Churchill Downs Incorporated (CHDN): Modelo de negócios Canvas [Jan-2025 Atualizado]

Churchill Downs Incorporated (CHDN) permanece como um titã na indústria de corridas e entretenimento, transformando experiências tradicionais de jogo por meio de tecnologia inovadora e diversificação estratégica. Do icônico Kentucky Derby às plataformas de apostas digitais de ponta, essa potência reimaginou como os entusiastas do esporte se envolvem com corridas e jogos, criando um modelo de negócios multifacetado que combina perfeitamente patrimônio, entretenimento e inovação digital. Ao alavancar tecnologias avançadas, parcerias estratégicas e uma profunda compreensão das preferências do cliente, o CHDN se posicionou como líder no fornecimento de experiências dinâmicas e imersivas que se estendem muito além da pista.

Churchill Downs Incorporated (CHDN) - Modelo de negócios: Parcerias -chave

Parcerias estratégicas com pistas e locais de corrida de cavalos

Churchill Downs Incorporated mantém parcerias com os seguintes locais de corrida:

Local	Localização	Detalhes da parceria
Churchill Downs Racetrack	Louisville, Kentucky	Propriedade de propriedade da Hosting de imóveis Kentucky Derby
Turfway Park	Florence, Kentucky	Instalação de corrida de propriedade
Curso de corrida de terrenos justos	Nova Orleans, Louisiana	Local de corrida de propriedade

Colaboração com grandes plataformas de apostas esportivas

As parcerias principais da plataforma de apostas incluem:

• Flutter Entertainment (Fanduel) - Integração de apostas digitais
• BETMGM - Colaboração de apostas esportivas online
• Penn Entertainment - Parcerias de apostas regionais

Acordos de licenciamento com redes de mídia e transmissão

Rede	Tipo de contrato	Cobertura
NBC Sports	Direitos de transmissão	Cobertura de Kentucky Derby
CBS Sports	Licenciamento de mídia	Principais transmissões de eventos de corrida

Parcerias com provedores de tecnologia para plataformas digitais

• Twinspires.com - Plataforma de apostas online proprietária
• IGT (International Game Technology) - Soluções de jogos digitais
• Corporação de jogos científicos - parcerias de tecnologia de jogos

Relacionamentos com associações de criação e corrida de cavalos

Associação	Foco em parceria	Escopo de colaboração
Copa dos criadores Limitada	Coordenação de eventos de corrida	Gerenciamento anual da série campeonato
Kentucky Horse Racing Commission	Conformidade regulatória	Regulamentos de corrida em nível estadual

Churchill Downs Incorporated (CHDN) - Modelo de negócios: Atividades -chave

Gerenciamento e organização de eventos de corrida de cavalos

Churchill Downs anfitriões Mais de 400 eventos de corrida anualmente em várias pistas de corrida.

Tipo de evento	Número anual	Participação total
Kentucky Derby	1 evento principal	Mais de 150.000 participantes
Eventos regionais de corrida	390 mais de eventos	1,2 milhão de participantes totais

Operações de cassino e jogos

O CHDN opera 6 propriedades do cassino em vários estados.

Localização do cassino	Posições de jogo	Receita anual
Oxford, Mississippi	1.100 posições de jogo	US $ 178,3 milhões (2022)
Kansas City, Missouri	1.200 posições de jogo	US $ 203,7 milhões (2022)

Plataformas de apostas on -line e jogo digital

A plataforma Twinspires gera US $ 213,4 milhões em receita de apostas digitais em 2022.

• Plataformas de apostas online em 30 estados
• Aplicativo móvel com 1,2 milhão de usuários registrados
• Participação de mercado de apostas digitais: 8,3%

Gerenciamento de local e hospedagem de entretenimento

Chdn gerencia 7 grandes locais de entretenimento.

Local	Capacidade	Eventos anuais
Churchill Downs Racetrack	165,000	Mais de 50 eventos
Outros locais de entretenimento	75.000-120.000 capacidade	Mais de 200 eventos totais

Tecnologia esportiva e desenvolvimento de inovação digital

Investimento de tecnologia anual: US $ 42,6 milhões.

