Churchill Downs plans to sell nine wholly owned gaming properties after posting record second-quarter results, while focusing its portfolio on the Kentucky Derby, historical racing machines and Twin Spires.
The company reported $980 million in revenue and $477 million in EBITDA. CEO Bill Carstanjen said this marked the sixth consecutive record second quarter for both measures.
The properties include Calder Casino, Terre Haute Casino, Hard Rock Casino, Oxford Casino, Ocean Downs, Harlow’s, Riverwalk Casinos, Del Lago and Presque Isle.
Nine Properties Enter the Market
Churchill Downs expects to consider individual sales or smaller transaction groups based on buyers’ interests.
“First and foremost, these are assets with long histories of good cash-flow generation, capital, and performance,” Carstanjen said. “Starting with that premise of we have good assets, certainly it’s the case that there’s activity in the market in this space in general. We can all see that, and people can take from that with what they wish. But we think this is an excellent time for us to go to market.
“In our case, I think we’ll be looking at more individual or small bundles of transactions based on different buyers’ interests and needs. But first and foremost, the most important thing to highlight is we’re selling proven strong assets that ought to fit in other people’s portfolios and other people’s plans, and from our perspective, we’re pleased with the environment and pleased with our plan to take these properties to market.”
Carstanjen said the company will retain its historical racing machine properties in Kentucky, Virginia and New Hampshire.
Proceeds to Support Future Investment
Churchill Downs plans to use proceeds to reduce leverage, reinvest in selected projects and repurchase shares.
“Our intention is to use any asset sale proceeds to significantly reduce our leverage, reinvest selectively in Churchill Downs Racetrack and in other high-return projects, and fund the repurchase of shares of our stock,” he said. “Going forward, we will concentrate on assets with strong cash flow and durable competitive advantages.”
The company operates eight Kentucky HRM venues with about 5,300 machines. Since Derby City Gaming opened in 2008, Churchill Downs Racetrack purses have risen from less than $40 million to more than $100 million.
In Virginia, Churchill Downs holds rights to 10 HRM licenses and 5,000 machines.
“We are exploring options to run referendums in the town of Pulaski and in Amherst County, both in the western part of Virginia, that would allow us to further expand our HRM footprint,” Carstanjen said. “We believe both jurisdictions are underserved markets with attractive growth potentials.”
Pennsylvania Ruling Affects Presque Isle
A June Pennsylvania Supreme Court ruling found skill games deployed in the state to be illegal gaming devices.
“As a legal gaming operator in jurisdictions like Kentucky and Pennsylvania and Virginia, that’s good for our business,” Carstanjen said. “[…] And it’s not fair. It’s not regulated, and it’s not right when folks just come in and open up illegal gaming operations. So, this is going to be good for Presque Isle (in Erie).”
Churchill Downs will concentrate on the Kentucky Derby, HRM operations and Twin Spires as it reshapes its property portfolio.
Source:
“After record revenue for second-quarter, Churchill Downs plans to put nine properties on the market”, cdcgaming.com, July 30, 2026
The post Churchill Downs Puts Nine Gaming Properties up for Sale first appeared on RealMoneyAction.com.