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Yahoo
12-06-2025
- Business
- Yahoo
‘Left With No Choice': Churchill Downs Inc. Moves To Relinquish Fair Grounds License In Louisiana
'Left With No Choice': Churchill Downs Inc. Moves To Relinquish Fair Grounds License In Louisiana originally appeared on Paulick Report. Doubling down on statements made last month about not opening Fair Grounds Race & Slots in New Orleans for a live horse racing meet this fall, Churchill Downs Inc.'s chief executive officer informed the Louisiana State Racing Commission the company plans to 'begin the next steps' to relinquish its live racing and OTB license, along with its slots and video poker licenses, at the racing commission's next meeting. In a June 9 letter to racing commission officials – obtained by the Paulick Report – Bill Carstanjen, the chief executive officer of CDI, said the loss of historical horse racing (HHR) revenue, following an adverse state Supreme Court ruling, and newly enacted legislation has forced the company's hand. Advertisement Related: Situation 'Dire': Fair Grounds May Not Run 2025-'26 Race Meet Without Legislative Help 'Given the legislature's ease with which it approved legislation that is directly adverse and harmful to the economic interests of Fair Grounds, the opposition by elected officials to engage in meaningful solutions in collaboration with the Fair Grounds, and the forthcoming adjournment of the legislative session,' Carstanjen wrote, 'CDI is left with no choice but to request an appearance before the LSRC to begin the next steps for voluntarily surrendering the racing license held by the Fair Grounds.' Carstanjen added: "This is not the path CDI wishes to proceed down, but the inaction from elected officials to offer any sort of compromise has made this the only possible outcome. ... Closing one of the nation's oldest racetracks, and the most important track in Louisiana, will be a devastating blow to Louisiana's equine industry and the New Orleans economy. It will also have an immediate detrimental impact on the livelihoods of the hundreds of employees, local vendors, and community surrounding the Fair Grounds." At an emergency meeting of the Louisiana commission on May 13, Ozair Shariff, an attorney for CDI, warned commissioners that without some form of legislative assistance to make up for the loss of HHR revenue, Fair Grounds would not apply for racing dates in the fall, calling the situation 'dire.' Reading from a statement at the May meeting, Shariff said: 'Fair Grounds' overall profitability is dependent on revenue generated from its OTB network, specifically video poker and historical racing – until last week (when the Supreme Court decision on HHR took effect). The elimination of 46 percent of the OTB revenue and an even more significant 74 percent of OTB EBITDA does not allow Fair Grounds to cover its required $9 million average annual maintenance operating capital. Faced with this reality, operating under the current status quo is no longer an option.' Shariff said efforts to engage members of the Louisiana legislature, whose session ends on June 12, was a priority, in hopes of getting some type of relief. Shariff was rebuked at the meeting by Louie Roussel III, a prominent New Orleans businessman who formerly owned Fair Grounds and is a longtime Thoroughbred owner and trainer. Roussel, who said he was speaking on behalf of Gov. Jeff Landry, addressed the commission, telling them, 'Do not allow these people to do this. … If they tell you they don't want to race, fine them $50,000 or $100,000 a day for every day they don't race. 'There will be no state subsidy for this racetrack,' Roussel added. 'None.' Apparently, Roussel was correct. Advertisement Legislators did pass two bills that Carstanjen said would be damaging to CDI's bottom line: the first expands the permitted number of video poker machines at truck stops (from 50 to 60) and bars (from three to four). The second bill would permit fixed odds wagering on horse racing. The legislation created a fund for Louisiana purses, but nothing for track operators. Following is Carstanjen's letter to the Louisiana State Racing Commission, in full: June 9, 2025 Mr. Edward J. Koehl, Jr., Chairman Louisiana State Racing Commission Mr. Stephen Landry, Executive Director Louisiana State Racing Commission 320 N Carrollton Avenue Suite 2-B New Orleans, Louisiana 70119-5100 RE: LSRC Meeting and Fair Grounds' Racing License Dear Chairman Koehl and Executive Director Landry: It is my understanding that soon after the Louisiana Legislature adjourns on June 12, 2025, an emergency meeting of the Louisiana State Racing Commission ("LSRC") will be conducted. This correspondence is Churchill Downs Incorporated's ("CDI") formal request to appear at the meeting to discuss the timeline and next steps concerning the license held by Churchill Downs Louisiana Horseracing Company, L.L.C. d/b/a Fair Grounds Racecourse & Slots ("Fair Grounds"). For the last few months, CDI has attempted to engage in good faith discussions with elected officials and various other industry stakeholders to find a path toward long term economic viability for the Fair Grounds after the recent decision of the Louisiana Supreme Court that resulted in the elimination of historical horse racing ("HHR"), and nearly half of the Fair Grounds' off-track betting ("OTB") revenues. To date, our efforts to engage elected officials have not led to meaningful discussions and, confoundingly, CDI's efforts have been met with a combination of reluctance, indifference, apathy, and even opposition. To make matters worse, the passing of HB 540 and 547 further negatively impacts the Fair Grounds' ability to remain competitive. House Bill 540 will lead to significant cannibalization of revenue from our OTB network in and around greater New Orleans, a network in which the Fair Grounds has heavily invested since 2005 - the only racetrack operator in the state to do so. House Bill 547 will shift wagering handle from current brick and mortar racetracks, OTBs, and advanced deposit wagering platforms, all of which provide revenues to track operators and local horsemen groups, to out-of-state bookmaking operators. Given the legislature's ease with