Churchill Downs has intensified its threat to exit racing operations at Fair Grounds in New Orleans, formally requesting to discuss surrendering its racing license with Louisiana regulators.
In a June 9 letter to the Louisiana State Racing Commission (LSRC), Churchill Downs, Inc. (CDI) Chief Executive Bill Carstanjen cited legislative actions he described as “directly adverse and harmful” to Fair Grounds’ economic interests.
“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,” Carstanjen wrote.
The letter indicates CDI expects to address the commission shortly after the Louisiana Legislature adjourns on June 12, 2025.
This escalation comes nearly a month after a May 13 commission meeting where a CDI attorney first signaled the company might withdraw from Fair Grounds following a Louisiana Supreme Court ruling in March. That ruling upheld a 2021 lower court decision declaring historical horse racing (HHR) unconstitutional in the state.
CDI has previously ceased racing operations at prominent tracks including Arlington and Calder, citing profitability concerns related to gaming operations.
Benard Chatters, president of the Louisiana Horsemen’s Benevolent and Protective Association (LAHBPA), told TDN he intends to ensure the November-through-March racing season proceeds as scheduled.
“Hopefully cooler heads prevail. That’s my thinking on the matter,” Chatters said. “We’ll sit down and look at the situation and see how we can work together to make everybody a winner.”
“The Fair Grounds is very important to Louisiana, to New Orleans, and to the country. And we’re going to do everything we can—as the horsemen’s representative, I promise you—to make sure the Fair Grounds is in business and doing what it’s done for the last century. I’m committed to that,” he added.
Chatters expressed confusion about CDI’s position, noting: “I can’t speak to Churchill’s position. Are they angry [at] a downturn in business? You know, I’d be in a heck of a fix when business went bad for me for a little while if I just up and quit. That doesn’t quite sound like the horse racing business to me.”
LSRC Executive Director Stephen Landry confirmed receipt of CDI’s letter and expects a commission meeting within 30 days, according to a June 10 report by NOLA.com.
In his letter, Carstanjen claimed CDI has attempted “good faith discussions” with officials to find economic viability for Fair Grounds following the court ruling that eliminated HHR and nearly half of the track’s off-track betting revenues. He characterized the response as “reluctance, indifference, apathy, and even opposition.”
Two recently passed bills await the governor’s signature, both of which CDI views as problematic:
- House Bill 540 would allow truck stop operators to increase poker machines from 50 to 60, while bars and restaurants could increase from three to four machines. The bill directs some video poker revenue to the horse racing industry through purse increases.
- House Bill 547 would authorize fixed-odds wagering on horse races in Louisiana, establishing a purse supplement fund.
Carstanjen criticized both measures, writing: “To make matters worse, the passing of HB 540 and 547 further negatively impacts the Fair Grounds’ ability to remain competitive.”
He argued HB 540 would cannibalize revenue from CDI’s OTB network around New Orleans, while HB 547 would “shift wagering handle from current brick and mortar racetracks, OTBs, and advanced deposit wagering platforms… to out-of-state bookmaking operators.”
Senate President Cameron Henry appeared unmoved by CDI’s position, telling NOLA.com that lawmakers rejected what he characterized as CDI’s request for “subsidies.”
“They came at the end of the session and wanted a subsidy from the state and we said we couldn’t do it because they’re a profitable business,” Henry said. “If they choose to close the track we’ll work through that, if they choose to sell it we’ll work through that as well.”
Carstanjen’s letter suggested an escalating political standoff: “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… The inaction of the legislature and others in a position to save this racetrack have forced us into the current situation.”
