Churchill Downs Inc. first quarter net income up 7.7 percent
Churchill Downs Inc. had net income of $83.0 million in the first quarter of 2026, up 7.7 percent compared to net income in the first quarter last year, driven mostly by increased business at its casinos in Kentucky and Virginia, according to financial statements issued on Wednesday afternoon.
Although revenue from casinos in states outside of Kentucky and Virginia fell $5 million during the quarter, revenue from historical horse racing machines at casinos in Kentucky jumped $17 million while revenue from the same devices at casinos in Virginia jumped $5 million, according to CDI.
Like other gambling companies, CDI is dealing with soft consumer spending at many of its casinos, partially due to increased competition in the gambling market and cost-of-living pressures on casino demographics. Casino revenue was down significantly in Louisiana, where a state Supreme Court decision forced CDI to remove historical horse racing machines from its gambling properties last year.
Overall, Churchill had net revenue of $663 million in the first quarter, up 3.1 percent over first quarter revenue of $643 million last year, according to the financial statements. Operating expenses increased 2.7 percent, from $508 million last year to $520 million this year.
Churchill’s account-wagering companies, including Twinspires.com and Velocity – an ADW catering to computer-assisted wagering parties – had net revenue of $118 million in the first quarter, up from $116 million in the first quarter of last year. Churchill said the increase was due primarily to jumps in its “retail sports betting business.”
On Tuesday, Churchill announced that it had reached an agreement to purchase an intellectual-property package from 1/ST Racing involving the Preakness Stakes and Black-Eyed Susan Stakes for $85 million, with the transaction to close sometime after the May 16 Preakness this year. The package is expected to generate $3 million a year plus 2.5 percent of the gross wagering revenue from the races through an annual leaseback of the rights to the state.
Churchill officials are expected to discuss the package during a conference call with investors and analysts on Thursday morning.
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