illinois racing board | Horse Racing Free Tips

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.

The post View From The Eighth Pole: Petrillo Deserves Chutzpah Award For Gaslighting Of Illinois Racing Board appeared first on Horse Racing News | Paulick Report.

Source of original post

CDI Grilled by IRB About Arlington’s Control of ITWs

Exactly 50 days after executing a purchase-and-sale agreement that will see Arlington International Racecourse demolished to become the future site of a football stadium, the gaming corporation Churchill Downs, Inc. (CDI) came before the Illinois Racing Board (IRB) Thursday to request 2022 licensure to retain control over simulcasting at its inter-track wagering (ITW) locations even though it won't be hosting any live racing next year.

The IRB heard contentious pro-and-con testimony on the Arlington-related agenda items, but in the end essentially punted on the matter by voting 10-0 to “lay over” the decision-making process until its December meeting.
Four issues stood out during the extended debate Nov. 18:

Firstly, Arlington president Tony Petrillo is intent on spinning the ITW licensure as a “demonstration of the [corporation's] continued commitment to be involved in horse racing in the state” that will preserve jobs.

Secondly, Hawthorne Race Course president and general manager Tim Carey said that Hawthorne Race Course is “absolutely” interested in taking over the operation of the most lucrative of the simulcasting parlors should Arlington not be granted a license to run them. And IRB commissioners appeared in agreement that those locations will end up generating roughly the same amount of revenue if Hawthorne operates them instead of Arlington.

Thirdly, the Illinois Thoroughbred Horsemen's Association (ITHA) is against Arlington retaining control of the parlors, citing the fact that since Arlington doesn't hold a license as a track, it can't then be granted ITW privileges.

Finally–and perhaps most surprisingly–the IRB itself repeatedly questioned the motives of CDI after commissioners had remained largely mute on the devastating topic of the Arlington sale for the better part of the last year.

“I just have a concern, as a board member, in how we've been treated by Churchill Downs,” said IRB commissioner Marcus Davis, noting that CDI could have opted to work out a plan to sell its land while preserving racing at Arlington in the short term, thus allowing for a smoother transition to year-round, dual-breed racing at Hawthorne.

“I don't get the sense that I can trust what Churchill has to say when they do the things that they do [like closing Hollywood Park and Calder Race Course],” Davis said.

IRB commissioner Alan Henry went a step further, advocating against granting ITW licensure to CDI.

“I don't think it's in the best interest of the public or horse racing to have [CDI] operate these parlors,” Henry said. “This is the same company that shut down the most beautiful track in the country…and it was just thrown in the ash heap for an alleged higher purpose that doesn't make any sense to me. I don't know that we should be rewarding the company with parlors when they don't have a track to run at.”
Henry said that in recent years, CDI has “torched” IRB directives aimed at fostering and promoting the sport.

“What I see in these [ITW] requests seems an awful lot like the farmer who sells his prized Holstein, then expects to still get paid for some of the milk it produces,” Henry said.

Henry noted that Arlington closed two of its parlors in 2020, and is set to “offload” four of its least-profitable remaining ones over the next few weeks.

Petrillo kept reiterating that CDI still wants to be involved in racing in Illinois, although he was vague on specifics.

“Our commitment to racing in the state and the product is indicative of our pursuit of these licenses,” Petrillo said. “At this time, we don't have any locations that we could identify, but we continually pursue this each day for another location.”

Petrillo said that keeping the ITW locations under Arlington's control will generate only a relatively small amount of revenue for CDI itself–about $250,0000 to $300,000–but that horsemen would reap the benefits of purse money derived from ITW bets.

“These licenses overall will produce a significant amount of handle–$76 million in handle, and will see about $8 million in host fees and purses going directly to Hawthorne,” for 2022, Petrillo said.

“We feel it's important that the board take action on these licenses today, as 80 to 100 [ITW workers] would be sitting in suspense on whether they have jobs or not,” Petrillo said.

“It would cause a lot of unrest for the public as well,” Petrillo added–without explaining how that strife could ever top the industry-wide calamity CDI triggered by deep-sixing Arlington.

IRB commissioner Beth Doria politely but firmly upbraided Petrillo by saying, “I've heard you reference the loss of jobs multiple times in your presentation today. And I'm just wondering where that concern was when you actually closed the racetrack itself.”
Davis underscored that it won't make much of a fiscal difference which licensee operates the ITWs.

“There may be a small [operational] hiccup. But if Hawthorne took over the OTBs, that money will still flow to the state; it will still flow to the horsemen. But at least we know that [Hawthorne has] a commitment, because they've committed to racing year-round. I don't see anything like that ever coming from Churchill Downs,” Davis said.

