Illinois: Blagojevich's Corrupt Legacy Lives On

Churchill Downs' Arlington track wins legal round in fight for casino subsidy

Louisville-based Churchill Downs Inc.’s Illinois racetrack has won a battle in its fight for at least $40.5 million in casino subsidies in a federal appeals court ruling.

The 3 percent “surcharge” on casino revenues was passed in 2006 and 2008, according to the majority opinion, and was intended to provide money for purses and capital improvements at tracks.

Four Illinois riverboat casinos sued five of the state’s racetracks, including Churchill’s Arlington Park in Arlington Heights. The casinos alleged that federal racketeering laws were violated in passing the law. The casinos claimed that an owner of two tracks – not Churchill – had effectively bought the law working with then-Gov. Rod Blagojevich.

Churchill said in its 2010 annual report that the subsidy amounted to $40.5 million in 2009-10 for Arlington and that the money was being held in escrow pending the outcome of the lawsuit. Following the ruling by the 7th U.S. Circuit Court of Appeals, the casinos can pursue the case to the U.S. Supreme Court.

The money remains in escrow as the casinos decide whether to seek a Supreme Court review.