Churchill Downs set a record for revenue during the second quarter of 2025, generating $934.4 million, an increase of 5 percent, or $43.7 million year-over-year.
But CEO Bill Carstanjen, during an investor’s call Thursday morning, relayed that the potential for more earnings is evident. Carstanjen highlighted five areas – ticketing, broadcast rights, wagering, sponsorships, and renovation and expansion – where Churchill Downs has room for growth.
“We see important growth drivers across our HRM (historical racing machines) properties, jurisdictions, our wagering services, and solution segments,” Carstanjen said.
Carstanjen was notably upbeat about the broadcast of the Kentucky Derby, referring to the extension of broadcast rights with NBC starting next year, and, for the first time, prime-time coverage of the Kentucky Oaks in 2026.
“We believe the move to prime-time coverage on NBC will serve as a catalyst for increased viewership and wagering,” Carstanjen said, noting the race will be broadcast the Friday before the Kentucky Derby between 8-9 p.m. “This enhanced visibility also strengthens the event’s appeal to current and prospective sponsors.”
Carstanjen was a bit opaque about some aspects of Churchill Downs, notable concerning expectations for lower-end admission pricing near the racetrack’s starting gate for the Kentucky Derby.
“Consistent with what we often see, the word gets out, people have not had a chance to experience the improvements,” Carstanjen said. “And there’s a chance for word-of-mouth to spread and we expect that for demand and pricing for that section. So, in general, we’re excited about that, and expect that to be consistent with what we see when we do introduce new areas of our facility.”
Similarly, when asked about the market for Churchill’s recently-purchased Casino Salem in New Hampshire, Carstanjen said he would have more to say when the deal is closed regarding the company’s plans.
But in general, “while there are lines on the map delineating the New Hampshire border from Massachusetts, that’s all one market,” he said. “This is an opportunity for us to tap in, not only to the New Hampshire suburbs, but also to the Massachusetts suburbs for Boston. So, we think it’s a very strong market. The demographics, both in terms of the number of people and the wealth, are there.”
Regarding future sponsorships for the Kentucky Derby, Carstanjen said it’s important to connect with the correct sponsors, especially internationally.
Noting horse racing has an international appeal, Carstanjen said “this isn’t a product, or this isn’t a brand, that we have to introduce to the market, but it is one we have to develop in these different markets. And that’s a multi-year process.”
Noting there are paths to entering horses in the Kentucky Derby for the European, Middle Eastern, and Japanese interests, “these have all been steps to solidify our connection to some of these other markets and to build roads to not only consumers there, but particularly high-end consumers,” Carstanjen said. “That’s really the basket of consumers we’re most focused on internationally, but also to sponsorships and potential sponsors.”
Carstanjen also was asked about prediction markets. Noting that he pays close attention to this phenomenon – Carstanjen is also on the board of the American Gaming Association’s executive committee – he said they are a topic of discussion.
But for Churchill Down’s parimutuel horse racing wagering, prediction markets are not currently a concern. Due to the Interstate Horseracing Act, Churchill has intellectual property and wagering rights around its horseracing products.
“In essence, you need the approval of the content producer if you want to take wagering or conduct wagering activity on our races or other parimutuel horse races,” Carstanjen said. “I think that’s an impediment to that activity happening on (prediction markets). But the platform in and of itself, it’s the subject of a lot of discussion in the country. Certainly we watch it, but it’s not a risk or a particular concern for what we do with the Kentucky Derby and its current mutuel wagering on horse racing.”
