Canterbury Park announces stable casino revenues despite added competition
Canterbury Park, a racino in Shakopee, Minnesota, is taking on extra casino competition in the area by adding new table gaming options, which helped it generate revenues for the 12 months ended December 31, 2024 of $61.6m, compared to $61.4m for the same period in 2023.
Some of the latest table games include Pokerlette, Zombie Blackjack, I Luv Suits and Double Down Madness have kept casino revenues stable depsite extra competition. Casino revenues were $38.8m for the 2024 full year period compared to $39.8m for the same period in 2023 partially reflecting the increased competition in the market. Pari-mutuel revenues were $8.2m for the 2024 full year period and $8.3m in for the same period in 2023. There was a slight increase in Food & Beverage and Other revenues reflecting increased catering operations and admissions revenues, respectively, related to Canterbury’s hosting of new large scale special events in 2024.
“Throughout 2024, we focused on managing our operations to address the evolution of our business and market. In our seasonally slowest quarter, fourth quarter revenues of $12m and adjusted EBITDA of $1.3m, which together resulted in an adjusted EBITDA margin of 11.1 per cent, reflect the efficacy of these efforts during a period when our Casino operations faced a recent increase in competition,” said Randy Sampson, President and Chief Executive Officer of Canterbury Park.
“To address the increased Casino operations competition, we are implementing several initiatives to further elevate guest service and are expanding our marketing programs beyond our traditional focus on existing customers to attract and retain new customers. We also continue to introduce new table game offerings to the market. Collectively, our goal is for these efforts is to better position Canterbury as the gaming entertainment venue with the best service and table game variety in the region. We are also focused on further expanding the non-gaming entertainment side of our business as we had more mid- and large-scale events in 2024 than ever before, which drove higher cash flow from Food & Beverage and Other operations. We expect to accelerate this momentum in 2025 with more exciting events planned than in prior years. As our business and market continue to evolve, we are bringing additional attention to our expense control strategies that are focused on creating more operating efficiencies. We expect our collective revenue optimization and expense control initiatives will help maintain our ability to again deliver solid annual cash flow this year and beyond.
“Canterbury Commons is firmly positioned as a premiere destination for living, playing and working that brings consistently high levels of traffic and energy to the property. With nearly 1,000 residential units, five restaurants and breweries, two music and entertainment venues, 57,000 square-feet of office space, and other distinct amenities already open or under development, and another 50 acres available for future development, we expect Canterbury Commons will create new long-term revenue sources and positive economics for the Company.
“We remain focused on a range of strategies to create long-term value for our shareholders, including significant efforts to ensure Canterbury will benefit economically if online sports betting is approved in Minnesota. We are well positioned for the future as we generate consistent annual cash flow and have a strong balance sheet with over $15 million in unrestricted cash and short-term investments and nearly $19 million related to our tax increment financing receivable. As we near the completion of both our tax increment financing infrastructure and our barn relocation and redevelopment plan, our capital expenditures will decline in 2025 compared to 2024 and further decline in 2026 to our historical levels of between $2 to $3 million per year. Finally, we continue to successfully unlock the significant value of our real estate through the development of Canterbury Commons. Accordingly, we believe that when considered collectively, these factors, along with our return of capital initiative through our quarterly cash dividend, are not reflected in our current valuation.”
Swervo continues to make progress on the construction of its state-of-the-art amphitheater. The Company’s barn relocation and redevelopment plan is nearing completion with over 300 new stalls completed and in operation, with the balance of the planned backside improvements on schedule for completion prior to the 2025 live racing season. Canterbury is also nearing completion of the road adjacent to the amphitheater which will unlock the development potential of roughly 25 acres of land in that portion of the site.
