CDI dismisses lawsuit with TOC over fees

Churchill Downs Inc. has voluntarily dismissed a lawsuit it filed last month in federal court in California against Thoroughbred Owners of California that was related to the fees its account-wagering company pays to racing interests in the state, according to court filings.

In a March 8 filing with the U.S. District Court for the Central District of California, Churchill said the suit was being dismissed “without prejudice” after the two sides reached an agreement on March 5 over the issues cited in the suit.

The suit filed by Churchill sought to block the TOC from invoking a state law that would place the two parties in binding arbitration over the account-wagering fees. The TOC filed a request for arbitration in the matter on Dec. 31, and the state law invoked by the organization required the arbitration process to be completed within 60 days.

In a statement issued in response to emailed questions, Churchill said that it dismissed the suit after the TOC withdrew its request for binding arbitration.

“We are pleased with the outcome,” said the statement.

Greg Avioli, the executive director of the TOC, did not respond to multiple requests for comment.

Churchill alleged that the state law violated several aspects of due-process and contract-law protections guaranteed by the U.S. and California constitutions.

Both Churchill and TOC acknowledged that Churchill and Santa Anita Park reached an agreement over the fees paid by Churchill’s account-wagering company, Twinspires.com, in November of last year. The TOC sought to alter that contract under the arbitration law.

The negotiations between Churchill and Santa Anita took place amidst a staggering shift in racing handle from bricks-and-mortar locations to account-wagering operations during the pandemic due to restrictions on attendance at live racing events around the country.