Churchill Downs Incorporated (CHDN): Business Model Canvas

Churchill Downs Incorporated (CHDN) gilt als Gigant in der Pferderenn- und Unterhaltungsbranche und verändert traditionelle Glücksspielerlebnisse durch innovative Technologie und strategische Diversifizierung. Vom legendären Kentucky Derby bis hin zu hochmodernen digitalen Wettplattformen hat dieses Kraftpaket die Art und Weise, wie Sportbegeisterte mit Rennen und Spielen interagieren, neu definiert und ein facettenreiches Geschäftsmodell geschaffen, das Tradition, Unterhaltung und digitale Innovation nahtlos miteinander verbindet. Durch die Nutzung fortschrittlicher Technologien, strategischer Partnerschaften und einem tiefen Verständnis der Kundenpräferenzen hat sich CHDN als führender Anbieter dynamischer, immersiver Erlebnisse positioniert, die weit über die Rennstrecke hinausgehen.

Churchill Downs Incorporated (CHDN) – Geschäftsmodell: Wichtige Partnerschaften

Strategische Partnerschaften mit Pferderennbahnen und Veranstaltungsorten

Churchill Downs Incorporated unterhält Partnerschaften mit den folgenden wichtigen Rennsportstätten:

Veranstaltungsort	Standort	Einzelheiten zur Partnerschaft
Rennstrecke Churchill Downs	Louisville, Kentucky	Flaggschiff-Hotel, in dem das Kentucky Derby ausgetragen wird
Turfway Park	Florence, Kentucky	Eigene Rennanlage
Rennstrecke Fair Grounds	New Orleans, Louisiana	Eigene Rennstätte

Zusammenarbeit mit großen Sportwettenplattformen

Zu den wichtigsten Partnerschaften mit Wettplattformen gehören:

• Flutter Entertainment (FanDuel) – Integration digitaler Wetten
• BetMGM – Zusammenarbeit bei Online-Sportwetten
• Penn Entertainment – Regionale Wettpartnerschaften

Lizenzvereinbarungen mit Medien- und Rundfunksendern

Netzwerk	Vereinbarungstyp	Abdeckung
NBC-Sport	Übertragungsrechte	Berichterstattung über das Kentucky Derby
CBS Sports	Medienlizenzierung	Übertragungen von großen Rennveranstaltungen

Partnerschaften mit Technologieanbietern für digitale Plattformen

• TwinSpires.com – Proprietäre Online-Wettplattform
• IGT (International Game Technology) – Digitale Gaming-Lösungen
• Scientific Games Corporation – Gaming-Technologiepartnerschaften

Beziehungen zu Pferdezucht- und Rennverbänden

Verein	Partnerschaftsfokus	Umfang der Zusammenarbeit
Breeders' Cup Limited	Koordinierung von Rennveranstaltungen	Jährliches Management der Meisterschaftsserie
Kentucky Horse Racing Commission	Einhaltung gesetzlicher Vorschriften	Rennvorschriften auf Landesebene

Churchill Downs Incorporated (CHDN) – Geschäftsmodell: Hauptaktivitäten

Management und Organisation von Pferderennen-Events

Gastgeber von Churchill Downs Über 400 Rennveranstaltungen jährlich über mehrere Rennstrecken.

Ereignistyp	Jährliche Zahl	Gesamtanwesenheit
Kentucky Derby	1 Flaggschiff-Event	Über 150.000 Teilnehmer
Regionale Rennveranstaltungen	Über 390 Veranstaltungen	Insgesamt 1,2 Millionen Teilnehmer

Casino- und Glücksspielbetrieb

CHDN ist tätig 6 Casino-Immobilien über mehrere Staaten hinweg.

Casino-Standort	Spielpositionen	Jahresumsatz
Oxford, Mississippi	1.100 Spielpositionen	178,3 Millionen US-Dollar (2022)
Kansas City, Missouri	1.200 Spielpositionen	203,7 Millionen US-Dollar (2022)

Plattformen für Online-Wetten und digitales Glücksspiel

Die TwinSpires-Plattform generiert 213,4 Millionen US-Dollar an Einnahmen aus digitalen Wetten im Jahr 2022.

• Online-Wettplattformen in 30 Bundesstaaten
• Mobile App mit 1,2 Millionen registrierten Benutzern
• Marktanteil digitaler Wetten: 8,3 %

Veranstaltungsortmanagement und Unterhaltungshosting

CHDN verwaltet 7 große Unterhaltungsstätten.

Veranstaltungsort	Kapazität	Jährliche Veranstaltungen
Rennstrecke Churchill Downs	165,000	Über 50 Veranstaltungen
Andere Unterhaltungsstätten	75.000-120.000 Kapazität	Insgesamt über 200 Veranstaltungen

Sporttechnologie und digitale Innovationsentwicklung

Jährliche Technologieinvestition: 42,6 Millionen US-Dollar.