• Algoritmos avançados de apostas
• Tecnologia de rastreamento de corrida em tempo real
• Desenvolvimento da plataforma móvel

Churchill Downs Incorporated (CHDN) - Modelo de negócios: Recursos -chave

Churchill Downs Racetrack e vários locais de corrida

Churchill Downs Incorporated possui os seguintes locais de corrida de corrida:

Local	Localização	Dias anuais de corrida
Churchill Downs Racetrack	Louisville, Kentucky	37 dias de corrida em 2022
Curso de corrida de Keeneland	Lexington, Kentucky	44 dias de corrida em 2022
Curso de corrida de terrenos justos	Nova Orleans, Louisiana	63 dias de corrida em 2022

Infraestrutura de tecnologia de apostas e jogos avançada

A infraestrutura tecnológica inclui:

• Plataforma de apostas online de gêmeos Twinspiros
• Aplicativos de apostas móveis
• Sistemas de apostas em tempo real

Extensa experiência em corridas de cavalos e apostas esportivas

Métricas principais de especialização:

Área de especialização	Medida quantitativa
Anos na indústria de corridas de cavalos	145 anos
Tocal de apostas anual total	US $ 5,2 bilhões em 2022
Clientes de apostas online	1,3 milhão de usuários ativos

Forte reputação de marca na indústria de corridas de cavalos

Métricas de reputação da marca:

• Kentucky Derby Hospedagem desde 1875
• Liderança de mercado em entretenimento de corridas de cavalos
• Reconhecido globalmente para eventos de corrida

Plataforma digital robusta e aplicativos de apostas móveis

Desempenho da plataforma digital:

Métrica da plataforma digital	2022 Performance
Receita de apostas móveis	US $ 493,2 milhões
Usuários da plataforma digital	1,1 milhão de usuários registrados
Downloads de aplicativos móveis	875.000 em 2022

Churchill Downs Incorporated (CHDN) - Modelo de negócios: proposições de valor

Premier Horse Racing Entertainment Experience

Churchill Downs hospeda o Kentucky Derby, gerando US $ 187,8 milhões em receita de eventos de corrida ao vivo em 2022. A empresa opera 4 grandes pistas de corrida nos Estados Unidos.

Pista de corrida	Localização	Eventos anuais de corrida
Churchill Downs	Louisville, Kentucky	35 dias de corrida
Keeneland	Lexington, Kentucky	28 dias de corrida
Motivos justos	Nova Orleans, Louisiana	44 dias de corrida

Diversas oportunidades de jogo e apostas

A empresa gerou US $ 1,57 bilhão em receita total das operações de jogo em 2022, com os principais segmentos, incluindo:

• Plataformas de apostas esportivas online
• Jogos de cassino
• Tecnologias avançadas de apostas

Eventos esportivos ao vivo e digitais de alta qualidade

O segmento interativo de Churchill Downs registrou US $ 354,2 milhões em receita para 2022, com foco no entretenimento esportivo digital.

Plataforma digital	Base de usuários	Receita anual
Gêmeos	500.000 mais de usuários registrados	US $ 221,5 milhões
Betamérica	250.000 usuários registrados	US $ 132,7 milhões

Tecnologias e plataformas inovadoras de apostas

O investimento em plataformas de tecnologia atingiu US $ 42,3 milhões em 2022, aprimorando as experiências de apostas digitais.

Experiências de corrida únicas e de prestígio

O Kentucky Derby atrai mais de 150.000 participantes ao vivo anualmente, com um impacto econômico de aproximadamente US $ 400 milhões para Louisville.

