Illinois Racing Board hears urgent appeals as Hawthorne purses go unpaid

Horsemen and industry representatives told the Illinois Racing Board on Jan. 26 that Hawthorne Racecourse’s cash-flow problems have left trainers, owners and horsemen’s associations unpaid and at risk.

Jeff Davis, president of the Illinois Harness Horsemen’s Association, said horsemen “have not been paid since before Christmas,” and that $414,000 in state funds were inaccessible in Hawthorne’s frozen accounts. Tony Simone of the Illinois Harness Horsemen’s Association told the board his office had received documentation from 66 people showing $582,724 in bounced checks tied to Hawthorne operations, and said the losses include a $267,000 Department of Agriculture grant and $423,000 in horsemen stake payments.

Those public comments followed the board’s decision earlier in the meeting to suspend Suburban Downs’ organization license effective Jan. 26, 2026. The board’s enforcement action was described by staff during the meeting as a statutory step tied to demonstrating financial integrity and compliance with licensing rules.

John Walsh, general manager for Hawthorne Racecourse, was sworn and told the board he was "disgusted" by the turn of events, attributed the bounced checks to a banking issue and said Hawthorne was seeking a new partner and financing. Walsh said he expected a resolution “in the next 2 or 3 weeks” but offered no contemporaneous documents or bank confirmations during the meeting.

Commissioners pressed Walsh on who was being paid and who was not. Walsh said some operational workers and signal/referral payments were being met but that the bank controlled disbursements; he said his expense reimbursements had bounced while his payroll checks had not. Commissioners raised the possibility of regulatory actions including calling surety bonds and directing receipts into a segregated escrow account to protect purses and vendors while the board investigates.

Association leaders urged the board to clarify legal and administrative remedies. Davis asked how horsemen would claim against the required $500,000 mutual bond, whether horsemen would be unsecured creditors if Hawthorne filed for bankruptcy, and what would happen to state funds in Hawthorne’s accounts. Staff replied that bond claims require consolidated documentation of all claims and that the board’s regulatory staff had begun research and preliminary discussions about enforcement options.

Horsemen also sought operational remedies if suspension is lifted, asking that harness racing be given priority make-up dates and that the board consider extending the meet to make up lost racing opportunities. Industry representatives said months of broken promises from Hawthorne’s owners and managers have contributed to long-term decline in racing participation and handle, and that current nonpayment risks further erosion.

The board did not adopt emergency financial orders on the spot but discussed next steps, including obtaining written financial assurances from Hawthorne, pursuing claims on surety bonds, and exploring mechanisms to segregate live-handle receipts. Staff said some processes to secure documentation and pursue bond claims had been initiated. The board also tabled a separate agenda item related to approving Hawthorne’s proposed 2026 racing officials until its next regular meeting to allow time for further information to be provided.

The board asked Hawthorne to provide verifiable, written evidence of any bridge financing or settlement agreements and instructed staff to continue work on options to protect horsemen and purses.

The meeting closed with commissioners emphasizing the priority of making horsemen whole and requesting written, verifiable updates from Hawthorne and staff before the next meeting.