• Erweiterte Wettalgorithmen
• Echtzeit-Rennverfolgungstechnologie
• Entwicklung mobiler Plattformen

Churchill Downs Incorporated (CHDN) – Geschäftsmodell: Schlüsselressourcen

Churchill Downs Rennstrecke und mehrere Rennorte

Churchill Downs Incorporated besitzt die folgenden wichtigen Rennorte:

Veranstaltungsort	Standort	Jährliche Renntage
Rennstrecke Churchill Downs	Louisville, Kentucky	37 Renntage im Jahr 2022
Keeneland-Rennstrecke	Lexington, Kentucky	44 Renntage im Jahr 2022
Rennstrecke Fair Grounds	New Orleans, Louisiana	63 Renntage im Jahr 2022

Fortschrittliche Infrastruktur für Wett- und Gaming-Technologie

Die Technologieinfrastruktur umfasst:

• TwinSpires Online-Wettplattform
• Mobile Wettanwendungen
• Echtzeit-Wettsysteme

Umfangreiche Erfahrung im Bereich Pferderennen und Sportwetten

Wichtige Kompetenzkennzahlen:

Fachgebiet	Quantitatives Maß
Jahre in der Pferderennbranche	145 Jahre
Gesamter jährlicher Wetteinsatz	5,2 Milliarden US-Dollar im Jahr 2022
Online-Wettkunden	1,3 Millionen aktive Benutzer

Starker Markenruf in der Pferderennbranche

Kennzahlen zur Markenreputation:

• Kentucky Derby ist seit 1875 Gastgeber
• Marktführerschaft im Bereich Pferderennunterhaltung
• Weltweit anerkannt für Rennveranstaltungen

Robuste digitale Plattform und mobile Wettanwendungen

Leistung der digitalen Plattform:

Digitale Plattformmetrik	Leistung 2022
Einnahmen aus mobilen Wetten	493,2 Millionen US-Dollar
Benutzer digitaler Plattformen	1,1 Millionen registrierte Benutzer
Mobile App-Downloads	875.000 im Jahr 2022

Churchill Downs Incorporated (CHDN) – Geschäftsmodell: Wertversprechen

Erstklassiges Unterhaltungserlebnis für Pferderennen

Churchill Downs ist Gastgeber Kentucky Derbyund erwirtschaftete im Jahr 2022 einen Umsatz von 187,8 Millionen US-Dollar mit Live-Rennveranstaltungen. Das Unternehmen betreibt vier große Rennstrecken in den Vereinigten Staaten.

Rennstrecke	Standort	Jährliche Rennveranstaltungen
Churchill Downs	Louisville, Kentucky	35 Renntage
Keeneland	Lexington, Kentucky	28 Renntage
Messegelände	New Orleans, Louisiana	44 Renntage

Vielfältige Glücksspiel- und Wettmöglichkeiten

Das Unternehmen erwirtschaftete im Jahr 2022 einen Gesamtumsatz von 1,57 Milliarden US-Dollar aus dem Glücksspielgeschäft, zu den wichtigsten Segmenten gehören:

• Online-Sportwettenplattformen
• Casino-Gaming
• Fortschrittliche Wetttechnologien

Hochwertige Live- und digitale Sportveranstaltungen

Das Segment Churchill Downs Interactive meldete für 2022 einen Umsatz von 354,2 Millionen US-Dollar und konzentrierte sich auf digitale Sportunterhaltung.

Digitale Plattform	Benutzerbasis	Jahresumsatz
TwinSpires	Über 500.000 registrierte Benutzer	221,5 Millionen US-Dollar
BetAmerica	250.000 registrierte Benutzer	132,7 Millionen US-Dollar

Innovative Wetttechnologien und -plattformen

Die Investitionen in Technologieplattformen erreichten im Jahr 2022 42,3 Millionen US-Dollar und verbesserten das digitale Wetterlebnis.

Einzigartige und prestigeträchtige Rennerlebnisse

Das Kentucky Derby zieht jedes Jahr über 150.000 Live-Besucher an, mit wirtschaftlichen Auswirkungen von etwa 400 Millionen US-Dollar für Louisville.

• Durchschnittlicher Ticketpreis: 350–1.500 $
• Weltweite Medienberichterstattung erreicht 16 Millionen Zuschauer
• Internationale Wettpools mit einem Wert von mehr als 250 Millionen US-Dollar

Churchill Downs Incorporated (CHDN) – Geschäftsmodell: Kundenbeziehungen

Treueprogramme für Vielwettende

Churchill Downs bietet das TwinSpires-Prämienprogramm, das folgende Struktur hat:

Belohnungsstufe	Verdiente Punkte pro eingesetztem 1 $	Jährlicher Rückzahlungswert
Bronze	0,5 Punkte	$50-$100
Silber	1 Punkt	$100-$250
Gold	1,5 Punkte	$250-$500

Personalisierte digitale Wetterlebnisse

Kennzahlen zu digitalen Plattformen für 2023:

• Downloads mobiler Apps: 1,2 Millionen
• Aktive digitale Nutzer: 875.000
• Durchschnittlicher Online-Einsatz: 87 $

Kundensupport über mehrere Kanäle

Support-Kanal	Durchschnittliche Reaktionszeit	Kundenzufriedenheitsrate
Telefonsupport	7 Minuten	88%
Live-Chat	3 Minuten	92%
E-Mail-Support	24 Stunden	85%