• Preço médio do bilhete: US $ 350- $ 1.500
• Cobertura global da mídia atingindo 16 milhões de espectadores
• Pool de apostas internacionais superiores a US $ 250 milhões

Churchill Downs Incorporated (CHDN) - Modelo de Negócios: Relacionamentos do Cliente

Programas de fidelidade para apostadores frequentes

Churchill Downs oferece o Programa de recompensas com gêmeos, que tem a seguinte estrutura:

Nível de recompensa	Pontos ganhos por US $ 1 apostado	Valor anual de resgate
Bronze	0,5 pontos	$50-$100
Prata	1 ponto	$100-$250
Ouro	1,5 pontos	$250-$500

Experiências personalizadas de apostas digitais

Métricas de plataforma digital para 2023:

• Downloads de aplicativos móveis: 1,2 milhão
• Usuários digitais ativos: 875.000
• Tamanho médio da aposta online: $ 87

Suporte ao cliente através de vários canais

Canal de suporte	Tempo médio de resposta	Taxa de satisfação do cliente
Suporte telefônico	7 minutos	88%
Bate -papo ao vivo	3 minutos	92%
Suporte por e -mail	24 horas	85%

Engajamento através de plataformas móveis e online

Estatísticas de engajamento da plataforma para 2023:

• Uso da plataforma móvel: 67% do total de apostas
• Plataforma on -line Visitantes únicos: 1,5 milhão mensalmente
• Duração média da sessão: 22 minutos

Construção comunitária em torno de eventos de corrida de cavalos

Evento	Participantes anuais	Engajamento da mídia social
Kentucky Derby	150.000 participantes ao vivo	3,2 milhões de interações de mídia social
Copa dos criadores	70.000 participantes ao vivo	1,8 milhão de interações de mídia social

Churchill Downs Incorporated (CHDN) - Modelo de Negócios: Canais

Sites de apostas online

A Twinspires.com gerou US $ 248,7 milhões em receita em 2022. A plataforma de apostas on -line processou aproximadamente 47,3 milhões de apostas durante o ano fiscal.

Plataforma	Receita anual	Número de apostas
Twinspires.com	US $ 248,7 milhões	47,3 milhões

Aplicativos de apostas móveis

Os downloads de aplicativos móveis de Churchill Downs atingiram 1,2 milhão de usuários em 2022, com um aumento de 35% nas transações de apostas móveis em comparação com 2021.

• Usuários totais de aplicativos móveis: 1,2 milhão
• Crescimento da transação de apostas móveis: 35%

Pistas físicas e locais

Churchill Downs opera 4 pistas de corrida primárias com participação anual total de 1,5 milhão de visitantes em 2022.

Localização da pista de corrida	Participação anual
Churchill Downs (Louisville, KY)	750,000
Outras pistas de corrida do CHDN	750,000

Plataformas de mídia social

Churchill Downs mantém a presença ativa das mídias sociais, com 2,3 milhões de seguidores combinados entre plataformas.

• Seguidores do Twitter: 850.000
• Seguidores do Facebook: 1.000.000
• Seguidores do Instagram: 450.000

Canais de marketing tradicional e digital

As despesas de marketing para 2022 totalizaram US $ 87,4 milhões, com 60% alocados aos canais digitais.

Canal de marketing	Porcentagem de orçamento	Gasto total
Marketing digital	60%	US $ 52,44 milhões
Marketing tradicional	40%	US $ 34,96 milhões

Churchill Downs Incorporated (CHDN) - Modelo de negócios: segmentos de clientes

Entusiastas das corridas de cavalos

Em 2022, Churchill Downs sediou 54 dias de corrida na pista de Churchill Downs, atraindo aproximadamente 1,2 milhão de participantes no total.

Características do segmento	Detalhes demográficos
Idade média	45-65 anos
Volume anual de apostas	US $ 250 milhões
Kentucky Derby Participação	150.729 em 2022

Consumidores de apostas esportivas

A plataforma de apostas esportivas da Twinspires gerou US $ 156,4 milhões em receita líquida em 2022.

• Usuários ativos de apostas esportivas: 350.000
• Faixa de idade primária: 25-44 anos
• Participação de mercado para apostas móveis: 8,5%

Jogadores de jogos de cassino

Churchill Downs opera várias propriedades de cassino em diferentes estados.

Localização do cassino	Receita anual de jogos
Calder Casino (Flórida)	US $ 87,3 milhões
Oxford Casino (Maine)	US $ 62,5 milhões

Usuários de apostas digitais

A receita do segmento de jogo online atingiu US $ 184,2 milhões em 2022.

