December 9, 2011 : Dispute delays online wagering licence renewal decisions
The Californian and Illinois racing boards have delayed a decision to renew's soon-to-expire online wagering licences citing further investigation into Churchill Downs Inc's (CDI) ongoing dispute with the jockey trade organisation The Jockeys' Guild (TJG) over funding issues.
CDI has historically paid in the region of $330 000 in annual payments to The Jockey's Guild since 2007 based on the assurance that the funds would benefit jockey's directly and were no more than other racetrack contributions, both conditions the company said have been violated, reports the Louisville Courier-Journal.
TJG's challenge on CDI's online business, an important 23 percent revenue contributor to its bottom line, is a bid to apply pressure for the resumption of payments to the fund which CDI is willing to do if TJG can provide accounting proof on where those funds have been used.