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.”
