Record-Breaking Q2 for Churchill Downs with $934.4 Million in Income and a Successful Kentucky Derby
Churchill Downs Incorporated (CDI) Expands into Charitable Gaming Sector
Churchill Downs Incorporated (CDI) has announced a strategic expansion into the charitable gaming sector with the acquisition of a 90% equity interest in Casino Salem, located in New Hampshire. The deal, valued at $180 million, is set to transform Casino Salem into a state-of-the-art regional gaming and entertainment destination.
The acquisition includes rights to develop a comprehensive charitable gaming, entertainment, and dining complex. This expansion will increase the number of historical horse racing machines (HRMs) and live table games, leveraging the site's location at The Mall at Rockingham Park to attract visitors from New England.
CDI's existing operations in Salem, such as the Chasers Poker Room, will align with this strategy to grow their footprint in charitable gaming. Games in this sector are operated by nonprofit organizations partnering with operators like CDI. The acquisition is expected to close by Q3 2025, pending regulatory approval from the New Hampshire Lottery Commission, and will be financed through CDI’s current credit facilities.
CDI’s CEO Bill Carstanjen emphasized the deal's importance, highlighting New Hampshire’s potential as a regional draw. He emphasized the deal's potential to support charitable organizations in the state, boost local economic growth, create jobs, and increase tourism. The involvement of local entrepreneurs Joe Faro and Sal Lupoli, who will retain minority ownership, underscores a commitment to long-term community and economic benefits.
The success of the Kentucky Derby and its contribution to CDI's overall performance in Q2 2025 have been followed by this strategic expansion. The 151st running of the Kentucky Derby at Churchill Downs Racetrack set all-time highs for all-sources handle across the Derby Race, Derby Day program, and Derby Week overall. The average viewership of the Kentucky Derby's broadcast peaked at 17.7 million, up 6%, and reached a record 21.8 million at its highest point, up 8%.
CDI's record-breaking second quarter for 2025 saw net revenue of $934.4 million, a 5% increase year-over-year. Net income attributable to CDI rose to $216.9 million, up 4%. The quarter's Adjusted EBITDA hit a record $450.9 million, a modest but meaningful 1% increase compared to the same period last year.
In addition to the Casino Salem acquisition, CDI returned $250.4 million to shareholders through buybacks. The company's Board of Directors approved a new $500 million share repurchase program on July 22, signaling continued confidence in the company's future cash flow and value creation strategy.
The new share repurchase program is a significant post-quarter development, reflecting CDI’s commitment to shareholder return. The acquisitions and initiatives of CDI underscore the company's focus on growth and innovation, positioning them for continued success in the gaming and entertainment industry. With a net bank leverage ratio of 4.2x at the end of the quarter, CDI boasts a robust balance sheet to support these ambitious growth plans.
[1] Churchill Downs Incorporated Press Release, 28 July 2025. [2] New Hampshire Lottery Commission Press Release, 28 July 2025. [3] Salem News, 28 July 2025. [4] Yahoo Finance, 28 July 2025.
- Churchill Downs Incorporated's strategic move into charitable gaming sector, following the acquisition of Casino Salem, will not only bolster their business in the gambling industry but also finance the development of a complex that includes sports-related entertainment and dining.
- The involvement of New Hampshire's charitable gaming sector, run by nonprofit organizations and businesses like CDI, will potentially boost local economy, create jobs, and increase tourism, while the proceeds from the gaming operations will support various charitable causes.
