Payment issues with Hawthorne raise concerns

Payment issues with Hawthorne raise concerns

Last fall, the Chicago location’s simulcast signals were pulled from some numbers due to uncertain financial transactions, preventing Hawthorne from offering betting on this year’s Kentucky Derby.

(Paulick report photo)

Some Standardbred riders in Illinois saw their Hawthorne Race Course cash distribution payments, as well as trainer and driver earnings, returned unpaid by the banks, according to a letter from the Illinois Harness Horseman’s Association (IHHA) to its members.

The IHHA expressed frustration and disappointment over the failed payments and called on the Illinois Racing Board (IRB) to review the issue. According to the IHHA, Hawthorne indicated that the returned payments were due to a system or processing problem, and that resubmitting the checks will result in payment. However, the IHHA said some rider banks are not allowing redeposits, requiring new checks to be issued. Some members have already received replacement checks from Hawthorne.

The association is requesting that Hawthorne pay all documented bank charges and fines incurred by riders as a result of the recovered payments, and said it will continue to work with the IRB and all relevant parties until payments are made and safeguards are in place to prevent the problem in the future.
This isn’t the first time Hawthorne has failed to make payments. Last fall, Hawthorne’s simulcast signals were pulled from a number of tracks due to uncertain financial transactions, including tracks owned by Churchill Downs Inc., preventing Hawthorne from offering betting on this year’s Kentucky Derby.

In 2020, Hawthorne demolished part of the grandstand to make way for a casino to replenish its purses, but no partner has been secured and no further construction has taken place. According to a Chicago Tribune article published on May 15, liens have been placed on Hawthorne by numerous companies, totaling more than $5 million, as a result of the partial demolition of the grandstand. According to the article, Hawthorne officials said they have settled one of the claims and plan to pay off the debt once financing for the project is secured.

In September, Hawthorne owner, president and general manager Tim Carey said he believed they had a casino partner last year, but that an “internal matter” caused the investor to be released on bail. Carey told the IRB that “we expect to be able to make an announcement sometime in the fourth quarter on where we are with the project. We expect that if we announce it in the fourth quarter, we would be open in the fourth quarter of 2027.” Currently, Hawthorne’s nearly six-year search for a casino partner continues.

Hawthorne was approved for 63 thoroughbred racing days in 2026, while its subsidiary, Suburban Downs, was approved for 34 harness dates in Hawthorne for 2026.

By Mike Davey for the Paulick ReportReprinted with permission from the Paulick Report

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