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View From The Eighth Pole: Petrillo Deserves Chutzpah Award For Gaslighting Of Illinois Racing Board

We may have to dust off the old Paulick Report Chutzpah Award in the wake of Arlington Park executive Tony Petrillo's gaslighting of the Illinois Racing Board.

Appearing via video before the regulatory agency during a regularly scheduled meeting on Thursday, Nov. 18. Petrillo lobbied to keep Arlington Park's diminishing number of OTBs operating in 2022 despite the decision by the suburban Chicago racetrack's parent company, Churchill Downs Inc., to end racing there and sell the property to the NFL's Chicago Bears for construction of a new football stadium.

Arlington Park ran its final race on Sept. 25 after deciding earlier not to seek racing dates in 2022, saying the property was being put up for sale. Four days after the 2021 meet ended, Churchill Downs announced a deal to sell Arlington Park to the Bears for $197.2 million. The company rejected a bid from a group led by former Arlington Park president Roy Arnold to purchase the property, continue racing and develop a portion of the land.

There were two agenda items related to Arlington and CDI continuing to profit off Thoroughbred racing through the continued operation of its Trackside OTB in a separate building on the south end of the Arlington Park property and five other OTBs in the state. CDI also wants its advance deposit wagering brand, TwinSpires, to keep operating in Illinois, though it must have a contract with both a racetrack and horsemen's organization and currently does not have an agreement with horsemen, either at Hawthorne and the Illinois Thoroughbred Horsemen's Association or FanDuel Fairmount Park and the Illinois Horsemen's Benevolent and Protective Association.

Attorneys for Hawthorne racetrack and the Illinois Thoroughbred Horsemen's Association argued that Arlington should not be eligible for what the racing law refers ti as “inter-track” wagering because Arlington is no longer an operating racetrack and is not licensed for 2022. Commissioner Alan Henry said the question comes down to legislative intent, the best long-term interests of the racing industry and common sense. Henry said Churchill wanting to profit off OTBs is like the farm that sells its prized Holstein to someone and then wants the profits from the milk it produces.

Counsel for the Illinois Racing Board advised the commissioners that, in his opinion, Arlington Park could be awarded the license under the law.

Hawthorne said it was willing to take over operations in some of the regions where Arlington currently has OTBs, though it is restricted to 16 OTB locations and already has 15 open.

The gaslighting began when Petrillo said Churchill Downs Inc. is committed to live racing in Illinois – less than two months after selling the state's signature racetrack for development. (In his next breath, Petrillo said racetracks can not be profitable on their own.)

“We maintain an interest in racing and pursuing other opportunities to continue live racing within the state,” Petrillo said. “At this time, we don't have any location that we could identify but we continually pursue this each day for another location.”

Petrillo started shedding what looked on my computer screen like crocodile tears.

“These (OTBs) are very important because they provide jobs, they're going to provide a number of jobs across each of these geographical areas to people to support their families. Especially in these economic times it's very important for these jobs to be maintained.”

Commissioner Beth Doria called Petrillo out for the audacious comment.

“Mr. Petrillo, I heard you reference the loss of jobs several times,” Doria said. “But I'm just wondering where that concern was when you actually closed the racetrack itself.”

Another commissioner asked Petrillo if he felt the closing of Arlington caused “dramatic damage” for the Illinois racing industry.

“Any business closing in any part of the industry has an impact that could be construed as negative,” Petrillo said in a comment that can only be construed as tone deaf by the thousands of lives affected by the closing of Arlington Park.

The Illinois Racing Board voted to delay a decision on Arlington Park's request until the Dec. 16 meeting. Let's hope the board does the right thing and denies the OTB licenses next month and allows Hawthorne to take them over. If CDI and Arlington opt to get back in racing with the construction of a new track, OTBs should be part of their operation. Until such time, they are no longer in the racing business in Illinois.

That's my view from the eighth pole.

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Letter To The Editor: Something Rotten In Illinois, But It’s Not Arlington Park Or Its Employees

And so it went that last Saturday my partner and I found ourselves boarding a plane for our first trip out of town since coronavirus became a thing. The destination and sole purpose of the trip – to see Arlington Park now or never. Like Ray Paulick wrote and I'm sure countless others this summer felt, I knew the experience would be bittersweet.

