Hawthorne Race Course, the historic Chicago‑area track long mired in financial trouble and stalled redevelopment plans, filed for Chapter 11 bankruptcy protection on Friday, listing between $100 million and $500 million in liabilities and $50 million to $100 million in assets.
The filing comes weeks after the Illinois Racing Board halted live racing and suspended the track’s off‑track betting operations when horsemen received bounced purse checks for the second time in a matter of weeks.
In a statement, Hawthorne said it intends to pursue 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 Suspended as Debts Mount
The track said its goal is to attract a buyer or investor capable of recapitalizing the business and restarting racing operations. The bankruptcy follows years of stalled progress on Hawthorne’s long‑promised racino project.
Illinois lawmakers authorized racetrack casino licenses in 2019, and Hawthorne received preliminary approval later that year. The track even demolished part of its grandstand in preparation for redevelopment. But financing never materialized, and the project has remained frozen.
According to the Chicago Tribune, Hawthorne owes significant sums to contractors, and regulators have been reluctant to advance competing racetrack or casino proposals in the region while Hawthorne’s future remains unresolved.
The track has also faced operational setbacks. In 2024 and 2025, simulcast providers — including Churchill Downs Inc. — cut off Hawthorne’s access to certain race signals over unpaid settlement fees, preventing bettors from wagering on major tracks through Hawthorne’s terminals.
Racino Project Could Still Be Revived
Despite the turmoil, Hawthorne President and CEO Tim Carey said there is “substantial interest from potential buyers and recapitalization partners,” citing the potential value of completing the racino development.
Carey said debtor‑in‑possession financing could help restore simulcasting operations, which he estimated could generate roughly $4 million per month.
Fanatics Among Largest Creditors
One of Hawthorne’s largest creditors is its sports‑betting partner, Fanatics, which is owed $8.75 million, according to the bankruptcy filing. Fanatics continues to operate retail sportsbooks at Hawthorne and several affiliated OTB locations under the track’s license.
However, Fanatics’ mobile sportsbook in Illinois now operates under a different partner — Argosy Casino Alton — rather than Hawthorne’s license.
