Distressed Hawthorne Race Course on Sale Following Bankruptcy Claim

The owners of the Hawthorne Race Course may now issue subpoenas to investigate their allegations that the Illinois Department of Agriculture and its director improperly diverted state funds from the track’s coffers, following a federal judge granting the request.

U.S. Bankruptcy Judge Timothy Barnes ruled that the track, located in suburban Stickney, can file subpoenas and seek deposition from the Illinois Department of Agriculture’s director, Jerry Costello II, his brother John Costello, a lobbyist, as well as Fairmount Park Casino & Racing, according to the Chicago Tribune. The property is currently in bankruptcy sale proceedings.

Hawthorne’s allegations center on $317,000 in funding cuts. They allege that while this happened, Costello and the department increased funding to Fairmount, their direct business rival.

Costello claims the allegations are false and defamatory, and would be addressed in court, the outlet reported.

The Carey family-owned Hawthorne is in the middle of bankruptcy proceedings. The track is for sale in court. Tim Carey, Hawthorne’s president and general manager, previously told the court that he received a $107 million offer for the track last year. Hawthorne filed for Chapter 11 bankruptcy in February, according to the outlet.

Plans to convert the racetrack into a “racino,” a hybrid track and casino, were stymied by at least four liens filed against the facility in 2024. Contractors who worked on the track claimed they were unpaid for construction work. The liens totaled $6.7 million. Due to the unpaid labor, lawmakers considered revoking Hawthorne’s exclusive rights to be the only racino in a 35-mile radius.

This January, Hawthorne’s harness racing license was suspended by the Illinois Racing Board for payroll violations and bounced checks to jockeys.

The track is also behind on its property taxes, but is shielded from penalty interest charges or forfeiture due to an ongoing legal fight over Cook County’s delinquent tax sale system.

If the track is sold, building a casino in conjunction with existing structures is still a possibility.

— Hunter Cooke