Even so I was not prepared for both the depth of bitterness and overwhelming sweetness we would find ourselves wrapped in.

The first pangs of bitterness came long before we even got to the track. From work colleagues to our flight attendants, restaurant server, and Uber driver – every single Chicagoan whom we told of our trip immediately responded with “It's so beautiful there!” and proceeded to share a memory of a happy day spent there with a son, mother, best friends, or siblings. How could a beautiful place that holds such cherished memories for so many Chicagoans, be going away for good?

The second pangs of bitterness came as we drove around Arlington Heights on our way to the track. Having grown up near Toronto in Canada, I had a certain idea of what to expect from the high-density suburbs surrounding a mega city. But, to my surprise, Arlington Heights had nary a towering condominium, high-rise apartment, or multistory office building in sight. Instead, it was block after block of single-family homes, parks, and big box stores with giant parking lots. In other words, it was a lovely and relatively spacious place for Chicagoans to live. But just as surely it was a place that could not possibly be enhanced by destroying a historic pillar of the community simply to re- purpose the land for development by the highest bidder. Especially when there appears to be no lack of under-utilized space already.

Mercifully these painful, bitter thoughts quickly faded into the background as soon as Arlington's giant wrought iron gates opened and we descended upon the historic grounds with the sugary sweet mixture of anticipation and excitement that accompanies a race fan for whom a lovely summer's day at the races awaits. And yet for every bit of anticipation and excitement we carried with us all the way from Ohio, I can assure you Arlington did not for one second disappoint.

Words may not do it justice, but the following are just some of my favorite moments and memories I'll take with me for a lifetime.

First and foremost, all the horses and jocks got home safe. Second, the track is truly a visual masterpiece; there's not a bad view in the whole house. Third, the crowd was large, enthusiastic, and notably friendly; at times it seemed you couldn't make it more than a few steps without sharing a joke, a compliment or some sort of witty banter with a complete stranger.

And then there's the politeness. As a Canadian I like to imagine I know a thing or two about the art of politeness, but the Arlington crowd that day left nothing wanting. In fact, I think it may actually be forbidden to open your own door at Arlington, because no matter where you go someone has already stopped to hold it open for whatever crowd of people happens to be traveling through at the time.

The staff were consummately wonderful as well. For as much as the upper echelons of management may be choosing to approach the end days with their heads up their arses, the people that actually do the work around there appear to be trying as hard as humanly possible to make these last days count. From the ticket takers to the horsemen's office staff to the bartenders to the mutuel tellers and pony outriders, every single employee we encountered always seemed happy to take a few extra moments to smile, chat, recommend, facilitate, or educate.

There was the talented bugler curating each perfectly tuned Call to the Post with the addition of a few bars of a classic rock song or catchy pop hit. And the meet's winningest jockey – in the midst of a beastly three wins, two places, seven mounts day – grinning as he took the time to high-five every kid that had gathered around the winner's circle, before heading back to the jocks room to do the whole exhilarating dance all over again.

And finally, the storm clouds threatened but stayed away, and like a true fairy tale we were treated to a stunning full rainbow over the homestretch for the last race.

It may have been a fairy tale ending to the day, but you'd be hard-pressed to find anyone at Arlington who still believes in a happily ever after. When posited with the unavoidable question de jour – their opinion on Arlington's fate – most people we spoke with estimated that their hearts and guts were at 90% melancholic resignation of marching towards an inevitable terminal end. About 10% were holding out hope for a miracle.

My least favorite response of the day was the friendly woman who told us she was certain they would “pull a Daley” and have the bulldozers there by sunset on closing day, à la Meigs Field, the former lakefront airport near downtown Chicago. This came in stark contrast to what was easily my favorite answer of the day, from a grizzled veteran fan who'd been a regular at the track for 40 years. He felt certain this was all nothing but an elaborate show of bluffing between Churchill Downs Inc. and the Illinois politicians, who all just want to maximize their piece of the pie before swooping in to save the day.

