Churchill horse racing revenue up, casinos down in first quarter

Revenue from historical horse-racing machines operated by Churchill Downs Inc. in Kentucky and Virginia continued to grow in the first quarter of 2024, while revenue from the company’s traditional casinos in maturing markets stagnated, according to financial documents released by the company on Wednesday.

While revenue from “live and historical racing” jumped 14 percent compared to the first quarter of last year, revenue from Churchill’s other casino properties dipped 4.3 percent. In a statement accompanying the financial documents, Churchill said “inclement weather” in January negatively impacted the results in its casino division.

Churchill includes revenues from casinos that operate historical horse-racing machines in a separate division from its more traditional casinos. Historical horse-racing machines are nearly identical to slot machines, but they use the results of previously run races to generate random numbers determining winning combinations. Churchill operates the machines at multiple locations in Kentucky and Virginia.

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Overall, Churchill had net income of $80.4 million in the first quarter on revenue of $590.9 million, a record for the company. Net income of $80.4 million was down substantially from last year’s first-quarter number of $155.7 million, principally because Churchill credited $86.2 million in after-tax proceeds from the sale of Arlington Park outside of Chicago during the first quarter of last year.

Revenue from “live and historical racing” in the first quarter was $248.9 million, compared to $215.8 million in the first quarter of last year. In addition to the historical horse-racing machines, the results include figures from live racing at Fair Grounds in New Orleans and Turfway Park in Kentucky.

Revenue from Twinspires, Churchill’s account-wagering operation, increased 18.5 percent to $114.1 million. Churchill said in its accompanying statements that $14.3 million of the increase was due to its acquisition of a wagering technology company last year.

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