Churchill Downs Incorporated (CHDN): Business Model Canvas [Jan-2025 Mis à jour]

Churchill Downs Incorporated (CHDN) est un titan dans l'industrie des courses de chevaux et du divertissement, transformant des expériences de jeu traditionnelles grâce à une technologie innovante et une diversification stratégique. De l'emblématique Kentucky Derby aux plates-formes de paris numériques de pointe, cette centrale a repensé comment les amateurs de sports s'engagent avec la course et les jeux, créant un modèle commercial multiforme qui mélange de manière transparente le patrimoine, le divertissement et l'innovation numérique. En tirant parti des technologies avancées, des partenariats stratégiques et une compréhension approfondie des préférences des clients, CHDN s'est positionné en tant que leader dans la fourniture d'expériences dynamiques et immersives qui s'étendent bien au-delà de l'hippodrome.

Churchill Downs Incorporated (CHDN) - Modèle commercial: partenariats clés

Partenariats stratégiques avec les pistes et les lieux de course à cheval

Churchill Downs Incorporated entretient des partenariats avec les principaux lieux de course suivants:

Lieu	Emplacement	Détails du partenariat
Churchill Downs Racetrack	Louisville, Kentucky	Propriété phare hébergeant le Kentucky Derby
Parc à gazon	Florence, Kentucky	Installation de course possédé
Cours de course équitable	Nouvelle-Orléans, Louisiane	Lieu de course appartenant

Collaboration avec les principales plateformes de paris sportifs

Les partenariats clés de la plate-forme de paris comprennent:

• Flutter Entertainment (Fanduel) - Intégration de paris numériques
• BETMGM - Collaboration en ligne de paris sportifs
• Penn Entertainment - Partenariats de paris régionaux

Accords de licence avec les médias et les réseaux de diffusion

Réseau	Type d'accord	Couverture
NBC Sports	Droits de diffusion	Couverture du Kentucky Derby
CBS Sports	Licence médiatique	Émissions d'événements de course majeurs

Partenariats avec les fournisseurs de technologies pour les plateformes numériques

• Twinspires.com - Plateforme de paris en ligne propriétaire
• IGT (International Game Technology) - Solutions de jeu numériques
• Scientific Games Corporation - Partenariats technologiques de jeu

Relations avec les associations d'élevage et de course de chevaux

Association	Focus de partenariat	Portée de collaboration
Breeders 'Cup Limited	Coordination des événements de course	Gestion de la série de championnats annuels
Commission des courses de chevaux du Kentucky	Conformité réglementaire	Règlements de course au niveau de l'État

Churchill Downs Incorporated (CHDN) - Modèle d'entreprise: activités clés

Gestion des événements de course à cheval et organisation

Churchill Downs hôte 400+ événements de course par an à travers plusieurs courses.

Type d'événement	Numéro annuel	Fréquentation totale
Derby du Kentucky	1 événement phare	Plus de 150 000 participants
Événements de course régionaux	390+ événements	1,2 million de participants au total

Opérations de casino et de jeu

CHDN fonctionne 6 propriétés de casino dans plusieurs états.

Emplacement du casino	Positions de jeu	Revenus annuels
Oxford, Mississippi	1 100 postes de jeu	178,3 millions de dollars (2022)
Kansas City, Missouri	1 200 postes de jeu	203,7 millions de dollars (2022)

Paris de paris en ligne et de jeux numériques

La plate-forme Twinspires génère 213,4 millions de dollars en revenus de pari numérique en 2022.

• Plateformes de paris en ligne dans 30 États
• Application mobile avec 1,2 million d'utilisateurs enregistrés
• Part de marché des paris numériques: 8,3%

Gestion des lieux et hébergement de divertissement

CHDN gère 7 lieux de divertissement majeurs.

Lieu	Capacité	Événements annuels
Churchill Downs Racetrack	165,000	50+ événements
Autres lieux de divertissement	75 000 à 120 000 postes	Plus de 200 événements totaux

Technologie sportive et développement de l'innovation numérique

Investissement technologique annuel: 42,6 millions de dollars.

