The legendary Churchill Downs horse racing venue witnessed an unprecedented second quarter in 2022, amassing a remarkable $582.5 million in net revenue. This impressive sum signifies a $67.4 million increase from the corresponding period the previous year, establishing a new standard for the Kentucky Derby’s renowned location.
The storied racecourse experienced a phenomenal $231.3 million rise in revenue compared to the second quarter of 2021. This surge was primarily attributed to the full-scale return of the Kentucky Derby in its 148th edition. The spectacle shattered wagering records and propelled Churchill Downs to its highest-ever post-Derby week earnings before interest, taxes, depreciation, and amortization (EBITDA).
This unparalleled EBITDA of $291.2 million, a substantial jump from the $233.3 million reported in the second quarter of 2021, highlights the event’s immense financial triumph.
Adding to their string of successes, Churchill Downs made a shrewd business decision by divesting 115.7 acres of undeveloped property adjacent to Calder Casino to Link Logistics, a Blackstone-owned entity. This transaction generated an additional $291 million, further strengthening their financial position.
The purchase of this land by Link Logistics, a leading real estate firm, holds promising prospects. It is expected to facilitate improved connectivity between Churchill Downs Racetrack and Calder Casino. This, in turn, could draw even greater throngs to horse racing spectacles, stimulating further revenue expansion in the times ahead.
In a strategic maneuver to broaden their presence in the gaming and entertainment industry, Churchill Downs also finalized the acquisition of Peninsula Pacific Entertainment (P2E) for a substantial $2.48 billion.
Churchill Downs Inc. is poised to broaden its reach, assuming control of the Colonial Downs Racetrack located in New Kent County, Virginia, in addition to six other racing facilities within the state. This agreement encompasses the acquisition of del Lago Resort & Casino situated in Waterloo, New York, and the undertaking of operational responsibilities for the Hard Rock Hotel & Casino in Sioux City, Iowa.
Nonetheless, these acquisitions are contingent upon receiving the green light from both the New York State Gaming Commission and the Iowa Racing and Gaming Commission. Churchill Downs Inc. projects the finalization of this transaction before the commencement of 2023.