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Craig Duchossois: Blame Politicians, Not Churchill Downs For Arlington Park’s Demise

Craig Duchossois, son of former Arlington Park owner Richard Duchossois, said Illinois politicians are to blame for the pending demise of the suburban Chicago racetrack owned by publicly traded Churchill Downs Inc. (CDI).

In an interview with the Daily Herald, Duchossois said the 2019 legislation that gave Illinois racetracks the right to operate a casino came “too late” for Arlington Park. By the time the law passed, CDI already had purchased an interest in the Rivers Casino, about 10 miles away from Arlington Park. It now is the casino's majority owner.

Illinois horsemen were stunned when CDI officials announced months after the bill was signed into law that they would not seek a license to operate a casino at Arlington Park. CDI's chief executive officer, Bill Carstanjen, announced plans to sell the property last year and began accepting bids earlier this year. Among the interested parties are the NFL's Chicago Bears. At least one group is interested in keeping racing alive at Arlington by developing a portion of the property but maintaining the track, grandstand and stabling.

Arlington Park did not apply for 2022 racing dates.

“If they (Illinois lawmakers) would've gotten their head out of the sand and done it five or 10 years earlier, whole different ballgame,” Duchossois said. “Who knows what would have happened then. But at least we would've been given the chance to compete fairly, and they didn't allow that. And now they're saying Churchill is at fault? That just doesn't make any sense.”

Duchossois, like his father a former member of the CDI board of directors, told the Daily Herald discussions about closing Arlington and developing the property came up a number of years ago.

Arlington merged with CDI in 2000, making the Duchossois family the largest single shareholder in the company whose flagship racetrack, Churchill Downs, and its headquarters are located in Louisville, Ky. Churchill Downs also owns Fair Grounds in Louisiana and Presque Isle Downs in Pennsylvania (both tracks also have casinos) but ceased racing operations at Calder in Florida (replacing it with jai alai to maintain a casino license) and sold Hollywood Park in California to a land development company that eventually closed the track and built a football stadium there.

In February 2021, CDI repurchased one million of the three million shares reportedly held by The Duchossois Group. The private transaction was valued at $193.9 million.

Craig Duchossois was interviewed by the Daily Herald on the afternoon of the track's signature event, formerly known as Arlington Million Day. The Arlington Million, inaugurated in 1981, had its named changed to the Mr. D. Stakes to honor Richard Duchossois, while the prize money was slashed from $1 million to $600,000. Duchossois, 99 years old, did not attend.

Illinois Horsemen Urge Antitrust Investigation Over Alleged Arlington Park-Rivers Casino Link

The following statement was issued by the Illinois Thoroughbred Horsemen's Association:

The Illinois attorney general's office has been urged to investigate whether Churchill Downs Inc. committed state or federal antitrust violations when it took a series of steps to preclude casino gaming and diminish pari-mutuel wagering at a site in close proximity to its Rivers Casino in Des Plaines, Ill.

Churchill spent two decades pursuing the authority to operate a casino at the Arlington Park racetrack in Arlington Heights, but, after purchasing the majority stake in Rivers, maneuvered to end gaming at the nearby track. Churchill abruptly abandoned its Arlington casino plan and, in moving to sell the property, insisted the site's future use would be “higher and better” than horse racing – effectively ending the continuation of meaningful pari-mutuel wagering activity. All the while, Churchill executives were careful in their public comments to avoid stipulating any motive on their part to suppress competition facing Rivers, their highly successful casino.

Also established is that Churchill contradicted the intent of a 2019 Illinois law that authorized a casino license for Arlington – the privilege that Churchill had sought before purchasing its stake in Rivers. Churchill's decision to forgo the option to open a casino at Arlington surprised Illinois elected officials who backed the 2019 law; the Arlington casino was intended by state officials to generate new tax revenue for the state and local governments, boost pari-mutuel wagering, enhance the racing program at the track, and create scores of new racing-related jobs.

But unclear is whether Churchill's steps rose to violations of state or federal antitrust laws. In a letter to the Illinois attorney general's office, Mike Campbell, president of the Illinois Thoroughbred Horsemen's Association, described a pattern of deceit by Churchill executives and argued that the publicly available evidence supports the launch of an antitrust investigation.

