Last Wednesday, December 24, Maywood Park and Balmoral, the harness horse racing tracks of Illinois, filed for bankruptcy, as they had already promised the Illinois Racing Board. Their cases will be heard by Judge Donald Cassling in Tuesday.
Last week, Maywood Park Trotting Association Inc. and Balmoral Racing Club Inc. – the only two available horse racing tracks in Illinois – declared bankruptcy under Chapter 11.
The reason for this is a lawsuit judgment amounting to $78 million which was handed down this month after a scandal regarding extortion. Governor Rod Blagojevich was involved in it. Duke Johnston, president of Maywood Park Trotting Association, would only comment that they were trying hard to “keep the industry going”.
On December 16, William McKenna, his attorney, revealed that they would have to declare bankruptcy if a lower settlement could not be reached on the judgment. According to McKenna, the process would take twelve months or more. As they want to prevent property seizure, the two racing tracks will continue operations next year as well.
Last Wednesday, both companies released a statement regarding the problem, which stated that Chapter 11 will allow them to continue their operations in 2015. Judge Donald Cassling will hear both parties on Tuesday (today). The two racing clubs have demanded that they be heard jointly. At the same time, Racing Board Commissioners in Illinois agreed to consider Maywood Park and Balmoral’s licenses.
The two companies are hoping that the commissioners will approve of month-to-month payments, rather than forcing them to pay for the entire year.
According to William Berry, who is chairman of the Board, he and the other commissioners will vote on the licenses of the two companies at their next meeting, which is due for January 27, under the condition that they reported their financial status on a regular basis. Berry explained that the next meeting will take place in John R. Thompson Center.
Furthermore, the judgment required $1 million monetary compensation for each casino from John Johnston, who is Maywood vice-president, Balmoral president and brother of Duke Johnston. This was the result of a federal racketeering suit, according to which Blagojevich benefitted the three tracks of the state, as well as Maywood and Balmoral by signing a 2008 legislation on the condition that John Johnston made a $100,000 contribution.
Back in 1999, dockside gaming was permitted in casinos which led to financial losses. To prevent the losses, the 2008 bill granted the racing tracks 3% of the in-state casinos. Be it as it may, John Johnston never made the $100,000 contribution he was required to, and so he was obliged to pay monetary compensation.
