Churchill Downs Q4 Highlights Include Chicago Bears Deal

Written By Nicholaus Garcia on February 23, 2023
US Gambling Firm Churchill Downs 2022 Financials

Churchill Downs’ (CDI) decision to leave online sports betting and focus on other areas of the US gambling industry appears to be working. 

On Wednesday, the company announced its fourth-quarter and full-year (2022) financials, reporting, among other things, a record $1.8 billion in net revenue. 

Full-year 2022 and Q4 results

Net revenue for the Louisville-based company was up 13% compared to the $1.5 billion in the prior year. CDI also reported a record 2022 net income of $439.4 million, up 76% compared to the $249.1 million last year.

As for Q4 results, CDI posted net revenue of $480.1 million, up from the $364.8 million generated in 2021. Unfortunately, the fourth-quarter net income for the owner of the Kentucky Derby was only $1 million, drastically lower than the $43.3 million in Q4 2021. 

Q4 financials by segment include:

  • Live and Historical Racing: $180.9 million
  • TwinSpires: $94.3 million
  • Gaming: $212.2 million
  • All other: $1.1 million

Year-end financials by segment include:

  • Live and Historical Racing: $646.4 million
  • TwinSpires: $441.6 million
  • Gaming: $761.8 million
  • All other: $3.3 million

CDI portfolio growth in the US gambling market

In addition to financial results, Churchill also announced it had completed several high-profile deals, including the $2.75 billion acquisition of Peninsula Pacific Entertainment.

  • Purchase of Chasers Poker Room in Salem, New Hampshire
  • Acquisition of Ellis Park Racing & Gaming
  • Closed on the sale of Calder land for $291 million
  • Closed on the sale of Arlington Heights for $197.2 million

Offloading the Arlington Park property is easily one of the most talked about deals in the US gambling market.

The Chicago Bears purchased the racecourse for $197.2 million, intending to build a new state-of-the-art stadium. Although the team continues to deny its plans to move from Chicago, its forward-looking statements paint a different picture. 

On Feb. 16, a letter from the team’s Twitter account said:

“Finalizing the purchase does not guarantee the land will be developed, but it is an important next step in our ongoing evaluation of the opportunity. There is still a tremendous amount of due diligence work to be done to determine if constructing an enclosed state-of-the-art stadium and multi-purpose entertainment district is feasible.”

Photo by Graphic by PlayUSA
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Nicholaus Garcia

Nick Garcia is a senior reporter for PlayUSA. Garcia provides analysis and in-depth coverage of the gambling industry with a key focus on online casinos, sports betting and financial markets. Garcia has been covering the US gambling market since 2017. He attended Texas Tech University as an undergrad and received a Master of Arts in Journalism from Columbia College Chicago.

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