Churchill Downs Incorporated | Horse Racing Free Tips

Churchill vs. TOC Lawsuit Withdrawn; Neither Side Wants to Say Why

After alleging last month that a disagreement over advance-deposit wagering (ADW) hub rate fees was so egregious that it amounted to a “shakedown” that needed to be fought in federal court, a subsidiary of the gaming corporation Churchill Downs, Inc., dropped its lawsuit against Thoroughbred Owners of California (TOC) Mar. 8.

According to a “notice of voluntary dismissal” filed Monday in United States District Court (Central District, California, Western Division) by Churchill Downs Technology Initiatives Company (CDTIC), an agreement between the parties was reached Mar. 5 that apparently settles the matter “without prejudice.”

But the details of that agreement were not disclosed in court filings. And when given the opportunity on Tuesday by TDN to explain what led to the apparent resolution, neither TOC president/CEO Greg Avioli nor Scott Edelman, the CDTIC's attorney, responded to email queries.

In a spat that centered on which entity should benefit from the pandemic-related boom in at-home betting, CDTIC filed a Feb. 2 complaint asking a judge to rule that TOC couldn't use a state law to force CDI into either accepting lower rates, abandoning its recently signed agreement with Santa Anita Park, or entering into arbitration to settle the dispute. (Santa Anita itself was not a defendant in the suit.)

According to CDTIC's complaint for declaratory and injunctive relief, the dispute arose Oct. 28, 2020, when Avioli allegedly asked CDI's then-executive director of racing, Mike Ziegler, to “voluntarily return the equivalent of 1% of the total amount generated from California residents wagering on those platforms in 2020.”

In addition, according to the complaint, “Mr. Avioli proposed that all ADW providers agree to a 3% hub fee for the 2021-2022 term–a rate CDT has never agreed to in its history of operating in California.”

CDTIC had not wanted to disclose details of those hub fees in court documents, and had even been granted permission from the judge overseeing the case Feb. 9 to instead file those financial details as sealed documents that the public couldn't view. Hub fees are generally not disclosed by industry entities because such figures are deemed competitive secrets.

According to the original complaint, “TOC threatened that if CDT did not comply with its 'voluntary' request, it would demand arbitration pursuant to [a California law]. Contrary to Mr. Avioli's false characterization, the revenue ADW providers earned in 2020 was not a 'windfall,' but the result of increased demand for online wagering.”

The post Churchill vs. TOC Lawsuit Withdrawn; Neither Side Wants to Say Why appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

Source of original post

Churchill Downs Announces It Will Sell Arlington Park

Churchill Downs announced Tuesday that it has launched a process to sell Arlington Park, which sits on 326 acres of real estate 30 miles northwest of downtown Chicago. The sale will be handled by CBRE Group, a full service commercial real estate firm.

Arlington's future looked bleak in September of 2019 when Churchill Downs made the surprising decision to not take the necessary steps to open a casino on the racetrack property. It is widely believed that Churchill did not want to create competition between an Arlington casino and a casino it owns near the track. Churchill owns the Rivers Casino in Des Plaines, Illinois, which is about seven miles from the Arlington.

After confirming that it did not seek a casino license for the track, Churchill said it would only commit to racing at Arlington through 2021. In Tuesday's press release, Churchill said that it would honor the commitment to hold a meet that is scheduled to begin Apr. 30 and end Sept. 25.

“On the one hand, when you hear that Churchill is going to sell Arlington Park ,your heart immediately goes into your mouth because we are planning on racing there in two months,” said David McCaffrey, the executive director of the Illinois Thoroughbred Horsemen's Association. “We are a bit relieved that at least they are committed in writing to racing this summer That's the short-term gain part but we're deeply saddened that it looks like our worst fears will come true, that Arlington Park's last ever race will be held in September.”

In Tuesday's press release, Bill Carstanjen, the CEO of Churchill Downs Incorporated, said the company will pursue opening a racetrack/casino at a new location somewhere in the state. Once Arlington closes, Hawthorne will be the only track in the Chicago area, and Hawthorne and Fairmount Park will be the only tracks left in the state. Arlington opened in 1927.

In the release, Carstanjen touted Arlington as an attractive property for development.

“Arlington's ideal location in Chicago's northwest suburbs, together with direct access to downtown Chicago via an on-site Metro rail station, presents a unique redevelopment opportunity,” he said. “We expect to see robust interest in the site and look forward to working with potential buyers, in collaboration with the Village of Arlington Heights, to transition this storied location to its next phase,” said Bill Carstanjen, CEO of CDI.

