CHDN · United States
churchilldownsincorporated.comFinancials as of FY2025
Turns one annual horse race in Louisville into a nationwide online betting platform and 30-casino business.
Churchill Downs Incorporated runs online horse racing wagering across 14 states and operates 30 regional casinos, and almost all of it flows from one race — the Kentucky Derby, held on the first Saturday in May at Churchill Downs Racetrack in Louisville. Because pari-mutuel wagering licences are tied to specific facilities and jurisdictions, the Derby's legal identity cannot be moved or replicated, which means every year the global betting audience for the sport concentrates on a single weekend and a single platform, TwinSpires, giving it the handle volume and brand credibility that persuaded regulators to approve its multi-state licence stack in the first place. That 14-state footprint makes TwinSpires the natural home for serious Thoroughbred bettors year-round, and the account data and loyalty points those bettors accumulate feed directly into the casino properties, which in turn fill hotel rooms and gaming floors by leaning on Derby Week as their most powerful marketing moment. The whole structure depends on that regulatory tie holding — if a racing commission severed the pari-mutuel licence from the Louisville facility, Churchill Downs would lose the brand anchor that makes its online platform cheaper to operate than a generic competitor's and its casinos easier to fill, leaving it a mid-tier regional casino company with a horse racing app.
How does this company make money?
The company takes a commission on every bet placed through TwinSpires online and at the Churchill Downs track itself. Its 30 regional casino properties earn revenue from slot machines and table games. During Derby Week, the company sells tickets and premium hospitality packages at Churchill Downs. It also earns a share of revenue from historical racing machines, which are approved on a state-by-state basis by gaming commissions.
What makes this company hard to replace?
TwinSpires bettors have years of account history and track-specific betting knowledge built up inside the platform, which takes time and effort to rebuild elsewhere. Customers who hold Derby Week hospitality tickets or packages face a hard ceiling — there is no other horse racing event of comparable prestige that offers an equivalent experience. Casino customers at Churchill Downs properties have loyalty points and status tied specifically to that ecosystem, and walking away means leaving those behind.
What limits this company?
The Kentucky Derby runs once a year on the first Saturday in May at one track. No matter how much demand grows, the event cannot be run twice, split across venues, or rescheduled. Every marketing dollar spent on TwinSpires and every casino cross-sell has to pay off against a brand moment that lasts one weekend per year.
What does this company depend on?
The company cannot operate without the Churchill Downs Racetrack facility in Louisville, where the Kentucky Derby must be held. It relies on TwinSpires platform technology to process online bets, on pari-mutuel wagering licenses across 14 states to operate legally, on the Thoroughbred horse racing industry to supply race content year-round, and on state gaming commissions to approve and maintain its casino and historical racing machine operations.
Who depends on this company?
Thoroughbred horse racing bettors across the country depend on TwinSpires as their main online platform for pari-mutuel wagering — if it shut down, there is no comparable replacement. Louisville's hotels and restaurants depend heavily on Derby Week visitors for a concentrated burst of annual revenue. Television broadcasters depend on the Kentucky Derby for their highest-rated horse racing programming of the year.
How does this company scale?
TwinSpires online wagering technology and marketing can expand into new states as sports betting legalizes, adding customers without building physical locations. What does not scale is the Kentucky Derby itself — it is one race, one day, one track, with fixed physical capacity and a regulatory position no one else holds. Growth in online reach is real, but it always runs back through that single fixed event.
What external forces can significantly affect this company?
State-by-state sports betting legalization keeps opening new markets, but each one requires separate licenses and fresh spending to acquire customers, putting pressure on costs. Economic downturns pull consumers back from discretionary spending like wagering and casino visits. Changes to federal tax policy on pari-mutuel wagering — compared to how other gambling formats are taxed — could shift the economics of the entire online wagering business.
Where is this company structurally vulnerable?
If state racing commissions or federal regulators changed how the Kentucky Derby's wagering status is classified — or if interstate simulcasting agreements were restructured so the Derby's betting handle was no longer tied to the Churchill Downs license — TwinSpires would lose the event-backed credibility that earned it 14 state licenses. Without that, the chain linking online wagering customers to casino loyalty programs would snap at its root, and Churchill Downs would be left as an ordinary regional casino company with a horse racing app.
Sign in to view price data.
Sign inScreen for dividend patterns
Find other stocks with similar dividend characteristics in the screener.
Structural observations derived from financial data, industry benchmarks, and supply chain position.
Companies that share the same coordination system — how they create, deliver, or capture value.
Companies that share active interpretations — structural patterns currently present in both stocks.
CompanyGraph