Despite some of the commissioners' misgivings about licensing Arlington to run the ITWs, the now-defunct track does have some relative precedents on its side.

Petrillo pointed out that when Arlington was rebuilding from its fire in the 1980s and was later emerging from a separate closure in the 1990s, the IRB let it keep operating ITWs without live racing.

And John Gay, the attorney for the IRB, said when asked during Thursday's meeting that “it is my opinion that the plain language of the [state] statute allows the board to issue these licenses if it so chooses.”

Henry disagreed.

“I am well aware that [CDI] can apply for these licenses because they raced for 60 days in 2021,” Henry said. “And yes, they may have operating control of a racetrack because they control the property. But they turned down their right to request 2022 racing dates, and they do not have a license to conduct pari-mutuel racing in 2022, nor have they requested one.

“I know it's a matter of legal dispute, and there are what I consider dissimilar precedents that allowed previous [ITW] approvals,” Henry said. “But common sense tells me that ITW licenses should only be granted to viable track operators that actually want to engage in horse racing, and that disqualifies these applications.”

When asked by Davis why CDI should be trusted to be involved with Thoroughbred racing in Illinois based on the Hollywood and Calder closures, Petrillo answered by saying that with regard to Hollywood, the current CDI management team was not involved in that decision. He didn't address Calder, which did close under the corporation's current regime.

As for the decision to sell Arlington, he said it was a “very heart-aching decision” for Bill Carstanjen, CDI's chief executive officer, to make.

When Petrillo was asked by Henry if he thought CDI's decision to rid itself of Arlington represented “fairly dramatic damage to the Illinois racing industry in the near term,” Petrillo admitted that Arlington's closure “could be construed as negative.”

But, Petrillo added, shifting into spin mode, “the one racetrack [Hawthorne] that will be remaining to conduct Thoroughbred racing will also see a significant amount of revenue being sent to their facility.”

Henry asked Petrillo if he had any regrets about CDI intentionally missing a deadline in 2019 to build a racino at Arlington after more than a decade of working with the ITHA to get the Illinois Gaming Act passed.

“I don't think that my personal feelings or my personal opinion is of any relevance in this matter,” Petrillo replied.
Henry said that as racinos at Hawthorne and Fairmount Park do open in the state, “The industry in a post-CDI world, in my opinion, will emerge on stronger and more reliable footing. Further, I see no signs that CDI's commitment to racing is going to improve.”

The post CDI Grilled by IRB About Arlington’s Control of ITWs appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

Source of original post

Bears-Arlington Partnership ‘Makes Too Much Sense to Blithely Dismiss’

As the only member out of 10 on the Illinois Racing Board (IRB) to directly address the pending closure of Arlington International Racecourse and the devastating effect it will have on the state's racing circuit, commissioner Alan Henry said at Thursday's monthly meeting that a losing bidder in the track's sale is still working behind the scenes to fashion a deal to keep racing alive alongside a new football stadium on the 326-acre parcel.

Back on Sept. 29, Churchill Downs, Inc. (CDI), the gaming corporation that owns Arlington, announced the signing of a $197.2 million purchase and sales agreement that would transfer the crown jewel of Illinois racing to the Chicago Bears for the planned construction of a new stadium and mixed-use development.

With Arlington out of the equation for 2022, Thoroughbred dates in greater Chicago will wither to just 76 programs over two seasonal meets at Hawthorne Race Course, which will also host 75 dates of Standardbred racing next year.

One day after the Arlington sale became public, the state's Senate Executive Gaming Committee met to discuss the future of horse racing in Illinois. Henry said at the Oct. 14 IRB meeting that he came away “with a bad feeling” after listening to that hearing.

“I get that it looks bleak,” Henry continued. “But 30-year Marine Corps veteran Roy Arnold, the front man for the underbidders, made it clear to the subcommittee that he is not retreating.”

Arnold formerly worked for CDI as Arlington's president, starting in 2006 and resigning in 2010. When the track was put up for sale earlier this year, he partnered with a group of developers and investors to try to buy the property. That group's bid was the only known offer to preserve racing at Arlington.

When the Bears won the bidding process, Arnold said at the next-day Senate hearing that he would be willing to either work with the new owners to keep the track operational on 125 acres of the site or to step in and pursue the purchase if the football team backed out.

Henry said that a purchase and sales agreement is “not evidence of a done deal. There are still many variables out there. Just one of them is that at any moment, Chicago's mayor could throw some serious cards on the table [regarding a counter-proposal to keep the Bears in their current downtown home] now that the Bears have called her bluff.”

