Kentucky Downs to spend $25 million in renovations

Kentucky Downs plans to conduct major renovations to its property over the off-season for the Franklin, Ky., track, with the goal of countering additional competition that is expected from a new casino nearly equidistant from the track’s major market, Nashville.

The $25 million renovation of the facility, which will begin in the “next several weeks,” according to the track, will entail the construction of a new 18,000-square-foot building that will house 1,200 historical horse racing machines, devices that are similar to slot machines. The track currently operates 753 of the devices, but it received approval earlier this year to add to the allotment.

In addition, the existing grandstand will be renovated to include more food and beverage options, the track said. In the past, the existing grandstand included the gambling floor for the historical horse racing machines, but those will be moved to the new building, the track said. The renovations are expected to be completed by the time Kentucky Downs opens its meet next September.

Late last year, a partnership headed by Churchill Downs won a license for a harness track and casino in Oak Grove, Ky., which, like Kentucky Downs, is on the border with Tennessee. Both facilities are approximately a 45-minute drive from Nashville, and the two casinos are expected to vie for the same customers. The new Oak Grove casino facility is expected to open in the middle of next year.

At the time of the bidding process for the Oak Grove license, Kentucky Downs was sold to a partnership of Ron Winchell and Marc Falcone. The pair said at the time that they expected to invest at least $25 million in a “first phase” of renovations at the facility. A proposed second phase could include the construction of a hotel.

Using revenues from its historical horse racing machines, Kentucky Downs distributed $2.3 million a day in purses for its six-day meet this year, tops in the U.S., and it also provided a $5 million purse subsidy to Ellis Park in Western Kentucky.

“We are looking forward to the expansion and renovation to our existing facility,” said John Wholiham, the director of marketing for the track, in a release. “It just demonstrates the new owners’ commitment to making Kentucky Downs a prominent regional destination.”