Churchill Downs Faces Threat of Louisiana Exit Over Historical Horse Racing Ban - (2025)

Updated: 11/06/2025

Churchill Downs, the owner of the Fair Grounds Race Course & Slots in New Orleans, is facing a significant threat as they consider pulling out of Louisiana due to court rulings prohibiting the usage of Historical Horse Racing machines. These machines, allowing players to bet on anonymized replays of past races, were deemed unconstitutional by the state Supreme Court, leading to a potential halt in operations for Churchill Downs. The company claims that without these games, which contribute a significant portion of their revenue, they would struggle to remain profitable and continue their racing season beyond 2024.

Ozair Shariff, a representative from Churchill Downs, expressed disappointment and concern during a meeting with the Louisiana Racing Commission, highlighting the jeopardy in which the future of one of the nation's oldest racetracks now resides. The reliance on these Historical Horse Racing machines is crucial for the company's financial sustainability, as they account for a substantial portion of both their annual revenue and after-tax profit.

Legal Battles Unfold

The legal battle concerning the status and legality of the Historical Horse Racing machines intensified when courts ruled that the machines represented a new form of gambling, thus requiring voter approval in each parish where they were located. This decision, upheld by the state Supreme Court, dealt a severe blow to Churchill Downs as they were faced with the prospect of losing a significant source of revenue which covered both operational costs and investments in the Fair Grounds racetrack.

Churchill Downs argued that the machines should be considered a form of pari-mutuel wagering on horse races, a longstanding legal practice within the industry. However, legal challenges from organizations like the Family Foundation of Kentucky in their home state mirrored the struggles faced in Louisiana, ultimately leading to a tense situation where the future of horse racing in both states seemed uncertain.

Legislative Efforts and Subsidies

In response to the revenue loss stemming from the prohibition of Historical Horse Racing machines, state legislators in Louisiana have been actively seeking solutions. House Bill 540, which proposed an expansion of video poker operations, aimed to generate additional tax revenue that would be redirected to support the horse racing industry in the state. This effort signified a broader attempt to revive the industry by exploring alternative forms of gambling that could potentially offset the losses incurred by Churchill Downs.

Comparable initiatives in other states, such as Florida's substantial stimulus package for horse racing and breeding, exemplified the varying approaches taken to sustain the sector amidst legal and financial challenges. The lobbying efforts and negotiations between industry stakeholders, legislators, and regulatory bodies underscored the complexities of balancing economic interests with legal compliance in the realm of horse racing and gambling.

Path to Resolution

As discussions continue between Churchill Downs, the Louisiana Racing Commission, and state legislators, the future of horse racing in Louisiana hangs in the balance. The need for a compromise that ensures the financial viability of operations at the Fair Grounds while adhering to legal constraints remains paramount. The decisions made in the coming months will not only impact the stakeholders directly involved in the industry but also reflect broader themes of regulation, revenue generation, and preserving historical traditions in the realm of horse racing.

With the fate of Churchill Downs and the Fair Grounds Race Course & Slots at stake, the ongoing negotiations and legislative maneuvers represent a pivotal moment for the horse racing community in Louisiana. As the saga unfolds, the resilience and adaptability of a storied industry face a crucial test, highlighting the intricate interplay between legal frameworks, commercial imperatives, and the enduring appeal of thoroughbred racing in the state.

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