Full Breakdown
Hawthorne Race Course Files for Chapter 11 Bankruptcy Amid Financial Crisis
2/28/2026, 3:09:51 AM
Bankruptcy Filing and Immediate Goals
Hawthorne Race Course, located in Stickney, Illinois, filed for Chapter 11 bankruptcy on February 27, 2026, in a bid to restructure its debt and attract new investment to revive the struggling horse racing industry in the state. This decision follows the suspension of its harness racing license by the Illinois Racing Board due to ongoing financial difficulties. The bankruptcy aims to preserve 250 jobs at the track and ensure that horse owners, trainers, and breeders receive overdue payments, which have reportedly exceeded $580,000 in bounced checks since August 2025.
Background and Context
The financial troubles of Hawthorne Race Course have been exacerbated by various factors, including the expansion of casino gaming in Illinois, which has intensified competition in the gambling market. The Illinois General Assembly passed a gambling expansion law in 2019, granting Hawthorne the opportunity to establish a racino—an integration of racing and casino gaming—but the track has struggled to secure financing for this venture. The inability to open a racino has led to a significant decline in betting, with total wagers dropping from nearly $90 million in 2024 to $51 million in 2025.
Key Figures and Stakeholders
Tim Carey, president and CEO of Hawthorne, has been vocal about the challenges facing the track, stating that the bankruptcy filing is a necessary step for the benefit of the horsemen and employees. The Illinois Thoroughbred Horsemen’s Association (ITHA) and the Illinois Harness Horsemen’s Association (IHHA) have expressed cautious optimism regarding the reorganization plan, emphasizing the importance of ensuring that horsemen are compensated and that racing can continue.
Official Statements & Responses
In a statement, Tim Carey remarked, “This is a difficult day for Hawthorne and for my family which has owned Hawthorne for four generations... but filing for reorganization is the right thing to do for the Illinois horsemen and for our employees and their families.” The ITHA has indicated that they are awaiting further details on the bankruptcy proceedings and are hopeful for a resolution that allows for the continuation of racing at Hawthorne.
Criticism & Opposition
Despite the optimism from some stakeholders, there are concerns regarding the future of racing at Hawthorne. Chris Block, president of the ITHA, expressed fears that if the track were to close during the racing season, it would leave owners without options for their horses. Additionally, the financial instability has led to skepticism about Hawthorne's ability to fulfill its commitments to horsemen and employees.
Conflicting Reports & Gaps
While the bankruptcy filing indicates a potential interest from buyers and recapitalization partners, there is uncertainty surrounding the identity of these entities and the specifics of the financing arrangements. The track's management has stated that they are working with financial advisors Getzler Henrich & Associates to secure debtor-in-possession financing, but the outcome of the bankruptcy court hearing scheduled for next week remains critical.
What's Next
Hawthorne Race Course is set to appear in federal bankruptcy court to seek approval for debtor-in-possession financing, which is essential for its restructuring efforts. The track aims to convert its racing surface in preparation for the upcoming thoroughbred meet, which is tentatively scheduled to begin on March 29, 2026, although this date may be adjusted based on the court's decision.
In summary, the Chapter 11 bankruptcy filing represents a pivotal moment for Hawthorne Race Course as it seeks to navigate its financial challenges and ensure the future of horse racing in Illinois.
