Report: Churchill Downs plans to give up Fair Grounds license

Churchill Downs Inc. plans to give up its racing and gaming licenses for Fair Grounds after state legislators did not agree to a subsidy to replace lost revenue from slots.

In a letter to the Louisiana State Racing Commission and state legislators dated Monday, CDI CEO William Carstanjen said the company "is left with no choice" but to take steps to voluntarily surrender its Fair Grounds licenses, Nola.com and other media outlets reported.

CDI was seeking a deal to allow historical horse-racing machines at Fair Grounds and its 13 OTB parlors in the area after the Louisiana Supreme Court ruled in March that operation of the machines is illegal without local approval, according to the Nola.com report.

CDI officials told the commission last month that the ruling would result in the loss of half its Louisiana revenue and nearly three-quarters of its profits, according to the report, and that it wouldn't be able to operate Fair Grounds and the OTBs profitably without a subsidy.

CDI officials said the company would relinquish the licenses at the racing commission oversight board's next meeting. Stephen Landry, executive director of the commission, told NOLA.com that he expect that meedint to be held within the next 30 days.