Engagement über mobile und Online-Plattformen

Statistiken zum Plattform-Engagement für 2023:

• Nutzung der mobilen Plattform: 67 % aller Wetten
• Einzigartige Besucher der Online-Plattform: 1,5 Millionen monatlich
• Durchschnittliche Sitzungsdauer: 22 Minuten

Gemeinschaftsaufbau rund um Pferderennen

Veranstaltung	Jährliche Teilnehmer	Social-Media-Engagement
Kentucky Derby	150.000 Live-Besucher	3,2 Millionen Social-Media-Interaktionen
Züchterpokal	70.000 Live-Besucher	1,8 Millionen Social-Media-Interaktionen

Churchill Downs Incorporated (CHDN) – Geschäftsmodell: Kanäle

Online-Wett-Websites

TwinSpires.com erzielte im Jahr 2022 einen Umsatz von 248,7 Millionen US-Dollar. Die Online-Wettplattform wickelte im Geschäftsjahr rund 47,3 Millionen Wetten ab.

Plattform	Jahresumsatz	Anzahl der Einsätze
TwinSpires.com	248,7 Millionen US-Dollar	47,3 Millionen

Mobile Wettanwendungen

Im Jahr 2022 erreichten die Downloads der mobilen App von Churchill Downs 1,2 Millionen Nutzer, was einem Anstieg der mobilen Wetttransaktionen um 35 % im Vergleich zu 2021 entspricht.

• Gesamtzahl der mobilen App-Nutzer: 1,2 Millionen
• Wachstum der mobilen Wetttransaktionen: 35 %

Physische Rennstrecken und Veranstaltungsorte

Churchill Downs betreibt vier Hauptrennstrecken mit einer jährlichen Gesamtbesucherzahl von 1,5 Millionen Besuchern im Jahr 2022.

Standort der Rennstrecke	Jährliche Anwesenheit
Churchill Downs (Louisville, KY)	750,000
Andere CHDN-Rennstrecken	750,000

Social-Media-Plattformen

Churchill Downs unterhält eine aktive Social-Media-Präsenz mit insgesamt 2,3 Millionen Followern auf allen Plattformen.

• Twitter-Follower: 850.000
• Facebook-Follower: 1.000.000
• Instagram-Follower: 450.000

Traditionelle und digitale Marketingkanäle

Die Marketingausgaben für 2022 beliefen sich auf insgesamt 87,4 Millionen US-Dollar, wobei 60 % auf digitale Kanäle entfielen.

Marketingkanal	Prozentsatz des Budgets	Gesamtausgaben
Digitales Marketing	60%	52,44 Millionen US-Dollar
Traditionelles Marketing	40%	34,96 Millionen US-Dollar

Churchill Downs Incorporated (CHDN) – Geschäftsmodell: Kundensegmente

Pferderennen-Enthusiasten

Im Jahr 2022 fanden in Churchill Downs 54 Renntage auf der Churchill Downs Racetrack statt, die insgesamt etwa 1,2 Millionen Besucher anzogen.

Segmentmerkmale	Demografische Details
Durchschnittsalter	45-65 Jahre
Jährliches Wettvolumen	250 Millionen Dollar
Teilnahme am Kentucky Derby	150.729 im Jahr 2022

Sportwetten-Verbraucher

Die Sportwettenplattform TwinSpires erwirtschaftete im Jahr 2022 einen Nettoumsatz von 156,4 Millionen US-Dollar.

• Aktive Sportwettennutzer: 350.000
• Primäre Altersspanne: 25–44 Jahre
• Marktanteil mobiler Wetten: 8,5 %

Casino-Gaming-Spieler

Churchill Downs betreibt mehrere Casino-Anlagen in verschiedenen Bundesstaaten.

Casino-Standort	Jährlicher Gaming-Umsatz
Calder Casino (Florida)	87,3 Millionen US-Dollar
Oxford Casino (Maine)	62,5 Millionen US-Dollar

Nutzer des digitalen Glücksspiels

Der Umsatz im Online-Glücksspielsegment erreichte im Jahr 2022 184,2 Millionen US-Dollar.

• Nutzer der digitalen Plattform: 500.000
• Durchschnittliche monatliche digitale Wetttransaktion: 275 $

Unterhaltungs- und Veranstaltungsteilnehmer

Die Austragungsorte von Churchill Downs fanden im Jahr 2022 75 Nicht-Rennveranstaltungen statt.

Ereignistyp	Gesamtzahl der Teilnehmer
Konzerte	42,500
Firmenveranstaltungen	28,300
Besondere Anlässe	19,200

Churchill Downs Incorporated (CHDN) – Geschäftsmodell: Kostenstruktur

Wartung und Betrieb des Veranstaltungsortes

Im Jahr 2022 meldete Churchill Downs Incorporated 185,4 Millionen US-Dollar an Sachanlagen und Ausrüstung, netto, im Zusammenhang mit der Wartung und dem Betrieb von Veranstaltungsorten.