• Usuários da plataforma digital: 500.000
• Transação média mensal de apostas digitais: US $ 275

Entretenimento e participantes do evento

Os locais de Churchill Downs sediaram 75 eventos não de corrida em 2022.

Tipo de evento	Total de participantes
Shows	42,500
Eventos corporativos	28,300
Ocasiões especiais	19,200

Churchill Downs Incorporated (CHDN) - Modelo de negócios: estrutura de custos

Manutenção e operações do local

Em 2022, a Churchill Downs Incorporated registrou US $ 185,4 milhões em propriedades e equipamentos, líquidos, relacionados à manutenção e operações do local.

Tipo de local	Custo de manutenção anual
Churchill Downs Racetrack	US $ 12,3 milhões
Outras instalações de corrida	US $ 8,7 milhões

Investimentos de infraestrutura de tecnologia

A empresa investiu US $ 47,2 milhões em tecnologia e infraestrutura digital no ano fiscal de 2022.

• Atualização de sistemas de TI: US $ 18,5 milhões
• Desenvolvimento da plataforma digital: US $ 22,7 milhões
• Aprimoramentos de segurança cibernética: US $ 6 milhões

Despesas de marketing e promocionais

As despesas de marketing para 2022 totalizaram US $ 64,3 milhões em várias plataformas de corrida e jogos.

Canal de marketing	Despesa
Marketing digital	US $ 22,6 milhões
Publicidade tradicional	US $ 41,7 milhões

Salários e treinamento de funcionários

A compensação total dos funcionários em 2022 foi de US $ 273,6 milhões.

• Salários base: US $ 214,5 milhões
• Bônus de desempenho: US $ 39,2 milhões
• Treinamento e desenvolvimento: US $ 19,9 milhões

Custos regulatórios de conformidade e licenciamento

As despesas regulatórias e de licenciamento de 2022 totalizaram US $ 37,5 milhões.

Categoria de conformidade	Custo anual
Licenças de jogo	US $ 22,3 milhões
Taxas da Comissão de Corrida	US $ 15,2 milhões

Churchill Downs Incorporated (CHDN) - Modelo de negócios: fluxos de receita

Vendas de ingressos para eventos ao vivo

Em 2022, Churchill Downs Racetrack sediou o Kentucky Derby, gerando aproximadamente US $ 188,7 milhões em receitas totais relacionadas ao evento. O preço médio do bilhete para o Kentucky Derby variou entre US $ 70 e US $ 500, dependendo do local dos assentos.

Receitas de apostas online e móveis

A plataforma digital Twinspires registrou US $ 372,5 milhões em receitas de apostas on -line para o ano fiscal de 2022. As apostas móveis representaram 67% do total de transações de apostas on -line.

Plataforma	Receita (2022)	Quota de mercado
Twinspires apostas online	US $ 372,5 milhões	42% do mercado digital
Segmento de apostas móveis	US $ 249,38 milhões	67% da plataforma online

Receita de jogos de cassino

A Churchill Downs Casino Properties gerou US $ 517,2 milhões em receitas de jogos durante 2022, com propriedades importantes, incluindo:

• Racing de Turfway Park & Jogos: US $ 86,3 milhões
• Oxford Casino (Maine): US $ 124,6 milhões
• Calder Casino (Flórida): US $ 152,9 milhões

Patrocínio e publicidade

As receitas de patrocínio para Churchill Downs totalizaram US $ 43,7 milhões em 2022, com grandes parceiros, incluindo:

• Reserva de Woodford (bourbon oficial)
• Jack Daniel's
• Longines

Serviços de assinatura de plataforma digital

A plataforma avançada de apostas avançada dos Twinspires gerou US $ 47,3 milhões dos serviços de assinatura e conteúdo premium em 2022, com aproximadamente 225.000 assinantes ativos.

Camada de assinatura	Custo mensal	Assinantes
Camada básica	$14.99	175,000
Camada premium	$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.