Hawthorne Race Course, a 134-year-old track in Stickney, Illinois, filed for Chapter 11 bankruptcy on February 27, 2026, to restructure its debt and attract investors for a racino. The filing aims to preserve 250 jobs and pay overdue purses to horse owners amid financial strains in the state's horse racing industry. Officials expressed hope for continued operations, including a thoroughbred meet starting March 29.
Hawthorne Race Course filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court in Chicago on Friday, February 27, 2026. The 134-year-old Stickney track, owned by the Carey family for four generations over 117 years, seeks to reorganize its finances, draw a new investor to develop casino games, and sustain Illinois' struggling horse racing sector.
The decision follows mounting pressures, including the Illinois Racing Board's suspension of Hawthorne's harness racing license about a month earlier due to financial difficulties. Horse owners, trainers, and breeders have been unpaid since August, with more than 65 owners reporting at least $580,000 in bounced checks, according to the Illinois Harness Horsemen’s Association (IHHA). Harness races scheduled for January 3 and 4, as well as others in February, were canceled after Hawthorne failed to submit required surety bonds.
"This is a difficult day for Hawthorne and for my family... but filing for reorganization is the right thing to do for the Illinois horsemen and for our employees and their families," said Tim Carey, president and CEO of Hawthorne Race Course.
The reorganization plan prioritizes paying accrued purses to horse owners and maintaining payroll for 250 track employees, some with up to 52 years of service. It also addresses setbacks like the deterioration of relations with lenders and creditors, the cancellation of online and mobile sports betting by Hawthorne's partner, and the discontinuation of some simulcast wagering arrangements, leading to litigation and judgments.
Illinois' 2019 gambling expansion law permitted Hawthorne to add casino games to bolster the industry, granting it veto power over new tracks within 35 miles. However, securing financing for the racino has proven challenging amid competition from expanded casino gaming and sports betting, rising costs, and regulatory fees. Hawthorne is one of two remaining tracks in Illinois, the other in Collinsville.
The Illinois Thoroughbred Horsemen’s Association (ITHA) reported that leaders spoke with Carey, who assured the thoroughbred racing meet would proceed this spring, potentially with an adjusted schedule from its March 29 start. "We must be clear that when a business such as Hawthorne enters bankruptcy, the business is no longer necessarily in control of its own assets," the ITHA stated, adding support for Carey's efforts while noting uncertainty.
The IHHA learned of the filing late Friday and anticipates court proceedings early next week. Hawthorne is collaborating with financial advisor Getzler Henrich & Associates to seek debtor-in-possession financing, which could reactivate simulcast signals generating $4 million monthly in revenue. The filing highlights substantial interest from potential buyers and recapitalization partners in the racino opportunity.
Betting handle at Hawthorne declined to $51 million in 2025 from nearly $90 million in 2024, with purses dropping from $11 million to $8 million, largely due to reduced out-of-state simulcast betting. Last year, the track temporarily halted off-track betting on the Kentucky Derby following a payment dispute with Churchill Downs Inc. In November, the Illinois Senate backed a bill to rescind Hawthorne's veto power and allow a new track in Decatur, which the House may consider.
