Plans set to take over dates from Turfway, build new track

LEXINGTON, Ky. – Churchill Downs in Louisville has applied for the winter racing dates currently held by Turfway Park, the company announced Thursday night, a proposal that could upend the Kentucky racing circuit and lead to a new track in northern Kentucky.

The plan by Churchill to apply for dates from January through March next year, and to extend its fall racing meet from late November through December, seeks to capitalize on dissatisfaction at the Kentucky Horse Racing Commission over delays in installing slot machine-like devices at Turfway, which was sold earlier this year to Hard Rock International, a casino company. The devices, which are called historical horse racing machines, are in operation at facilities owned by every other Thoroughbred track in the state, and revenues from the machines have led to record purses at the tracks.

Dates applications for 2020 were due Friday, and the KHRC must, by law, award the dates by Nov. 1. The commission typically discusses dates applications with track officials in informal and formal meetings leading up to the Nov. 1 statutory deadline. The next commission meeting is scheduled for Oct. 15.

In a statement from the company that was released after Daily Racing Form reported on the plan Thursday afternoon, Churchill Downs said that it intends to eventually hold the winter dates at a new track in northern Kentucky that would include a casino holding 1,500 historical horse racing machines. Like Turfway, the new track would have a onemile main track with an artificial surface, which is better suited to winter wear-and-tear than a dirt track.

While the new facility is being built, Churchill plans to run the winter dates at its track in Louisville, the company said, a proposal that would see racing held at Churchill from January through March, and then from November through March of the next year. (Churchill also holds a brief September meet.)

The new facility would be called New Latonia, a reformulation of the former name for Turfway Park, which was called Latonia Race Course from 1959 to 1986. That name harkened back to another racetrack with the same name that operated in the area from 1883 to 1939.

“Our goal is to deliver an ultra-competitive racing product with more entries and high-quality horses that appeal to bettors and horseplayers nationwide,” said Kevin Flanery, president of Churchill Downs Race Track, in a statement.

Churchill officials did not respond Friday morning to phone calls seeking additional comment.

Churchill Downs informed officials with the Kentucky Horsemen’s Benevolent and Protective Association about the plan Thursday, according to sources. Marty Maline, executive director of the KHBPA, said Friday morning that horsemen had voiced some concerns at the meeting about stabling during the potential transition period, but said that horsemen appeared to support the plan by Churchill to boost winter purses.

“Whenever a racetrack announces they are going to improve the purse structure, that’s music to their ears,” Maline said. “That was really encouraging to hear. But as always, the devil is in the details.”

The plan by Churchill coincides with a gubernatorial election this year in Kentucky that could have a significant impact on the political appetite for casinos in the state. The incumbent, Matt Bevin, a Tea Party Republican, has rejected plans for expanded gambling during his first term, while his opponent, Attorney General Andy Beshear, a Democrat, has said that he would support the legalization of casino gambling, in part to raise money for the state’s ailing pension funds.

If legislation is passed, racetracks are expected to be leading candidates for casino sites, due to their significant political sway and cultural prestige in a state that relies heavily on economic activity in the equine industry. The state’s existing historical horse racing facilities could easily be converted into casinos.

While it is unclear whether the KHRC supports the plan, Churchill is known to conduct head counts for any major proposals it puts in front of the commission. In addition, the plan is banking on the fact that Turfway’s owners have rejected outright pleas by the KHRC over the past four years for the track to install historical horse racing machines and renovate its grandstand, which has noticeably aged over the past two decades. Those rejections have drawn sharp criticism from commissioners over the owners’ commitment to racing in the state.

Prior to Hard Rock buying Turfway Park, the track – and a casino just across the river in Cincinnati – were owned by Jack Entertainment. The Hard Rock deal to purchase Turfway Park also included the Cincinnati casino, and KHRC commissioners have publicly stated that they believe that Hard Rock agreed to acquire Turfway Park as part of the deal in order to protect the casino to its north by blocking additional gambling in the market area. The announcement of the deal made no mention of Hard Rock’s plans for the track, only for the casino.

Churchill currently operates a historical horse racing facility at its Trackside training center just south of its flagship Louisville track. Earlier this year, the company’s chief executive officer, Bill Carstanjen, said that the company will soon announce plans to build a hotel and casino at Churchill Downs itself, with construction completed by the 2021 Derby.

Other than Turfway, Churchill was the last holdout among Kentucky tracks to install historical horse racing machines, due to its concerns that the installation of the machines would sap political momentum toward the legalization of full-blown casinos. But the casino at its Trackside training center, which opened in fall 2018, ended up far surpassing the company’s projections, leading the company to reconsider its stance.

Late last year, Churchill was the winning bidder among three companies to build a new casino and harness track in the southwestern portion of the state. The project, called Oak Grove Racing and Gaming, is expected to hold 12 live harness racing dates this October, with a massive casino opening in the first half of next year.

The new facility is expected to compete for customers with a casino at Kentucky Downs in Franklin, Ky. Both facilities are equidistant from Nashville, Tenn., the closest large metropolitan area.