Illinois suspends Hawthorne licence citing financial issues
Hawthorne Racecourse is facing a major setback after the Illinois Racing Board (IRB) suspended its operating licence. The suspension came when the track failed to provide the required financial documents and show that it could support its 34‑day harness meet, as reported by several media outlets. With Arlington Park closed, Hawthorne has been the only venue for harness and thoroughbred racing in Northern Illinois, causing trouble for horsemen, bettors, employees, and fans. The situation worsened when three consecutive weekends of racing were cancelled because the track did not post a mandatory surety bond, raising serious concerns about its future.
Illinois Racing Board steps in
After several warnings and missed deadlines, the IRB suspended Hawthorne’s licence, citing the track’s inability to produce the necessary financial records. The board requested bank documents on 15 January that demonstrated Hawthorne’s racing-related accounts and operational finances, as well as evidence that the company could pay its employees and fulfil its operational expenses for the 2026 race dates. The board declared that racing could not continue in the absence of proof of financial soundness because the business depends on clear financial integrity to operate.
A surety bond in racing acts as a safeguard to ensure horsemen are paid if a track cannot meet its financial obligations. Hawthorne’s failure to post the required bond led to the cancellation of its opening weekend, followed by two more consecutive weekends, eroding confidence in the track’s ability to continue operations.
Growing payment disputes
Before the first cancelled weekend, several horsemen reported that their purse cheques had bounced, amounting to hundreds of thousands of dollars. Purse money is crucial operating cash for racers as it covers staff costs, transportation, veterinary care, and feed. Daily activities halt in the absence of these funds, making it difficult for owners, drivers, and trainers to fulfil their obligations because they are unsure of when or if they will be compensated.
According to Executive Director Domenic DiCera, reinstatement will only be possible if Hawthorne provides the necessary documents and proves it meets the minimum financial and operational requirements.
DiCera stated, “Today, the Illinois Racing Board made a very difficult decision to suspend the operating license of Suburban Downs (which does business as Hawthorne). On Jan. 15th, IRB requested bank statements that reflect the operating fund and any fund related to racing operations at Suburban Downs. Unfortunately, their financial difficulties, including failure to provide financial documents showing their ability to operate assigned 2026 race dates, have led us to suspend their licence.”
Ongoing legal battles
Hawthorne’s financial troubles trace back to 2020, when the Illinois Gaming Board approved the track for a casino licence under the state’s expanded gaming bill. The plan was expected to provide stability through slot machines and table games, but the Carey family was unable to secure a funding partner. Construction began with the demolition of the grandstand, but soon stalled as money ran out, leaving the project unfinished and leading to lawsuits and liens tied to the halted development.
Hawthorne’s legal troubles have continued to grow. Last year, Churchill Downs Inc. filed a lawsuit over unpaid simulcast signal fees, which led to Hawthorne being barred from taking bets on the Kentucky Derby, resulting in a significant loss of revenue. More recently, Monarch Content Management filed a case in Cook County, further complicating matters as it supplies simulcast signals for major tracks such as Gulfstream Park and Santa Anita, cutting off another key source of operations.
Industry opposition grows
The Illinois Harness Horsemen’s Association has demanded more accountability and clarity from Hawthorne. Although race cancellations cause disruptions, the association emphasised that participant protection must come first and that it would be more detrimental to hold events without the ability to pay purses.
Hawthorne’s financial difficulties have left its bank account frozen, which reportedly caused about $500,000 in cheques to bounce last month. With unpaid purses and cancelled race weekends added to the tally, horsemen may be owed more than $1 million, creating a serious challenge for those relying on these payments to sustain their operations.
Lawmakers reconsider stance
Illinois lawmakers are reviewing a bill that could permit the opening of a new racetrack in or near Chicago. The proposal would also remove Hawthorne’s veto authority, reflecting growing frustration with the current situation and signalling a possible shift in the state’s approach to racing.
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