The choice by Churchill Downs, Inc. to partially close down a renowned racetrack in order to prevent competition from a major Illinois casino may have had unintended consequences.
CDI’s decision to sell Arlington Park to the Chicago Bears was widely seen as a way to avoid competition for the Rivers Casino Des Plaines, which CDI co-owns with Rush Street Gaming. This perception arose after Illinois passed a law in 2019 allowing racetracks to add slot machines and table games. The profits from horse racing were intended to improve race purses and track amenities.
The other two horse racing tracks in the state, Hawthorne Race Course and FanDuel Sportsbook & Horse Racing, took advantage of the opportunity. Hawthorne has not yet started construction on a gaming hall, but for some unknown reason, CDI decided not to add a racino at Arlington.
In the summer of 2020, CEO Bill Carstanjen of CDI expressed:
Arlington Park is only a temporary solution. Eventually, the land will be used for more valuable and important purposes.
According to Fox32 Chicago (WFLD-TV), Arlington Heights village trustees have approved a zoning change that will allow for the construction of a sports betting facility.
Sportsbooks are allowed at major sports venues in Illinois. The FanDuel lounge opened at the United Center in October, but it still needs approval from the Illinois Gaming Board to start gambling operations. Additionally, a DraftKings sportsbook is currently under construction at Wrigley Field.
This suggests that there is a possibility of gambling being brought to the Bears’ new location in Arlington, but the ultimate decision lies with the IGB.
The village is located just 20 minutes north of Rivers Casino. Currently, only sports betting is allowed in Illinois, not a full-scale casino that could have been built at the racetrack.
Chicago Bears insisted on sports betting in Arlington
The Chicago Bears finalized a $197.2 million purchase agreement in September 2021 for a 326-acre plot of land at the former Arlington Park site. The team plans to build a new stadium at this location, which is located 30 miles northwest of their current home ground, Soldier Field.
The team’s owners unveiled the initial plans for the new stadium to Arlington Heights officials in October of this year.
The success of the Bears’ $5 billion development plan largely depends on the approval of a zone change allowing for sports betting. The plan involves building an NFL stadium and a mixed-use commercial district on the racetrack site.
Did Churchill blunder by killing Arlington?
The recent shutdown of Arlington International Racecourse, a track that was highlighted in Architectural Digest’s 2014 compilation of the most breathtaking racetracks worldwide, has caused a profound sense of loss among many horse racing fans in Illinois.
After receiving widespread acclaim for his efforts in rebuilding and overseeing the racetrack, the late Dick Duchossois inadvertently contributed to its demise by forming a partnership with CDI. Ultimately, Duchossois relinquished a majority stake in Arlington to CDI, leading to the track’s closure in September 2021. This event signaled the end of nearly a century of horse racing at the renowned Chicago area venue, which had previously been home to the prestigious Arlington Million.
Yet, CDI’s decision not to compete with its Rivers Casino appears shortsighted. By opening a racino at Arlington, they could have continued to generate gaming revenue and supported horse racing at a prestigious venue. Considering CDI’s involvement in managing Churchill Downs and the Kentucky Derby, one would expect them to be interested in such opportunities.
Instead, the closure of Arlington has thrown Illinois horse racing into chaos.
In the Chicago area, only one track remains from the days when Hawthorne, Maywood Park, Sportsman’s Park, and Arlington all hosted races. Today, Hawthorne is used for both thoroughbred and harness racing.
Neither breed is happy with the current schedule, and with limited purse money available while waiting for the racino, many horsepeople are forced to move to different jurisdictions. They are no longer able to wait for gaming revenue to improve their horse racing prospects in Illinois.
Rivers dominates Illinois casinos, but not for long
Additionally, Rivers Casino is expected to lose its status as the biggest and most profitable casino in Illinois in the near future.
Bally’s has been granted permission to build a large casino in downtown Chicago. They intend to launch a temporary casino at the Medinah Temple in 2025. The permanent casino, set to be built on the site of the Chicago Tribune printing plant, is not anticipated to open until at least 2026.
Bally’s Chicago will include:
- 3,400 slots
- 173 table games
- Sportsbook
- 10 restaurants and bars
- A hotel tower with a capacity of 500 rooms, featuring a rooftop bar.
- An outdoor music venue with space for 1,000 attendees.
- There is also a 70,000-square-foot indoor entertainment center that can accommodate up to 3,000 people.
- And a verdant outdoor area.
When compared, Rivers Casino provides:
- 1,000 slot machines
- 65 table games
- BetRivers sportsbook
- There are seven dining options available, including bars, buffets, and restaurants.
In October 2022, Rivers Casino in Illinois has surpassed $436 million in gross adjusted revenue, solidifying its position as the top-earning casino in the state by a substantial margin. This amount accounts for 39% of the total revenue of over $1.1 billion generated by all 11 casinos in Illinois. The Grand Victoria Casino, the second-highest earner, has brought in almost $128 million in 2022, representing only 29% of Rivers Casino’s impressive revenue.
Out of 7.6 million total casino attendees in the state, Rivers Casino has welcomed nearly 2.3 million customers, making it the top casino in terms of attendance. Following closely behind is Hollywood Casino Aurora, with just over 700,000 visitors.
