$112.92
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End-of-day quote: 03/11/2024
NasdaqGS:CHDN

Churchill Downs Profile

Churchill Downs Incorporated (CDI) owns and operates live and historical racing entertainment venues.

Business Segments

The company operates through three reportable segments: Live and Historical Racing, TwinSpires, and Gaming.

Live and Historical Racing segment

The Live and Historical Racing segment primarily includes live and historical pari-mutuel racing related revenue and expenses at Churchill Downs Racetrack and the company’s historical racing properties in Kentucky, Virginia, and New Hampshire.

The company’s Live and Historical Racing properties earn commissions from pari-mutuel wagering on live and historical races, simulcast fees earned from other wagering sites, fees from racing event-related services including admissions, personal seat licenses, sponsorships, television rights, and other miscellaneous services, hotel services, and revenue from food and beverage services.

Churchill Downs Racetrack

Churchill Downs Racetrack is in Louisville, Kentucky and is an internationally known thoroughbred racing operation best known as the home of the company’s iconic flagship event, the Kentucky Derby. The Kentucky Derby is the longest continuously held annual sporting event in the U.S. and is the first race of the annual series of races for 3-year-old thoroughbreds known as the Triple Crown. The demographic profile of the company’s guests, global television viewership, and long-running nature of this iconic event are attractive to sponsors and corporate partners, especially those with luxury and/or marquee brands.

During 2023, 72 live race days were conducted, however 14 of these race days were relocated to Ellis Park Racing and Gaming (Ellis Park). In 2024, the company anticipates conducting approximately 83 live race days at the Churchill Downs Racetrack.

Churchill Downs Racetrack is located on 175 acres and has a one-mile dirt track, a 7/8-mile turf track, a stabling area, and a variety of areas, structures, and buildings that provide reserved seating for the company’s patrons. Churchill Downs Racetrack has one of the largest 4K video boards in the world sitting 80 feet above the ground and measuring 171 feet wide by 90 feet tall. This video board provides views of the finish line and the entire race for on-track guests, including those in the infield and guests along the entire front side of the racetrack. The facility also has permanent lighting to accommodate night races. The company has a saddling paddock, and the stable area has barns sufficient to accommodate 1,400 horses and a 114-room dormitory for backstretch personnel. The company has a state-of-the-art equine medical center and quarantine barns on the backside area of Churchill Downs Racetrack which reinforces its ongoing commitment to equine safety and supports its long-term international growth strategy. The company also owns 83 acres of land at its auxiliary training facility, which is five miles from Churchill Downs Racetrack.

The First Turn Experience provides 5,100 permanent covered stadium seats and added a new 50,000 square-foot climate-controlled first floor hospitality venue with reserved dining room tables and a trackside viewing terrace.

The Paddock Project will improve the flow of guests throughout the paddock, create a larger paddock walking ring for viewing the horses prior to the races, create two new clubs in the area on the first floor under the Twin Spires that will provide views of the paddock and views of the tunnel that the horses walk through, new hospitality and other amenities for guests in certain areas of the third-floor clubhouse seats, and new terraces overlooking the paddock. The Paddock Project is scheduled for completion in time for the 150th Kentucky Derby in May 2024.

Kentucky

Louisville

Derby City Gaming & Hotel (Derby City Gaming) is a state-of-the-art HRM facility located at the Churchill Downs Racetrack auxiliary training facility and has a simulcast center and a dining facility.

In 2023, the company invested to expand the facility and to build a five-story hotel with rooms including amenities to better serve and attract guests. The expansion includes a VIP gaming area, a new sports bar, a stage for live entertainment, and an upscale-casual restaurant and bar for gaming and hotel guests. The new gaming space and hotel opened during the second quarter of 2023.

In December 2023, the company invested $ to build Derby City Gaming Downtown (DCG Downtown) in an existing building in downtown Louisville. DCG Downtown has a gaming area with approximately 500 HRMs, a main-level sports bar with a stage for live entertainment, a premium bourbon bar, and an elegant wine lounge for guests, including locals, tourists, and convention attendees.

Southwestern Kentucky

Oak Grove Racing & Gaming (Oak Grove) is a premier state-of-the-art live harness racing and HRM venue located on 240 acres approximately one-hour north of Nashville, Tennessee in Oak Grove, Kentucky. Oak Grove owns and operates a harness racing track, hotel, and simulcast and HRM facility with an event center and food and beverage venues. Oak Grove also has a 3,000-person capacity outdoor amphitheater and stage, a state-of-the-art equestrian center, and a recreational vehicle park. Oak Grove conducts approximately 30 live racing days a year.

Northern Kentucky

Turfway Park Racing & Gaming (Turfway Park) opened in September 2022 as a state-of-the-art live racing and historical racing entertainment venue with a sports bar and restaurants just south of Cincinnati, Ohio in Florence, Kentucky. Turfway Park owns and operates a thoroughbred racetrack and conducts approximately 70 live racing days a year.

Newport Racing & Gaming is an HRM entertainment venue and simulcast area that operates as an extension of Turfway Park located in Newport, Kentucky.

