51st Kentucky Derby helps push Churchill Downs to record quarter
Churchill Downs generated all-time record net revenue of $934.4m, up $43.7m or five per cent in its second quarter, with the 51st Kentucky Derby bringing in record handle.
Live and historical racing revenue increased $50.7m primarily due to a $23.8m increase from its Virginia HRM venues, a $22m increase from its Kentucky HRM venues, and a $4.9m increase from Churchill Downs Racetrack. Gaming revenue decreased $8.1m due to a $5.2m decrease from the cessation of HRM operations in Louisiana and a $2.9m net decrease at Churchill Downs’ nine other wholly owned gaming properties.
Bill Carstanjen, Chief Executive Officer, said: “We delivered all time record net revenue of $934,000,000 and all time record adjusted EBITDA of $451,000,000 This is the fifth consecutive second quarter that we have set records for net revenue and adjusted EBITDA. This year, we once again set all time records for wagering on the Derby race, the full Derby Day program, and Derby Week as a whole. Wagering on the Derby race was up 11 per cent over last year’s all time high. Derby Day wagering increased nine per cent over the previous record, and wagering for derby week rose six per cent above last year’s benchmark. By continuing to attract the best horses from around the world and benefiting from the derby’s expanding cultural relevance, we are seeing consistent growth in wagering across the week.
“This also helps our TwinSpires horse racing business to attract both serious as well as casual betters. TwinSpires horse racing set records this year for wagering, new registrations, and active players during Derby Week. Our partnerships with FanDuel and DraftKings also set new Derby Week wagering records. We intend to continue building on these positive trends,” he added.
“HRM facilities in new markets like Northern Virginia take time to attract, develop, and retain customers. We saw meaningful growth in the gross gaming revenues each month during the quarter when normalized for calendar differences, and we are continuing to build our customer database. In Central Virginia, we are on schedule and on budget with our growth project at the Richmond HRM venue.
“We expanded our gaming floor in May and expect to complete the remaining phase in just a few weeks. We continue to make great progress in building the Roshire gaming parlor in Henrico County. We are excited for the planned opening of this upscale entertainment venue in October, ahead of schedule and on budget. In Kentucky, we are progressing well on the Marshall Yards HRM facility in Calvert City. This will be an important addition to our portfolio of entertainment properties in the Commonwealth.”
“We are planning to open this venue during the 2026 on budget and on time. In New Hampshire, we were thrilled to announce last week the execution of definitive transaction documents to acquire 90 per cent of the Casino Salem project located in the mall at Rockingham Park in Salem, New Hampshire, close to the Massachusetts border at Exit 2 on Interstate 93. We intend to develop a state-of-the-art gaming and entertainment destination to draw patrons to Salem from across the significant New England market and to support charitable organizations throughout New Hampshire. Currently, there is a temporary facility operating 100 HRMs and 13 table games.”