I admit I loved that answer. I tried desperately to hold on to it and carry it with me. But I'm a scientist by trade and a logical realist at heart. And so it wasn't long after the last race of the day, as the sun was getting low in the sky and we gazed around at our gorgeous surroundings one final time, I felt the unmistakable and final pangs of bitterness setting in once again. And to be honest those pangs still haven't left; they've lingered over me deeply ever since. From the pristine paddock to the lush infield to the modern architecture of the still new-looking grandstand, I wondered: How could anyone take in the entirety of this gorgeous world-class venue … and envision tearing it all down?

There are those who will argue that we're living in a different era, that racing needs to contract in order to survive. Sure, businesses contract and downsize all the time. But as far as I can tell they don't cannibalize their flagships to do it! The Great Race Place, the Twin Spires, the Big Sandy, and the Spa. Keeneland, Woodbine, Del Mar and, without a doubt, Arlington. These are our flagships, our world-class headquarters, our history-making, game-changing franchises. If we allow them to die off then it's only a matter of time before racing does, too. And for what?

Another ugly low-density “upscale” housing complex, big box store, chain restaurant and multi entertainment destination with a giant parking lot? Exactly zero people in the world actually want or will benefit from this type of development for a few ultra-rich developers.

I don't believe in miracles, but I do believe in the strength of the human-equine connection, and the once-in-a-lifetime gem that is Arlington Park. Surely there's still a way to change Arlington's fate. Logically, legally, financially, emotionally. We have to exhaust all the options. Please, what can we do?

– Amanda P. Waller, PhD, Columbus, Ohio

If you would like to submit a letter to the editor, please write to info at paulickreport.com and include contact information where you may be reached if editorial staff have any questions.

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‘Future Of Arlington Park Can Be Very Bright’: Former Track President Heading Investment Group Hoping To Keep Racing Alive

Roy Arnold, who served as president and CEO of Arlington Park from 2006-10, announced his intention on behalf of a group of investors to purchase the Arlington Heights, Ill., racetrack in a letter to the village's board of trustees prior to their regularly scheduled meeting on Monday night at which Arlington's future was on the agenda.

Arnold, who currently heads the Endeavor Hotel Group, is aligned with Mike Campbell, president of the Illinois Thoroughbred Horsemen's Association in an effort to continue live racing at the suburban Chicago racetrack after owner Churchill Downs Inc. said in 2019 it would not seek a casino license and now has the property listed for sale.

Arlington Park opened for live racing on April 30 and is scheduled to run through Sept. 25 in what many assume will be its final meeting.

During their Monday meeting, the Arlington Heights board of trustees voted unanimously in support of two resolutions: one that would restrict the types of businesses permitted if the racetrack property is developed and the other preventing Churchill Downs Inc. from putting restrictive covenants on a sale agreement (i.e., restricting a buyer from continuing to operate Arlington Park as a racetrack or to add casino gambling).

Following is the text of the letter from Roy Arnold, president and CEO, Endeavor Hotel Group:

Good evening, Mayor Hayes and members of the Arlington Heights Board of Trustees. Thank you for the opportunity to address you concerning the future of Arlington Park, a gem among racetracks in North America and a community asset with tremendous untapped potential.

A decade ago, I had the privilege to serve as Arlington Park's president and chief executive officer. I witnessed the venue's attraction to local families and friends as scores of fans from Arlington Heights, Chicago and surrounding communities – and, in fact, from across the Midwest – traveled to Arlington Park to enjoy leisurely and lively recreation at a beautiful track. I also experienced and came to fully appreciate the challenge of effectively managing a large and complex gaming operation.

Today I speak to you on behalf of investors planning to soon purchase that property, continue its tradition of thoroughbred horse racing, expand its gaming opportunities, and develop portions of the site to better support and serve the needs of the local economy. Simply put, we seek to maximize the potential of Arlington Park's full 326 acres.

We embark on this pursuit with the knowledge that it will be up to Illinois lawmakers to decide whether to revisit the state's gaming law to extend the window for Arlington Park's future owner to apply for a license to add and operate a casino. As we all know, that license was explicitly authorized by the state's 2019 gaming expansion legislation. But Churchill Downs, which had spent two decades lobbying state government for that license, opted, to everyone's disbelief, not to apply for the license and the application window expired.

