ITHA: Refusal To Apply For 2022 Arlington Race Dates ‘Disappointing But Not Surprising’

The Illinois Thoroughbred Horsemen's Association issued the following press release on Thursday:

Continuing their campaign to sabotage future gaming opportunities at Arlington Park, track executives are refusing to apply with the Illinois Racing Board for race dates in 2022.

Arlington officials are well aware of interest from other parties in continuing racing at the state's flagship racing facility, as at least one group of investors has publicly disclosed its plan to purchase Arlington and continue live racing there. But if Arlington does not apply for 2022 dates by tomorrow, thereby preserving an avenue for a future owner of the track to pursue racing, then any new owner of the track will not have the option of racing there next year.

Under Illinois law, a dates application for the next year must be filed by Aug. 1. With Aug. 1 falling on a Sunday this year, the deadline moves up to Friday, July 30 – the last IRB business day before Aug. 1.

“Churchill Downs is writing the book on bad faith, so this latest move is disappointing but not surprising,” said Mike Campbell, president of the Illinois Thoroughbred Horsemen's Association.

Since 2018, when it announced its intent to purchase its ownership interest in Rivers Casino, Arlington owner Churchill has devoted itself to eliminating the threat of competition that gaming at Arlington might pose to nearby Rivers. Churchill refused to apply for a license to develop Arlington as a racino, even though its lobbyists had spent two decades lobbying Illinois lawmakers for that privilege, and then insisted it would sell the track to another entity that would use the property for a purpose “higher and better” than horse racing.

In February, Arlington Heights Mayor Thomas Hayes told ABC7/WLS-TV in Chicago: “I think it's clear why [Churchill] did not choose to open a casino at the racetrack property – because it would directly compete with their majority interest in the Rivers Casino.”

ITHA President Campbell added: “Churchill's commitment to stopping any gaming at Arlington from competing with Rivers is the worst kept secret in Illinois. Company executives have practically contorted themselves to explain and justify their anti-competitive behavior while carefully avoiding any acknowledgment that their true motive appears to be eliminating the threat of competition from Arlington.”

With at least one group of reputable and credible investors poised to purchase Arlington to continue horse racing and pari-mutuel wagering – the highest and best purpose, without question, for one of the finest racing venues in North America – Arlington President Tony Petrillo told a local media outlet that Arlington has a racing dates application in its possession but probably will not file it.

“It's clear that Churchill Downs cares exclusively about corporate profit and that all other considerations are incidental,” Campbell said. “All we can do in this case is hope that Churchill will recognize the utility, for the sake of its interest in selling Arlington Park to the most capable bidder, of filing the dates application to preserve the possibility of future racing at the track.”

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Former Track President Submits Bid for Arlington

The future of Arlington Park remains very much up in the air, but Roy Arnold is convinced that racing can prosper there and is hopeful that he can spearhead an effort to insure that one of America's most beautiful racetracks remains a racetrack for years to come.

Arnold should know. He was the track's president during better times, from 2006-2010, and is currently the president and CEO of Endeavor Hotel Group. Arnold was instrumental in bringing together a consortium interested in purchasing Arlington Park from Churchill Downs. Churchill announced in February that it was putting the track up for sale and set Tuesday as a deadline to receive bids. Other than Arnold's group, it is not known who made bids and for how much.

“We have this iconic jewel which is known throughout the world and people are accepting as inevitable the fact that it's going to be bulldozed,” he said. “For the industry to stand by while that happens would be tragic.”

Endeavor sent out a press release Tuesday in which it said that it had joined forces with three other companies as well as “high net worth individuals.” The plan is to create a whole new Arlington, just one facet of what Arnold called a “diversified, four-seasons sports and entertainment district.” The foot print of the racetrack itself will be reduced and the land that is left over will be used to build an arena suitable for a minor league hockey team, a low-density housing development and a 60-acre industrial space. The ancillary businesses will create a revenue stream that will make it easier to justify keeping racing on the site. He also said that if the group takes over Arlington it will be able to offer sports wagering.

Arnold would not disclose how much his group bid, but was confident that it will be enough to secure a deal.

“We have the passion, we have the capital, we have the vision,” he said. “Now all we need is the opportunity. That started with our putting the bid in. Now we have to let the process unfold. We believe we will have one of the highest, if not the highest, bid.”

Arnold's group has the backing of the Illinois Thoroughbred Horsemen's Association, which has worked behind the scenes to find a potential buyer interested in maintaining racing. While Arnold realizes there are plenty of challenges operating a racetrack, especially one that does not receive revenue from a casino, in the modern era, but he said there's no reason why racing in Chicago can't succeed.

“People have concluded that absent subsidies this is a dead sport, that if you take away the supplements that go toward the major racing states that still have good programs that it would be difficult to see them continuing,” he said. “We can create a different model that will work. The fact is the track is profitable and can be profitable as a racetrack.”

Arnold foresees operating a “boutique” style meet that would be shorter than Arlington's current season. That will help with the purse level, currently a problem with Arlington offering some of the smallest purses in the sport. The plan also calls for lowering the takeout to make the product more attractive to bettors.

While Arnold and his partners believe an on-going racing operation at Arlington will work, it's clear that the bid also involves a desire to keep racing going at a track that has been around since 1927.

“There is for some reason an inability of some in the industry to understand that the demise of Arlington in America's third largest media market would be a catastrophe for the sport,” he said. “We are doing this because we have a passion for thoroughbred racing.”

But there's only so much that Arnold can do. Churchill Downs is under no obligation to accept their offer, even if it is the largest one submitted. WGN Television reported that there are fewer than 10 prospective buyers and that “a couple” of the bids came from groups interested in maintaining Arlington as a racetrack. WGN speculated that the Chicago Bears may be involved and may be interested in building a new stadium on the racetrack property.

In May, the Illinois Thoroughbred Horsemen's Association urged the Illinois Attorney General to launch an antitrust probe of Churchill Downs, alleging it had taken steps to preclude casino gaming and diminish pari-mutuel wagering at Arlington. While Churchill never applied for a casino license for Arlington, it is heavily involved in gaming in the state and is said to be interested in opening new casinos.

Additionally, the Village of Arlington Heights approved an ordinance to prevent racetrack owner Churchill Downs from prohibiting any future buyer from continuing to operate the facility as a racetrack.

Is it in Churchill's best interests, politically, to sell the property to a group interested in keeping racing alive?

“Churchill has two ways of going,” said Mike Campbell, the president of the horsemen's group. “They can reject this offer, but if they do it brings up all sorts of issues about anti-trust allegations that are currently floating around that the Attorney General may be looking at. I know there is an effort among legislators to make that happen. Many legislators are very concerned about how this all came down. If I were Churchill, I would take a look at all that. They have other interests and bigger fish to fry in Illinois than eliminating horse racing at Arlington Park. I believe they might finally capitulate and allow this to happen for the single reason that have their eye on a casino in Waukegan and in the city of Chicago. It's up to them. The hard way or the easy way. It's their choice.”

The 2021 meet is set to conclude Sept. 25. Churchill has already said this will be the last ever meet at Arlington under their ownership. There's nothing to do between now and then but wait, and hope that Arlington is sold to a group that believes in the future of racing in Chicago.

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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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‘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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