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The U.S. horse racing industry has faced at least a dozen racetrack closures since the coronavirus ravaged the country in 2020, and at least 49 closures since 2000, according to Horse racing mistakes.
Most of these racetracks blamed the expansion of casino gambling and sports betting for the market’s shrinkage and demise.
Racetracks closed since 2020 have been in operation for decades, with New Jersey’s oldest freehold racetrack closing in 2024 after 171 years.
The old racetracks were closed
Other famous racetracks that have closed include Union Fair in Maine, which closed in 2022 after 120 years, Arlington Park in Illinois, which closed in 2021 after 94 years, and Golden Gate Fields in California, which closed in 2024 after 83 years in operation.
All Northern California horse races at the State Fair in Sacramento, and the Sonoma and Alameda County Fairs have been canceled in 2025, due to the closure of Golden Gate Fields and a shortage of horses.
The California Horse Racing Board doubled down on cancellations in 2026 by denying requests from California’s Humboldt and Tehama counties to include thoroughbred racing in their annual fairs in 2026. KRCR TV I mentioned.
“As much as I would like to see them do well, they have no chance of succeeding,” Gregory Ferraro, president of the California Horse Racing Board, said at a Feb. 26 meeting. “There’s no market for them there, so you’d end up ruining all the racing in California, to bet on a situation where there’s no chance up north.”
Another classic racetrack that has been family owned and operated since 1909 is struggling to stay in business and is hoping its latest plan will do just that.
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Hawthorne Race Course declares bankruptcy
A popular Chicago area horse racing track, sportsbook, and off-track betting facility Hawthorne Race Course Company submitted to Chapter 11 Bankruptcy Protection on February 27, seeking to sell its assets under Section 363 as a going concern.
The debtor did not rule out seeking to reorganize its business and refinance its debt obligations.
“Reorganization is a potential avenue to resume operations if the debtors can reach an agreement with a party to recapitalize the debtors as part of a plan process to resolve other obligations of the debtors,” Hawthorne CEO Timothy Carey said in a statement.
If the racetrack’s operations are permanently closed, it could impact the 250 employees at its facilities.
Casino games, sports betting threats
The Stickney, Illinois-based debtor has faced significant financial difficulties in recent years due to challenges affecting Illinois’ horse racing industry, initially from the expansion of casino gaming, and later exacerbated by the competitive sports betting market, according to Carey. a permit.
Hawthorne Race Track is the only racetrack in the United States that features both Thoroughbred and horse racing.
Hawthorn has faced rising costs and increased regulatory fees related to its business, and its subsidiary, Suburban Downs, faced a recent suspension of its regulatory license, the termination of its utility racing meet, and the termination of online and mobile sports betting by Hawthorn’s sports betting partner.
The debtor also faced discontinuation of certain simultaneous betting arrangements through other horse racing tracks throughout the United States, resulting in lawsuits and money judgments against the debtor.
Hawthorne Raceway, located about 10 miles from Chicago, filed its petition in the U.S. Bankruptcy Court for the Northern District of Illinois, listing between $50 million to $100 million in assets and $100 million to $500 million in liabilities.
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- More troubled regional airlines are filing for Chapter 11 bankruptcy
- Liquidation of department store brand in Chapter 11 bankruptcy
The debtor’s largest unsecured creditors are Fanatics LLC, owed more than $8.75 million; Monarch Content Management, owed more than $7.4 million; Aria Group Architects Inc., owed more than $5.6 million; and WE O’Neil Construction Co., owes more than $5 million.
The debtor also owes Signature Bank more than $51 million in debt obligations, including principal, interest and exit fees on the senior secured debt facilities that constitute the central source of debt. Liquidity For the company’s racing operations and Racino development activities.
The company received approvals to develop a racino, or casino-style gambling facility, at the racetrack in 2019, but was slow to develop it due to financing issues, according to the announcement.
Signature Bank provided the debtor with an appraisal of its land-only assets, valued at $95 million, in August 2025. The debtor believes the value of the property, with all the improvements, is much higher, according to the declaration.
Hawthorne is seeking a $16 million loan from DIP
Hawthorne Race Course confirms that multiple parties have expressed interest in recapitalizing the company as part of the bankruptcy process. The debtor also agreed to obtain a $16 million debtor-in-possession seed financing loan from JDI Loans LLC for a 120-day term.
The decline in racetracks contributed to a decline in betting, which fell by 2.1% in 2025, while racing days in the United States fell by 5.2% to 3,590, according to Equibase, as reported by Equibase. Blood horse.
The number of races in 2025 fell by 4.7% to 29,401, the first time the number has fallen below 30,000 since the mid-1950s.
Hawthorne’s senior unsecured creditors
- Fanatics LLC, owes more than $8.75 million
- Monarch Content Management, owes more than $7.4 million
- Aria Group Architects Inc. owes more than $5.6 million
- WE O’Neil Construction Co., owes more than $5 million
- Roberts Communications Network LLC, owes more than $1.5 million
- Woodbine Thoroughbred, owed more than $1.2 million
- CDI Inc. owes more than £974,000
- Horseracing Integrity, owed more than $971,000
- Laurel owes more than $875,000
- Caesars owes more than $750,000
- source: Petition
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