• Algorithmes de paris avancés
• Technologie de suivi de course en temps réel
• Développement de plate-forme mobile

Churchill Downs Incorporated (CHDN) - Modèle d'entreprise: Ressources clés

Churchill Downs Racetrack et plusieurs lieux de course

Churchill Downs Incorporated possède les principaux lieux de course suivants:

Lieu	Emplacement	Jours de course annuels
Churchill Downs Racetrack	Louisville, Kentucky	37 jours de course en 2022
Cours de course Keeneland	Lexington, Kentucky	44 jours de course en 2022
Cours de course équitable	Nouvelle-Orléans, Louisiane	63 jours de course en 2022

Infrastructure avancée de paris et de jeu

L'infrastructure technologique comprend:

• Plateforme de paris en ligne Twinspires
• Applications de paris mobiles
• Systèmes de paris en temps réel

Expertise des courses de chevaux et des paris sportifs

Métriques de l'expertise clé:

Domaine d'expertise	Mesure quantitative
Années dans l'industrie des courses de chevaux	145 ans
Poignée annuelle totale de paris annuelle	5,2 milliards de dollars en 2022
Clients de paris en ligne	1,3 million d'utilisateurs actifs

Solide réputation de la marque dans l'industrie des courses de chevaux

Métriques de la réputation de la marque:

• Hébergement du Kentucky Derby depuis 1875
• Leadership du marché dans les divertissements de course à cheval
• Reconnu dans le monde entier pour les événements de course

Applications de plate-forme numérique robuste et de paris mobiles

Performance de la plate-forme numérique:

Métrique de la plate-forme numérique	2022 Performance
Revenus de paris mobiles	493,2 millions de dollars
Utilisateurs de plate-forme numérique	1,1 million d'utilisateurs enregistrés
Téléchargements d'applications mobiles	875 000 en 2022

Churchill Downs Incorporated (CHDN) - Modèle d'entreprise: propositions de valeur

Expérience de divertissement de courses de chevaux de premier plan

Churchill Downs héberge le Derby du Kentucky, générant 187,8 millions de dollars de revenus à partir d'événements de course en direct en 2022. La société exploite 4 courses majeures à travers les États-Unis.

Piste	Emplacement	Événements de course annuels
Churchill Downs	Louisville, Kentucky	35 jours de course
Keenelland	Lexington, Kentucky	28 jours de course
Terrains équitables	Nouvelle-Orléans, Louisiane	44 jours de course

Diverses opportunités de jeu et de paris

La société a généré 1,57 milliard de dollars de revenus totaux des opérations de jeu en 2022, avec des segments clés, notamment:

• Plates-formes de paris sportifs en ligne
• Jeu de casino
• Technologies de paris avancés

Événements sportifs en direct et numériques de haute qualité

Churchill Downs Interactive segment a déclaré 354,2 millions de dollars de revenus pour 2022, en se concentrant sur le divertissement sportif numérique.

Plate-forme numérique	Base d'utilisateurs	Revenus annuels
Jumelles	Plus de 500 000 utilisateurs enregistrés	221,5 millions de dollars
Bétamérique	250 000 utilisateurs enregistrés	132,7 millions de dollars

Technologies et plateformes de paris innovants

L'investissement dans les plateformes technologiques a atteint 42,3 millions de dollars en 2022, améliorant les expériences de paris numériques.

Expériences de course uniques et prestigieuses

Le Kentucky Derby attire chaque année plus de 150 000 participants en direct, avec un impact économique d'environ 400 millions de dollars pour Louisville.

