Published on: March 2, 2026, 12:45h.
Updated on: March 2, 2026, 12:45h.
- Hawthorne files for Chapter 11 with liabilities reaching $500M
- Illinois Racing Board halts racing due to bounced purse checks
- Fanatics owed $8.75M as racino project remains stagnant
The troubled Hawthorne Race Course, located near Chicago, has initiated Chapter 11 bankruptcy proceedings, estimating its assets between $50 million and $100 million, while reporting liabilities ranging from $100 million to $500 million.
In a recent press statement, Hawthorne indicated it is pursuing a reorganization strategy aimed at “prioritizing the payment of outstanding purses to Illinois Horsemen and payroll for track employees, while also working on restructuring the company’s debts.”
Racing Activities Suspended
This announcement follows the Illinois Racing Board’s directive to halt live racing and suspend off-track betting (OTB) operations after horsemen received bounced checks for purses on two separate occasions within weeks.
“The reorganization’s primary objective is to attract a buyer or investor willing to reinvest in Hawthorne and resume racecourse operations while maximizing recovery for the company’s creditors,” stated the track.
In 2019, Illinois lawmakers passed legislation allowing racetracks to seek casino licenses. Later that year, Hawthorne received preliminary permission to move forward, leading to partial demolition of its grandstand for redevelopment. This project, however, has since come to a standstill.
Reports from the Chicago Tribune reveal that Hawthorne’s ownership has faced challenges in securing financing for the proposed racino and owes significant amounts to contractors. Meanwhile, regulators are hesitant to approve competing racetrack or casino proposals in the area due to Hawthorne’s unresolved status.
In 2024 and 2025, simulcast providers, including Churchill Downs Inc., suspended Hawthorne’s access to specific race signals over unpaid settlement fees, limiting bettors’ ability to wager on races from prominent tracks via Hawthorne’s betting terminals.
Potential for Racino Revival
Amid the financial challenges, the racino project has a chance for revival if financial backing can be secured. Tim Caey, President and CEO of Hawthorne, stated there is “significant interest from prospective buyers and recapitalization partners” given the potential transformative impact of completing the long-awaited development.
Caey added that debtor-in-possession financing could facilitate the restoration of simulcasting operations, which he estimates could generate approximately $4 million in monthly revenue.
Among the key creditors is Hawthorne’s sports betting partner, Fanatics, which is currently owed $8.75 million, as per the bankruptcy filing. The company has been operating retail sportsbooks at the track and various associated OTB locations under Hawthorne’s license, and continues to do so.
However, Fanatics’ mobile sportsbook in Illinois is now functioning under a different partner, Argosy Casino Alton, stepping away from the Hawthorne license.