March 31 Update:

Today, March 31, bankruptcy court continued and ended without anything changing for us. The judge again approved the interim order of the budget which includes horsemen payments, but since objections remain, will not make a decision on a final order until April 13. 

March 27 Update

Today, Friday, March 27 the Hawthorne bankruptcy case continued. Court was in session for about one hour before adjourning. A final decision was put on hold. The court will reconvene on Tuesday, March 31 at 11:00 a.m.

Today’s hearing was about turning the interim budget order proposed by Hawthorne and the DIP lender into a final order with payments to horsemen on April 4^th. However, because of various different objections, the judge suggested that Hawthorne get together with these other groups and get on the same page by Tuesday. If everyone is in agreement on Tuesday, the judge will likely issue a new payment date. If there is still disagreement, everyone will reconvene on Monday, April 13 for further testimony.

Within this budget is the payment to harness horsemen totaling $2.5m. Our payment and other payments in the budget are being challenged because some are claiming we are not critical to Hawthorne’s existence for the next 3 months. That is the crux of their argument. Chapter 11 reorganization bankruptcy is not about what is right or wrong. No one is arguing whether they owe us the money or not. The question is simply why is it necessary for the court to pay us now, instead of the other creditors with debts totaling over $70m. The payments that have been authorized so far, like the t-bred money, is because they would not begin their racing season until they were made whole, just as we didn’t race in January and February, because we hadn’t been paid.

We will update again as soon as we know more. Thanks.

March 12 Update

IHHA UPDATE – FEDERAL COURT ORDER ON HORSEMEN PAYMENTS

Today, the U.S. Bankruptcy Court entered an order approving the debtor-in-possession (DIP) financing for Hawthorne Race Course. After reviewing the order in detail with our attorneys, we have confirmed that the court approved a payment schedule that includes full payment of past-due harness purse obligations.

According to the court-approved schedule, payments covering the previously issued NSF purse checks and other past purse balances owed to Illinois harness horsemen are scheduled to be paid on April 4, 2026, from the DIP financing facility.

While we will continue to monitor the case closely, this order represents an important step toward making horsemen whole for the money they have already earned.

There are still other issues in the case that will need to be addressed in the coming weeks, and we will continue working with our attorneys and regulators to protect the interests of Illinois harness horsemen.

We will keep members informed as additional developments occur.

March 11 Update

IHHA Update – Bankruptcy Court Hearing

Today the bankruptcy court held a follow-up hearing in the Hawthorne Chapter 11 case.

We were expecting that the funds owed to us would be released today. That expectation was based on discussions leading up to the hearing and the understanding that the court would be addressing payment issues during this phase of the case.

After several hours in court, the judge decided that those payments would not be approved immediately today and instead will be addressed as part of the next stage of the bankruptcy process.

It is important for everyone to understand that this decision does not mean horsemen will not receive the money owed to them. The court is requiring additional review as part of the normal bankruptcy procedure before approving certain payments and financing arrangements. The only reason Thoroughbred purses were addressed today was because of their immediate racing schedule now to begin mid-April. A committee will review the financial information and proposed financing before the court holds the next major hearing, currently scheduled for March 27.

IHHA will continue to monitor the case closely and will keep our members informed as the process moves forward.

March 6 

The motion for Hawthorne (debtors) to pay harness and thoroughbred horsemen for the unpaid purse obligations and any frozen money in our Hawthorne accounts has been filed. This motion will be heard on Tuesday, March 10 at 10:00 a.m. Also at that time, it is anticipated, that a decision to approve Hawthorne’s other DIP financing will be made. If approved, it will allow Hawthorne about three months to stay in business and to secure a deal with another group. Testimony was given last week that mentioned there are three other interested parties. If no deal is made, it is possible that Hawthorne could refile for another 90 days with similar asks or switch to a chapter 7 bankruptcy, which would be a complete liquidation of their assets.

As mentioned in a previous update, the judge has given us encouraging words and we are hopeful that he approves the payments to horsemen. If approved, we can expect the process of reissuing checks to begin in a matter of days. The US trustee, assigned to this case, has already asked for a list of all the accounts for horsemen held at the racetrack. On a side note, to that, as an issue of privacy to horsemen, we have requested that the list, when made public, has the names redacted. He had no issue with that and has agreed.

At the conclusion of this hearing, we will try and get an update out as soon as possible. However, keep in mind, that there are many players involved here who are owed a lot of money, and there is always a possibility that this will be delayed in some way.

March 4 Update

On Tuesday, March 3, Hawthorne began its quest to reorganize and get racing headed back in the right direction. They had filed for Chapter 11 last Friday.

The judge originally assigned to the case recused herself on Friday, and a new judge is now presiding over the case.

After a grueling six-and-a-half-hour session with no extended breaks, at approximately 5:30, the judge made his first opinion known. He stated that he believes the Illinois horsemen should be paid. He believes they should qualify as a “critical vendor.” He wanted employees of Hawthorne who had been working without pay recently to be paid by their next scheduled payroll, which is this Thursday.

