The Illinois Gaming Board Feb. 8 gave the state’s two remaining racetracks a push to move forward on construction of long-delayed casinos.
Representatives of Hawthorne Race Course and FanDuel Sportsbook and Horse Racing, however, were unable to provide firm timelines for delivery of applications, much less deadlines for the first throw of the dice.
Legislation passed and signed in 2019 granted tracks the right to apply for casino licenses and the IGB in 2020 granted both tracks preliminary approval to move forward. Although Hawthorne did preliminary demolition work on its grandstand, construction on both projects has been at a standstill since.
In the interim, other land-based, non-racetrack casinos have been built in several surrounding cities and Chicago has opened a temporary casino near the Loop.
Both Hawthorne, in the near west Chicago suburbs, and FanDuel, across the Mississippi River from St. Louis, quickly inaugurated sports betting with IGB approval. While a percentage of any casino revenue would be allocated to horse racing purses, racing does not benefit from sports betting.
FanDuel Sportsbook and Horse Racing is the former Fairmount Park.
“The public expects that the statute would be fulfilled and they’re going to have the benefit of this facility,” said IGB chairman Charles Schmadeke. “And they’re being disappointed.
“And also the state of Illinois and other taxing bodies don’t get the benefits from us granting this approval. It seems like it’s not quite four years (since preliminary approval) but that is a considerable period of time.”
Both tracks cited a litany of issues that have delayed action, including investment funding for the casinos.
“We’ve all been navigating the capital markets in our respective ways to try to put the right capital together, to try to put the right investors, so we can move forward with our projects,” said Kevin Kline, head of casino operations at Hawthorne.
He said Hawthorne’s approach to move directly to a permanent facility, without a temporary casino as a bridge, is the most effective plan for Hawthorne operationally and in the long run will maximize return for the state and others who stand to benefit from tax revenue.
Hawthorne president and general manager Tim Carey reiterated his family, which has owned Hawthorne for five generations, remains committed.
“There’s no one that wants this more than we do. I can assure you that we have not slowed down. We’re not slowing down. We’re doing everything we can to get this up and running,” Carey said.
Kline added: “We take the responsibility for the fact that, Tim and I, sincerely, the idea that an entire industry is dependent on us getting this right. It is absolutely front and center.”
Melissa Helton, president and general manager at FanDuel Sportsbook and Horse Racing, said her planning has been disrupted by the death of one of the track’s owners and another’s serious illness. She provided the IGB a list of accomplishments on the road to construction but admitted she cannot yet pinpoint a definitive timeline for construction or completion.
IGB administrator Marcus Fruchter said he and the board staff will continue to assist in the process.
“We’ll continue to work with both applicants to make sure that these projects move as fast as the applicants are ready to move and certainly the IGB will continue to work to make sure these important projects get opened in an expeditious and compliant manner,” Fruchter said.
