Hawthorne Race Course, Inc. v. Illinois Racing Board

2013 IL App (1st) 111780, 2013 WL 697173
CourtAppellate Court of Illinois
DecidedMarch 5, 2014
Docket1-11-1780
StatusPublished
Cited by3 cases

This text of 2013 IL App (1st) 111780 (Hawthorne Race Course, Inc. v. Illinois Racing Board) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hawthorne Race Course, Inc. v. Illinois Racing Board, 2013 IL App (1st) 111780, 2013 WL 697173 (Ill. Ct. App. 2014).

Opinion

ILLINOIS OFFICIAL REPORTS Appellate Court

Hawthorne Race Course, Inc. v. Illinois Racing Board, 2013 IL App (1st) 111780

Appellate Court HAWTHORNE RACE COURSE, INC., Plaintiff-Appellant, v. Caption ILLINOIS RACING BOARD, in Their Official Capacity and Not Individually, JOSEPH J. SINOPOLI, Chairman; and JOSEPH N. CASCIATO, W. JACK CHAMBLIN, ANGELO CIAMBRONE, WILLIAM H. FARLEY, TIMOTHY P. MARTIN, JONATHAN P. METCALF, ALLAN M. MONAT, MICHAEL E. MURPHY, PAUL B. SMITH, ROBERT C. WINCHESTER, MARC LAINO, ARLINGTON PARK RACECOURSE, LLC, MAYWOOD PARK TROTTING ASSOCIATION, INC., BALMORAL RACING CLUB, INC., and FAIRMOUNT PARK, INC., Defendants-Appellees.

District & No. First District, Sixth Division Docket No. 1-11-1780

Opinion filed November 30, 2012 Opinion withdrawn January 30, 2013 Opinion filed February 8, 2013

Held The decisions of the Illinois Racing Board that the percentage of the (Note: This syllabus Horse Racing Equity Trust Fund payable to eligible licensees under the constitutes no part of 2008 version of the Racing Act should be the same as that previously the opinion of the court distributed under the 2006 version of the Act were upheld, since the but has been prepared Board’s decisions were reasonable, contemporaneous, and consistent with by the Reporter of its prior interpretation of the statutory language, and the court would Decisions for the defer to the Board’s experience and expertise in administering the Act. convenience of the reader.)

Decision Under Appeal from the Circuit Court of Cook County, No. 10-CH-24439; the Review Hon. Nancy J. Arnold, Judge, presiding. Judgment Affirmed.

Counsel on Richard J. Prendergast, Ltd. (Richard J. Prendergast and Michael T. Appeal Layden, of counsel), and Carey, Filter, White & Boland (Michael J. Murray, of counsel), both of Chicago, for appellant.

Seyfarth Shaw LLP, of Chicago (P. Shawn Wood and Marcus L. Mintz, of counsel), for appellee Arlington Park Racecourse, LLC.

Lisa Madigan, Attorney General, of Chicago (Michael A. Scodro, Solicitor General, and Richard S. Huszagh, Assistant Attorney General, of counsel), for appellee Illinois Racing Board.

Panel PRESIDING JUSTICE LAMPKIN delivered the judgment of the court, with opinion. Justices Gordon and Reyes* concurred in the judgment and opinion.

OPINION

¶1 Plaintiff, Hawthorne Race Course, Inc. (Hawthorne), appeals the circuit court’s ruling upholding the decision of defendant, the Illinois Racing Board (Board), in interpreting the Illinois Horse Racing Act of 1975 (Racing Act) (230 ILCS 5/54.75 (West 2010)). Plaintiff contends the Board erred in concluding that the percentage of the Horse Racing Equity Trust Fund (Fund) payable to each eligible licensee under the 2008 version of the Racing Act should be the same as that previously distributed under the 2006 version of the statute. Based on the following, we affirm.

