Journalists Wandering Eyes Posted August 28, 2019 Journalists Share Posted August 28, 2019 Citing a disadvantageous effective tax rate that it claims to be 17.5-20% higher than casinos already in operation in greater Chicagoland, a product of contributions to the Thoroughbred purse account, officials at Churchill Downs Incorporated announced Wednesday that it will decline to apply for a gaming license for Arlington Park under the recently enacted Illinois Gaming Act. “Notwithstanding our steadfast commitment to the Illinois Thoroughbred racing industry and despite the good faith intentions of everyone involved in the passage of the Illinois Gaming Act, the economic terms under which Arlington would be granted a casino gaming license do not provide an acceptable financial return and we cannot responsibly proceed,” said Bill Carstanjen, the CEO of CDI. He continued, “The Chicagoland market has seen a significant proliferation of video gaming terminals over the last several years and now faces the potential introduction of five new gaming facilities as well as increased gaming positions at existing casinos and video gaming outlets. Arlington would enter this market with an effective tax rate that would be approximately 17.5-20% higher than the existing Chicagoland casinos due to contributions to the Thoroughbred purse account. This disadvantage in a hyper-competitive gaming market, coupled with substantial licensing and reconciliation fees and new, unviable horse racing requirements in the Illinois Gaming Act, makes construction of a casino at Arlington financially untenable.” Carstanjen said that it is with “a heavy heart” that the decision was made. According to the release, racing will continue at Arlington for 2020 and 2021 and that the track will apply for sports betting while longer-term options are investigated. Among those options are including the relocation of the racing license to another community in Chicagoland or elsewhere in the state. The release says that CDI and Arlington management would work in concert with legislative and community stakeholders, as well as the track’s customers, employees and horsemen to “find a solution that takes into account the many constituents across the State of Illinois who depend on horse racing for their livelihoods.” CDI already holds a 61% stake in the Rivers Casino Des Plaines not far from the racetrack. This story will be updated. The post CDI Declines To Apply For Gaming License For Arlington appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions. View the full article Quote Link to comment Share on other sites More sharing options...
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