Veranstaltungsorttyp	Jährliche Wartungskosten
Rennstrecke Churchill Downs	12,3 Millionen US-Dollar
Andere Rennanlagen	8,7 Millionen US-Dollar

Investitionen in die Technologieinfrastruktur

Das Unternehmen investierte im Geschäftsjahr 2022 47,2 Millionen US-Dollar in Technologie und digitale Infrastruktur.

• IT-System-Upgrade: 18,5 Millionen US-Dollar
• Entwicklung digitaler Plattformen: 22,7 Millionen US-Dollar
• Verbesserungen der Cybersicherheit: 6 Millionen US-Dollar

Marketing- und Werbekosten

Die Marketingausgaben für 2022 beliefen sich auf verschiedene Renn- und Gaming-Plattformen auf insgesamt 64,3 Millionen US-Dollar.

Marketingkanal	Kosten
Digitales Marketing	22,6 Millionen US-Dollar
Traditionelle Werbung	41,7 Millionen US-Dollar

Gehälter und Schulungen der Mitarbeiter

Die Gesamtvergütung der Mitarbeiter belief sich im Jahr 2022 auf 273,6 Millionen US-Dollar.

• Grundgehälter: 214,5 Millionen US-Dollar
• Leistungsprämien: 39,2 Millionen US-Dollar
• Schulung und Entwicklung: 19,9 Millionen US-Dollar

Einhaltung gesetzlicher Vorschriften und Lizenzkosten

Die Regulierungs- und Lizenzkosten für 2022 beliefen sich auf 37,5 Millionen US-Dollar.

Compliance-Kategorie	Jährliche Kosten
Gaming-Lizenzen	22,3 Millionen US-Dollar
Gebühren der Rennkommission	15,2 Millionen US-Dollar

Churchill Downs Incorporated (CHDN) – Geschäftsmodell: Einnahmequellen

Ticketverkauf für Live-Events

Im Jahr 2022 war die Churchill Downs Racetrack Austragungsort des Kentucky Derby und generierte einen Gesamtumsatz aus der Veranstaltung von rund 188,7 Millionen US-Dollar. Der durchschnittliche Ticketpreis für das Kentucky Derby lag je nach Sitzplatz zwischen 70 und 500 US-Dollar.

Einnahmen aus Online- und Mobilwetten

Die digitale Plattform TwinSpires meldete für das Geschäftsjahr 2022 Einnahmen aus Online-Wetten in Höhe von 372,5 Millionen US-Dollar. Mobile Wetten machten 67 % der gesamten Online-Wetttransaktionen aus.

Plattform	Umsatz (2022)	Marktanteil
TwinSpires Online-Wetten	372,5 Millionen US-Dollar	42 % des digitalen Marktes
Mobiles Wettsegment	249,38 Millionen US-Dollar	67 % der Online-Plattform

Einnahmen aus Casinospielen

Die Casino-Immobilien in Churchill Downs erwirtschafteten im Jahr 2022 Spieleinnahmen in Höhe von 517,2 Millionen US-Dollar. Zu den wichtigsten Immobilien zählen:

• Turfway Park Racing & Gaming: 86,3 Millionen US-Dollar
• Oxford Casino (Maine): 124,6 Millionen US-Dollar
• Calder Casino (Florida): 152,9 Millionen US-Dollar

Sponsoring und Werbung

Die Sponsoringeinnahmen für Churchill Downs beliefen sich im Jahr 2022 auf insgesamt 43,7 Millionen US-Dollar. Zu den wichtigsten Partnern zählen:

• Woodford Reserve (offizieller Bourbon)
• Jack Daniels
• Longines

Abonnementdienste für digitale Plattformen

Die fortschrittliche Wettplattform TwinSpires erwirtschaftete im Jahr 2022 47,3 Millionen US-Dollar aus Abonnement- und Premium-Content-Diensten mit rund 225.000 aktiven Abonnenten.

Abonnementstufe	Monatliche Kosten	Abonnenten
Basisstufe	$14.99	175,000
Premium-Stufe	$29.99	50,000

Churchill Downs Incorporated (CHDN) - Canvas Business Model: Value Propositions

You're looking at the core value drivers for Churchill Downs Incorporated as of late 2025, based on their Q2 2025 performance. Here's the quick math on what they are delivering to customers and shareholders.

Iconic Entertainment: The spectacle and tradition of the Kentucky Derby

The 151st running of the Kentucky Derby delivered record engagement across media and wagering, cementing its place as a premier annual event. While ticketing revenue dipped slightly, the overall economic impact from the event was substantial.

The value proposition is quantified by these Q2 2025 figures:

• Derby alone betting totaled $234.4 million, an 11% increase year-over-year.
• The full Derby Day card saw $349 million in all-sources handle, a 9% jump from the prior year.
• Derby Week handle reached nearly $474 million.
• Average viewership for the race was 17.7 million viewers, up 6%, peaking at 21.8 million viewers.
• Churchill Downs Racetrack revenue was up $4.9 million year-over-year, driven by wagering and sponsorship.

