Churchill Downs Inc. seeks to drop racing for jai alai at Calder

Churchill Downs Inc. has asked Florida gambling regulators to determine how many jai alai performances it would need to conduct in order to retain its licenses to operate slot machines at its Calder Race Course and Casino in Miami, according to a document provided by the Florida Department of Pari-Mutuel Wagering.

The document, which was obtained by Daily Racing Form through a records request, is dated Aug. 15, and it states that Calder “desires to discontinue live racing” and obtain a license to conduct live jai alai games on the racetrack property. The request by Calder says that the track would seek to conduct 88 “jai alai performances” in order to retain its slot-machine license, under a summer permit that allows some parimutuel licenseholders to run fewer than the 150 live performances required under existing regulations.

The document says that Calder will drop live racing in favor of jai alai “if the Division authorizes Calder to continue slot machine [gambling] while conducting a full schedule of live jai alai games under its summer jai alai permit.”

A spokesperson for Churchill Downs did not immediately respond to a list of emailed questions. Churchill is a publicly traded company, and the company rarely replies to questions regarding material issues when stock markets are open.

Churchill has been leasing its racing operations at Calder to its cross-town competitor Gulfstream Park since 2015. The lease agreement runs through 2020, which would suggest that Churchill cannot go forward with a plan to drop live racing until the terms of the contract expire.

The owner of Gulfstream Park, The Stronach Group, runs 40 live race dates at Calder under the name Gulfstream Park West. Much of the barn area and the track’s grandstand have been demolished, and there are few ontrack amenities for racing fans.

Officials of The Stronach Group were not immediately available for comment on Thursday.

Last week, three organizations representing Florida racing interests, including Gulfstream Park, said they filed “pleadings” with the Florida DPMW asking the commission to reject Calder’s request to convert its racing license to a jai alai license. The current contract between Churchill and The Stronach Group includes a provision that sends approximately $7 million in slots revenue each year to Thoroughbred purses.

“It is extremely disappointing to watch Churchill Downs continue its effort to extricate itself from the racing business in Florida while adding millions to its bottom line in slot revenue,” said a statement from one of the groups, Ocala Breeders’ Sales Company.