Northwestern Kentucky

The company acquired Ellis Park in Henderson, Kentucky on September 26, 2022. Ellis Park owns and operates a thoroughbred racetrack and conducts approximately 25 live race days a year. Ellis Park also has a simulcast and HRM facility with food and beverage offerings.

Virginia

The company acquired Colonial Downs Racetrack (Colonial Downs) and six historical racing entertainment venues across Virginia as part of the acquisition of substantially all of the assets of Peninsula Pacific Entertainment LLC (P2E) on November 1, 2022 (P2E Transaction). Colonial Downs has a dirt track, the widest turf track oval in North America, a simulcast area, food and beverage offerings, and two off-track betting facilities (OTBs). Colonial Downs conducted 27 live racing days in 2023 and plans to conduct 28 live racing days in 2024.

The company also invested in a seventh Virginia based HRM entertainment venue that opened on September 26, 2023 in Emporia, Virginia with 150 HRMs and a restaurant and bar.

The company is investing to construct The Rose Gaming Resort (The Rose) in Dumfries, Virginia with a hotel and 1,650 HRMs as well as a number of food and beverage options. The Rose has the potential to be expanded to up to 1,800 HRMs. The Rose is scheduled to be completed late in the third quarter of 2024.

New Hampshire

On September 2, 2022, the company completed the acquisition of Chasers Poker Room (Chasers) located in Salem, New Hampshire. Chasers is a charitable gaming facility located approximately 30 miles from Boston, Massachusetts, that offers poker and a variety of table games. The company plans to develop an expanded charitable gaming facility in Salem to accommodate HRMs and table games.

TwinSpires segment

The TwinSpires segment includes the revenue and expenses from pari-mutuel wagers through the company’s advance deposit wagering (ADW) business, its retail and online sports betting business, totalisator services provided by United Tote, and its HRM technology provider Exacta Systems (Exacta). TwinSpires is headquartered in Louisville, Kentucky.

ADW

TwinSpires operates the online horse racing wagering business for TwinSpires.com, BetAmerica.com, and other white-label platforms; facilitates high dollar wagering by certain customers; and provides the Bloodstock Research Information Services platform for horse racing statistical data. TwinSpires is one of the largest and most profitable legal online horse racing wagering platforms in the U.S. TwinSpires accepts pari-mutuel wagers through ADW from customers residing in certain states who establish and fund an account from which these customers may place wagers via telephone, mobile applications, or through the Internet. This business is licensed as a multi-jurisdictional simulcasting and interactive wagering hub in the state of Oregon and holds licenses from various other states where applicable. This business also offers customers streaming video of live horse races, replays, and an assortment of racing and handicapping information. BetAmerica.com is an online wagering business licensed under TwinSpires that offers wagering on horse racing throughout the U.S. The company also provides technology services to third parties, and it earns commissions from white label ADW products and services. Under these arrangements, it typically provides an ADW platform and related operational services while the third party typically provides the brand, marketing, and limited customer functions. The company announced two of these business-to-business agreements in 2022. On September 8, 2022, the company announced a multi-year agreement to enable FanDuel, a sports book and mobile betting operator, to create a fully integrated and seamless wagering experience with a single wallet for horse racing and sports with exclusive TV rights to racing content and non-exclusive Kentucky Derby sponsorship rights for sports wagering. On November 29, 2022, the company announced a multi-year agreement to provide DraftKings ADW technology and other services. Both agreements began in early 2023.

Sports Betting

The company’s TwinSpires sports betting business includes the results of its retail sports books at its wholly owned properties and online sports betting through third parties. The company has executed strategic market access agreements with Bet365 in Pennsylvania, Golden Nugget in Indiana, and various market access partners in Kentucky. The company also operates retail sports betting at certain of its racetracks and HRM and gaming facilities.

United Tote

United Tote manufactures and operates pari-mutuel wagering systems for racetracks, OTBs, and other pari-mutuel wagering businesses. United Tote provides totalisator services which accumulate wagers, calculate payoffs, and displays wagering data to patrons who wager on horse races. United Tote has contracts to provide totalisator services to several third-party racetracks, OTBs, and other pari-mutuel wagering businesses and provides these services at its facilities. On August 11, 2022, the company entered into an agreement to sell 49% of United Tote, a wholly owned subsidiary of the company to NYRA Content Management Solutions, LLC, a subsidiary of the New York Racing Association.

Exacta

On August 22, 2023, the company completed the acquisition of Exacta. Exacta is a leading provider of central determinate system technology in HRMs across the country. Exacta's system architecture supports multiple game vendors and virtually unlimited math modeling capabilities on a single central determinate system enabling Exacta to deliver a diverse gaming library to Company owned and third-party HRM entertainment venues in Kentucky, Virginia, Wyoming, and New Hampshire.

Gaming segment

The Gaming segment includes revenue and expenses for the casino properties and associated racetracks which support the casino license. The Gaming segment generates revenue and expenses from slot machines, table games, video lottery terminals (VLTs), video poker, HRMs, ancillary food and beverage services, hotel services, commission on pari-mutuel wagering, racing event-related services, and other miscellaneous operations.

