Historic Chicago-area racetrack Hawthorne Race Course has filed for Chapter 11 bankruptcy, listing Fanatics Sportsbook as its largest unsecured creditor at $8.75 million.
One of America’s oldest racetracks has filed for bankruptcy protection, exposing a multi-million-dollar debt to a former sportsbook partner and raising serious questions about the future of horse racing in Illinois.
Hawthorne Race Course, a fixture in the Chicago area since 1891, filed for Chapter 11 reorganization on February 27 in the U.S. Bankruptcy Court for the Northern District of Illinois. The filing revealed a stark financial picture: assets estimated between $50 million and $100 million, against liabilities ranging from $100 million to $500 million. Just last month, the state of Illinois suspended Harness Racing at Hawthorne, which looks like the final blow before Chapter 11.
Tim Carey, president and CEO of the Carey family-owned track, acknowledged the gravity of the moment. “This is a difficult day for Hawthorne and for my family, which has owned Hawthorne for four generations over 117 years,” he said, “but filing for reorganization is the right thing to do for the Illinois horsemen and for our employees and their families.”
Fanatics Named Largest Unsecured Creditor
The filing’s most striking detail is the $8.75 million unsecured claim held by Fanatics Betting & Gaming, making the sports retailer-turned-sportsbook Hawthorne’s largest unsecured creditor. Fanatics had become Hawthorne’s online sports betting partner in April 2024, following its acquisition of PointsBet’s U.S. assets. The filing does not explain why the debt was incurred.
The partnership had already begun unraveling before the bankruptcy. In January, Fanatics severed its online and mobile sports betting relationship with Hawthorne, shifting its Illinois operations to Argosy Casino in Alton, though it maintained retail sportsbooks at the Cicero track and four off-track betting locations.
A Crisis Years in the Making
The collapse did not happen overnight. A $1.5 million judgment in favor of Churchill Downs triggered a liquidity crisis that froze Hawthorne’s operating accounts. That cascading effect ultimately forced the cancellation of the 2025-2026 harness racing season, as the track could no longer fund horsemen’s purses.
The Illinois Racing Board responded in January by suspending the harness racing license of Suburban Downs, which manages Hawthorne’s standardbred meet. Horse owners, trainers, and breeders have reportedly gone unpaid since August, with more than $580,000 in bounced checks issued to over 65 individuals.
Meanwhile, competing casinos have steadily eroded Hawthorne’s customer base, and a long-planned racino, approved by the Illinois Gaming Board in 2019, has yet to open after six years of failed financing efforts.
What Comes Next
Hawthorne’s reorganization plan prioritizes paying outstanding purses owed to Illinois horsemen and maintaining payroll for approximately 250 employees. The track is working with financial advisor Getzler Henrich & Associates and is seeking court approval for debtor-in-possession financing to fund operations over the next 120 days.
Track officials say they aim to attract a buyer or investor to recapitalize the business and restart racing. The spring thoroughbred meet, currently scheduled to begin March 29, may still proceed, pending court approval.
Illinois Horse Racing Hangs in the Balance
Beyond the balance sheet, the stakes are significant. Hawthorne is one of only two remaining horse racing venues in Illinois, the other located in downstate Collinsville. The track also houses hundreds of backside workers and their families, many of whom live on-site rent-free.
The Illinois Thoroughbred Horsemen’s Association has expressed cautious optimism, stating it expects the bankruptcy to be “only the first step in the reorganization and rehabilitation of Hawthorne.” Whether a buyer emerges or the track closes for good will likely be decided in the coming weeks.
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