Churchill Downs Incorporated Announces The Rose Gaming Resort to Open with 1,650 HRMs by the end of September 2024
Churchill Downs Incorporated (CHDN) announces an increase in historical racing machines at The Rose Gaming Resort in Northern Virginia, with 500 more HRMs than originally planned. The total capital investment is expected to be $460 million, with $160 million remaining to be spent. The Rose is set to open by the end of September 2024, offering a hotel, food options, and parking spaces.
The decision by Churchill Downs Incorporated to increase the number of historical racing machines (HRMs) at The Rose Gaming Resort has significant implications for the company's revenue potential and market positioning. HRMs, which allow players to bet on replays of past horse races, have become an increasingly popular form of gaming. The addition of 500 more machines than initially planned suggests a strategic move to capture a larger share of the gaming market in Northern Virginia, a region with a growing population and affluence.
From a market perspective, this expansion could be indicative of a larger trend within the gaming industry, where companies are investing heavily in new markets with untapped potential. The Rose's location and its sizeable number of HRMs could position it as a major player in the region, potentially drawing customers from other areas and increasing competitive pressures on existing venues. The anticipated annual tax revenue of $35.5 million also underscores the economic impact such a project could have on local government finances.
Churchill Downs Incorporated's capital investment of $460 million in The Rose Gaming Resort is a substantial financial commitment. With $160 million still to be spent, investors will be closely monitoring the completion of Phase One and the subsequent effect on CDI's financial performance. The one-time contributions totaling $5.6 million to the Town of Dumfries and for the development of a new community center are strategic investments that may improve community relations and support long-term operational stability.
It is important to evaluate the potential return on investment (ROI) for the increased number of HRMs. If the additional games lead to proportional increases in foot traffic and gaming revenue, the impact on CDI's bottom line could be significant. However, investors should also consider the risks of market saturation and the regulatory environment that could affect future operations and profitability.
The creation of over 500 full and part-time jobs as a result of The Rose Gaming Resort's opening will likely have a positive effect on the local economy in Northern Virginia. Job creation is a critical metric that contributes to economic health and in this case, it may stimulate local spending and support secondary employment in the area. Furthermore, the projected $35.5 million in annual tax revenues represents a non-negligible fiscal stimulus that could be reinvested into public services and infrastructure, potentially leading to broader economic benefits.
However, it's essential to analyze the potential opportunity costs associated with this project. While the gaming resort may generate significant direct revenues, there could be indirect costs or lost opportunities in other sectors of the local economy. For example, the resort could draw consumer spending away from other local entertainment or hospitality businesses.
02/21/2024 - 04:02 PM
New Northern Virginia HRM Entertainment Venue will Offer 500 More Games than Originally Planned
LOUISVILLE, Ky., Feb. 21, 2024 (GLOBE NEWSWIRE) -- Churchill Downs Incorporated (Nasdaq: CHDN, “CDI,” or the “Company”) announced today that the Company received approval from the Town of Dumfries to open Phase One of The Rose Gaming Resort (“The Rose”) with 1,650 historical racing machines (“HRMs”). This number represents an increase of 500 HRMs from what CDI had previously announced. The Rose, located in Northern Virginia, is now scheduled to open by the end of September 2024.
The Rose Gaming Resort exterior rendering
The facility will also open with a 102-room hotel, eight food and beverage options and over 2,540 parking spaces. The total capital investment in the project to now expected to be $460 million , with approximately $160 million remaining to be spent as of December 31, 2023. The Company will provide updated development plans for Phase Two at a later date.
As part of CDI’s commitment to the Town of Dumfries, the Company will make a one-time, $3.6 million contribution to the town. CDI will also make a one-time $2.0 million contribution to support the design and development of a new community center, in addition to the public park currently being built on site.
“We are excited to announce that The Rose will open with 1,650 HRMs,” said Bill Carstanjen, CEO of CDI. “We are proud to invest nearly half a billion dollars in Northern Virginia and look forward to creating local jobs and a world class gaming destination.”
The Rose is estimated to generate $35.5 million in annual tax revenues and result in the development of more than 500 full and part-time jobs.
