A previous version of this story incorrectly said the grandstand would be demolished after December. It has been corrected to stay it will be demolished after the March 2020 races.

Churchill Downs will buy Turfway Park in a deal that frees the Northern Kentucky horse racing business away from nearby casino ownership, which regulators and lawmakers have said hurt the Florence track.

The Louisville-based company is believed to be paying approximately $46 million for the 200-acre property whose pending sale with Hard Rock International had been valued at $35 million, according to the Courier-Journal.

The Turfway Park grandstand Northern Kentuckians know will be demolished after the track's March 2020 races, pending regulatory approval according to a release from Churchill Downs.

The company will develop what it calls New Turfway Park for about $150 million, though that figure includes the purchase price.

Churchill Downs will ditch its previous plan to build the New Latonia Racing & Gaming project and won't apply for the spring and winter racing dates traditionally given to Turfway Park.

Hard Rock had pledged to spend “significant dollars” on Turfway, but appears to have chosen to flip the property for a quick profit, according to the Courier-Journal.

The announcement clears up the uncertain future of Northern Kentucky's Turfway Park which has been around for 60 years.

"That is a great result," said Adam Koenig, R-Erlanger, Chair of Licensing and Occupations Committee, where horse racing issues land. "Instead of having one or the other, we're going to have both" Turfway and Churchill Downs.

Before, the future of Turfway Park was put in jeopardy when Churchill Downs went after a chunk of winter and spring races regulators traditionally gave to the Florence track. If that was successful, Turfway Park's race track would have been empty 11 months of the year.

'A new generation of racing fans'

Churchill Downs' plans for the facility include up to 1,500 Historical Horse Racing terminals, a new clubhouse, a one-mile synthetic track, an inner dirt track and gaming machines programmed to conform to judicial interpretations of Kentucky's constitutional requirements regarding pari-mutual wagering.

"Churchill Downs not only has a proven track record of success, it also has a vested interest in the future of thoroughbred racing in our region and throughout the Commonwealth," said Brent Cooper, President and CEO, Northern Kentucky Chamber of Commerce in a statement. "Their investment in Northern Kentucky will ensure that this important aspect of our history and culture will be passed on to a new generation of horse racing fans."

Both Turfway Park and Churchill Downs applied for the 2020 winter and spring racing dates. State regulators had until Nov. 1 to decide which track would get the dates.

In the midst of the fight over who got what dates, Turfway Park's owner, Jack Entertainment, tried to sell the track to Hard Rock.

That negotiation started in April when Jack Entertainment announced a bundled deal to sell Jack Cincinnati Casino and the Florence race track to Hard Rock for $780 million.

Hard Rock finalized its purchase of just the casino in September for $745 million. Turfway Park was almost part of that deal. That sale was expected to close by the end of the year.

Local lawmakers are pleased Churchill Downs is the new owner. Regulators and lawmakers were frustrated with the owners of Turfway Park for not installing Historical Horse Racing machines, which are slot-like machines for people to bet on the results of old races. Many blamed Jack Entertainment for ignoring Turfway Park needs on purpose to benefit its casino across the river in Ohio.

"Throughout the competitive bidding process, JACK Entertainment held fast to the belief that the new owner of Turfway Park must be dedicated to keeping the historic racing institution a strong part of the Northern Kentucky racing community," said Mark Dunkeson, CEO of JACK Entertainment in a statement. "We know that Churchill Downs has Turfway’s best interests in mind and will ensure that Turfway remains an exceptional facility that is well positioned to carry on the rich history of thoroughbred racing."

Greater Cincinnati has been flooded in the past decade with competing gambling options as Ohio legalized casios and slots at three nearby racetracks that became "racinos."

While total bets on horseracing has stayed stable at Turfway (nearly $23 million last year), a greater portion is dependent on simulcasting as betting on live racing at the track dwindles (down more than 25% in five years to $3.4 million last year).

Live betting revenue has slid a similar amount at Belterra Park across the Ohio River in Anderson Township.

Regional residents bet roughly $9 million a year on local horse races at Turfway, Belterra and Miami Valley Gaming racino in Turtlecreek Township, according to various state records.

The Kentucky Horse Racing Commission still needs to approve the ownership change. It will consider the transaction at its Oct. 8 meeting, but no obstacles are likely to exist, according to the Courier Journal.

“JACK casino continually misled racing fans, horsemen, regulators and legislators,” Kentucky Senate majority leader Damon Thayer told the Courier-Journal Wednesday. “And so, to JACK casino I say ‘Good riddance.’ They’re the ones who have created this problem and, frankly, I’m glad that they’re gone from the state or going to be gone from the state.”

What's next:

New Turfway Park is anticipated to support up to 400 full and part time equivalent positions and create an estimated 800 direct construction jobs.

Other unknowns:

When construction will start

How Churchill Downs will split its 2020 racing days between Northern Kentucky and Louisville.

Julia is the new Northern Kentucky government reporter through the Report For America program. The Enquirer needs a local donor to help her grant-funded position. Email her editor Carl Weiser for more details at cweiser@cincinna.gannett.com.

Do you know something she should know? Send her a note at jfair@enquirer.com and follow her on twitter at @JFair_Reports.

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