added. 'None.' Apparently, Roussel was correct. Advertisement Legislators did pass two bills that Carstanjen said would be damaging to CDI's bottom line: the first expands the permitted number of video poker machines at truck stops (from 50 to 60) and bars (from three to four). The second bill would permit fixed odds wagering on horse racing. The legislation created a fund for Louisiana purses, but nothing for track operators. Following is Carstanjen's letter to the Louisiana State Racing Commission, in full: June 9, 2025 Mr. Edward J. Koehl, Jr., Chairman Louisiana State Racing Commission Mr. Stephen Landry, Executive Director Louisiana State Racing Commission 320 N Carrollton Avenue Suite 2-B New Orleans, Louisiana 70119-5100 RE: LSRC Meeting and Fair Grounds' Racing License Dear Chairman Koehl and Executive Director Landry: It is my understanding that soon after the Louisiana Legislature adjourns on June 12, 2025, an emergency meeting of the Louisiana State Racing Commission ("LSRC") will be conducted. This correspondence is Churchill Downs Incorporated's ("CDI") formal request to appear at the meeting to discuss the timeline and next steps concerning the license held by Churchill Downs Louisiana Horseracing Company, L.L.C. d/b/a Fair Grounds Racecourse & Slots ("Fair Grounds"). For the last few months, CDI has attempted to engage in good faith discussions with elected officials and various other industry stakeholders to find a path toward long term economic viability for the Fair Grounds after the recent decision of the Louisiana Supreme Court that resulted in the elimination of historical horse racing ("HHR"), and nearly half of the Fair Grounds' off-track betting ("OTB") revenues. 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. To make matters worse, the passing of HB 540 and 547 further negatively impacts the Fair Grounds' ability to remain competitive. House Bill 540 will lead to significant cannibalization of revenue from our OTB network in and around greater New Orleans, a network in which the Fair Grounds has heavily invested since 2005 - the only racetrack operator in the state to do so. House Bill 547 will shift wagering handle from current brick and mortar racetracks, OTBs, and advanced deposit wagering platforms, all of which provide revenues to track operators and local horsemen groups, to out-of-state bookmaking operators. Given the legislature's ease with which it approved legislation that is directly adverse and harmful to the economic interests of Fair Grounds, the opposition by elected officials to engage in meaningful solutions in collaboration with the Fair Grounds, and the forthcoming adjournment of the legislative session, CDI is left with no choice but to request an appearance before the LSRC to begin the next steps for voluntarily surrendering the racing license held by the Fair Grounds. The timing of the LSRC's meeting, and the date on which the Fair Grounds ceases its operations for not committing to run a 2025-2026 race meet, necessarily implicates the Louisiana Gaming Control Board ("LGCB") and the Fair Grounds' slot license, the surrender of which may not occur without the prior approval of the LGCB. To be clear, we expect to surrender our slot and video poker licenses. This is not the path CDI wishes to proceed down, but the inaction from elected officials to offer any sort of compromise has made this the only possible outcome. Fair Grounds provides nearly $30 million in taxes to local municipalities and the State of Louisiana, in addition to well over $34 million in purse money for its racing product. Closing one of the nation's oldest racetracks, and the most important track in Louisiana, will be a devasting blow to Louisiana's equine industry and the New Orleans economy. It will also have an immediate detrimental impact on the livelihoods of the hundreds of employees, local vendors, and community surrounding the Fair Grounds. However, the inaction of the legislature and others in a position to save this racetrack have forced us into the current situation. Please provide the details of the meeting at your earliest convenience. William C. Carstanjen Churchill Downs Incorporated, CEO cc: Mr. Jeff Landry, Governor Mr. Cameron Henry, Senate President Mr. Phillip DeVillier, Speaker of the House Mr. Jimmy Harris, Senator Mr. Bernard Chatters, President of the Louisiana HBPA Mr. Patrick Bernard, LSRC Commissioner Mr. Rock Bordelon, LSRC Commissioner Mrs. Leslie Bouie, LSRC Commissioner Mr. Larry Findley, LSRC Commissioner Mr. K.R. Finkelstein, LSRC Commissioner Mr. Nathan Granger, LSRC Commissioner Mr. Earl Landry, LSRC Commissioner Mr. Travis Miller, LSRC Commissioner Mr. Deano Thornton, LSRC Commissioner Mr. Vincent Tuminello, LSRC Commissioner Mrs. Katherine Winters, LSRC Commissioner This story was originally reported by Paulick Report on Jun 10, 2025, where it first appeared.
Yahoo
2 days ago
- Business
- Yahoo
Gayle Benson: 'To Our Knowledge' Fair Grounds 'Is Not For Sale'
Gayle Benson: 'To Our Knowledge' Fair Grounds 'Is Not For Sale' originally appeared on Paulick Report. After news broke Tuesday that Churchill Downs, Inc. had sent a letter to the Louisiana State Racing Commission revealing its plan to 'begin the next steps' to relinquish its live racing license, several names were bandied about the public sphere as potential buyers for the Fair Grounds Racetrack in New Orleans. According to among the names suggested was Gayle Benson. Benson is a prominent Thoroughbred owner via her G M B Racing, as well as the owner of the New Orleans Saints NFL team and Pelicans NBA team. Advertisement Benson issued a public statement via Saints and Pelicans executive Greg Bensel: 'With the recent news generated by Churchill Downs concerning their continued racing at Fair Grounds, we have had numerous calls regarding our interest in purchasing the Fair Grounds. Mrs. Benson continues to support the horse racing industry not only in Kentucky but more importantly here in Louisiana. "She has always maintained a great relationship with the leadership at Churchill Downs and certainly has been monitoring this situation at the Fair Grounds. Her hope is that horse racing continues in New Orleans at the Fair Grounds and is prosperous and sustainable. "It is an important and iconic industry that we cannot lose. To our knowledge, which is very limited relative to the operations of the Fair Grounds, it is not for sale. Our focus is on Saints minicamp and the upcoming NBA Draft.' This story was originally reported by Paulick Report on Jun 12, 2025, where it first appeared.