Still, the track's adjusted profit saw a minor pullback, declining by about $1 million due to higher pari-mutuel taxes and the high comparison base from the 150th running.

Convenient Wagering: Profitable, accessible online horse racing via TwinSpires

The digital wagering arm, including TwinSpires Horse Racing and Exacta's HRM installations, showed growth, particularly around major events. This provides customers with accessible betting channels.

The Wagering Services and Solutions segment delivered:

Metric	Q2 2025 Amount (in millions)	Year-over-Year Change
Revenue	$168.4	Up 5.3%
Adjusted EBITDA	$48.0	Increase of $1.8

TwinSpires Horse Racing revenue specifically increased by $5.1 million, primarily from higher Derby Week wagering. However, this segment's adjusted profit was pulled down by $2.4 million in increased legal and marketing expenses.

Regional Gaming: Localized, modern Historical Racing Machine entertainment venues

The expansion of Historical Racing Machine (HRM) venues, especially in Kentucky and Virginia, is a major value creator, offsetting softness in other gaming areas.

The Live and Historical Racing segment generated $540.9 million in revenue for Q2 2025, marking a 10.3% increase year-over-year. This growth translated directly to profitability:

• Kentucky HRM venues contributed a $15.3 million increase in Adjusted EBITDA.
• Virginia HRM venues contributed a $3.0 million increase in Adjusted EBITDA.

To be fair, the broader Gaming segment revenue fell 3% to $266.3 million, largely because of the cessation of HRM operations in Louisiana.

High-End Hospitality: Premium seating and dining experiences at flagship venues

Value is delivered through premium experiences at the flagship racetrack, though capital allocation priorities are shifting. The company is focused on targeted upgrades rather than massive overhauls for now.

You see this in the capital plans:

• A roughly $20 million project is slated for completion at Churchill Downs before the 2026 Derby.
• A previously proposed roughly $900 million renovation project at the racetrack is currently listed as "TBD" after being paused.

Shareholder Return: New $500 million share repurchase program approved (Q2 2025)

Churchill Downs Incorporated is actively returning capital to shareholders, signaling management's confidence in the business valuation. The Board approved a new authorization in Q2 2025.

The commitment is clear:

• New common stock repurchase program approved on July 22, 2025, for up to $500 million.
• This new program replaces the prior authorization of the same amount from March 2025.
• During Q2 2025, the company already repurchased 2,565,964 shares for a total cost of $250.4 million.

The company ended Q2 2025 with $182.4 million in cash and cash equivalents.

Churchill Downs Incorporated (CHDN) - Canvas Business Model: Customer Relationships

You're looking at how Churchill Downs Incorporated structures its interactions with its patrons across racing, gaming, and digital platforms as of late 2025. It's a mix of high-touch service for marquee events and automated efficiency for daily digital engagement.

Dedicated VIP host services for high-net-worth casino and Derby patrons

The focus here is on exclusivity and personalized service, often tied to the highest spenders at the racetrack and within the gaming venues. While specific VIP host staffing numbers aren't public, the financial results from premium experiences show where this relationship investment lands. For instance, the 151st Kentucky Derby, which Churchill Downs Incorporated structures with premium offerings, saw all-sources handle for the race itself hit a record of $234.4 million, up 11% from the prior year. Also, the company's Q2 2025 net revenue hit an all-time record of $934.4 million, partly fueled by these high-value customer interactions.

Automated, self-service digital interface for TwinSpires online wagering

The TwinSpires platform serves a segment that values speed and convenience. The digital relationship is transactional and self-directed. For the Kentucky Derby Day program in Q2 2025, TwinSpires handled $108.0 million in wagering, a 17% increase over the prior year's record. However, this digital segment shows near-term risk; TwinSpires Horse Racing saw its adjusted EBITDA decrease by $2.4 million in Q2 2025 due to higher legal expenses and increased marketing spend related to Derby Week. Still, Q3 2025 saw TwinSpires Horse Racing revenue increase by $5.3 million year-over-year, indicating continued digital engagement.

Loyalty programs for regional gaming and HRM venue customers

Churchill Downs Incorporated uses its five-tier FastTrack Rewards program to create stickiness across its growing network of Historical Racing Machine (HRM) and casino properties in five states. This program directly translates gaming activity into tangible benefits, which is key for customer retention. Here's a snapshot of how points are earned, showing the direct link between spend and relationship status:

Venue Type	Tier Point Earning Rate	Redeemable Point Earning Rate
HRM Machines (Kentucky)	1 point per $5 handle	1 point per $5 handle
HRM Machines (Virginia)	1 point per $5 handle	1 point per $10 handle
Slots (IN, NY, MD)	1 point per $5 coin-in	1 point per $5 coin-in

The Live and Historical Racing segment, which includes these venues, generated $540.9 million in revenue in Q2 2025, up 10.3% year-over-year, showing the scale of the customer base participating in these loyalty structures.

