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Illinois Purse Increases: ‘A Band-Aid On A Gushing Wound’

Purses will be on the short-term rise at the tracks in Illinois, thanks to a pair of recent money recovery efforts initiated by the Illinois Thoroughbred Horsemen's Association (ITHA).

One increase at the current Thoroughbred meet at Hawthorne Race Course that will be effective June 15-July 15 involves an 18% across-the-board purse bump derived from a claw-back of funds related to the closure of Arlington International Racecourse.

A separate initiative required passage of a bill in the Illinois Legislature on its final day of the session last month. That action transferred $5.1 million of a surplus in the state's Horse Racing Fund to purses at both the Thoroughbred and Standardbred meets at Hawthorne, plus the Thoroughbred meet at FanDuel Racing (more commonly known as Fairmount Park).

David McCaffrey, the ITHA's executive director, told commissioners at Thursday's Illinois Racing Board (IRB) meeting that while horsemen are grateful for any help they can get, the influxes will only provide temporary financial relief.

“This is a terrific band-aid,” McCaffrey said, speaking specifically about the money from the Horse Racing Fund. “Make no mistake, it's a band-aid on a gushing wound that is Illinois racing, because things are at their all-time worst right now.”

According to an explanation posted in the ITHA's website, After Arlington closed in September 2021, that track's corporate management “attempted to keep hundreds of thousands of dollars from the horsemen's purse account. Arlington eventually folded in its attempt to keep the money after ITHA pursued litigation against Arlington, compelling the track to release the money. ITHA is now directing the remaining settlement funds to Hawthorne purses, which will account for the purse increase from June 15 to July 15.”

The separate $5.1-million transfer comes from the Horse Racing Fund, which McCaffrey said is largely derived from a 1.5% tax on all bets placed on Illinois racing. Traditionally, that fund accumulates and operates at surplus, and it had grown to “about $10 million” by the beginning of 2023, McCaffrey said.

Starting back in January, McCaffrey said, The ITHA, the IRB, and other stakeholders had lobbied for the passage of a law that would direct about half of the surplus toward Thoroughbred and Standardbred purses.

The ITHA's website noted that the Hawthorne share for the Thoroughbred purse account will be $2.295 million, and that the increase from the fund will go into effect “possibly starting in mid-July, upon the expiration of the [separate] purse increase beginning June 15.”

Racinos became legal in Illinois in 2019, but they aren't up and running yet at Hawthorne or FanDuel.

“Hopefully, it gives us a bridge to get to racinos when they start producing some revenue,” McCaffrey said.

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Over 100 New Yorkers Rally In Support Of Belmont Modernization

Over 100 people, including union members, backstretch workers, trainers, veterinarians and farmers gathered Monday in Albany, New York, in support of a plan to modernize Belmont Park, which, according to a release, promises significant new job creation and as much as $1 billion in one-time ecomomic impacts while freeing up 110 acres of state-owned land at Aqueduct Racetrack for future development. The project was included in Governor Kathy Hochul's Executive Budget Proposal.

According to a release, Belmont Park's 117-year-old facilities have not been upgraded since 1968 and its modernization will provide a 'critical boost to New York's economy' while creating a world-class sports and hospitality destination when paired with the New York Islanders' UBS Arena adjacent to the track.

An independent economic analysis conducted earlier this year by the We Are NY Horse Racing coalition found that $1 billion would be generated by renovating Belmont Park and create 3,700 construction-related jobs. At least a third of that spending, $136 million, would be spent with Minority- and Women-Owned Business Enterprises (MWBES). Upon completion, the release says Belmont Park would support $155 million in annual economic output and 740 new jobs. It is also expected that the modernization will pave the way for the New York Racing Association to bid to host the Breeders' Cup. Belmont last hosted a Breeders' Cup in 2005.

The release indicates that horse racing in the state of New York supports a total of 19,000 and generates $3 billion in economic activity. The project is to be funded through a construction loan from the state–paid back in full with interest–and therefore there is no cost to the state's taxpayers.

“Horse racing is an economic engine for our state, sustaining 19,000 hardworking New Yorkers' jobs and generating billions in economic activity. If we want these benefits to continue, it's critical that we modernize Belmont Park,” said State Senator Joe Addabbo, Chair of the Senate Racing, Gaming, and Wagering Committee. “As we enter the final stretch of budget season, I will continue to work with my colleagues to move this project forward and secure a strong future for horse racing across the state.”

“From Saratoga to Belmont, the immense positive impact horse racing has on New York is obvious–and we owe it to the thousands of families that depend on this sport for their livelihoods to ensure horse racing has a strong future in the Empire State,” said Assembly member Gary Pretlow, Chair of the NYS Assembly Committee on Racing and Wagering. “Building a new Belmont Park will safeguard horse racing for generations to come, drive economic activity, boost the state's tourism and hospitality sectors, and create good jobs for New Yorkers.”

Added We Are NY Horse Racing Spokesman Jack Sterne, “The vast majority of New Yorkers support modernizing Belmont Park, which is why over a hundred people came to the Capitol today to urge lawmakers to build a new Belmont,” said Jack Sterne, We Are NY Horse Racing spokesman. “This project will create jobs and boost New York's economy — and as legislators head into the final stretch of budget negotiations, we're going to continue making our voices heard so this transformative project is included in the final state budget agreement.”

https://t.co/q6JB7ncndf

— We Are NY Horse Racing (@NY_Horse_Racing) March 13, 2023

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Kentucky Derby Delay Causes $149 Million Loss For Churchill Downs

In Thursday's quarterly earnings call with investors, Churchill Downs' chief executive Bill Carstanjen explained that the decision to delay the 2020 Kentucky Derby and Kentucky Oaks to September cost CDI $149 million, reports the Courier-Journal.

“The Derby long term has not been damaged in any way, (but) we are going to do what's right by our customers and our sponsors,” Carstanjen said.

To that end, Churchill has stopped selling general admission tickets to the Sept. 5 Derby.

“We're still well under the capacity that we've discussed with the governor. But we've stopped (selling general admission tickets) anyway because we want to make sure first and foremost that when our customers come to the event, that they feel safe,” Carstanjen said.