CDI expects 25% cut in Fair Grounds purses after ruling

Churchill Downs Inc. said the recent ruling by the Louisiana Supreme Court regarding historical horse racing will result in a 25% reduction in purses at Fair Grounds, its racetrack in New Orleans.

The court ruled Friday that a 2021 law allowing for historical horse racing machines in the state without a public referendum is unconstitutional.

The law, called Act 437, revised the pari-mutuel wagering statute to include HHR and put it under the regulation of the Louisiana Racing Commission.

"As a result of this law, we made investments to bolster the horse-racing industry, foster job creation and support local communities," CDI said in a statement. "This recent court ruling directly and adversely negates this progress."

In addition to Fair Grounds, CDI owns a network of off-track betting facilities across the state and has deployed HHR machines at 13 of those OTBs, according to Paulick Report. As a result of the ruling, the company DI was forced to remove the machines.

The ruling "diminishes a key economic driver for horsemen who depend on competitive purses to support their operations, including the employment of their teams of people who care for the horses," the statement continued. "In addition, there is a waterfall of support services, businesses and agricultural communities that will be damaged, including breeding farms, hay farms, the quarter-horse industry and numerous service industries like veterinarians, etc. Local communities, including parish governments and sheriff's departments, which benefit directly from the new tax revenue generated by historical horse racing, will also feel the adverse effects of this ruling.

"This ruling places at risk an entire horse racing ecosystem that relies on historical horse racing revenue."