which it approved legislation that is directly adverse and harmful to the economic interests of Fair Grounds, the opposition by elected officials to engage in meaningful solutions in collaboration with the Fair Grounds, and the forthcoming adjournment of the legislative session, CDI is left with no choice but to request an appearance before the LSRC to begin the next steps for voluntarily surrendering the racing license held by the Fair Grounds. The timing of the LSRC's meeting, and the date on which the Fair Grounds ceases its operations for not committing to run a 2025-2026 race meet, necessarily implicates the Louisiana Gaming Control Board ("LGCB") and the Fair Grounds' slot license, the surrender of which may not occur without the prior approval of the LGCB. To be clear, we expect to surrender our slot and video poker licenses. This is not the path CDI wishes to proceed down, but the inaction from elected officials to offer any sort of compromise has made this the only possible outcome. Fair Grounds provides nearly $30 million in taxes to local municipalities and the State of Louisiana, in addition to well over $34 million in purse money for its racing product. Closing one of the nation's oldest racetracks, and the most important track in Louisiana, will be a devasting blow to Louisiana's equine industry and the New Orleans economy. It will also have an immediate detrimental impact on the livelihoods of the hundreds of employees, local vendors, and community surrounding the Fair Grounds. However, the inaction of the legislature and others in a position to save this racetrack have forced us into the current situation. Please provide the details of the meeting at your earliest convenience. William C. Carstanjen Churchill Downs Incorporated, CEO cc: Mr. Jeff Landry, Governor Mr. Cameron Henry, Senate President Mr. Phillip DeVillier, Speaker of the House Mr. Jimmy Harris, Senator Mr. Bernard Chatters, President of the Louisiana HBPA Mr. Patrick Bernard, LSRC Commissioner Mr. Rock Bordelon, LSRC Commissioner Mrs. Leslie Bouie, LSRC Commissioner Mr. Larry Findley, LSRC Commissioner Mr. K.R. Finkelstein, LSRC Commissioner Mr. Nathan Granger, LSRC Commissioner Mr. Earl Landry, LSRC Commissioner Mr. Travis Miller, LSRC Commissioner Mr. Deano Thornton, LSRC Commissioner Mr. Vincent Tuminello, LSRC Commissioner Mrs. Katherine Winters, LSRC Commissioner This story was originally reported by Paulick Report on Jun 10, 2025, where it first appeared.
Yahoo
24-04-2025
- Business
- Yahoo
Landry pushes change to allow Louisiana Racing Commission director to still own racehorses
Louisiana's Racing Commission hired an executive director that partially owns race horses. (Canva image) Gov. Jeff Landry is backing a law change that would allow an appointed director of the Louisiana Racing Commission to continue owning racehorses, even though the director oversees their licensing as part of his government job. The proposed exception is included in House Bill 397, a sweeping piece of legislation that would also make dozens of changes to Louisiana's ethics code for elected officials and public employees. Stephen Landry became the commission's top staffer in 2024 after the governor appointed new members to its board. At the time, Stephen Landry, who is not related to the governor, had a partial ownership stake in two racehorses. Stephen Landry did not return a call made to his office Thursday. The commission is responsible for regulating horse racing and betting in Louisiana. It issues licenses to racetracks, training centers, off-track betting operations and racehorse owners like Stephen Landry. Commissioners can also suspend and withdraw racehorse owners' licenses it previously granted. The Louisiana Board of Ethics told Stephen Landry last year in an advisory opinion that state law is 'silent' on whether he can own racehorses while serving as the commission's executive director. State employees are prohibited from doing business with the agencies where they work, however. Using that logic, the ethics board told Stephen Landry he would not be able to apply for a racehorse owner's license when he needs a renewal in 2026 if he still serves as the commission's executive director. The change the governor is pushing would remove that barrier for Stephen Landry. Landry proactively sought the ethics board's opinion about his horse ownership after the Paulick Report, a horse racing news outlet, raised concerns about him taking the commission director's job. SUPPORT: YOU MAKE OUR WORK POSSIBLE 'How's he supposed to investigate and recommend to his commissioners potential changes to the state's breeders' incentive program objectively?' editor-in-chief Natalie Voss wrote about Stephen Landry in a 2024 commentary. 'What's he going to do if he's alerted [a co-owner of his horse] has a possible rule violation being investigated by the staff? How would he deal with an appeal of a disqualification coming from one of his active (or recent) ownership partners?' 'The Association of Racing Commissioners International model rules expressly prohibit this, both for employees of a commission (like the executive director) or for employees under the executive director,' Voss added. The racing commission's chairman, Ed Koehl, told Stephen Landry when he took the executive director position that he could own horses without any fear of conflict, Stephen Landry's attorney, Dane Ciolino, wrote in a letter to the ethics board. The commission, and not the executive director, votes on whether to grant or withdraw an ownership license, Ciolino said. Under a law approved last year, all 13 state racing commissioners who decide on ownership licensing can own racehorses that compete in Louisiana. Previously, only three of the 13 commissioners were allowed to own racehorses. This year's ethics bill, sponsored by Rep. Beau Beaullieu, R- New Iberia, reiterates that Louisiana Racing Commission members, in addition to the executive director, can own horses that race in Louisiana. Beaullieu's proposal cleared its first legislative hurdle Wednesday when it passed the Louisiana House and Governmental Affairs Committee. It's goes next before the full House of Representatives. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
