Hawthorne Race Course’s $90M Sale Likely Kills Casino Plan

Hawthorne Race Course’s long-promised casino appears to have reached the end of the line, even if horse racing itself could still survive under the Hawthorne name.

The 135-year-old track’s owners are seeking bankruptcy court approval to sell the real estate beneath the Stickney venue to Delaware-registered Allimac 2023 LLC for $90 million.

Because Allimac is acquiring the real estate for redevelopment rather than racing, according to NBC Chicago, the sale appears to torpedo the long-delayed plan to build a casino at the Stickney property – a project that had been viewed as essential to the future of Illinois thoroughbred racing.

Financial Crisis

Hawthorne is the only remaining racetrack in the Chicago area. It filed for Chapter 11 bankruptcy protection in late February, listing estimated assets of between $50 million and $100 million against liabilities of between $100 million and $500 million. The filing came amid reports of bounced purse checks to horse owners.

Illinois lawmakers authorized casino gambling at racetracks in 2019, and Hawthorne received preliminary approval from the Illinois Gaming Board the following year. Work began on demolishing part of its grandstand in preparation for redevelopment, but Hawthorne’s owners struggled to secure financing for the project, which has stalled for years.

In February, Hawthorne President and CEO Tim Carey said there was “substantial interest from potential buyers and recapitalization partners” because of the potentially transformative value of completing the long-delayed casino.

That interest did not produce a competing bid for the property. Allimac’s offer was established as a stalking-horse bid, setting the price other prospective buyers had to beat.

Under the proposed purchase agreement, Allimac would pay $90 million in cash, including a $4.5 million deposit, and initially targeted a closing no later than July 30.

The formal auction notice said Allimac and secured creditor 180 Hawthorne Holdings were the only qualified bidders, although only Allimac elected to participate in the auction. As a result, no competitive bidding took place and Allimac was declared the successful bidder.

What Next?

The sale was not approved Monday, despite some early reports creating that impression. The bankruptcy docket shows Judge Timothy Barnes continued the sale hearing until Wednesday, July 22.

According to the Illinois Thoroughbred Horsemen’s Association, the court has allowed Hawthorne’s backstretch to remain open through at least Aug. 31. Allimac has indicated it could delay taking possession until Nov. 1, but maintaining racing and housing through that date would require additional financing that has not yet been secured.

Carey has emphasized that Hawthorne’s operating business is not included in the land sale. The company could therefore attempt to continue racing through an arrangement with Allimac or by relocating elsewhere.

The sale agreement contains no requirement that Allimac preserve racing at the property.