Increased earnings observed at Churchill Downs, yet CEO envisions further profit growth opportunities
Churchill Downs Targets Growth Beyond Casinos with Derby Week Expansion and Media Partnerships
In a move to diversify its revenue streams, Churchill Downs, the iconic horse racing venue and casino operator, is focusing on growth opportunities beyond its commercial casinos. CEO Bill Carstanjen has highlighted Derby Week expansion and enhanced premium offerings, supported by a new NBC contract, as key growth drivers outside traditional casino revenues.
The announcement comes after a strong Q2 2025 performance, with Churchill Downs posting record-high revenue of $934.4 million and adjusted EBITDA of $450.9 million. This growth was driven in part by increased revenue from Historical Racing Machine (HRM) venues such as those in Virginia.
Carstanjen identified five areas for potential growth: ticketing, broadcast rights, wagering, sponsorships, and renovation and expansion. The CEO expressed optimism about the potential for word-of-mouth to spread and increase demand and pricing for a new area of Churchill Downs' facility.
Regarding future sponsorships for the Kentucky Derby, Carstanjen emphasized the importance of connecting with the correct sponsors, especially internationally. He noted that horse racing has an international appeal and requires development in different markets. Carstanjen sees paths for European, Middle Eastern, and Japanese interests to enter horses in the Kentucky Derby as a way to solidify connections to these markets.
The deal for Churchill Downs' purchase of Casino Salem in New Hampshire is not yet finalized. Carstanjen believes that the demographics in the New Hampshire and Massachusetts markets are favorable for Churchill Downs.
In terms of media partnerships, Carstanjen expressed excitement about the extension of broadcast rights with NBC starting next year and prime-time coverage of the Kentucky Oaks in 2026. He believes that prime-time coverage on NBC will lead to increased viewership and wagering.
The Kentucky Oaks will be broadcast between 8-9 p.m. the Friday before the Kentucky Derby in 2026. Carstanjen also noted that horse racing prediction markets are a topic of discussion, but not a concern for Churchill Downs' parimutuel horse racing wagering due to the Interstate Horseracing Act.
Carstanjen is aware of the importance of maintaining Churchill Downs' intellectual property and wagering rights around its horseracing products. He stated that approval from the content producer is required for wagering activity on their races or other parimutuel horse races.
Overall, the main identified growth avenues beyond commercial casinos focus on expanding Derby Week’s scale and premium experiences, enhanced by broadcasting partnerships, with other casino-adjacent areas like HRM contributing but less emphasized in the CEO’s remarks.
The CEO of Churchill Downs, Bill Carstanjen, sees potential growth in areas such as ticketing, sponsorships, and renovation and expansion, with a focus on expanding Derby Week's scale and premium experiences. He is also optimistic about the future growth in finance and investing, as demonstrated by the extension of broadcast rights with NBC and the new prime-time coverage of the Kentucky Oaks. Furthermore, Carstanjen identified sports, like horse racing, as an international business with opportunities for growth in markets like Europe, Middle East, and Japan.
