illinois off-track betting | Horse Racing Free Tips

You win some, you lose some.

That's how it went for Churchill Downs Inc. (CDI) and its dormant track, Arlington Park, during Thursday's regularly scheduled meeting of the Illinois Racing Board when the 10 commissioners deadlocked on a motion to permit Arlington to continue to operate off-track betting faclities, effectively killing the measure. CDI won a second vote by a 9-1 margin permitting TwinSpires, the company's advance deposit wagering platform, to maintain its license and operate in the state in 2022.

The meeting was contentious at times, with Arlington's Tony Petrillo and Hawthorne's Tim Carey shouting over each other during discussions about ADW revenue.

Commissioner Alan Henry, a fierce critic of CDI over its decision to not race at Arlington in 2022 and sell the track property to the NFL's Chicago Bears to build a football stadium, referred to the closing as a “flagrant obscenity,” saying that, “It's now time for this board and this state to move on from Churchill Downs.”

This came after Chris Block, newly elected president of the Illinois Thoroughbred Horsemen's Association, said the move to close Arlington has put the state's Thoroughbred industry “on the brink of collapse.”

But the board apparently has a number of CDI loyalists who felt it was in the best interest of racing to permit Arlington Park to maintain its OTB network despite not operating a live race meetingin 2022 – in what the Illinois Thoroughbred Horsemen's Association said was contrary to law.

Petrillo told the IRB that CDI remained committed to live racing in Illinois, saying the company was continuing to search for a property to build a new track to replace Arlington. When pressed by the board, he couldn't offer any specifics. Two senior CDI officials, Bill Mudd and Brad Blackwell, joined the call, but they offered no specifics, either, saying they hoped to find a place to build a track and then get a casino license.

To several commissioners, that made no sense, inasmuch as CDI turned down an opportunity to add casino gambling to Arlington after enabling legislation was passed in 2019. Horsemen and CDI worked hand in hand for many years to get the legislation approved.

When it came time to vote on Arlington's OTBs, five commissioners were in favor and five against; thus, the motion did not pass. The yes votes came from Leslie Breuer, Marcus Davis, Lydia Gray, Charles MacKelvie and Leslye Sandberg. Voting against the Arlington OTB licenses were board chairman Daniel Beiser, Beth Doria, Alan Henry, Benjamin Reyes and John Stephan.

Hawthorne is expected to pick up the slack from the Arlington OTBs that will not reopen, although under current law it is one OTB short of the maximum it can operate. Hawthorne is expected to seek legislative help that will permit them to expand their network.

For an advance deposit wagering company to be licensed in Illinois, it must have a contract with a state racetrack and the consent of the representative horsemen's group.

TwinSpires had previously reached an agreement with Fanduel Sportsbook and Horse Racing, the downstate track formerly known as Fairmount Park. The Illinois Horsemen's Benevolent and Protective Association that represents horsemen at Fanduel/Fairmount withheld consent until just before Thursday's meeting. The board could have approved the license without consent, if the commissioners felt the horsemen were being unreasonable, but the agreement made that a moot point after the Illinois HBPA gave their consent.

However, there was one last chance for the IRB to block TwinSpires' operations in Illinois by denying the company an ADW license. After much debate, that license was approved by a 9-1 vote. Henry was the lone dissenter.

As commissioner Henry explained, the approval will hurt horsemen at Hawthorne because the bulk of purse revenue will remain at Fanduel/Fairmount although 75% of the ADW customers live in the Chicago area.

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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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