• Prix ​​moyen du billet: 350 $ - 1 500 $
• Couverture médiatique mondiale atteignant 16 millions de téléspectateurs
• Pools de paris internationaux dépassant 250 millions de dollars

Churchill Downs Incorporated (CHDN) - Modèle d'entreprise: relations avec les clients

Programmes de fidélité pour les paris fréquents

Churchill Downs propose le Programme de récompenses Twinspires, qui a la structure suivante:

Niveau de récompense	Points gagnés par 1 $ pariés	Valeur de rachat annuelle
Bronze	0,5 points	$50-$100
Argent	1 point	$100-$250
Or	1,5 points	$250-$500

Expériences de paris numériques personnalisés

Métriques de plate-forme numérique pour 2023:

• Téléchargements d'applications mobiles: 1,2 million
• Utilisateurs numériques actifs: 875 000
• Taille de pari moyenne en ligne: 87 $

Support client via plusieurs canaux

Canal de support	Temps de réponse moyen	Taux de satisfaction client
Support téléphonique	7 minutes	88%
Chat en direct	3 minutes	92%
Assistance par e-mail	24 heures	85%

Engagement via des plateformes mobiles et en ligne

Statistiques d'engagement de la plate-forme pour 2023:

• Utilisation de la plate-forme mobile: 67% du total des paris
• Plateforme en ligne Visiteurs uniques: 1,5 million
• Durée moyenne de la session: 22 minutes

Construction communautaire autour des cours d'événements de chevaux

Événement	Participants annuels	Engagement des médias sociaux
Derby du Kentucky	150 000 participants en direct	3,2 millions d'interactions sur les réseaux sociaux
Coupe d'éleveurs	70 000 participants en direct	1,8 million d'interactions sur les réseaux sociaux

Churchill Downs Incorporated (CHDN) - Modèle d'entreprise: canaux

Sites Web de paris en ligne

Twinspires.com a généré 248,7 millions de dollars de revenus en 2022. La plate-forme de paris en ligne a traité environ 47,3 millions de paris au cours de l'exercice.

Plate-forme	Revenus annuels	Nombre de paris
Twinspires.com	248,7 millions de dollars	47,3 millions

Applications de paris mobiles

Les téléchargements d'applications mobiles de Churchill Downs ont atteint 1,2 million d'utilisateurs en 2022, avec une augmentation de 35% des transactions de paris mobiles par rapport à 2021.

• Total des utilisateurs d'applications mobiles: 1,2 million
• Croissance des transactions de paris mobiles: 35%

Hippodromes et lieux physiques

Churchill Downs exploite 4 courses primaires avec une fréquentation annuelle totale de 1,5 million de visiteurs en 2022.

Emplacement de l'hippodrome	Fréquentation annuelle
Churchill Downs (Louisville, KY)	750,000
Autres hippodromes CHDN	750,000

Plateformes de médias sociaux

Churchill Downs maintient une présence active sur les réseaux sociaux avec 2,3 millions de followers combinés sur toutes les plateformes.

• Twitter Followers: 850 000
• Fonds Facebook: 1 000 000
• Followers Instagram: 450 000

Canaux de marketing traditionnels et numériques

Les dépenses de marketing pour 2022 ont totalisé 87,4 millions de dollars, avec 60% alloué aux canaux numériques.

Canal de marketing	Pourcentage de budget	Dépenses totales
Marketing numérique	60%	52,44 millions de dollars
Marketing traditionnel	40%	34,96 millions de dollars

Churchill Downs Incorporated (CHDN) - Modèle d'entreprise: segments de clientèle

Passionnés de courses de chevaux

En 2022, Churchill Downs a accueilli 54 jours de course à Churchill Downs, attirant environ 1,2 million de participants au total.

Caractéristiques du segment	Détails démographiques
Âge moyen	45 à 65 ans
Volume de paris annuel	250 millions de dollars
Kentucky Derby présente	150 729 en 2022

Consommateurs de paris sportifs

La plate-forme de paris sportifs Twinspires a généré 156,4 millions de dollars de revenus nets en 2022.

• Utilisateurs de paris sportifs actifs: 350 000
• Tranche d'âge primaire: 25 à 44 ans
• Part de marché des paris mobiles: 8,5%

Joueurs de jeu de casino

Churchill Downs exploite plusieurs propriétés de casino dans différents États.

