High Illinois Gambling Tax May Force Arlington Track To Move

Shortly after a study found that a new Chicago casino would not be financially feasible because of high gaming taxes, it was discovered that the same problem could lead to the Arlington racetrack needing to move.

Previously, interested parties in Chicago cities held common aspirations, but now those have been replaced by worries.

Why it is possible to move Arlington’s racetracks

In a news release, Churchill Downs CEO Bill Carstanjen explained that the company believes that bringing casino games to the Arlington International Racecourse is not financially viable due to the high gaming tax rate in Illinois.

Arlington ventured into the Thoroughbred purse account industry with a tax rate estimated to be 17.5% to 20% higher than the current Chicagoland games due to targeted initiatives. Unfortunately, after careful consideration, we have determined that this venture is not feasible, and we have made this decision with great sadness.

The fate of the Arlington Heights facility is now up in the air. A recent law change has given Churchill Downs, the track’s owner since 2000, the ability to add up to 1,200 gaming positions at the venue.

If a casino game isn’t introduced, it’s probable that the racetrack will shut down. Churchill Downs is currently only scheduled to host horse racing events until 2021.

The $71 million invested in Churchill Downs, a racecourse less than two decades old, suggests that a complete abandonment of the project is unlikely. It is more plausible that the racecourse would consider relocating before admitting defeat and moving on.

The statement implies that a different Chicago neighborhood might be considered, but it is not specified which area in Illinois that might be.

Despite the event occurring, Churchill Downsquo will continue to operate in the Windy City area. Additionally, there are plans to expand operations to other locations.

Plans for gambling expansion by Churchill Downs & rsquo

Churchill Downs plans to broaden its presence in Des Plaines and Waukegan, two more cities within the Chicago area.

One of the six bids to construct a new gaming facility in Waukegan has been submitted by a firm based in Louisville, Kentucky. The proposed facility would offer 1,600 positions, which is 400 fewer than the current maximum allowed.

There are ways to reach that total in Des Plaines, with Churchill Downs owning the lot at Rivers Casino.

Churchill Downs is looking to expand the 2,000 games limit and add a sportsbook to Rivers in Des Plaines.

The approval date for the Waukegan bid is just as uncertain as the start date for sports betting in Illinois. Should Churchill Downs secure the Waukegan bid, it would be safe to assume that the racetrack will not be relocating there.

Churchill Downs may also be using its influence to hint at the possibility of relocation.

Adding energy to lights that have already been fanned

Illinois legislators are currently viewing the study’s findings on a newly introduced game in Chicago unfavorably, which could be worsened by the potential relocation of the Arlington International Racecourse.

It’s a classic move to take my ball, go home, and scheme. The Illinois Legislature has the power to easily change the new game tax rates.

Churchill Downs is making it clear to the Legislature that they believe duty costs are excessive. They are reinforcing this message by threatening to move the track and canceling plans to introduce casino games.

For a game to be viable in Chicago, the Illinois Legislature may have already had to reassess the new tax system, potentially adding to the controversy.