Churchill Downs Gallops to Record $582.5M Quarter

Churchill Downs reported record second-quarter revenue of $582.5 million, up from $515.1 million during the same period last year.

Net income also hit a record $339.3 million, a substantial year-over-year jump from $108.3 million. 

The company enjoyed several milestones during the quarter, including the 148th Kentucky Derby at Churchill Downs Racetrack.

• Churchill Downs’ live and historical racing segment had a record $275.9 million in revenue.
• The Kentucky Derby brought in a record Derby Week all-sources handle for the racetrack, back to full capacity after pandemic restrictions in 2021. 
• Churchill Downs Racetrack had a $625.6 million handle during the quarter.
• The Homestretch Club, a $45 million renovation of the grandstand area, debuted.
• The company closed on the $291 million sale of 115.7 acres near Calder Casino.

Net revenue for betting brand TwinSpires fell $4.1 million year-over-year. In February, Churchill Downs announced it would exit its larger online sports betting, iGaming operation, and casino business, but keep TwinSpires and its sportsbooks in casinos. 

Net revenue for the company’s gaming segment dropped $1.5 million.

Acquisition Updates

In February, Churchill Downs entered an agreement to purchase “substantially all of the assets” of P2E for $2.45 billion. 

The acquisition includes Colonial Downs Racetrack, six historical racing entertainment venues across Virginia, del Lago Resort & Casino in Waterloo, New York, and the operations of Hard Rock Hotel & Casino in Sioux City, Iowa.

Churchill Downs has obtained approval from the Virginia Racing Commission, with other approvals pending.