Operator News
US – Churchill Downs generates record revenue in 2023 following Exacta Historical Racing Machine purchase
By Phil - 26 February 2024
Churchill Downs generated record revenue of $2.5bn in 2023, up 36 per cent compared to $1.8bn in the prior year with record Adjusted EBITDA of $1bn, up 34 per cent compared to $0.8bn in the prior year.
Revenue for 2023 increased $16.8m driven by a $19.1m increase attributable to the Exacta Transaction, a $5.3m increase primarily from the B2B expansion strategy associated with United Tote totalisator fees, a $1.9m increase from our retail sports betting business, and a $1.8m increase in all other Horse Racing revenue primarily driven by increased handle from its higher-wagering volume customer base, partially offset by lower retail Horse Racing handle due to industry race day cancellations and the decision to move a portion of the Churchill Downs Racetrack Spring Meet to Ellis Park in 2023 and an $11.3m reduction primarily due to the exit of the direct online Sports and Casino business.
It successfully ran the 149th Kentucky Derby on the first Saturday in May generating record Derby Week all-sources handle and record Derby Week contribution to Adjusted EBITDA. Derby City Gaming expanded its gaming floor and amenities and opened a new 123-room hotel in June 2023. Rosie’s Gaming Emporium opened in Emporia, Virginia in September 2023 as its seventh Rosie’s HRM entertainment venue in Virginia. Derby City Gaming Downtown opened in Louisville, Kentucky in December 2023. This represents its sixth HRM entertainment venue in Kentucky. It also completed the acquisition of Exacta Systems on August 22, 2023.
Revenue for the fourth quarter of 2023 increased $54.4m from the prior year quarter primarily due to $32.8m in revenue attributable to the Virginia properties acquired in the P2E Transaction, a $9.5m increase from Derby City Gaming and the opening of Derby City Gaming Downtown in December 2023 in Louisville, Kentucky, a $6.3m increase driven by continued growth at Turfway and Newport in Northern Kentucky, a $2.5m increase driven by continued growth from Oak Grove in Southwestern Kentucky, a $2.2m increase attributable to the Ellis Park and Chasers Transactions, and a $1.1m increase at Churchill Downs Racetrack.
