Machibet777 APPChurchill Downs Incorporated Reports Record-Breaking Net Revenue in Q3 2024

Horses make their way past the grandstand for the 150th Running of the Kentucky Derby at Churchill Downs as we look at the 2024 Q3 financials for Churchill Downs Incorporated . — Horses make their way past the grandstand for the 150th Running of the Kentucky Derby at Churchill Downs. Photo by: Michael Clevenger and O'Neil Arnold-Imagn Images

Horse racing is something we're starting to see some of our best sportsbooks adopt, and with good reason.

Online horse racing betting and racing track operator Churchill Downs Incorporated (CDI) has released its Q3 financial results for 2024. According to the , the company collected record-breaking net revenue, net income, and adjusted EBITDA during the period that ended September 30, 2024.

Churchill Downs saw a net revenue of $628.5 million in Q3 2024, which was more than a 9.7% increase from the $572.5 million collected in Q3 2023. EBITDA hit $253.3 million, an increase of over 16% from the $218.2 million in Q3 2023.

Casino gaming contributed the most to this revenue total, with $270.3 million in revenues. CDI benefited from an EBITDA of $123.3 million, accounting for nearly 49% of the company’s Q3 2024 EBITDA.

Even though CDI highlighted increased competition as a factor in a $7.1 million drop in existing casino revenues, the opening of Terre Haute Casino Resort in April 2024 was estimated to have brought in another $32.5 million, totaling a $25.4 million revenue increase.

Live and historical racing growth in Virginia

CDI owns the famous Churchill Downs Racecourse, which hosts the Kentucky Derby annually. For most of its history, operating horse racing tracks was the majority of its business operations.

The Q3 2024 numbers show that live and historical horse racing is still crucial to CDI. These avenues brought in $252.4 million in revenue and $93 million in EBITDA, respectively, marking year-over-year increases of 11.9% and 14.9%.

According to the CDI report, most of this growth has come from CDI properties in Virginia. CDI opened Rosie’s Gaming Emporium for horse racing and casino gaming in Emporia, Virginia, which added significant revenues to the Q3 2024 totals compared to Q3 2023. CDI estimated that over 80% of the $26.9 million in increased revenues came from Virginia locations.

Additionally, $3.8 million in revenue growth came from Kentucky locations, which include CDI’s iconic Churchill Downs Racecourse. The other $1.5 million revenue increase was produced by CDI locations across the rest of the US.

TwinSpires revenue up despite lower online sports betting handles

While TwinSpires Sportsbook shut down in 2022, CDI continues to benefit from online sports betting, which helped its growth in Q3 2024. The online operator earned $1.3 million more than Q3 2023 thanks to online sports betting market access agreements and its remaining retail sports betting businesses.

Outside of sports betting, TwinSpires also benefited from a $9.6 million increase in revenue from its Exacta product. However, declines in the TwinSpires online horse racing betting handle and race day shifts led to a $4.6 million decrease in revenues from these areas.

Overall, TwinSpires generated $118.7 million in revenue in Q3 2024, compared to $112.4 million in Q3 2023. The 2024 total resulted in $42.5 million in EBITDA, an over 25.3% increase.

The remaining $2.6 million not accounted for by horse racing, TwinSpires, and casino gaming came from intercompany revenue created by a captive insurance company established in April 2024.

Written By:
Ziv Chen

Ziv has over two decades of experience in the igaming and sports betting industry, having served in senior marketing and business development positions with both B2C and B2B companies, including Playtech and Microgaming. In 2019, Ziv decided to pursue his passion for writing and became a fulltime industry journalist, covering casino, sports, and gambling business news. He’s specialties include casino games and technology, US state gambling regulation, company performance, as well as gambling affiliates and marketing. As a Pitt graduate, Ziv is a diehard fan of all Pittsburgh sports teams, with the Steelers at the top of the list. In his free time, he enjoys reading crime fiction, biographies (mainly of sports personalities, but not only) and American history. Ziv’s Favorite quote: “We're going to pursue perfection, knowing full well we won't catch it, but we're going to relentlessly chase it," Mike Tomlin, Pittsburgh Steelers Head Coach.