Did Arlington Park Die In Vain? Gaming Appears To Be Coming There

Churchill Downs, Inc.’s decision to partly shut down one of the world’s great racetracks to avoid gaming competition with one of Illinois’ largest and most successful casinos may have backfired.

The sale of the highly regarded Arlington Park thoroughbred racetrack by CDI to the Chicago Bears was largely perceived as a strategy to evade competition for the Rivers Casino Des Plaines, owned by CDI in partnership with BetRivers’ parent company, Rush Street Gaming. This belief emerged following the 2019 legislation in Illinois, which permitted racetracks to incorporate racinos. The revenue generated from horse racing was earmarked for the enhancement of the race purses and track facilities.

The other two horse racing tracks in the state – Hawthorne Race Course and FanDuel Sportsbook & Horse Racing – seized the opportunity, although Hawthorne has not yet begun building a gaming hall. However, unexplainably, CDI chose not to incorporate a racino at Arlington.

During the summer of 2020, Bill Carstanjen, the CEO of CDI, stated:

Arlington Park is not the long-term solution. At some point, the land will serve higher and better purposes.

Fox32 Chicago (WFLD-TV) reports that the village trustees of Arlington Heights have given the green light to a zoning change, paving the way for a sports betting facility.

Rules in Illinois permit sportsbooks at major sports venues. The FanDuel lounge was inaugurated at the United Center in October, although its gambling activities still require approval from the Illinois Gaming Board. Meanwhile, a DraftKings sportsbook is being built at Wrigley Field.

This implies that gambling is likely to be introduced to the Bears’ new home in Arlington. However, the final decision rests with the IGB.

The village is situated just 20 minutes north of Rivers Casino. However, only sports betting in Illinois is currently possible, not a fully-fledged casino that could have been established at the racetrack.

Chicago Bears insisted on sports betting in Arlington

In September 2021, the Chicago Bears signed a purchase agreement worth $197.2 million for a 326-acre plot of land where the former Arlington Park is situated. The intent is to construct a new stadium at this location, which is 30 miles northwest of Soldier Field, their current home ground.

In October of this year, the team’s owners presented the preliminary plans for the new stadium to Arlington Heights officials.

The Bears’ $5 billion development proposal significantly hinges on the zone change that permits sports betting. The proposal includes the creation of an NFL stadium and a mixed-use commercial district on the racetrack site.

Did Churchill blunder by killing Arlington?

The official closure of the Arlington International Racecourse, a track featured in Architectural Digest’s 2014 list of the world’s most stunning racetracks, has left numerous Illinois horse racing enthusiasts in mourning.

Dick Duchossois, now deceased, widely praised for rebuilding and managing the racetrack, unintentionally precipitated its downfall by partnering with CDI. Eventually, Duchossois sold the majority stake in Arlington to CDI, who shut down the track in September 2021. This closure marked the end of almost a hundred years of horse racing at this Chicago area sporting landmark, which was once the host of the Arlington Million.

However, CDI’s choice to refrain from competing with its Rivers Casino seems lacking in foresight. Establishing a racino at Arlington could have maintained their hold on the gaming revenue. Moreover, it could have preserved horse racing at one of the sport’s most prestigious venues. It is reasonable to assume that the company managing Churchill Downs and the Kentucky Derby would have some interest in this.

Instead, the shutdown of Arlington has plunged Illinois horse racing into disarray.

Today, only a single track in the Chicago area remains, which once featured racing at Hawthorne, Maywood Park, Sportsman’s Park, and Arlington. Currently, Hawthorne is shared by thoroughbred and harness racing interests.

Neither breed finds the schedule ideal, and as they wait for the racino, the purse money is spread thinly. Consequently, many horsepeople are compelled to relocate to other jurisdictions. They can no longer afford to wait for the gaming revenue to enhance their horse racing opportunities in Illinois.

Rivers dominates Illinois casinos, but not for long

Moreover, in the coming years, Rivers Casino is bound to relinquish its title as the largest and most lucrative casino in Illinois.

Bally’s has notably received approval to construct a mega-casino in downtown Chicago. They plan to open a temporary casino at the Medinah Temple in 2023. However, the permanent casino, which will be located on the current site of the Chicago Tribune printing plant, isn’t expected to open until at least 2026.

Bally’s Chicago will include:

• 3,400 slots
• 173 table games
• Sportsbook
• 10 dining and drinking establishments
• A hotel tower that can accommodate up to 500 rooms and includes a rooftop bar.
• A music venue outdoors that can accommodate 1,000 guests.
• In addition to a 70,000-square-foot indoor entertainment center with a capacity of 3,000 seats.
• And a green outdoor space.

In comparison, Rivers Casino offers:

• 1,000 slot machines
• 65 table games
• BetRivers sportsbook
• Seven dining establishments including bars, buffets and restaurants

As of October 2022, Rivers Casino has generated over $436 million in gross adjusted revenue, making it the highest-earning casino in Illinois by a significant margin. This represents 39% of the total revenue exceeding $1.1 billion generated by all 11 casinos in Illinois combined. The Grand Victoria Casino, which is the second-highest earner, has made nearly $128 million in 2022, only 29% of Rivers Casino’s revenue.

Rivers Casino is also the leading casino in the state when it comes to attendance. So far this year, it has drawn in almost 2.3 million customers, which is 30% of the state’s total casino attendance of 7.6 million. The next most attended is Hollywood Casino Aurora, with slightly over 700,000 visitors.