The judge stated he is inclined to approve payment to the horsemen, but asked that a specific motion be filed tomorrow, similar to the motion Hawthorne is filing to approve payroll for its employees.

Once that motion is filed, the court will take it up at the follow-up hearing scheduled for next week.

This is a very encouraging development and an important step toward ensuring horsemen are paid.

The Illinois Harness Horsemen’s Association will continue working with our attorneys and monitoring the case closely to protect the interests of our members.

We will provide additional updates as this process moves forward.

Hawthorne Will Attempt To Move Forward

March 2, 2026

Originally, the bankruptcy case was scheduled in court for Monday, March 2. This has now been changed to Tuesday afternoon, March 3. We will get an update out as soon as possible.

February 27, 2026

The Illinois Harness Horsemen's Association learned late this morning that Hawthorne Racecourse has filed for Chapter 11 reorganization bankruptcy. We still do not have all of the details, but we will be in court early next week. We will release more information as soon as possible. 

Here is Hawthorne's official press release.

For Immediate Release                                           

HAWTHORNE FILES CHAPTER 11 REORGANIZATION TO SAVE ILLINOIS HORSE RACING

Reorganization Prioritizes Paying Horsemen Purses and Track Workers

Cites Challenges of Supporting Illinois Horse Racing While Launching Racino

Goal is to Restructure Company Debt and Preserve Horse Racing

CHICAGO (Feb. 27, 2026)—In a bid to save horse racing in Illinois and preserve 250 jobs and the homes of hundreds of backside workers and their families, Hawthorne Race Course, and its related companies, has filed for a Chapter 11 Reorganization in Federal Bankruptcy Court in Chicago today. The reorganization plan will prioritize paying accrued purses to the Illinois Horsemen as well as payroll for the track employees while restructuring the company’s debt.

The goal of the reorganization is to attract a buyer or investor willing to recapitalize Hawthorne and restart operations of the racecourse while maximizing recovery to the company’s creditors. Hawthorne will be working with financial advisor Getzler Henrich & Associates, LLC and requests the Federal Court approve Debtor-in-Possession financing to assist with the restructuring process.

“This is a difficult day for Hawthorne and for my family which has owned Hawthorne for four generations over 117 years, 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.

Carey’s declaration in support of Hawthorne’s bankruptcy filings described the challenges and headwinds Hawthorne faced while attempting to continue its struggling operation while also supporting the entire horseracing industry in Northern Illinois and launching a “Racino”, a brick-and-mortar betting parlor at the racetrack.

“In 2016 with the closing of the Balmoral and Maywood harness facilities, Hawthorne reaffirmed its commitment to horse racing and saved hundreds of harness horsemen businesses and thousands of harness horsemen jobs thus becoming the country’s only dual breed racetrack, running both thoroughbred and harness racing on the same track by converting the surface of the track prior to the commencement of a respective race meeting.

Since 2022 and the closing of Arlington Racecourse, we undertook the sole responsibility of underwriting the Illinois horseracing industry in Northern Illinois and are the last racetrack operating in Northern Illinois bearing the increased burden of greater purses and regulatory expenses.

Carey detailed the human element of saving Hawthorne.

The racetrack employs over 250 people with its longest tenured employee spending 52 years at the track. Backside residence on the racetrack property consisting of licensed horsemen and their families varies depending on any racing season but will vary from a low of approximately 290 up to 500 or more. There have been years when over 900 people lived on the backside. The families live rent free and receive medical and dental care funded almost entirely by Hawthorne. These families are part of the community, supporting local businesses, attending church and sending their kids to local schools. Currently there are approximately 100 children, age 18 or under, living on the premises. There is a gentleman who is 84 years old and has been working at the racetrack and living on the backside for 72 years, arriving when he was 12 years old.”

After the casino expansion law passed the Illinois General Assembly and was signed into law by Gov. J.B. Pritzker in 2019,  Hawthorne received a preliminary finding of suitability from the Illinois Gaming Board (IGB) to build and operate a “Racino,” with casino style gambling machines and table games at the racecourse. The IGB also issued Hawthorne a Master Sports Wagering License which permitted Hawthorne to offer retail and online sports betting. In 2024, the IGB approved continued licensing suitability for Hawthorne and renewed its sports wagering license.

At the same time, while winning approvals for the Racino, the horse racing industry continued to face stiff headwinds. Carey’s declaration describes the challenges for the Bankruptcy Court:

“The Debtors have faced substantial financial hardship in recent years, driven by challenges affecting the horse racing industry in Illinois, initially due to the expansion of casino gaming and later compounded by an increasingly competitive sports betting market, as well as other industry-wide issues, including rising costs and increased regulatory fees related to simultaneously running a troubled business and building a new business...”

The filing details that a bankruptcy filing became a required step when Hawthorne’s relationship with its lender and other creditors materially eroded. This led to a rapid succession of setbacks, foremost of which was the inability to continue the harness racing season, in addition to: