Balmoral Park and Maywood Park File for Bankruptcy

Less than a month after a federal judge ordered the owner of Illinois’ two harness racing tracks to pay $77.8 million to four of the state’s casinos as restitution for involvement in a Rod Blagojevich “pay-to-play” scheme, the racetracks filed for bankruptcy.

Balmoral Racing Club Inc., which operates Balmoral Park in Crete, and Maywood Park Trotting Association Inc., which operates Maywood Park in Melrose Park, filed for Chapter 11 bankruptcy protection on Wednesday.

When Gov. Rod Blagojevich was in office, in exchange for a campaign contribution from the racetrack owners, he signed 2008 legislation that extended a fee over the state’s most profitable casinos. The cash was collected to compensate the state’s beleaguered horse-racing industry. The racetrack owner has been ordered to pay the Empress Casino in Joliet, Harrah’s Casino in Joliet, the Grand Victoria Casino in Elgin and the Hollywood Casino in Aurora. An appeal will be filed, reports the Chicago Tribune.

In the meantime, bankruptcy is the only way the racetracks can operate in 2015.

“The voluntary Chapter 11 filings will give the tracks sufficient breathing room to continue working through the process,” the companies said in a statement on Wednesday.

» more via the Chicago Tribune