Hawthorne Race Course has entered Chapter 11 bankruptcy proceedings in federal court in Chicago, taking what executives describe as a necessary step to stabilize operations and seek new investment. The filing, submitted Feb. 27, aims to restructure debt while keeping the long-running Stickney track active and preserving hundreds of jobs tied to Illinois racing.

License Suspensions and Financial Pressures

The 134-year-old venue, the only remaining racetrack in northern Illinois, has faced mounting financial strain. Management stated that the reorganization is intended to safeguard 250 track employees and address unpaid purses owed to horsemen. The plan also focuses on attracting an investor capable of recapitalizing the property and restarting full operations.

“This is a difficult day for Hawthorne and for my family which has owned Hawthorne for four generations over 117 years, but filing for reorganization is the right thing to do for the Illinois horsemen and for our employees and their families,” said Tim Carey, president and CEO of Hawthorne Race Course.

The bankruptcy filing follows action by the Illinois Racing Board earlier this year. In late January, regulators suspended the track’s harness racing license after financial obligations went unmet. Officials had already canceled scheduled harness races in early January due to Hawthorne’s failure to provide required surety bonds. Subsequent February dates were also called off.

During a Jan. 28 Illinois Racing Board meeting, Hawthorne assistant general manager John Walsh acknowledged the operation’s inability to meet its financial commitments, including unpaid bills and returned checks to horsemen. According to industry representatives, more than 65 horse owners had received at least $580,000 in bounced checks since August.

The Illinois Harness Horsemen’s Association said it learned of the bankruptcy filing late Friday morning and indicated it expects to appear in court shortly. The Illinois Thoroughbred Horsemen’s Association stated that its leadership spoke with Carey, who expressed confidence that the spring thoroughbred meet could proceed, potentially under a revised schedule. Racing is currently slated to begin March 29, though association officials cautioned that bankruptcy proceedings place control of assets under court oversight.

Racino Plans and Industry Headwinds

Hawthorne’s financial challenges trace back several years. In 2019, Illinois lawmakers approved a gambling expansion measure that allowed the track to add casino-style gaming through a racino. After receiving preliminary suitability approval from the Illinois Gaming Board and a Master Sports Wagering License permitting retail and online betting, Hawthorne began demolishing portions of its grandstand in anticipation of construction. Financing for the project later collapsed, and efforts to secure a new partner have continued without resolution.

Carey’s bankruptcy declaration outlined broader industry conditions. “The Debtors have faced substantial financial hardship in recent years, driven by challenges affecting the horse racing industry in Illinois, initially due to the expansion of casino gaming and later compounded by an increasingly competitive sports betting market, as well as other industry-wide issues, including rising costs and increased regulatory fees related to simultaneously running a troubled business and building a new business,” Carey submitted in the filing, according to Paulick Report.

In addition to casino competition, Hawthorne lost key revenue streams when its sports wagering partner ended internet and mobile betting. Some simulcast wagering agreements with tracks around the country also ceased, leading to litigation and monetary judgments.

Management stated that the reorganization seeks court approval for debtor-in-possession financing to maintain operations during restructuring. The track is working with financial adviser Getzler Henrich & Associates. Court filings reference “substantial interest” from potential buyers and recapitalization partners, particularly because completing and opening the racino could increase the track’s enterprise value. Financing would also allow Hawthorne to reactivate simulcast signals that generate approximately $4 million in monthly revenue from off-track and online wagering.

Executives emphasized the track’s role in the regional racing ecosystem. In 2016, after Balmoral and Maywood closed, Hawthorne began hosting both Thoroughbred and harness meets, becoming the nation’s only dual-breed racetrack. When Arlington Racecourse shut down in 2022, Hawthorne became the last operating track in northern Illinois.

Carey detailed the human dimension in court filings: “The racetrack employs over 250 people with its longest tenured employee spending 52 years at the track. Backside residence on the racetrack property consisting of licensed horsemen and their families varies depending on any racing season but will vary from a low of approximately 290 up to 500 or more. There have been years when over 900 people lived on the backside. The families live rent-free and receive medical and dental care funded almost entirely by Hawthorne. These families are part of the community, supporting local businesses, attending church, and sending their kids to local schools. Currently there are approximately 100 children, age 18 or under, living on the premises. There is a gentleman who is 84 years old and has been working at the racetrack and living on the backside for 72 years, arriving when he was 12 years old.”

Court proceedings are expected to begin in the coming days as Hawthorne seeks approval for interim financing and outlines next steps in its restructuring effort.