Churchill Downs Inc. officials are involved in “active discussions” with officials in Louisiana on an agreement that would avert the company’s plan to seek the end of live racing at Fair Grounds racetrack in New Orleans, the company confirmed Friday.
In a response to questions, CDI said in a statement Friday morning that Gov. Jeff Landry has taken “direct involvement” in the discussions and that the company is “engaged in active discussions with the Louisiana Racing Commission and the horsemen with the aim of reaching a resolution that is favorable to all of the stakeholders.”
CDI’s chief executive officer, Bill Carstanjen, sent a letter to the Louisiana Racing Commission and other state officials on Monday saying the company planned to surrender its licenses for the Fair Grounds and its OTBs due to dissatisfaction over a March state Supreme Court ruling that invalidated the use of historical horse racing machines at the company’s 13 OTBs in Louisiana.
Several officials close to Louisiana racing said Thursday night and Friday morning that the discussions were nearing a resolution, speaking on the condition of anonymity to avoid any disruption to the talks.
Ed Fenasci, executive director of the Louisiana Horsemen’s Benevolent and Protective Association, said Friday morning that he could not comment on any involvement by the horsemen in the talks, but he said that he was hopeful that a resolution would be reached.
“The HBPA is always open to working with the racing commission, the Fair Grounds, and other parties to secure the future of live racing in New Orleans,” Fenasci said. “We are not against the Fair Grounds, we’re not against anybody, and we are working towards that aim as we always would be.”
Talks of the discussions began soon after the state legislature on Thursday advanced a bill containing an amendment designating the Fair Grounds racetrack as a “protected historic site” that would place limitations on the use of the property without legislative approval. Thursday was the final day of the legislative session, and the amendment was attached to a minor bill dealing with oversight issues of the French Quarter Management District.
“It is our hope that language proves to be unnecessary,” said the Churchill response.
Stephen Landry, executive director of the racing commission, also declined on Friday to comment on the nature of the talks or the commission’s involvement. He also stated that the commission was hopeful an agreement could be reached, and he noted that Carstanjen’s letter did not explicitly say the company would surrender the licenses.
“He said they ‘expect’ to surrender the license,” Landry said. “He didn’t say they ‘will’ surrender the license.”
Commission officials had said in May that they expected to hold a meeting “on or after June 15” to discuss Churchill’s intentions, citing the legislature’s pending adjournment. Landry said Friday that the meeting will likely be scheduled by the end of next week.
The Supreme Court ruling held that Churchill could not operate the HHR machines at its OTBs without local approval. Churchill operates slot machines at a casino at Fair Grounds, and it replaced its video-poker machines at its OTBs in 2023, shortly after purchasing a company that manufactures and operates HHR machines.
Churchill has said that the HHR machines are far more profitable than video-poker machines and has contended that the loss of the machines would have a significant impact on the profitability of its operations in Louisiana.
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