Racing halted in Chicago as Hawthorne bounces checks to horsepeople

by Neil Milbert

Bounced checks are the latest problem to beset financially beleaguered Hawthorne Race Course.

“For the second time in a matter of weeks the Illinois Harness Horsemen’s Association (IHHA) has been made aware that checks issued by Hawthorne Race Course have been returned unpaid by banks,” Jeff Davis, president of the collective bargaining agent for owners and trainers, posted on the IHHA website. “This is another embarrassing failure of Hawthorne Race Course.

“To that end we are publicly calling on Hawthorne to provide a letter from their bank stating that returned payments are indeed a glitch in their system and not a lack of funds available in their account. We cannot take Hawthorne’s word that this second round of bounced checks is an anomaly. Horsemen’s livelihoods depend on this money and we are well beyond the point where we can trust what Hawthorne tells us.”

Coinciding with the bounced checks turmoil, the Illinois Racing Board shut down racing and simulcast betting at the track and its off-track betting outlets on Saturday (Jan. 3) and Sunday (Jan. 4).

“At the dates hearings in September they never received a license for 2026,” said IHHA executive director Tony Somone. “I’m told it was contingent on them meeting some of their financial responsibilities. Since then they have not met these responsibilities and, as a result, they have not received an organization license for 2026.

“If they are able to rectify this issue when the banks reopen on Monday (Jan. 5) the Racing Board will grant them a license for 2026 and they’ll be able to resume simulcasting at the track and OTBs on Monday or Tuesday and we’ll be able to resume live racing next weekend.”

Tim Carey, president and general manager of the family-owned track, has not replied to a phone message from Harness Racing Update asking for his response.

The first bounced checks episode was in mid-December.

According to Davis, the impact, “was even more concerning because it happened the week before Christmas – a time when families are relying on these funds for basic household needs, bills and holiday expenses.

“Let me be clear: this is not acceptable. These payments are not discretionary. This is how horsemen get paid—it is their paycheck—and any disruption creates real and immediate hardship for horsemen and their families.”

The IHHA has requested that Hawthorne reimburse any documented bank fees and penalties incurred as a result of the returned checks, including purse distribution and driver and trainer earnings.

This is the third major financial controversy that has confronted the Chicago metropolitan area’s only remaining racetrack in recent years.

Dating back to the 2024 fall/winter harness meeting, because of non-payment of simulcast fees, Churchill Downs, Inc. has blacked out its simulcast signal to Hawthorne, 13 off-track betting locations in the Chicago suburbs and downstate Illinois, self-activated mutuel machines at the track, the Club Hawthorne mobile wagering ap and clubhawthorne.com.

There also are unpaid fees for the 2020 demolition of significant portions of the grandstand and clubhouse for construction of a casino addition made possible by a major 2019 Illinois gaming expansion bill passed by the legislature and signed by Gov. J.B. Pritzger. In 2024, several companies involved in the demolition filed liens, claiming Hawthorne owed as much as $5 million in unpaid bills.

Carey said at the time the creditors will be paid when financing for the casino is finalized.

Originally Carey said it was going to be a $400 million state-of-the-art facility that would open in the spring of 2021, enabling a legislatively-mandated portion of the adjusted gross revenue to begin flowing to the purse accounts of harness and thoroughbred horsemen.

But Hawthorne has been unable to secure financing for the casino, even though Carey has reiterated every subsequent year at the dates hearings that it is on the cusp. Compounding the problem, President Donald Trump’s tariffs have increased prices for steel and building materials, escalating the cost of the casino to an estimated $500 million.

At last September’s hearings Carey said: “We anticipate that we’ll be able to make an announcement sometime in the fourth quarter (of 2025) in terms of where we are with the project.”

No announcement was made. Instead, in December the news broke that Hawthorne was bouncing its checks to horsepeople.

On the IHHA website Davis has advised horsepeople:

“To document the scope of this issue and pursue reimbursement of costs, please email both [email protected] and 
[email protected].

“Indicate name, phone number and role (trainer/driver/owner etc.);

“Type of payment (purse distribution/trainer earnings/driver earnings);

“Check number, amount and day issued (if known);

“A brief description of what happened (returned unpaid, replacement check requested etc.);

“Proof of any bank fees or penalties incurred (screenshot, receipt, bank notice or statement line item).”

FINISH LINES

Following completion of its thoroughbred meeting that ran from March 20-Nov. 3 Hawthorne began its Nov. 7-Feb. 15 harness meeting. Through December, there was racing on Friday, Saturday and Sunday. If the track is able to rectify its problems to the satisfaction of the Illinois Racing Board, starting next weekend it will go to a Saturday and Sunday schedule for the rest of the meeting with a 3 p.m. first post-time.

The IHHA leaders said moving the first post to 1 p.m. in December was a “moderate success” and they are hoping the 3 p.m. post will produce “even better results.”