The future of horse racing in Louisiana swings in uncertain balance as Churchill Downs Inc., the parent company of Fair Grounds Race Course & Slots in New Orleans, threatens to pull out of the state. The company’s decision follows a recent court ruling that banned a type of slot machine important to its profits. According to NOLA.com, Churchill Downs would not move forward with the 2025 to 2026 racing season unless the Louisiana Legislature intervenes to legalize these games.
The contentious slot machines, known as Historical Horse Racing (HHR) machines, allow users to bet on video replays of past horse races. A statement from Churchill Downs highlighted that HHR devices account for 46 percent of its annual revenue in Louisiana and a staggering 74 percent of its after-tax profit. With their absence, the Fair Grounds claims it's unable to cover the $9 million average annual maintenance and operating capital. "While these talks have slowed, Fair Grounds remains committed to maintaining an open dialogue and finding a path towards long-term viability before the end of the session. The future success of the Fair Grounds is something we must confront together, or else the state’s entire horse racing and breeding ecosystem, and the thousands of jobs that it supports, is at risk," a Churchill Downs representative expressed as obtained by FOX 8 Live.
State legislators are currently considering House Bill 540, which could allow more video poker machines to help recover lost profits. The bill recently passed the House. This debate mirrors actions in other states, like Florida’s $66 million aid to horse racing, which later became permanent, showing nationwide efforts to support the struggling industry. Locally, State Sen. Jimmy Harris, alongside Senate President Cameron Henry, is reportedly seeking a compromise, according to information gathered by WWLTV.
Churchill Downs says the Fair Grounds is important to Louisiana’s horse racing industry, which has a $3 billion economic impact. If it closes, the company warns it could hurt the entire industry. As the legislative session continues into June, lawmakers and stakeholders are working to find a solution to protect jobs and keep the industry going.