“Churchill executives evidently engaged in a campaign to block current and future gaming scenarios at Arlington while telegraphing messages to deflect public attention from its actual intent: shielding Rivers from a major gaming competitor in close proximity,” Campbell wrote in the letter, which also was forwarded to the U.S. Justice Department. A PDF of the letter is available here.

Arlington is just a 12-mile drive from Rivers; a reinvigorated horse racing program at Arlington, particularly as part of a casino entertainment complex, would become the closest major gaming competitor to Rivers. In February, Arlington Heights Mayor Thomas Hayes told ABC7/WLS-TV in Chicago what others had privately concluded. “I think it's clear why they did not choose to open a casino at the racetrack property – because it would directly compete with their majority interest in the Rivers Casino,” he said of Churchill.

Churchill plans to accept bids for the purchase of Arlington in mid-June. Amid widespread concern that Churchill might be angling to preclude a future owner of Arlington from engaging in forms of gaming, the Arlington Heights village board in early May approved an ordinance intended to prohibit Churchill from placing certain restrictions – specifically, those that would prevent future gaming – on the property.

Campbell noted in the letter to the Illinois attorney general's office that the ITHA brought to the attention of Illinois racing regulators a reported offer in 2019 by a group of prospective owners to purchase Arlington from Churchill with the intent of continuing racing, and developing a casino, at that site. Churchill reportedly refused but never publicly noted any such offer.

“It's unfortunate that Churchill Downs, once a stalwart of thoroughbred racing, appears now to care solely about corporate profit. But Illinois isn't Churchill's trough – our state doesn't exist to feed Churchill's greed,” Campbell said. “A gaming license such as the one granted to Rivers Casino is a privilege. It means Churchill has a responsibility to follow the law, particularly when the law is aimed at serving the best interests of Illinois taxpayers.”

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Arlington Heights Trustees May Place Restrictions On Arlington Park Land Use

Trustees of the village of Arlington Heights, Ill., will address the future of Arlington Park racetrack and consider placing restrictions on the property's use during a regularly scheduled virtual meeting at 7:30 p.m. CT Monday night. (To participate/view the meeting, click here for instructions.)

Churchill Downs Inc., the publicly held company that owns the track, announced in February that the 326 acres on which the racetrack sits will be offered for sale but that the company may pursue using the racing license elsewhere in the state. CDI officials stunned the racing community in 2019 when they announced, following passage of legislation that would permit casinos at racetracks, that Arlington would not seek a casino license – something they had lobbied for alongside horsemen for decades. While officials cited dissatisfaction with the law's tax structure, it is widely believed that CDI did not want an Arlington casino to compete with the nearby Rivers Casino, of which the company is majority owner.

Item XIII on the meeting's agenda has two items listed under “legal”: a resolution regarding zoning regulations for the racetrack property, and an ordinance amending “negative use restrictions” that would seek to prohibit CDI from selling the property with usage restrictions (i.e., no horse racing or gambling) that run contrary to the village's public policy. The ordinance is designed to “preserve all options for the property whether it includes complete redevelopment through a long-term master plan or continued use as a horse racing facility with additional redevelopment,” according to a report from the village's planning and legal staff.

“We are planning to take some proactive steps to ensure that any future plans discussed for Arlington Racetrack meet the desired land uses the village would like to see on this significant parcel, and that the door to continued horse racing at the track remains open,” Arlington Heights Mayor Tom Hayes said in a statement reported in the Arlington Daily Herald.

The Daily Herald reports that Mike Campbell – president of the Illinois Thoroughbred Horsemen's Association – and perennial leading trainer Larry Rivelli are working separately with potential investors to buy the property and continue racing.

Hayes told the Daily Herald that continuation of live racing and a new stadium for the NFL's Chicago Bears are two possibilities for the site.

The village's planning and legal staff recommends passage of a resolution regarding zoning regulations that would put “prospective purchasers and the public on notice that the village intends to make changes to the zoning, subdivision code or other regulations. The resolution states the fact that the village is considering making changes to the zoning ordinance to restrict certain uses and establish other development standards that would be applicable to Arlington International property.”

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