We are accounting for the possibility of operating Arlington Park without the addition of a casino, but we nonetheless want to ensure there is no artificial restraint on owners, the village or the state in such time that common sense prevails and the legislature acts to allow us to implement the intent of the 2019 gaming law. We respectfully encourage you, as the elected representatives of the Village of Arlington Heights, to retain unfettered control as a home rule community and not permit Churchill Downs to encumber the property in any way. We urge you to adopt the proposed ordinance to prohibit restrictive covenants concerning gaming uses at Arlington Park.

Churchill abandoned its commitment to Arlington Park and the community of Arlington Heights. It should not be allowed to limit in any way the future activities or economic opportunity at that site. Indeed, as was clearly expressed by the terms of the 2019 gaming expansion law, Illinois lawmakers intended for the owner of Arlington Park to expand gaming opportunities at the track; stimulate gaming competition in Illinois; improve the quality of purses that form the wages for thoroughbred trainers, jockeys, blacksmiths, veterinarians and numerous backstretch workers; boost tourism; and grow and diversify the tax revenue base for the local and state governments.

Our team is prepared to do just that. In our judgment, there is no higher or better use of Arlington Park than as a thoroughbred racetrack. Arlington Park is an internationally acclaimed icon of thoroughbred racing; its value to the people of Illinois and, most especially to the people of Chicagoland, can't be overstated. Arlington Park cannot be replaced. The site's potential has long been recognized by the racing industry, by Churchill Downs and by the political leadership of Illinois. And there is no secret as to how to tap that potential: to prosper, Arlington Park must become a diversified entertainment destination.

New ownership can bring new vision and the accountability that the Village of Arlington Heights and the State of Illinois deserve. Our team believes that the owners of a gaming facility such as Arlington Park should be held accountable for their commitments. Horse racing and other forms of gaming are regulated forms of entertainment; a license to operate racing or casino gaming is a privilege, not an entitlement. Such a license is granted by the state and that grant entails respect for the goals established by the legislature. The owner and operator of a treasure such as Arlington Park must act to serve not only investors but also the taxpayers of Illinois.

We believe Arlington Park has the potential to lead the North American thoroughbred horse racing industry with a modernized facility. Should we have the chance to own and operate that magnificent property, we will:

Keep the core of Arlington Park the same. We would preserve a world class sporting venue on approximately 126 acres including stables, fan parking, the grandstand, and, of course, the track itself. This would include what is recognized as one of the world's best turf courses.

Relocate the stable area in order to open space for a compatible industrial and mixed-use development. This is consistent with the wishes of the community and would broaden the local tax base. The industrial park of roughly 100 acres would be framed by adjacent industrial properties and the Metra line to the north.

Develop a year-round entertainment district of about 40 acres that would supplement the summer racing choices for visitors. Select portions of this section would include hotel, retail and condo options.

Urge the General Assembly to allow Arlington Park to add casino gaming, realize the venue's full potential, fulfill the intent of the 2019 gaming expansion law, bolster tax revenue and economic opportunity for Arlington Heights, and help generate revenue (as intended by the 2019 gaming expansion law) to support the state's Rebuild Illinois capital construction program.

We have no doubt that Arlington Park, as a track and gaming entertainment destination, can be profitably operated. A smaller footprint for the track would reduce operating costs. Diversifying the entertainment district means more fans and, importantly, new fans. Embracing technology and an affiliated sports wagering platform would bring new revenue to support the track from wider access to the Arlington Park product.

We recognize that comments from Churchill Downs executives and recent media reports suggest that demolition of Arlington Park is inevitable – that we have just now begun the last season of racing at the track. But we firmly reject such fatalism; we know that with the support and partnership of the Village of Arlington Heights, the State of Illinois and the thoroughbred racing community, the future of Arlington Park can be very bright indeed.

Arlington Park can again be a top tier racetrack attracting the world's greatest racing talent and creating new lifetime memories for millions of fans. We come before you with a clear vision for obtaining that objective – and for delivering the benefits of success to the Village of Arlington Heights, surrounding communities, and the State of Illinois. – Roy Arnold

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