High-touch, curated hospitality for Derby week ticket holders

This relationship is time-bound and experience-driven, centered around the Kentucky Derby and Oaks. While Derby Week ticketing revenue dipped slightly compared to the prior year, the overall engagement metrics soared. The 151st Derby drew an average TV audience of 17.7 million viewers (up 6%) and a peak audience of 21.8 million (up 8%). Furthermore, social media impressions during Derby Week reached over 285,000,000, a 67% increase from 2024. The company is investing in smaller, targeted hospitality upgrades, with roughly $30 million in projects planned for Millionaires Row and other exclusive areas, expected to finish before the 2026 Derby.

Direct engagement through retail sportsbooks and casino floors

This covers the in-person, day-to-day interaction at properties like del Lago Resort & Casino and the various HRM sites. The Gaming segment revenue was $266.3 million in Q2 2025, though it saw a 3% decline, partly due to the cessation of HRM operations in Louisiana. Conversely, the overall Live and Historical Racing segment revenue increased by $50.7 million in Q2 2025, driven by Virginia and Kentucky venues. The company is actively managing this relationship portfolio, evidenced by the Q3 2025 repurchase of 515,527 shares for a total cost of $53.5 million, signaling a commitment to shareholder value which underpins the entire business structure.

Finance: draft 13-week cash view by Friday.

Churchill Downs Incorporated (CHDN) - Canvas Business Model: Channels

You're looking at how Churchill Downs Incorporated gets its offerings-from the thunder of hooves to the digital bet slip-into the hands of customers as of late 2025. It's a multi-pronged approach, blending iconic physical locations with growing digital and regional gaming footprints.

Physical Racetracks (e.g., Churchill Downs Racetrack)

The flagship channel remains the physical racetrack, most notably Churchill Downs Racetrack in Louisville, Kentucky. This channel is crucial for major events, driving significant wagering and media exposure.

• Churchill Downs Racetrack conducts live Thoroughbred racing during Spring, September, and Fall Meets.
• The 151st Kentucky Derby in 2025 achieved an all-time record all-sources handle for the Kentucky Derby Race, Kentucky Derby Day Program, and Kentucky Derby Week.
• The 151st Kentucky Derby broadcast drew an average viewership of 17.7 million (up 6% versus the prior year) and a peak viewership of 21.8 million (up 8% versus the prior year).
• Revenue growth at Churchill Downs Racetrack in the second quarter of 2025 was supported by record Spring Meet wagering and growth in Derby Week wagering and licensing/sponsorship revenue.
• Derby Week helps bring over $400 million to the local Louisville economy each year.

Regional Historical Racing Machine (HRM) venues (e.g., Rosie's, The Rose)

This is a major growth channel, heavily weighted toward Historical Racing Machines (HRMs) in states like Virginia and Kentucky. The third quarter of 2025 showed this segment as a primary driver of overall company revenue growth.

The Live and Historical Racing segment saw a significant revenue increase of 21% year-over-year in the third quarter of 2025, with Adjusted EBITDA rising by 25%.

Key revenue contributions to the overall $54.5 million year-over-year net revenue increase in Q3 2025 came directly from these venues:

Channel/Venue Driver	Q3 2025 Revenue Increase (YoY)	Notes
Virginia HRM Venues	$30.1 million increase	Includes $26.0 million net increase from Northern Virginia venues.
Kentucky HRM Venues	$20.9 million increase	Includes a $12.2 million surge from western Kentucky venues.
Casino Salem (NH) Temporary Facility	$2.3 million increase	Contribution from the temporary mini casino facility.

Recent physical channel expansions supporting this include:

• The Rose Gaming Resort in Northern Virginia, which opened in November 2024, has 1,650 HRMs in phase one.
• Owensboro Racing & Gaming opened in Kentucky in the first quarter of 2025 with 600 HRMs.
• Expansion of Rosie's Richmond in Virginia completed on August 6, 2025, adding 450 incremental historical racing machines.
• Roseshire Gaming Parlor opened in Henrico County, Virginia, on September 29, 2025, with 175 historical racing machines.

TwinSpires.com and mobile app for online horse wagering

The digital channel, anchored by TwinSpires.com, captures wagers remotely. This channel saw a positive contribution to revenue in the third quarter of 2025.

• TwinSpires Horse Racing contributed a $5.3 million revenue increase year-over-year in the third quarter of 2025.
• TwinSpires Horse Racing contributed a $0.3 million net increase to Adjusted EBITDA in the third quarter of 2025.
• The company touts TwinSpires as the #1 most profitable horse race wagering platform.

NBC/Peacock for national broadcast and streaming of key events

Media rights and broadcast partnerships serve as a critical channel for reaching national audiences and promoting the core racing product, driving wagering and brand awareness.

• NBC Sports announced it will showcase the Kentucky Oaks on primetime for the first time ever in 2026.
• The 151st Kentucky Derby broadcast in 2025 achieved an average viewership of 17.7 million.

Wholly-owned regional casinos and retail sportsbooks

This channel includes wholly-owned gaming properties, which saw a revenue decrease in Q2 2025 due to the cessation of HRM operations in Louisiana, though other locations provided offsets.

Churchill Downs Incorporated oversees 30 industry-leading regional casinos and HRM/racing properties across 14 states.

