Churchill Downs delays two projects due to uncertainty over Trump’s tariffs
Churchill Downs has decided to delay the renovations of the existing Finish Line Suites and The Mansion at Churchill Downs Racetrack with expected completion in April 2026.
After careful consideration, CDI has decided to pause the multi-year projects to develop The Skye, Conservatory and Infield areas. The decision to delay these construction projects is due to the increasing uncertainty surrounding construction costs related to tariff and trade disputes as well as current macro-economic conditions. In the coming months, CDI will assess the evolving economic landscape and evaluate any changes to the timing and sequencing of these multi-year projects.
The renovation of the Finish Line Suites will update the existing 15 suites on the fifth floor overlooking the finish line at Churchill Downs Racetrack, providing modern interior appointments and amenities while also increasing the capacity to a total of 750 guests. The renovation of the Trophy Room, which sits behind the Finish Line Suites with capacity for over 300 guests, will add updated finishes and a new feature bar. The improvements to these areas will together create a larger, fully integrated hospitality experience with more vibrancy, better guest flow and superior amenities.
The Mansion, built in 2013, is one of the most exclusive areas at Churchill Downs Racetrack. Located on the sixth floor, The Mansion provides an exclusive aerial view of the finish line and an expansive perspective of the entire property. Renovation of The Mansion will introduce updated finishes and other enhancements.
CDI expects to spend approximately $25 to 30m on these new capital projects.
“We are pleased to announce these new projects designed to significantly improve the Finish Line Suites and The Mansion which are two of our most exclusive areas of the racetrack,” said Bill Carstanjen, Chief Executive Officer of CDI, “The decision to pause the Skye Terrace and infield projects was a difficult one for us to make because we do not want to disappoint our fans; however, we have a responsibility to be disciplined given the recent changes in the economic environment. We remain committed to growing our iconic flagship asset over the long term with projects that will provide new once-in-a lifetime experiences for our guests and deliver best-in-class shareholder returns.”
It made the announcement as it confirmed record first quarter 2025 financial results of $642.6m, up $51.7m or nine per cent.
In racing, first quarter 2025 revenue increased $27.5m due to an $18.2m increase at its Virginia HRM venues, an $8.9m increase from its Kentucky HRM venues, and a $0.4m increase from its other Live and Historical Racing properties. The Virginia HRM increase of $18.2m was primarily due to the November 2024 opening of The Rose Gaming Resort in Northern Virginia, partially offset by a decrease from CDI’s other Virginia HRM venues primarily due to lower unrated play from consumer softness and competition, the impact of weather, and one less day in the quarter due to the 2024 leap year. The Kentucky HRM increase of $8.9m was primarily due to the February 2025 opening of Owensboro Racing and Gaming in Western Kentucky and growth from its Northern and Southwestern Kentucky properties, partially offset by a decrease at its Louisville properties due to the impact of weather and one less day in the quarter due to 2024 leap year.
Gaming revenue increased $24m due to a $31.6m increase from the April 2024 opening of the Terre Haute Casino Resort, partially offset by a $7.6m decrease primarily due to regional gaming softness, increased competition, one less day in the quarter due to the 2024 leap year, and the impact of weather at certain properties.
