Kentucky Downs sold to Ron Winchell and partner

Ron Winchell, the prominent horse owner, and Marc Falcone, a former casino executive, have reached an agreement to purchase Kentucky Downs, the small track and gambling facility near the Tennessee border, the track announced late on Tuesday.

The acquisition is expected to close in early 2019, according to the track, which has been owned and operated since 2007 by a partnership group headed by Ray Reid and the track’s general manager, Corey Johnsen. Details of the purchase agreement were not disclosed.

Kentucky Downs runs a short all-turf meet in September that has rapidly shot to the forefront of the fall racing season due to its average purse distribution of $2 million a day. The track also operates the highest-grossing gambling facility in Kentucky, taking bets on 750 historical horseracing machines year-round. Revenues from the devices have been used to subsidize purses at the track and at other tracks on the Kentucky circuit.

Handle on the devices, which are similar to slot machines, has been $800 million to date this year.

Winchell oversees his family’s Winchell Thoroughbred, which recently campaigned Horse of the Year Gun Runner. The operation includes more than 120 racehorses and breeding stock, according to a release. Winchell’s father, Verne, was a successful businessmen who launched the Winchell’s doughnut-shop chain.

“I am personally thrilled to be carrying our family name into this exciting opportunity to take the reins of Kentucky Downs, one of the American racing’s great success stories of the past decade,” Winchell said, in a release.

Falcone has formerly served as the executive vice president, chief financial officer, and treasurer of Red Rock Resorts and Station Casinos from 2011 to 2017. Falcone was also formerly at Goldman Sachs.

Kentucky Downs was one of three companies that recently submitted an application for a harness track and gambling facility in Oak Grove, Kentucky, thirty miles west of Kentucky Downs. The Kentucky Horse Racing Commission has scheduled a meeting for Friday to consider approving one of the three applications.

In its application, Kentucky Downs submitted a proposal for a $35 million investment in the track and casino. The other two bidders, Caesars Entertainment and a partnership of Churchill Downs and Keeneland Racecourse, both submitted proposals that would entail spending $140 million or more.