Churchill Downs Posts Record Q2 Revenue, Then Puts Nine Casino Properties Up for Sale

Churchill Downs Incorporated posted record second-quarter financials on July 29, reporting $980 million in revenue and $477 million in EBITDA — the company’s sixth consecutive record second quarter for both metrics. Just one day later, CEO Bill Carstanjen announced the company would put nine of its gaming properties up for sale as part of a broader strategic pivot toward its core racing and gaming assets.

The properties on the block span seven states: Calder Casino in Florida, Terre Haute Casino in Indiana, Hard Rock Casino in Iowa, Oxford Casino in Maine, Ocean Downs in Maryland, Harlow’s and Riverwalk Casinos in Mississippi, Del Lago in New York, and Presque Isle in Pennsylvania. The move comes even as the company touts strong underlying performance, a detail Carstanjen was careful to frame during the earnings call.

Why Sell Now, With Revenue at an All-Time High

Carstanjen described the properties as strong performers rather than distressed assets the company is offloading out of necessity. “First and foremost, these are assets with long histories of good cash-flow generation, capital, and performance,” he said. “Certainly it’s the case that there’s activity in the market in this space in general… we think this is an excellent time for us to go to market.”

Rather than a single bulk sale, Churchill Downs expects to pursue individual transactions or small bundles depending on buyer interest. Notably absent from the sale list are the company’s historical racing machine (HRM) properties in Kentucky, Virginia, and New Hampshire — signaling exactly where Churchill Downs intends to concentrate going forward.

Where the Money Goes and What Stays

Carstanjen laid out three priorities for any proceeds from the sales: paying down leverage, reinvesting in Churchill Downs Racetrack and other high-return projects, and funding share repurchases. Going forward, the company says it will focus on three cornerstone businesses — the Kentucky Derby, its HRM operations, and its Twin Spires wagering platform.

The Virginia HRM footprint is a particular growth focus. Churchill Downs holds rights to 10 HRM licenses and 5,000 machines in the state, and Carstanjen said the company is exploring referendums in the town of Pulaski and in Amherst County to expand further into what he called “underserved markets with attractive growth potentials.” In Kentucky, the company operates eight HRM venues with roughly 5,300 machines, and purses at Churchill Downs Racetrack have grown from under $40 million to more than $100 million since Derby City Gaming opened in Louisville in 2008.

Carstanjen also addressed Pennsylvania directly, where the state Supreme Court recently ruled that unregulated skill games are illegal gaming devices under state law. “We play by the rules. We’re licensed. We pay taxes,” he said, calling the ruling “good for Presque Isle” and for licensed operators competing against unregulated machines in the state — even as Presque Isle itself sits on the list of properties Churchill Downs intends to sell.

What It Means for the Regional Casino Market

The divestment puts nine casino properties into play across a mix of competitive and value-oriented regional markets, which could draw interest from operators looking to expand their footprints without competing directly with the biggest national brands. For bettors and casino visitors, ownership changes at these properties likely mean gradual shifts in loyalty programs and branding rather than immediate disruption, though the timeline for any sales will depend on how quickly Churchill Downs finds buyers for individual assets or small bundles. Anyone tracking odds and promos at national sportsbooks tied to these markets can check the latest DraftKings promo code offers as the regional casino landscape continues to shift.