The long-standing writings on the walls regarding the sale of Arlington track now have a definitive voice behind them. It is increasingly clear that Arlington Heights will not be the chosen location for Churchill Downs’ racino operation in Illinois.
The CEO of Churchill Downs, Bill Carstanjen, delivered the speech, but the future of Arlington International Racecourse is still up in the air.
What Carstanjen said regarding a potential purchase of Arlington racetracks
In a recent earnings call, Carstanjen confirmed what many had suspected: Churchill Downs does not have grand plans for the future of its racecourse. Carstanjen stated:
The land holds a greater purpose, and we are working to collaborate effectively with all market participants to potentially modify the license or circumstances in order to sustain racing in Illinois. While we have shown patience, consideration, and support to the parties involved, ultimately, the land will need to be sold and the license transferred for the long-term survival of racing.
It appears inevitable that Churchill Downs will soon relocate from its current location, as signs of this were first seen in September.
Churchill Downs shocked many by announcing they would not be seeking a casino gaming license at Arlington, despite their long history of advocating for one.
Carstanjen discussed the tax rates for table games, slots, and casinos, expressing skepticism about a racino’s ability to generate enough revenue to cover costs and turn a profit.
Churchill Downs is said to be considering other options following the Carstanjen offer. Although there is a viable alternative, the final decision is not solely up to Churchill Downs.
Institutions of the condition and cities have not yet weighed in.
Churchill Downs is considering Waukegan, another region in Illinois, as a potential location for a casino. The city has submitted three casino gaming license applications, including one from Churchill Downs, to the Illinois Gaming Board (IGB) for evaluation.
Nevertheless, the board will only be considering one license, and there is no guarantee that Churchill Downs will be selected by the IGB. Additionally, there is no set timeline for when this decision will be made.
North Point Casino and Full House Resorts are the other two candidates.
Neil Bluhm, CEO of Rush Street Gaming and owner of Rivers Casino in Des Plaines, is participating in the bid for Churchill Downs.
The next question is whether the horse racing businesses will move to Waukegan. However, this is not a problem because Churchill Downs has been granted permission by the state to relocate.
One potential concern may arise from the city of Waukegan itself. Mayor Sam Cunningham has mentioned that there has been no discussion about horse racing in the city.
Disregarding a proposal from a reliable developer in the financial realm is not recommended. However, our focus at the moment should be on assisting our citizens through difficult times and aiming for a better future. An upcoming game is set to be released in the next season.
There is a question about whether Churchill Downs would sell the Arlington property before finalizing plans for Waukegan. The best course of action in the event that the IGB issues a certificate to a competitor is also up for debate.
What happens if Waukegan doesn’t operate out?
In January, there were reports of two parties showing interest in the Arlington racecourse. However, it was later revealed that Churchill Downs had turned down these inquiries.
The need for this neutrality is clear: without proper infrastructure, hosting horse racing is not feasible, which could hinder Churchill Downs’ ability to transfer its racing license to Waukegan.
Churchill Downs has currently only applied for a gaming license in Waukegan. While Illinois recently approved the expansion of six new casinos across the state, it is still too early for Churchill Downs to submit the necessary paperwork for these additional locations.
It appears that Churchill Downs relies solely on funding from Waukegan. If the “horse” fails to perform, it could put the company in a precarious position.
