As Universal Orlando Resort announced that the Dragon Challenge would close down for a new and thrilling roller coaster at the Wizarding World of Harry Potter - Hogsmeade, it mentioned nothing more than the coaster shutting down on September 5, 2017.
A new permit given for a "Project 942" just this past week stated that an 'existing structure' at Universal Orlando Resort would be demolished.
Do note that this does not confirm that the project is for the Dragon Challenge, but given the quick announcement and turnaround of the new roller coaster (opening in 2019), this may very much imply that the Dragon Challenge will be torn down completely for whatever the new interactive ride is.
A few other permits were submitted for Project 942 in the past couple days, for the installation of new trailers, relocation of kerosene tanks, and setup of various utilities like plumbing.
While the demolition of the Dragon Challenge may not be a big surprise (as Jaws was destroyed and removed completely for Diagon Alley), do note that the roller coaster was just rebranded from The Dueling Dragons when the first Wizarding World of Harry Potter opened in June 2010.
Just as a reminder, Universal Orlando Resort announced the following about the new coaster coming to Islands of Adventure in Florida:
Quote:
• This all-new thrill ride will take you deeper into J.K. Rowling’s Wizarding World, where you will encounter some of your favorite characters and creatures. It’ll be unlike anything we’ve ever done before and it will be fun for the entire family.
• The new attraction will be one of the most highly-themed coaster experiences we’ve created. It will combine a new level of storytelling with an action-packed adventure…and a few surprises along the way.
• Our award-winning Universal Creative team is once again collaborating with Warner Bros. and the production design team from the Harry Potter films to bring this new coaster experience to life.
• This ride is going to redefine the category and transport you to thrilling places, drawing you into even more exciting adventures within the wizarding world. It’s going to be the perfect addition to Hogsmeade.
Everything stated in the permits for Project 942 should be marked down as rumors until stated otherwise. For those who still want the chance to ride the Dragon Challenge, head to Universal Orlando Resort now through September 4th.
Universal Orlando Resort's Dragon Challenge coaster could be demolished for new ride 
