Strong Derby Week Helps CDI to Record-Breaking Quarter

At the close of trading July 29, Churchill Downs Inc. reported record net revenue for the second quarter of 2026 on a day it also announced a return to 100% ownership of United Tote Company, while also providing an update on capital projects at its flagship racetrack in Louisville, Ky. For the quarter (April 1-June 30), CDI reported a 5% increase in net revenue when compared with the same three months of 2025 for record net revenue of $980 million. A record-breaking Kentucky Derby week contributed to that performance, as the company noted record all-sources wagering on its races that week, a 12% increase in peak viewing of the Kentucky Derby (G1) race (24.4 million), an 11% spike in average viewership of the race (19.6 million), and record all-sources wagering on the Kentucky Oaks (G1) card in the first year that race was contested in primetime. Thanks to that successful Derby week, the company reported a $21 million increase in revenue attributable to Churchill Downs racetrack for the quarter behind increased NBC broadcast revenue, elevated ticketing revenue, increased sponsorship and licensing revenue, and boosted pari-mutuel handle. Also Wednesday, CDI said in a press release that it had repurchased a 49% share in United Tote from NYRA Content Management Solutions, a subsidiary of the New York Racing Association. That returns CDI to complete ownership of United Tote after it had sold that 49% share to NYRA in April 2024. At the time of the sale some two years ago, NYRA agreed to use United Tote for its racetracks and gaming-related pari-mutuel systems. CDI noted Wednesday that concurrent with the repurchase of the 49% share of United Tote, NYRA has agreed to extend its tote services agreement with United Tote through 2035. CDI said the acquisition supports its long-term strategy to own and vertically integrate key technologies and services related to pari-mutuel wagering and horse racing, while strengthening its position as a leading business-to-business distributor of horse racing content and provider of racing services and enhancing its ability to develop, deploy, and manage critical horse racing-related wagering technology. The transaction is expected to close by Aug. 5. Also Wednesday, CDI updated progress on three current and upcoming capital projects at Churchill Downs expected to be completed in 2027 and 2028: Victory Run, Homestretch Club Expansion, and Infield Seating Upgrade. "Our new premium hospitality offerings at a range of attractive price points will be greatly enhanced and expanded by our investments in our flagship asset," said CDI CEO Bill Carstanjen. "We remain committed to elevating the guest experience to support long-term growth." Carstanjen on Victory Run "We began construction on Victory Run following the 152nd Kentucky Derby. The project is expected to be completed ahead of the 154th Kentucky Derby in 2028. Located on the first turn of Churchill Downs between the Ford First Turn Club and the Skye Terrace, the new four-story structure will provide a modern premium hospitality experience with exceptional views of the finish line, including private suites, indoor and outdoor dining, and covered box seating. Churchill Downs expects to offer guests temporary covered seating with enhanced amenities in this area for the 153rd Kentucky Derby in 2027." Carstanjen on Homestretch Club Expansion "We will be expanding the Homestretch Club to enhance the guest experience by creating more space for patrons, adding VIP seating areas, and enhancing food and beverage infrastructure. This expansion is expected to be completed by the 153rd Kentucky Derby in 2027." Carstanjen on Infield Seating Upgrade "The Infield Seating Upgrade will create additional temporary seating offerings in the infield and will expand opportunities for sponsorship activations. We will be redeveloping the infield areas on both sides of the Winners' Pagoda, which is the historic building in the infield near the finish line where the Kentucky Derby winners receive their trophies. We will be removing the tote boards so we can create new customer experiences in a very desirable area of the infield with exceptional views of the homestretch, the finish line, and the Derby winner's trophy presentation. We are adding 1,400 temporary seats and will be testing a new infield cabana offering with 500 covered reserved seats along the turf course. We are also making underground infrastructure improvements in the first turn area of the infield to create a more level area for a sponsored music stage and new bar and lounge concepts. This project is expected to be completed by the 153rd Kentucky Derby in 2027. We will continue to evaluate long-term permanent entertainment experiences for these very highly desirable areas of the infield."