Innovative Strategies to Boost Illinois Horse Racing Tracks

Innovation Sparks Renaissance in Illinois Horse Racing

In the decade between 2009 and 2019, Illinois’ horse racing scene experienced a significant downturn. The annual betting handle, a critical indicator of the industry’s health, plummeted by 32% throughout most of the 2010s. A closer examination of the data reveals a stark decline in both on-site and off-the-track wagers, with the advent of advance deposit wagers failing to counterbalance these losses. This downward spiral not only affected tax revenues from horse racing but also diminished prizes for horsemen and resources for breeding competitive horses, initiating a detrimental ripple effect across the state’s economy.

However, a revolutionary development at Hawthorne Race Course promises to reverse this trend. The track’s recent initiatives, including securing rights to build an on-site casino and a partnership with PointsBet, aim to rejuvenate the Illinois horse racing betting handle. We had the opportunity to gain insights from John Walsh, Assistant General Manager at Hawthorne Race Course, who shed light on the industry’s challenges and the potential impact of integrating sports betting into the horse racing ecosystem.

Only two horse racing tracks currently operate in Illinois: Hawthorne Race Course in Stickney and Fairmount Park in Collinsville, following the closure of three tracks—Arlington Park, Balmoral Park, and Maywood Park—in the last eight years.

The Historical Context and Modern Challenges of Horse Racing

Illinois’ horse racing handle fell to $490 million in 2023, the lowest in over 40 years and a 4.6% decline from $514 million in 2022, despite advance deposit wagering.

Horse racing, dubbed America’s original pastime, has evolved significantly from its origins in colonial times to its status as a beloved sport and betting activity. Despite facing stiff competition from other forms of entertainment and gambling, the sport has demonstrated resilience and adaptability. “Racing has continued to innovate, expanding wagering opportunities through off-track and simulcast betting, and even pioneering mobile wagering platforms,” Walsh noted, highlighting the industry’s efforts to maintain relevance in a rapidly changing landscape.

Walsh also pointed out the positive trends still present in the industry, such as record-breaking attendance and betting handles at events like the Kentucky Derby and the Breeders Cup. These successes suggest a sustained interest in horse racing, buoyed by younger generations’ preference for experiential entertainment and the sport’s natural alignment with the burgeoning sports betting market.

Integrating Sportsbooks and Horse Tracks

The number of registered foals in Illinois dropped sharply from 1,937 in 2008 to an estimated 84 in 2023, reflecting a severe contraction in the breeding sector.

The expansion of sports betting across the United States has brought a new dynamic to the horse racing industry. In Illinois, legislative efforts have been made to direct a portion of sports betting tax revenues to bolster horse tracks. “Racing isn’t just a sports enterprise; it’s an agribusiness that supports numerous jobs and farms throughout the state,” Walsh explained, emphasizing the economic significance of the horse racing industry beyond the track. The partnership with sportsbooks and the addition of casino gaming at race tracks like Hawthorne are seen as essential strategies to enhance the industry’s financial health and competitive edge.

Hawthorne Race Course’s collaboration with PointsBet is particularly noteworthy. This partnership is expected to leverage PointsBet’s expertise in racing betting, cultivated in markets like Australia, to offer a comprehensive and engaging betting experience. “We believe sports betting will complement racing, appealing to handicappers and casual bettors alike,” Walsh asserted, highlighting the mutual benefits of this symbiotic relationship.

The Transformative Impact of a Casino and Sportsbook

The introduction of a casino and sportsbook at Hawthorne Race Course is poised to significantly impact Illinois’ horse racing landscape. “The casino will dramatically increase our purses, attracting more horses and thereby enhancing the competitiveness of races,” Walsh shared, outlining the expected benefits of these developments. This infusion of revenue and excitement around sports betting creates a unique opportunity for Hawthorne to position itself as Illinois’ premier gaming destination, blending the thrill of horse racing with the allure of casino gaming and sports betting.

Walsh envisions Hawthorne as a “130-year-old startup,” constantly innovating and adapting to meet the evolving demands of gamblers and sports enthusiasts. By integrating state-of-the-art amenities and focusing on customer service, Hawthorne aims to showcase the rich legacy of Illinois racing while setting new standards for the industry’s future.

As we look ahead, the success of Hawthorne Race Course’s ambitious initiatives may serve as a blueprint for rejuvenating horse racing industries across the United States. By embracing innovation and diversifying their offerings, traditional race tracks can revitalize their appeal and ensure a prosperous future in an increasingly competitive gaming landscape.