Fair Grounds Race Course & Slots Faces Uncertain Future as Financial Crisis Looms - (2025)

Updated: 13/06/2025

The future of Fair Grounds Race Course & Slots in New Orleans appears to be hanging in the balance as Churchill Downs, Inc. expresses concerns about the dire financial situation facing the historic racing venue. During an emergency meeting with the Louisiana State Racing Commission, it was revealed that without significant legislative assistance, the track may not be able to proceed with its scheduled 2025-’26 meet.

Ozair Shariff, an attorney representing Churchill Downs, Inc., painted a bleak picture of the financial challenges plaguing Fair Grounds, attributing the predicament to the loss of revenue from historical horse racing machines and off-track betting facilities. A recent ruling by the Louisiana Supreme Court deemed a state law authorizing HHR machines unconstitutional, further exacerbating the financial strain on the track.

Shariff highlighted the track's financial losses, emphasizing the critical role played by revenue from slot machines in offsetting operational expenses. However, with the discontinuation of HHR wagering after the court decision, Fair Grounds is struggling to meet its annual maintenance capital requirements, posing a significant threat to its long-term viability.

The situation has prompted CDI to engage in discussions with key legislators in a bid to address the pressing financial issues. Despite the challenges, a meet for the 2025-’26 season has been tentatively approved, set to run from November 20 to April 9. The approval, albeit without the track's request, comes with the stipulation that licensed tracks awarded dates must fulfill their obligations, barring severe economic hurdles.

Looming Uncertainty and Complicated Dynamics

As Fair Grounds navigates its financial storm, voices of concern and dissent have emerged within the racing community and among public figures in Louisiana. Louie Roussel III, a prominent New Orleans businessman and former owner of Fair Grounds, aired his reservations regarding CDI's narrative of financial distress.

Roussel cast doubt on CDI's claims, pointing out the corporation's substantial revenue figures and questioning the need for state subsidies in light of their financial standing. He emphasized the need for a collaborative approach between the track and the commission to support racing's growth and sustainability, cautioning against allowing CDI to dictate terms unchecked.

The tensions were further underscored by Roussel's assertion that CDI had issued a threat to padlock the track if their demands were not met, a move he vehemently opposed. The impassioned plea echoed sentiments shared by stakeholders in the state, urging a fair and balanced resolution that protects the interests of the racing community and the broader public.

Despite the discord and uncertainty, the Louisiana State Racing Commission proceeded with the approval of race dates for the upcoming 2025-’26 season. While the track's commitment to fulfill these dates remains subject to the resolution of financial constraints, the commission underscored the significance of demonstrating genuine financial distress to justify any deviations from the approved schedule.

Strategic Considerations and Pathways Forward

As the legislative session progresses, the fate of Fair Grounds and its racing operations hangs in the balance, awaiting decisive action from policymakers and stakeholders. The interconnected dynamics of revenue streams, legal frameworks, and economic imperatives underscore the complexity of the challenges facing the racing venue.

The ultimate resolution will likely hinge on a delicate balance between financial sustainability, regulatory compliance, and the preservation of Louisiana's rich horse racing heritage. The need for a collaborative and equitable solution that safeguards the interests of all parties involved remains paramount as the discussions unfold.

While the specter of uncertainty looms large over Fair Grounds, the potential pathways forward offer glimmers of hope amidst the storm. The commitment to open dialogue and constructive engagement between CDI, legislators, and the racing community lays the groundwork for a collaborative effort in charting a sustainable future for Fair Grounds Race Course & Slots.

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