Henry continued: “Sure, Arlington Park's permanent closing may be likely, But it is not inevitable. Why? Because a Bears-Arlington Park partnership makes too much sense to blithely dismiss. And because if the Bears withdraw, [Arnold's group] is standing at the ready.”

Henry said that as “everyone in the industry knows, the 2022 racing calendar is a stopgap that is likely unsustainable beyond next year. Half a season for either breed is simply not enough.”

One idea that has been floated is for a harness track to be built on the site of a former state-owned mental health facility in the village of Tinley Park, about 30 miles southwest of Chicago. That would allow Hawthorne to transition over to full-time Thoroughbred racing, and each breed would have its own year-round racetrack.

“The consensus among horsemen is the construction of a harness track in Tinley Park is an integral piece of the solution, and should be treated as a priority. But right now that is just not happening,” Henry said.

“As I hear it, some Thoroughbred trainers are now considering moving to Florida, Louisiana and Arkansas at the end of the current Hawthorne meet and not coming back in late winter,” Henry said. “Some are also looking at Minnesota, Iowa, Indiana, and other states for 2022 given the need to lock in stalls next summer.”

Henry continued: “Then there's the reality that advance-deposit wagering platforms are grabbing rapidly increasing percentages of the betting handle. That means money is increasingly being diverted away from the [horsemen's] already paltry purses. The laws governing that split have to be rewritten to better ensure a healthy industry.”

Henry also noted that although racinos have been legal in the state since June 2019, none are yet operational at either Hawthorne or FanDuel Sportsbook and Horse Racing (the rebranded Fairmount Park), so purses aren't being supplemented by gaming revenues.

Henry suggested that moving forward, there should be a standing item on every IRB agenda for Hawthorne and FanDuel to update their progress on building racinos, and also “to address the harness track situation.”

But beyond one commissioner thanking Henry for his “particularly interesting” comments, no other IRB members voiced support for Henry's suggestion about the standing agenda item. And none of them chimed in about the state of the racing circuit when given the chance to speak during the “commissioner comments” section of the agenda.

This “elephant in the room” pattern of largely ignoring the most dire and pressing racing issue in the state has persisted at IRB meetings for the better part of 2021. With the exception of Henry, who has been outspoken about Arlington's pending closure for six consecutive IRB meetings since CDI declared the property would be sold for non-horse-racing purposes, the other nine IRB commissioners have, for the most part, maintained a stunning silence about the collapse of Chicago racing.

So what other matters did the IRB take up on Thursday? The proceedings were almost entirely officious.

By 10-0 votes, the IRB approved the licensing of an outrider and an entry clerk for Hawthorne's upcoming harness meet, disbursed Quarter Horse purse funds to FanDuel for the four races that track carded this past season, and signed off on granting a pari-mutuel tax credit to tracks and off-track betting licensees.

The IRB also had to bring back and ratify its 2022 dates order from last month because the way it had been voted in didn't comply with the state's open meetings act. This required commissioners to electronically sign the related documentation, and the meeting stalled briefly when several commissioners couldn't figure out how to do it.

The IRB also spent time during Thursday's public meeting congratulating a staffer for running a marathon, and discussed the upcoming move to new office space, which was described as a more modernized “new playground.”

The post Bears-Arlington Partnership ‘Makes Too Much Sense to Blithely Dismiss’ appeared first on TDN | Thoroughbred Daily News | Horse Racing News, Results and Video | Thoroughbred Breeding and Auctions.

Source of original post

No Racing At Arlington In 2022; Hawthorne To Offer Six Months Of Thoroughbred Dates

Since Churchill Downs declined to apply for race dates at Arlington Park in 2022, the Illinois Racing Board was not able to assign Arlington dates at it's Thursday meeting, reports the Daily Racing Form. Arlington's final day of racing is scheduled for this Saturday, and though CDI has not made a final decision on the sale of the racetrack, it remains unlikely that live racing will ever return to the Arlington Heights neighborhood.

Hawthorne, the other Chicago area track, will host six months of Thoroughbred dates next year. In total, the number of Thoroughbred race dates in the Chicago area will decline from 124 in 2021 to 76 in 2022.

The schedule is as follows: January through March will offer harness competition, then Thoroughbred racing in April through June. Harness race will resume July through the middle of September, and the Thoroughbred season resumes Sept. 23 through the end of the year.

“That schedule that was put together has a lot of horsemen frustrated,” trainer and Illinois Thoroughbred Horsemen's Association board member Chris Block told DRF. “I know all the negatives, but there's no other way around it to allow both breeds to have some sort of schedule. It's the best we can do right now.”

The other dates assigned at Thursday's IRB meeting include a 61-day meet at Fairmount Park in Collinsville, Ill., recently rebranded Fanduel Sportsbook and Horse Racing.