Church Downs Stock Price, News & Analysis

Churchill Downs Incorporated (NASDAQ: CHDN) is a gaming entertainment, online wagering, and racing company in the U.S. arts, entertainment, and recreation sector. The company is known for creating entertainment experiences for over 150 years, beginning with its most iconic and enduring asset, the Kentucky Derby. Headquartered in Louisville, Kentucky, Churchill Downs Incorporated ("CDI") develops and operates live and historical racing venues, online wagering businesses, and regional casino gaming properties.

According to company disclosures, CDI’s operations are organized around three primary areas that align with its reported segments and activities: Live and Historical Racing, Wagering Services and Solutions, and Gaming. These segments reflect how CDI participates in horse racing, historical racing machine (HRM) entertainment, online wagering, and casino-style gaming.

Live and Historical Racing

The Live and Historical Racing activities include live pari-mutuel racing and historical racing entertainment venues. This segment encompasses Churchill Downs Racetrack, home of the Kentucky Derby, and multiple HRM venues in Kentucky and Virginia. Company reports describe revenue contributions from Kentucky HRM venues in Western Kentucky, Louisville, Northern Kentucky, and Southwestern Kentucky, as well as Virginia HRM venues in Northern and Central Virginia and other locations in the state.

CDI has also expanded its live and historical racing footprint through projects such as The Rose Gaming Resort and Rosie's-branded venues in Virginia, along with new developments like Roseshire Gaming Parlor in Henrico County, Virginia. In New Hampshire, the company operates a temporary facility at Casino Salem and has outlined plans to redevelop and expand this location.

Wagering Services and Solutions

The Wagering Services and Solutions segment reflects CDI’s online and technology-enabled wagering activities. Company disclosures state that this segment includes pari-mutuel wagers through TwinSpires Horse Racing, as well as contributions from Exacta, which is associated with incremental HRMs in Virginia and New Hampshire, and the company’s sports betting business.

These wagering services support online and retail betting on horse racing and other approved activities. CDI uses this segment to report revenue and Adjusted EBITDA from TwinSpires Horse Racing, sports betting, and technology and content-related solutions tied to HRM operations.

Gaming

The Gaming segment includes CDI’s regional casino gaming properties and associated racetracks that support casino licenses. According to company descriptions, this segment generates revenue and expenses from slot machines, video lottery terminals, video poker, historical racing machines, ancillary food and beverage services, hotel services, commissions on pari-mutuel wagering, and racing events.

CDI’s gaming operations span multiple states, with company reports referencing wholly owned gaming properties and equity investments such as Miami Valley Gaming and Rivers Des Plaines. The company has also noted changes in its gaming mix, including the cessation of HRM operations in Louisiana and performance at properties in New York, Maine, Indiana, Iowa, and other markets.

Strategic Expansion and Development

Churchill Downs Incorporated emphasizes growth through acquisition, development, and expansion of its venues and properties. The company has reported acquiring 90% of Casino Salem in Salem, New Hampshire, with the right to develop a charitable gaming, entertainment, and dining destination featuring historical horse racing machines. Following this transaction, local partners Joe Faro and Sal Lupoli maintain a minority ownership stake and contribute local expertise.

CDI later announced detailed development plans to transform Casino Salem into Rockingham Grand Casino, a larger charitable gaming facility within The Mall at Rockingham Park. The planned venue is expected to feature historical racing machines, table games, electronic table game seats, a live entertainment venue, and multiple food and beverage concepts, positioning it as a key tenant in a major regional retail and entertainment area.

At Churchill Downs Racetrack, CDI has announced the Victory Run project, a multi-level hospitality structure on the first turn of the racetrack between the First Turn Club and the Skye Terrace. This project is intended to replace existing seating and dining areas with premium hospitality experiences, including private suites, indoor and outdoor dining, and covered box seating, with capacity for thousands of guests.

Brand and Media Relationships

CDI’s identity is closely tied to the Kentucky Derby and related racing events. Company communications highlight the Kentucky Derby as its most iconic asset and describe record wagering and viewership for Derby Week. CDI has a long-running media relationship with NBC Sports, which broadcasts the Kentucky Derby and Kentucky Oaks. The company and NBC Sports have announced that the Kentucky Oaks will be presented in primetime for the first time, and that NBC will continue as the broadcast home of the Kentucky Derby under a multi-year extension.

These events contribute to CDI’s live racing segment through wagering, ticketing, and licensing and sponsorship revenue, and they support the prominence of the Churchill Downs Racetrack brand in the broader sports and entertainment landscape.

Financial and Capital Management Approach

CDI regularly reports its results by segment and uses non-GAAP measures such as Adjusted EBITDA, adjusted net income, and adjusted diluted EPS as key performance metrics. The company explains that these measures are used internally to evaluate operating performance, compare results between periods, and assess segment performance and resource allocation.

The company’s capital management practices include share repurchase programs and annual dividends. CDI has disclosed multiple stock repurchase authorizations, including a $500 million share repurchase program approved by its Board of Directors, and has reported consecutive years of increased annual cash dividends per share. The company also discusses leverage, tax legislation impacts, and other financial considerations in its quarterly results.

Technology and Compliance Partnerships

CDI has entered into a seven-year relationship with Everi, an IGT brand, to utilize CashClub financial access services and other financial technology solutions across its live and historical racing venues and regional gaming properties. According to the announcement, CDI plans to implement ATM, debit, credit, and check services, as well as Everi Compliance anti-money laundering technology and additional back-office gaming operations tools.

The company also notes that Everi’s BeOn Venue Platform powers the Churchill Downs Racetrack mobile app and that IGT provides historical horse racing games and hardware. These relationships support CDI’s focus on secure financial transactions, regulatory compliance, and technology-enabled guest experiences at its properties.

Corporate Structure and Regulation

Churchill Downs Incorporated is incorporated in Kentucky and its common stock, with no par value, trades on The Nasdaq Global Select Market under the ticker symbol CHDN. As a public company, CDI files periodic and current reports with the U.S. Securities and Exchange Commission (SEC), including Forms 10-K, 10-Q, and 8-K. Recent 8-K filings have covered quarterly financial results, share repurchase authorizations, acquisitions such as Casino Salem, and executive compensation arrangements.

CDI operates in a highly regulated industry that includes gaming, pari-mutuel wagering, and online betting. Company disclosures describe a range of risk factors related to regulation, taxation, competition, technology, consumer behavior, and other operational and financial considerations.

Business Model Summary

Overall, Churchill Downs Incorporated’s business model combines:

• Live and historical racing venues, including Churchill Downs Racetrack and HRM facilities in Kentucky, Virginia, and other jurisdictions.
• Online and technology-driven wagering services through TwinSpires Horse Racing, sports betting operations, and solutions tied to HRM networks.
• Regional casino gaming properties that generate revenue from gaming devices, racing, and related hospitality services.

Growth is driven by acquisitions, development of new venues, expansion of existing facilities, and partnerships that enhance financial technology, compliance, and customer engagement. CDI’s long history with the Kentucky Derby and its ongoing investments in racing, wagering, and gaming assets underpin the CHDN stock story for investors seeking exposure to the gaming entertainment and racing industry.