As for the potential of opening a new racetrack in the state, Carstanjen said: “We are exploring potential options with the State and other constituents and remain optimistic that we can find solutions that work for the State, local communities and the thousands of Illinoisans who make their living directly or indirectly from Thoroughbred horse racing. We are committed to the Illinois Thoroughbred racing industry and will consider all options in working toward opportunities for it to continue into the future.”

McCaffrey said there would be several obstacles standing in the way if Churchill tried to open a new track in the state.

“Moving the racing license would require an awful lot of regulatory steps and probably changes to the state statutes,” he said. “It would be much easier said than done. To us, this is not a good solution. The good solution for us was to make Arlington Park the biggest and best racino in the country, bar none. Because of its location, its history, because there is a train station right at the track, it was the perfect spot for a casino. None of those things will exist in a place built somewhere else and I can promise you it would not have the grandeur of Arlington Park.”

Finding a location in a saturated market where a casino and racetrack would thrive will not be easy. There are already 10 casinos in Illinois, which does not include the casinos that have yet to open at Hawthorne and Fairmount.

The post Churchill Downs Announces It Will Sell Arlington Park appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

Source of original post

Hunter Rankin Named CDI Senior Director of Racing

Hunter Rankin has been hired as Senior Director of Racing for Churchill Downs Incorporated, CDI announced Tuesday. The role was recently vacated following Mike Ziegler's promotion to General Manager of Churchill Downs Racetrack in December 2020.

As CDI's Senior Director of Racing, Rankin will act as a representative and liaison to the U.S. Thoroughbred racing and breeding industry and focus on the implementation of standards and processes outlined in the Horseracing Integrity and Safety Act (“HISA”) across all of CDI's racing properties.

“Hunter brings to this role a breadth of relationships he has developed with key stakeholder groups within the racing and breeding industries,” said Bill Mudd, President and Chief Operating Officer of CDI. “His keen familiarity with HISA will help lead the Company and its racing assets into a successful future within a continuously-changing and evolving industry.”

Prior to this role, Rankin was the President of Sagamore Farm, where he oversaw all farm and Sagamore Racing operations while also building Sagamore Farm as a hospitality asset. He previously served as Executive Vice President of Sagamore Development (now known as Weller Development) and as a Partner at Sterling Thompson Company, where he managed commercial insurance profiles for large real estate, construction and equine businesses.

The post Hunter Rankin Named CDI Senior Director of Racing appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

Source of original post

Mike Anderson Named President of Churchill Downs Racetrack

Mike Anderson has been named the 14th President of Churchill Downs Racetrack, Churchill Downs Incorporated announced Tuesday.

Anderson brings to the role 24 years of leadership experience at CDI, having recently served as Vice President of Operations, where he led the planning, construction and opening of over $300 million in capital projects across CDI’s properties. He joined CDI in 1996 as Controller and has held a number of roles with the Company, including Vice President of Corporate Finance, Investor Relations, Risk Management and Treasurer. Anderson will report to Bill Mudd, President & Chief Operating Officer of CDI.

“Mike Anderson is a uniquely qualified leader to assume the role of President at Churchill Downs Racetrack having successfully and consistently delivered on company goals across multiple departments,” said Bill Mudd, President & COO of CDI. “Over its 146-year history, the racetrack has grown into an incredibly sophisticated and complex business organization, and Anderson is poised to lead it through continued growth and success.”

“The opportunity to serve this Company, the Commonwealth and our community as President of Churchill Downs Racetrack is the privilege of a lifetime,” said Mike Anderson. “As a native of Louisville, it is humbling to consider what this historic place represents to so many people. I am eager to build upon the great traditions of the Kentucky Derby and continue the Company’s work to establish a legacy of integrity and inclusivity both at Churchill Downs and within our industry.”

CDI named Mike Ziegler Senior Vice President and General Manager of Churchill Downs Racetrack, a role he will fulfill while retaining his current responsibilities as Executive Director of Racing for the entire company. CDI will conduct a search to support Ziegler in that function as the company expands resources dedicated to safety and integrity in horse racing. Prior to joining CDI in 2015, Ziegler served in numerous leadership roles across the industry.

“Mike Ziegler brings to Churchill Downs Racetrack unparalleled knowledge of all aspects of horse racing and racing operations,” said Mudd. “This expertise coupled with Mike Anderson’s robust strategic and operational skills positions the Company for success and likewise advances these talented executives into roles from which they can maximize their strengths. I couldn’t be more excited for these two individuals or our company.”

The post Mike Anderson Named President of Churchill Downs Racetrack appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

Source of original post