The Gaming segment revenue in the third quarter of 2025 was $265.5 million, down from 2024's $270.3 million, a decrease of $4.8 million. This was driven by a $6.1 million loss from the cessation of HRM operations in Louisiana.

The Wagering Services and Solutions segment, which includes sports betting, saw a $0.2 million revenue increase in the third quarter of 2025.

The acquisition of 90% of Casino Salem in New Hampshire was completed on August 27, 2025, for $180 million, adding to the portfolio of wholly-owned assets.

Churchill Downs Incorporated (CHDN) - Canvas Business Model: Customer Segments

Churchill Downs Incorporated serves distinct groups across its racing, gaming, and wagering platforms, with financial performance metrics reflecting the scale of these operations as of late 2025.

Horse Racing Enthusiasts: Patrons of live racing and TwinSpires ADW users

This segment includes those engaging with the core racing product, both in-person at Churchill Downs Racetrack and digitally via TwinSpires (part of the Wagering Services and Solutions segment).

• The 151st Kentucky Derby generated an all-sources handle of $349.0 million for the single day in Q2 2025.
• Viewership for the 151st Kentucky Derby reached an average of 17.7 million viewers, an increase of 6% versus the prior year.
• TwinSpires Horse Racing saw revenue increase by $5.1 million in the second quarter of 2025, driven by higher Derby Week wagering.
• In one reported instance, TwinSpires recorded $108.0 million in bets on the Derby Day races.
• For the third quarter of 2025, the Wagering Services and Solutions segment, which includes TwinSpires, recorded revenue of $127.2 million.

Regional Gaming Patrons: Local customers of HRM and casino properties

These patrons frequent the Historical Racing Machine (HRM) venues and wholly-owned regional casino properties, which are major contributors to the Live and Historical Racing segment.

Metric	Q3 2025 Value (Millions USD)	Source Context
Live and Historical Racing Segment Revenue	$305.7	Surged 21% year-over-year
Virginia HRM Venues Revenue Increase	$30.1	Quarter-over-quarter increase
Kentucky HRM Venues Revenue Increase	$20.9	Quarter-over-quarter increase
Gaming Segment Revenue (Q2 2025)	$266.3	Wholly owned regional properties
Terre Haute Casino Resort Revenue Contribution (Q1 2025)	$31.6	Incremental revenue in the first quarter

The growth in this segment is heavily reliant on the performance of newer and expanded HRM locations, such as the opening of Roseshire Gaming Parlor in September 2025 with 175 historical racing machines.

High-Net-Worth Individuals: Buyers of premium Derby tickets and suites

This group targets premium experiences at Churchill Downs Racetrack, though demand dynamics can shift based on economic conditions.

• Adjusted profit for Churchill Downs Racetrack in Q2 2025 declined by about $1 million due to a decrease in ticketing revenue for Derby Week.
• Lower-tier Kentucky Derby tickets in Q1 2025 were noted as being priced at $1,000-plus.
• The company is planning the $280 million-$300 million Victory Run project to replace older seating and dining areas with premium hospitality offerings, including private suites.

Corporate Sponsors: Brands seeking association with the Derby spectacle

These entities invest in the Derby spectacle for brand association, contributing to non-wagering revenue streams at the Racetrack.

Sponsorship and Licensing revenue for the Kentucky Derby grew in 2025. In Q2 2025, Churchill Downs Racetrack revenue was up $4.9 million year-over-year, partially supported by increased licensing and sponsorship revenue.

Retail Sports Bettors: Users of on-site, brick-and-mortar sportsbooks

This customer base interacts with Churchill Downs Incorporated through its retail and online sports betting operations, which fall under Wagering Services and Solutions.

• The sports betting business contributed an Adjusted EBITDA increase of $0.8 million in the third quarter of 2025.
• In Q1 2025, the company noted a slip in sports wagering of more than $1 million.

Churchill Downs Incorporated (CHDN) - Canvas Business Model: Cost Structure

You're looking at the major financial drains that keep Churchill Downs Incorporated running, which is a mix of massive capital projects, ongoing operational overhead, and regulatory costs. It's a heavy structure, especially with the current investment cycle.

Capital Investment Commitments

Churchill Downs Incorporated has significant capital expenditures tied up in its multi-year enhancement projects at the flagship racetrack. While the initial projection mentioned in your outline was $200-$240 million for 2025, management provided a broader forecast. The total projected capital expenditure for 2025 was set between $350 million and $400 million. A portion of this, specifically for the major racetrack renovations like The Skye Project, Conservatory Project, and Infield General Admission Project, was anticipated to be between $120 million and $130 million in 2025 alone, with completion targeted by the 154th Kentucky Derby in May 2028.

The key components of this capital outlay include:

• The Skye Terrace Renovation and Expansion Project: budgeted at $455 million to $465 million across multiple years.
• The Conservatory Project: budgeted at $320 million to $330 million across multiple years.
• Infrastructure improvements, including a new tunnel to the infield.

