Churchill Downs Inc. sees third-quarter record in net income, revenue

Churchill Downs Inc. had net income of $65.4 million in the third quarter of 2024 on net revenue of $628.5 million, though the third quarter results showed softness in its online horse racing business and at its casinos in established markets, according to financial statements released on Wednesday afternoon.

Although the company’s net income and net revenue both were third-quarter records, Churchill noted in the financial statements that revenues were down at the Kentucky casinos the company has owned and operated for several years, possibly due to cannibalization by new casinos Churchill has opened in nearby in-state markets.

In other states, Churchill noted “regional gaming softness, increased competition, and higher labor and benefit expense” at many of its casinos.

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In addition, Churchill said that increases at its online gambling business unit related to “sports betting market access agreements and our retail sports betting business” were offset by a $4.6 million decline in horse-racing handle “due to market access and shifts in race days at other tracks.”

Churchill’s financial statements continue to benefit from the opening of new facilities in Virginia, where Churchill opened a new casino in September, and in Indiana, where the company opened a casino in Terre Haute in April. Together, those two facilities contributed $54.1 million in additional third-quarter revenue compared to last year, according to the financial statements.

In the third-quarter of 2023, Churchill had net revenue of $572.5 million, or a difference of $56 million from the third quarter revenue of 2024.

Churchill also opened a new casino in Virginia in October, after the close of the third quarter.

Churchill said in a release accompanying the financial statements that it plans to spend $40 to $50 million on a new casino in Calvert City, Ky., outside of Paducah, as an adjunct facility for its Oak Grove racing license. The casino will have 250 historical horseracing machines, a sportsbook, and a simulcasting room, Churchill said.

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