Interior rendering of casual fine dining restaurant “1609”
About Churchill Downs Incorporated
Churchill Downs Incorporated (“CDI”) (Nasdaq: CHDN) has been creating extraordinary entertainment experiences for nearly 150 years, beginning with the company’s most iconic and enduring asset, the Kentucky Derby. Headquartered in Louisville, Kentucky, CDI has expanded through the development of live and historical racing entertainment venues, the growth of the TwinSpires horse racing online wagering business and the operation and development of regional casino gaming properties. www.churchilldownsincorporated.com
This news release contains various “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by the use of terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “predict,” “project,” “seek,” “should,” “will,” “scheduled,” and similar words or similar expressions (or negative versions of such words or expressions).
Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Important factors, that could cause actual results to differ materially from expectations include the following: the occurrence of extraordinary events, such as terrorist attacks, public health threats, civil unrest, and inclement weather, including as a result of climate change; the effect of economic conditions on our consumers' confidence and discretionary spending or our access to credit, including the impact of inflation; additional or increased taxes and fees; the impact of any pandemics, epidemics, or outbreaks of infectious diseases, including possible new variants of COVID-19, and related economic matters on our results of operations, financial conditions and prospects; lack of confidence in the integrity of our core businesses or any deterioration in our reputation; loss of key or highly skilled personnel, as well as general disruptions in the general labor market; the impact of significant competition, and the expectation the competition levels will increase; changes in consumer preferences, attendance, wagering, and sponsorships; risks associated with equity investments, strategic alliances and other third-party agreements; inability to respond to rapid technological changes in a timely manner; concentration and evolution of slot machine and historical racing machine (HRM) manufacturing and other technology conditions that could impose additional costs; failure to enter into or maintain agreements with industry constituents, including horsemen and other racetracks; inability to successfully focus on market access and retail operations for our TwinSpires sports betting business and effectively compete; online security risk, including cyber-security breaches, or loss or misuse of our stored information as a result of a breach including customers’ personal information could lead to government enforcement actions or other litigation; reliance on our technology services and catastrophic events and system failures disrupting our operations; inability to identify, complete, or fully realize the benefits of our proposed acquisitions, divestitures, development of new venues or the expansion of existing facilities on time, on budget, or as planned; difficulty in integrating recent or future acquisitions into our operations; cost overruns and other uncertainties associated with the development of new venues and the expansion of existing facilities; general risks related to real estate ownership and significant expenditures, including risks related to environmental liabilities; personal injury litigation related to injuries occurring at our racetracks; compliance with the Foreign Corrupt Practices Act or other similar laws and regulations, or applicable anti-money laundering regulations; payment-related risks, such as risk associated with fraudulent credit card or debit card use; work stoppages and labor problems; risks related to pending or future legal proceedings and other actions; highly regulated operations and changes in the regulatory environment could adversely affect our business; restrictions in our debt facilities limiting our flexibility to operate our business; failure to comply with the financial ratios and other covenants in our debt facilities and other indebtedness; increases to interest rates (due to inflation or otherwise), disruption in the credit markets or changes to our credit ratings may adversely affect our business; increase in our insurance costs, or inability to obtain similar insurance coverage in the future, and any inability to recover under our insurance policies for damages sustained at our properties in the event of inclement weather and casualty events; and other factors described under the heading “Risk Factors” in our most recent Annual Report on Form 10-K and in other filings we make with the Securities and Exchange Commission.
We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Photos accompanying this announcement are available athttps://www.globenewswire.com/NewsRoom/AttachmentNg/7a012837-d8e4-47a2-b329-c4c3e4ef67e2 https://www.globenewswire.com/NewsRoom/AttachmentNg/14d34b6b-61da-4b5e-9e22-e9b3015e0081
How many historical racing machines will The Rose Gaming Resort have?
The Rose Gaming Resort will have 1,650 historical racing machines.
What is the total capital investment expected for The Rose Gaming Resort project?
The total capital investment for The Rose Gaming Resort project is $460 million.
When is The Rose Gaming Resort scheduled to open?
The Rose Gaming Resort is scheduled to open by the end of September 2024.
How many jobs is The Rose Gaming Resort estimated to create?
The Rose Gaming Resort is estimated to create more than 500 full and part-time jobs.
What contributions will Churchill Downs Incorporated make to the Town of Dumfries?
Churchill Downs Incorporated will make a one-time $3.6 million contribution to the town and a one-time $2.0 million contribution to support the design and development of a new community center.
