High Illinois Gambling Tax May Force Arlington Track To Move

Just days after a study determined that a new Chicago casino would be financially unviable due to steep gaming taxes, it was revealed that the same issue could necessitate the relocation of an Arlington racetrack.

Interested parties in Chicago cities once shared the same hopes. Now, those hopes have been supplanted by concerns.

Why it is possible to move Arlington’s racetracks

Churchill Downs CEO Bill Carstanjen, in a news release, stated that the company finds the idea of introducing casino games at the Arlington International Racecourse financially unfeasible. He attributed this primarily to the gaming tax rate in Illinois.

Arlington entered the Thoroughbred purse account industry with an effective tax rate estimated to be around 17.5% to 20% higher than the existing Chicagoland games, thanks to specific efforts. Regrettably, we’ve concluded that we can’t make this work, and it’s a decision we’ve arrived at with a heavy heart.

The future of the Arlington Heights facility is now uncertain. The new law has granted Churchill Downs, who has owned the track since 2000, the liberty to introduce up to 1,200 gaming positions to the track.

The racetrack is likely to close if there’s no casino game. Only horse racing is planned to occur at Churchill Downs until 2021.

The $71 million investment in Churchill Downs, which is less than 20 years old, makes it hard to picture a total abandonment of the project. It would be more conceivable for the racecourse to relocate before it acknowledges defeat and moves on.

The statement suggests that another Chicago neighborhood could be a prospect, but it’s unclear where that would be in Illinois.

Even if that event happened, Churchill Downsquo would not stop operating in the Windy City area. There are plans to expand operations in other locations.

Plans for gambling expansion by Churchill Downs & rsquo

Churchill Downs intends to expand its operations in Des Plaines and Waukegan, two additional cities in Chicago.

A Louisville, Kentucky-based firm has submitted one of the six bids to build a new game in Waukegan. Their proposed service will feature 1,600 positions, which is 400 less than the current maximum.

However, there are methods to achieve that sum in Des Plaines. The owner of Rivers Casino’s lot there is Churchill Downs.

Churchill Downs plans to increase the 2,000 games place cap and also intends to introduce a sportsbook to Rivers in Des Plaines.

The approval date for the Waukegan bid is as uncertain as the commencement date for sports betting in Illinois. If Churchill Downs wins the Waukegan bid, one could confidently dismiss the possibility of the racetrack relocating there.

It’s also possible that Churchill Downs is using its leverage to threaten relocation.

Adding energy to lights that have already been fanned

The study’s findings on a newly introduced game in Chicago currently seem unfavorable to Illinois legislators. This could be further exacerbated by the potential relocation of the Arlington International Racecourse.

Take my ball, go home, and scheme, it’s a classic. The Illinois Legislature can easily alter the new game tax rates.

Churchill Downs is underscoring to the Legislature that, in their opinion, the duty costs are too high. This is being emphasized by their threats to relocate the track and their decision to abandon plans for adding casino games.

In order for a game in Chicago to be feasible, the Illinois Legislature may have already needed to reconsider the new tax structure. This information could potentially fuel the controversy.