¶2 FACTS ¶3 The Fund was initially created in 2006 by Public Act 94-804 (Pub. Act 94-804 (eff. May 26, 2006)) and codified as section 54.5 of the Racing Act (230 ILCS 5/54.5 (West 2006)) (2006 statute). The 2006 statute became effective on May 26, 2006, and had a sunset provision, establishing automatic repeal on May 26, 2008. The Racing Act imposed surcharges on four Illinois riverboat casinos to help support the horse-racing industry, such that the money deposited into the Fund was distributed to organization licensees within the

*Justice Garcia originally sat on the panel of this appeal and participated in its disposition. Justice Garcia is no longer with the appellate court; therefore, Justice Reyes serves in his stead.

-2- industry.1 Pursuant to the 2006 statute, 60% of the Fund was to be distributed to organization licensees for further distribution at their race meetings as “purses,” while the remaining 40% of the Fund was to be distributed to organization licensees to improve, maintain, market, and otherwise operate racing facilities. 230 ILCS 5/54.5(b) (West 2006). ¶4 On December 15, 2008, the legislature reenacted the repealed statute with Public Act 95- 1008 (Pub. Act 95-1008 (eff. Dec. 15, 2008)), which extended the surcharges on qualifying riverboat casinos for an additional three years. Public Act 95-1008 was codified as section 54.75 of the Racing Act (230 ILCS 5/54.75 (West 2010)) (2008 statute). Public Act 95-1008, section 1, provided that the 2008 statute “re-enacts the provisions of Public Act 94-804 approved in 2006 and determined valid in 2008 by the Illinois Supreme Court [in Empress Casino Joliet Corp. v. Giannoulias, 231 Ill. 2d 62, 896 N.E.2d 277 (2008)].” This court upheld the constitutionality of Public Act 95-1008 in Empress Casino Joliet Corp. v. Giannoulias, 406 Ill. App. 3d 1040, 942 N.E.2d 783 (2011). ¶5 The pertinent language of the 2008 statute was identical to that of the 2006 statute. The relevant language provided: “(a) *** Moneys in the Fund shall be distributed as directed and certified by the Board in accordance with the provisions of subsection (b). (b) The moneys deposited into the Fund, plus any accrued interest on those moneys, shall be distributed within 10 days after those moneys are deposited into the Fund as follows: (1) Sixty percent of all moneys distributed under this subsection shall be distributed to organization licensees to be distributed at their race meetings as purses. *** (2) The remaining 40% of the moneys distributed under this subsection (b) shall be distributed as follows: (A) 11% shall be distributed to any person *** who had operating control of a racetrack *** in a county with at least 230,000 inhabitants that borders the Mississippi River and is a licensee in the current year; and (B) the remaining 89% shall be distributed pro rata according to the aggregate proportion of total handle from wagering on live races conducted in Illinois *** for calendar years 2004 and 2005 to any person *** who (i) had majority operating control of a racing facility at which live racing was conducted in calendar year 2002, (ii) is a licensee in the current year, and (iii) is not eligible to receive moneys under subparagraph (A) of this paragraph (2). The moneys received by an organization licensee under this paragraph (2) shall be used by each organization licensee to improve, maintain, market, and otherwise operate its racing facilities to conduct live racing, which shall include backstretch services and capital improvements related to live racing and the

1 The Racing Act defines organization licensee as any “person receiving an organization license from the Board to conduct a race meeting or meetings.” 230 ILCS 5/3.11 (West 2010).

-3- backstretch. Any organization licensees sharing common ownership may pool the moneys received and spent at all racing facilities commonly owned in order to meet these requirements. If any person identified in this paragraph (2) becomes ineligible to receive moneys from the Fund, such amount shall be redistributed among the remaining persons in proportion to their percentages otherwise calculated.” (Emphases added.) 230 ILCS 5/54.75 (West 2010). ¶6 As a result of the litigation challenging the constitutionality of the 2006 statute, from May 27, 2006, through the end of May 2008, the casinos paid their respective surcharges into the State’s protest fund.

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2013 IL App (1st) 111780, 2013 WL 697173, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hawthorne-race-course-inc-v-illinois-racing-board-illappct-2014.