Key points:
- CDI posted $2.7bn in full-year revenue for 2024, up 11% from 2023, with Q4 revenue increasing 11% to $624.2m
- Net income for Q4 rose 24% year-on-year to $71.7m, while full-year net income increased by 2% to $426.8m
- CDI launched a multi-year renovation plan for Churchill Downs Racetrack, the largest expansion in the venue’s history
Churchill Downs recorded a 14.5% year-on-year increase in revenue at its racetrack, adding $57.2m in 2024 due to the record-breaking 150th Kentucky Derby.
The event set all-time highs in wagering handle and Derby Week adjusted EBITDA, reinforcing its role as a key revenue driver.
The company also reported strong growth in its historical racing machine (HRM) venues, particularly in Virginia and Kentucky.
The November 2024 opening of The Rose Gaming Resort in Dumfries, Virginia, contributed $19.6m in Q4 revenue, while other Virginia HRM venues posted a combined $10.4m revenue increase.
In Kentucky, HRM locations saw a $41.5m full-year revenue increase, representing a 21% rise.
Full-year EBITDA and Q4 performance
CDI’s adjusted EBITDA for FY2024 increased 13% to $1.2bn, reflecting the impact of high-profile events and gaming expansion. In Q4, EBITDA rose 8% to $236.6m, supported by HRM venue performance and the success of the Kentucky Derby.
However, the company’s sports betting segment recorded a 24.1% revenue decline in Q4, amounting to a $3.5m decrease, reflecting market challenges and reduced profitability from retail operations.
TwinSpires horseracing revenue also declined 2.7% in Q4, falling by $1.3m due to market access changes and adjustments in race day schedules.
Casino and racing developments
CDI expanded its casino operations in 2024 with the April opening of Terre Haute Casino Resort in Indiana, which contributed $30.3m in Q4 revenue. CDI’s stake in Miami Valley Gaming also added $2.7m in quarterly EBITDA, reflecting a 10% increase.
However, CDI’s wholly owned gaming properties recorded a 3.2% revenue decline in Q4, down by $3m, reflecting regional gaming softness and increased competition.
Additionally, CDI’s equity investment in Rivers Des Plaines saw a 9.3% EBITDA decline, amounting to a $5.1m loss in quarterly earnings, attributed to higher labour costs and intensified market competition.
CDI continued expanding in Kentucky with the 12 February 2025 opening of Owensboro Racing & Gaming, featuring 600 HRMs, a retail sportsbook and simulcast wagering.
Churchill Downs racetrack expansion project
Looking ahead, CDI is investing between $880m and $920m in a multi-year renovation plan for Churchill Downs Racetrack. The initiative includes:
- The Skye Project – Replacing 11,500 seats with 13,300 upgraded hospitality spaces, with completion expected by May 2028.
- The Conservatory Project – Replacing temporary infield suites with permanent hospitality structures, to be completed between 2026 and 2028.
- The Infield General Admission Project – Adding new buildings for enhanced guest amenities at the Kentucky Derby.
CDI expects these enhancements to drive long-term revenue growth and improve guest experience at its flagship racetrack.
Past performance and market trends
Churchill Downs’ Q3 2024 results reflected similar growth trends, with net revenue increasing by 9.8% to $628.5m. The company had also expanded its gaming footprint in Virginia, boosting HRM revenues across multiple properties.
In addition, CDI exited the sports betting business in Kentucky on 10 February 2025, citing low profitability from retail operations. The company continues to focus on HRMs and live racing as core revenue drivers, reinforcing its strategic shift away from traditional sportsbook operations.
