Church Downs Stock Price, News & Analysis

Churchill Downs Incorporated (CHDN) and DraftKings (DKNG) have forged a multi-year agreement to introduce horse racing betting to DraftKings' platform via DK HORSE. This product, powered by CDI's TwinSpires technology, is set to launch before the Kentucky Derby in May 2023, initially available in 21 states. DraftKings aims for DK HORSE to be profitable from the start, enhancing customer engagement during key racing events. The agreement grants DraftKings rights to CDI's horse racing content, including prestigious races like the Kentucky Oaks.

Churchill Downs Incorporated has completed the acquisition of Peninsula Pacific Entertainment LLC for $2.75 billion, significantly expanding its operations into Virginia, New York, and Iowa. The acquisition includes key properties like Colonial Downs Racetrack in Virginia and Del Lago Resort & Casino in New York, enhancing growth opportunities. CDI aims to leverage these assets and expand through development rights for additional venues, including up to 5 new HRM locations in Virginia, boosting its gaming portfolio and market presence.

Churchill Downs reported its third-quarter results for 2022, showing a net revenue of $383.1 million, down from $393.0 million in Q3 2021. Net income also decreased to $57.0 million from $61.4 million. However, the company achieved a record Adjusted EBITDA of $163.2 million, up from $156.1 million the previous year. Key acquisitions include Chasers Poker Room and Ellis Park, totaling $79 million. The board announced a 7% increase in the annual dividend, now at $0.714 per share.

Churchill Downs Incorporated (CHDN) will release its third quarter 2022 financial results on October 26, 2022, after market close. A conference call to discuss the results will take place on October 27, 2022, at 9 a.m. ET. Investors can access the live stream on their website and an online replay will be available by noon ET the following day. CDI operates numerous gaming venues and is a leader in online wagering through TwinSpires, alongside its brick-and-mortar casinos in eight states.

Churchill Downs Incorporated (CHDN) announced the acquisition of Ellis Park Racing & Gaming for $79 million in cash. The deal includes the opportunity to develop a track extension facility with historical racing machines in Owensboro, Kentucky. The acquisition follows approval from the Kentucky Horse Racing Commission and was funded through cash and existing credit facilities. CDI aims to enhance racing infrastructure and improve purses, reflecting its strategic growth in the gaming sector.

Churchill Downs Incorporated (CHDN) has announced its acquisition of Ellis Park Racing & Gaming for $79 million, enhancing its portfolio in Kentucky. The deal allows CDI to build a new gaming and entertainment venue in Owensboro, featuring 600 historical racing machines (HRMs) and a simulcast wagering center. With plans for a total investment of $75 million in the region, this acquisition aims to revitalize Ellis Park and solidify CDI's presence in the horse racing industry. The transaction is pending regulatory approval from the Kentucky Horse Racing Commission.

Churchill Downs Incorporated (CHDN) has entered into a multi-year agreement with FanDuel Group to enhance sports wagering capabilities. The deal includes pari-mutuel wagering rights for horse racing content, authorization for FanDuel to broadcast certain CDI racing events, and a non-exclusive sponsorship of the Kentucky Derby.

Starting January 2023, FanDuel will pay for technology and services from United Tote to facilitate wagering. CDI expects to gain customary content fees when wagers are placed on its owned horse racing content.

Churchill Downs Incorporated (CHDN) has completed the acquisition of Chasers Poker Room in Salem, New Hampshire, following approval from the New Hampshire Lottery Commission. The purchase marks a significant expansion into the charitable gaming sector, with CDI planning to invest approximately $150 million to enhance its operations. The new facility will feature 800 gaming positions, including historical racing machines. This acquisition allows CDI to operate historical horse racing in four states, reinforcing its position in the gaming industry and supporting local nonprofits.

Churchill Downs Incorporated (CHDN) has agreed to sell 49% of its subsidiary, United Tote Company, to NYRA Content Management Solutions, LLC. This strategic move aims to enhance United Tote's pari-mutuel solutions and facilitate the integration of horse racing with sports wagering platforms. The transaction is subject to regulatory approvals and is expected to finalize by the end of 2022. United Tote's pari-mutuel settlements business will remain with CDI. This partnership with NYRA is positioned to expand market reach and operational efficiencies.