Debt Servicing Costs

The balance sheet carries substantial leverage, which translates directly into interest expense. As of the end of the third quarter of 2025, Churchill Downs Incorporated's long-term debt, net of current maturities and loan origination fees, stood at $1,963.2 million. This is definitely close to the $1.9 billion mark you noted. For context, the total interest expense, net, for the second quarter of 2025 was reported as ($74.2 million).

Here is a snapshot of the debt profile as of September 30, 2025, compared to the prior year-end:

Liability Component (in millions)	As of September 30, 2025	As of December 31, 2024
Long-term debt, net	$1,963.2	$1,767.9
Notes payable, net	$3,079.9	$3,076.2

Venue Operations and Personnel Costs

Operating costs are high because Churchill Downs Incorporated manages multiple physical venues across its segments, including racetracks, casinos, and HRM (Historical Racing Machine) locations. Total operating expense for the nine months ended September 30, 2025, reached $1,114.7 million. Employee compensation is a major component of this overhead. While some quarters show lower compensation expense, such as a $1.1 million decrease impacting Q1 2025 Adjusted EBITDA, the overall trend reflects a growing operational footprint, with Q1 2025 administrative costs, including corporate compensation and overhead, rising by $1 million year-over-year.

Marketing, Legal, and Regulatory Outlays

The TwinSpires Horse Racing segment faces specific, often volatile, cost pressures from legal battles and promotional spending. For instance, in the second quarter of 2025, the segment saw a $2.4 million decrease in Adjusted EBITDA, which was attributed to increased legal expenses and higher marketing spend related to Derby Week. Similarly, in the first quarter of 2025, increased legal expenses caused a $1.0 million decrease in Adjusted EBITDA for TwinSpires.

Regulatory and tax costs are also material. The structure of horse racing regulation means costs are passed through to operators. For example, a recommended tax structure included a 1.5 per cent tax rate on all pari-mutuel bets, including online wagering. Furthermore, Churchill Downs Incorporated has been involved in litigation regarding fees imposed by the Horseracing Integrity and Safety Authority (HISA), where the company argued that the fee assessment method, which included a percentage of race purses, was illegal; at one point, the lawsuit noted Churchill Downs owed almost $2.0 million in unpaid fees.

These costs can be broken down by segment impact:

• TwinSpires Horse Racing: Experienced negative EBITDA impact from increased legal expenses in Q1 2025 and Q2 2025.
• Gaming Segment: Experienced a revenue decline in Q2 2025 partly due to the closure of HRM operations in Louisiana, which was tied to regional regulatory changes.
• Regulatory Fees: Litigation has centered on HISA fees, which were assessed based on a percentage of race purses.

Finance: review the Q4 2025 operating expense forecast against the $1.96 billion debt load by next Tuesday.

Churchill Downs Incorporated (CHDN) - Canvas Business Model: Revenue Streams

Churchill Downs Incorporated's revenue streams in late 2025 are anchored by its diversified portfolio across live racing, historical racing, regional gaming, and online wagering platforms.

The Live and Historical Racing revenue segment was the largest contributor, posting $540.9 million in revenue for the second quarter of 2025. This represented a 10.3% increase year-over-year, driven by growth in Historical Racing Machine (HRM) venues in Kentucky and Virginia, including the impact of The Rose facility which opened in Northern Virginia in November 2024.

Gaming revenue from wholly-owned regional casinos was $266.3 million in Q2 2025. This figure reflected a 3% revenue decline, partially due to the cessation of HRM operations in Louisiana and lower contributions from some of the nine other wholly-owned gaming properties.

Online wagering revenue from the TwinSpires platform, categorized under Wagering Services and Solutions, reached $168.4 million in Q2 2025. This segment saw a 5.3% increase, benefiting from record wagering on Derby Week.

The following table summarizes the external customer revenue breakdown for the reportable segments in Q2 2025:

Revenue Stream Category	Q2 2025 Revenue (in millions)	Year-over-Year Change
Live and Historical Racing Revenue	$540.9	Up 10.3%
Gaming Revenue	$266.3	Down 3%
Wagering Services Revenue (including TwinSpires)	$168.4	Up 5.3%

The Kentucky Derby ticketing, licensing, and sponsorship fees are concentrated within the Churchill Downs Racetrack operations. While overall Churchill Downs Racetrack revenue was up $4.9 million year-over-year, this was achieved despite lower ticketing revenue compared to the prior year's historic 150th running. The 151st Kentucky Derby itself generated an all-time record $349 million in all-sources handle for the single race day. Wagering growth across Derby Week was significant, with Derby Day wagering increasing 9% over the previous record.

Food, beverage, and hospitality sales at physical venues are integrated within the segment results, particularly the Live and Historical Racing segment. Specific figures for food, beverage, and hospitality sales separate from ticketing and HRM revenue are not itemized in the Q2 2025 segment disclosures, but the overall strength of the Racetrack is noted:

• Derby Week ticketing revenue was lower than the previous year.
• Growth in wagering and sponsorship revenue offset the ticketing dip at the Racetrack.
• The 151st Derby drew roughly 147,000 fans despite rainy conditions.
• The company sees future growth potential in ticketing, broadcast rights, and sponsorships.