Chicago-Area Racetrack Hawthorne Files Chapter 11, Lists Up to $500M in Liabilities
Posted on: March 2, 2026, 12:45h.
Last updated on: March 2, 2026, 12:45h.
- Hawthorne files Chapter 11 with liabilities up to $500M
- Illinois Racing Board halts racing after bounced purse checks
- Fanatics owed $8.75M as racino project remains stalled
The stricken Hawthorne Race Course near Chicago filed for Chapter 11 bankruptcy Friday, listing estimated assets of between $50 million and $100 million and liabilities of between $100 million and $500 million.
Hawthorne said in a press release it is seeking a reorganization plan that will “prioritize paying accrued purses to the Illinois Horsemen as well as payroll for the track employees while restructuring the company’s debt.”
Racing Halted
The news comes just weeks after the Illinois Racing Board ordered the track to cease live racing and suspend its off-track betting (OTB) operations because horsemen were issued purse checks that bounced for the second time in a matter of weeks.
“The goal of the reorganization is to attract a buyer or investor willing to recapitalize Hawthorne and restart operations of the racecourse while maximizing recovery to the company’s creditors,” the track said.
In 2019, Illinois lawmakers approved legislation allowing racetracks to apply for casino licenses. Later that year, the state granted Hawthorne preliminary approval to proceed, and the track began demolishing part of its grandstand in preparation for redevelopment. The project has since stalled.
According to reporting by the Chicago Tribune, Hawthorne’s owners struggled to secure financing for the planned racino and owe substantial sums to contractors. Regulators have also been reluctant to advance competing racetrack or casino proposals within the same area while Hawthorne’s status remains unresolved.
In 2024 and 2025, simulcast providers including Churchill Downs Inc. suspended Hawthorne’s access to certain race signals over unpaid settlement fees, preventing bettors from wagering on races from several major tracks through Hawthorne’s betting terminals.
Still Hope for Racino
Despite the financial turmoil, the racino project may still be revived if a backer can be found. Hawthorne President and CEO Tim Caey said there was “substantial interest from potential buyers and recapitalization partners” due to the potential transformative value of completing the long-delayed development.
He added that debtor-in-possession financing could help restore simulcasting operations, which he said would generate approximately $4 million in monthly revenue.
Among the largest creditors is Hawthorne’s sports betting partner, Fanatics, which is owed $8.75 million, according to the bankruptcy filing. The company has operated retail sportsbooks at the track and several affiliated OTB locations under Hawthorne’s license and continues to do so.
However, Fanatics’ mobile sportsbook in Illinois now operates under a different partner, Argosy Casino Alton, rather than Hawthorne’s license.
No comments yet