Ongoing Discussions on Future of Fair Grounds Amid HHR Dispute

[Wandering Eyes]

There are “active discussions” between representatives of Churchill Downs Inc. and officials in Louisiana to reach some kind of agreement to see the owners of Fair Grounds continue to operate live racing at the track, according to a report Friday in DRF.

Earlier this week, CDI's chief executive, Bill Carstanjen, sent a letter to the Louisiana State Racing Commission (LSRC) and to some of the state's high-ranking politicians, warning that the track's inability to operate historic horse racing machines (HHR) at its OTBs put the company in a precarious economic position–so much so, it was planning to surrender its license to operate racing at Fair Grounds.

In March, the Louisiana Supreme Court declared a 2021 statute that had legalized historical horse racing machines as unconstitutional without voter approval. CDI subsequently announced a roughly 25% cut to purses at the track on the back of the court's decision.

“This ruling places at risk an entire horse racing ecosystem that relies on historical horse racing revenue,” the company wrote in a statement at the time. Prior to the court ruling, CDI operated HHR machines at 13 OTBs in Louisiana.

According to DRF, CDI issued a statement Friday morning that Louisiana Gov. Jeff Landry was directly involved in the discussions, and that the company was “engaged in active discussions with the Louisiana Racing Commission and the horsemen with the aim of reaching a resolution that is favorable to all of the stakeholders.”

Besides Landry's office and CDI, it is understood the discussions also involve the state racing commission and Louisiana's HBPA.

Carstanjen's June 9 letter to Landry states the following: “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 added that, “It is my understanding that soon after the Louisiana Legislature adjourns on June 12, 2025, an emergency meeting of the LSRC will be conducted. This correspondence is CDI's formal request to appear at the meeting to discuss the timeline and next steps concerning the license” that CDI holds for Fair Grounds.”

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