The Illinois Horsemen’s Benevolent & Protective Association board of directors recently rejected Churchill Down’s proposed advance-deposit wagering (ADW) platform for TwinSpires Racetrack.
According to Illinois state law, horsemen can approve or reject an ADW platform operating at an Illinois horse track. State law also requires ADW operators to have contracts with at least two licensed tracks in the state. Churchill Downs attempted an agreement with FanDuel Sportsbook and Horse Racing in southern Illinois, near St. Louis.
The HBPA represents horse owners and trainers at the FanDuel track, formerly known as Fairmount. The decision to reject the ADW deal centered around the closure of Arlington Park; the iconic Chicago area racetrack was active for nearly a century. Churchill Downs owned Arlington Park, and after closing the horse track in September, a decision was made to sell the land for $197 million to the Chicago Bears. This action did not sit well with the Illinois Horsemen.
What we cover
Anger Motivated the Illinois Horsemen’s Rejection
“Churchill Downs wants their cake and to eat it too,” declared Jim Watkins, the President of the Illinois HBPA. Watkins went on to say that he would like the Illinois Racing Board to weigh in on the matter. The Illinois Racing Board could overrule the Horsemen’s veto. Watkins feels that putting this issue before the board would clearly express the horsemen’s anger at Churchill’s actions.
With the racing board weighing in on, this issue helps to decide whether TwinSpires can continue to operate in Illinois. That is the primary reason the Horsemen rejected advance-deposit wagering at the track.
The Horsemen Also Reject the ADW Betting Model
Watkins also would like to point out another issue that concerns his group; the way advanced deposit wagering works. According to Watkins, ADWs take a large chunk out of the purse and the track’s profit. He points to a commentary published on Thoroughbred Racing by Charles Hayward, former head of the New York Racing Association. Hayward’s article illustrated how the ADW betting system reduces the purse, hurts the tracks, and the horsemen.
Hayward pointed out that due to the Covid shutdowns of 2020, off-track betting sites using Advance Deposit Wagering and other off-track betting models handled a total of 97% of the US horse racing handle. That cut the on-track handle down to just 3% for a total of $333 million.
Watkins goes on to say that online betting could ultimately be the death of horse racing. It simply won’t be financially sustainable for either the racetracks or the horsemen. The betting system needs to be based on the real-world track if horse racing, at least for the smaller tracks, is going to survive.
The Illinois Horsemen do Have an ADW Agreement with TVG
The Illinois Horsemen has signed a one-year contract with TVG, an online horse and greyhound racing sports betting company owned by FanDuel.
The agreement gave TVG entry into the Illinois market. However, despite FanDuel’s ownership of TVG, it is not partnered with the TwinSpires racetrack. It was only granted the rights to operate the TwinSpires online sportsbook. TVG was also granted sponsorship of St. Louis Derby. TwinSpires became the first official online betting outlet for Churchill Downs.
Is Horse Racing Dying in Illinois?
The first horse track in Chicago was established in the early 1830s, and by the 1930s, Chicago had six horse tracks. A jockey club was formed in 1840, and the club built a harness course in the city. For more than 175 years, all forms of horse racing were big business in the Windy City.
Fast forward to 2021, the sale of Arlington Park marked the near-death of horse racing in the Chicago metropolitan area. Arlington Park had a prestigious 93-year run, but parent company Churchill Downs chose to sell the property to the Chicago Bears, rather than continue racing. Today, Hawthorne Racetrack in Stickney is the last remaining horse track near Chicago.
Once upon a time, Illinois had a dozen racetracks sprinkled around the state, today, there are only two. Besides Hawthorne, the only other horse track in the state is FanDuel Sportsbook and Horse Racing in Collinsville, formerly known as Fairmount Park Race Track.
Across the country, race tracks across the country are closing, as the younger generations lose interest in the sport. Not only is the sport dying, but unfortunately, horses are dying too. Every year in the United States, more than 1,000 racehorse deaths occur at the tracks; some deaths are the results of injuries, but many others are the result of drugging and doping these magnificent animals. At the end of their careers, many horses are sold to slaughterhouses. These facts have undoubtedly turned many people away from horse racing.
If we are, to be honest, the future of horse racing in Illinois does not look bright. It’s probably only a matter of time before the last two tracks in the state also close.