Wholly owned gaming properties

Florida

Calder Casino (Calder) in Miami Gardens, Florida is located near Hard Rock Stadium, home of the Miami Dolphins. Calder offers two dining facilities and an entertainment venue. On June 17, 2022, the company closed on the sale of 115.7 acres of land near Calder. The company still owns 15-20 acres that may be sold for future development.

Indiana

The company is investing in the development of the Terre Haute Casino Resort (Terre Haute) in Terre Haute, Indiana. Terre Haute will be a gaming entertainment venue featuring 400,000 square-feet space with slot machines, table games, room luxury hotel, and several food and beverage offerings. The Terre Haute casino is scheduled to be completed in early April 2024 and the Terre Haute hotel is scheduled to be completed by the middle of May 2024.

Iowa

As part of the P2E Transaction, the company acquired Hard Rock Hotel and Casino Sioux City, which is a gaming facility with a hotel, several food and drink offerings, and event spaces.

Louisiana

Fair Grounds Race Course & Slots (Fair Grounds) is a gaming facility and racecourse with a bar, a simulcast facility, a dirt and turf track, and a stabling area. Fair Grounds conducts approximately 80 live racing days each year. The facility includes clubhouse and grandstand seating for approximately 5,000 guests, a general admissions area, and several dining facilities. The stable area consists of barns that can accommodate approximately 1,900 horses and living quarters for approximately 130 people. Fair Grounds also operates over 500 HRMs in 15 OTBs and Video Services LLC ("VSI") is the owner and operator of video poker machines in 12 of those OTBs in Louisiana.

Maine

Oxford Casino and Hotel, located in Oxford, Maine, is a gaming facility with a hotel and a dining facility.

Maryland

Ocean Downs Casino and Racetrack, located in Berlin, Maryland, is a gaming facility with several dining options and a racetrack that conducts approximately 45 live harness racing days each year.

Mississippi

Harlow’s Casino Resort and Spa is a gaming facility and hotel with two dining facilities in Greenville, Mississippi. Riverwalk Casino Hotel is a gaming facility and hotel with two dining facilities in Vicksburg, Mississippi.

New York

As part of the P2E Transaction, the company acquired del Lago Resort and Casino in Waterloo, New York, which is a gaming facility and a hotel with several dining options.

Pennsylvania

Presque Isle Downs and Casino is a gaming facility with three dining facilities, an entertainment venue and thoroughbred racetrack that conducts approximately 80 live racing days each year.

Equity Investments

Illinois

In 2019, the company acquired 61.3% equity ownership in Midwest Gaming Holdings, LLC (Midwest Gaming), the parent company of Rivers Casino Des Plaines (Rivers Des Plaines). Rivers Des Plaines is a gaming entertainment venue located on 21 acres and has seven dining facilities, and an approximate 5,000 square-foot state-of-the-art BetRivers Sports Bar. During 2022, Rivers Des Plaines expanded the gaming floors to add approximately 850 additional gaming positions and a new restaurant, a table poker room, and a 10,000 square-foot ballroom for private events and live entertainment.

Ohio

The company has a 50% equity investment in Miami Valley Gaming and Racing (MVG). MVG is a gaming entertainment venue with harness racetrack, racing simulcast center, and a retail sports book.

All Other

The company has aggregated Arlington International Racecourse (Arlington) as well as certain corporate operations, and other immaterial joint ventures in All Other to reconcile to consolidated results.

Arlington

On February 15, 2023, the company sold its property at Arlington Heights, Illinois to the Chicago Bears.

Live and Historical Racing

In 2023, approximately 32,000 thoroughbred horse races were conducted in the U.S., which was down 5% compared to 2022.

Governmental Regulations

TwinSpires is licensed in Oregon under a multi-jurisdictional simulcasting and interactive wagering totalisator hub license issued by the Oregon Racing Commission in accordance with Oregon law and the Interstate Horseracing Act of 1978, as amended in 2000. The company also holds ADW licenses in certain other states where appropriate.

Environmental Matters

The company is subject to various federal, state, and local environmental laws and regulations that govern activities that may have adverse environmental effects, such as discharges to air and water, as well as the management and disposal of solid, animal, and hazardous wastes and exposure to hazardous materials. These laws and regulations, which are complex and subject to change, include the United States Environmental Protection Agency (EPA) and state laws and regulations that address the impacts of manure and wastewater generated by Concentrated Animal Feeding Operations (CAFO) on water quality, including, but not limited to, storm and sanitary water discharges.

History

Churchill Downs Incorporated was founded in 1875. The company was incorporated in 1937.

Country
Industry:
Miscellaneous Amusement And Recreation
Founded:
1875
IPO Date:
01/06/1975
ISIN Number:
I_US1714841087

Contact Details

Address:
600 North Hurstbourne Parkway, Suite 400, Louisville, Kentucky, 40222, United States
Phone Number
502 636 4400

Key Executives

CEO:
Carstanjen, William
CFO
Dall, Marcia
COO:
Mudd, William