Emplacement du casino	Revenus de jeux annuels
Calder Casino (Floride)	87,3 millions de dollars
Oxford Casino (Maine)	62,5 millions de dollars

Utilisateurs de jeux numériques

Les revenus du segment de jeu en ligne ont atteint 184,2 millions de dollars en 2022.

• Utilisateurs de plate-forme numérique: 500 000
• Transaction mensuelle moyenne de paris numériques: 275 $

Prévolues du divertissement et de l'événement

Les sites de Churchill Downs ont accueilli 75 événements non-cours en 2022.

Type d'événement	Total des participants
Concerts	42,500
Événements d'entreprise	28,300
Occasions spéciales	19,200

Churchill Downs Incorporated (CHDN) - Modèle d'entreprise: Structure des coûts

Entretien et opérations du lieu

En 2022, Churchill Downs Incorporated a déclaré 185,4 millions de dollars en propriété et en équipement, net, lié à l'entretien et aux opérations des sites.

Type de lieu	Coût de maintenance annuel
Churchill Downs Racetrack	12,3 millions de dollars
Autres installations de course	8,7 millions de dollars

Investissements infrastructures technologiques

La société a investi 47,2 millions de dollars dans la technologie et les infrastructures numériques au cours de l'exercice 2022.

• Mise à niveau des systèmes informatiques: 18,5 millions de dollars
• Développement de la plate-forme numérique: 22,7 millions de dollars
• Améliorations de la cybersécurité: 6 millions de dollars

Dépenses marketing et promotionnelles

Les dépenses de marketing pour 2022 ont totalisé 64,3 millions de dollars sur diverses plateformes de course et de jeu.

Canal de marketing	Frais
Marketing numérique	22,6 millions de dollars
Publicité traditionnelle	41,7 millions de dollars

Salaires et formation des employés

La rémunération totale des employés pour 2022 était de 273,6 millions de dollars.

• Salaires de base: 214,5 millions de dollars
• Bonus de performance: 39,2 millions de dollars
• Formation et développement: 19,9 millions de dollars

Coûts de conformité réglementaire et de licence

Les frais de réglementation et de licence pour 2022 s'élevaient à 37,5 millions de dollars.

Catégorie de conformité	Coût annuel
Licences de jeu	22,3 millions de dollars
Frais de commission de course	15,2 millions de dollars

Churchill Downs Incorporated (CHDN) - Modèle d'entreprise: Strots de revenus

Ventes de billets d'événements en direct

En 2022, Churchill Downs Racetrack a accueilli le Kentucky Derby, générant environ 188,7 millions de dollars de revenus liés à l'événement. Le prix moyen des billets pour le Kentucky Derby variait entre 70 $ et 500 $ selon le lieu de siège.

Revenus de paris en ligne et mobiles

Twinspires Digital Platform a déclaré 372,5 millions de dollars de revenus de paris en ligne pour l'exercice 2022. Les paris mobiles représentaient 67% des transactions totales de paris en ligne.

Plate-forme	Revenus (2022)	Part de marché
Twinspires en ligne paris	372,5 millions de dollars	42% du marché numérique
Segment de paris mobile	249,38 millions de dollars	67% de la plate-forme en ligne

Revenu de jeu de casino

Churchill Downs Casino Properties a généré 517,2 millions de dollars de revenus de jeu en 2022, avec des propriétés clés, notamment:

• Racing du parc à gazon & Jeux: 86,3 millions de dollars
• Oxford Casino (Maine): 124,6 millions de dollars
• Calder Casino (Floride): 152,9 millions de dollars

Parrainage et publicité

Les revenus de parrainage pour Churchill Downs ont totalisé 43,7 millions de dollars en 2022, avec des partenaires majeurs, notamment:

• Woodford Reserve (Bourbon officiel)
• Jack Daniel
• Longins

Services d'abonnement à la plate-forme numérique

Twinspires Advanced Parering Plateforme a généré 47,3 millions de dollars auprès des services d'abonnement et de contenu premium en 2022, avec environ 225 000 abonnés actifs.

Niveau d'abonnement	Coût mensuel	Abonnés
Niveau de base	$14.99	175,000
Niveau supérieur	$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.