Churchill to build casino in downtown Louisville

Churchill Downs Inc. will build a 43,000-square foot casino in downtown Louisville that will initially operate 500 historical horse racing machines, the company announced on Thursday.

The facility, which is scheduled to open in early 2023, according to the company, will be the first casino in downtown Louisville and will compete with casinos across the river in Indiana. The casino, which will include bars and a live-entertainment stage, will be located across the street from Louisville’s convention center.

While Churchill did not provide estimates for the revenue that the casino will generate, a quote in a release announcing the project said that the company expects the casino to provide $10-$12 million in purses annually at Churchill Downs racetrack. Because approximately 0.75 percent of gross handle goes to Thoroughbred purses, Churchill expects the facility to gross at least $1.3 billion a year. That amount would provide approximately $90 million in annual revenue to Churchill at historical averages for the devices.

Historical horse racing devices were authorized by the Kentucky Horse Racing Commission in 2012. The devices were ruled illegal late in 2020 by the Kentucky Supreme Court, but the legislature this year passed a bill clarifying their legality. Only licensed racetracks are allowed to operate the devices, either at live racing facilities or so-called “annexes.”

Churchill already operates a Louisville casino at its Trackside training center called Derby City Gaming. That facility generated $1.46 billion in handle in fiscal year 2021, which ended in June, according to KHRC records.

As part of the announcement, Churchill pledged $1 million to the West End Opportunity Partnership, a tax-increment financing district created by legislation passed in 2019 that seeks to improve economic opportunities in disadvantaged downtown communities.