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Churchill Downs generates a record earnings of $93.4 million during Q2 period

Churchill Downs' financial growth persisted, as reported on Wednesday, with the disclosure of unprecedented earnings in the second quarter. The entity reported a record net earnings of $934.4 million for the quarter, marking an increase of $43.7 million compared to the same period last year,...

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Second Quarter Yields Historic Earnings of $93.4 Million for Churchill Downs
Second Quarter Yields Historic Earnings of $93.4 Million for Churchill Downs

Churchill Downs generates a record earnings of $93.4 million during Q2 period

Churchill Downs Reports Q2 2025 Growth Amidst Mixed Casino Performance

Churchill Downs, the renowned American racing and gambling company, has reported a mixed performance in its commercial casinos for the second quarter of 2025. While casino revenue dipped by approximately 3%, the company's historical racing machine (HRM) segment experienced a significant 10% growth, contributing to an overall revenue of $934.4 million and a profit of $216.9 million[1].

The growth in the HRM segment was primarily driven by a $23.8 million increase from Churchill's Virginia venues, a $22 million increase from Kentucky venues, and a $3.2 million increase from the Southwestern venue[2]. The expansion at Churchill's Richmond venue in May also added $1.8 million to the revenue, partially offset by a $3 million net decrease from five other Virginia venues and a $1.4 million decrease from increased handle tax[3].

In Kentucky, the HRM increase was mainly due to a $5.2 million net increase from Louisville venues, a $4.3 million net increase from Northern Kentucky venues, a $3.6 million net increase from Western Kentucky venues, and a $2.2 million net increase from the Southwestern venue[4]. The Northern Virginia venues also saw an increase in revenue of $4.7 million[4].

However, the Churchill Downs Racetrack experienced a decrease in revenue, primarily because of lower Derby Week ticketing revenue and higher pari-mutuel taxes. This decrease was partially offset by increased wagering and licensing/sponsorship revenue[5].

In a move to bolster its growth, Churchill Downs announced an agreement to acquire 90% of Casino Salem in New Hampshire for $180 million[6]. Located near Boston, the casino opened its initial phase in July 2025 with around 100 HRMs and 13 live table games. The plan includes rebranding and phased expansion, leveraging local partners’ expertise to enhance gaming and entertainment offerings and expand market penetration in the lucrative New England area[3][5].

The company's strategic growth initiatives also include disciplined capital management, as demonstrated by financing the acquisition through existing credit facilities and executing a $250 million share repurchase program[1][5]. The Churchill Downs board recently approved a $500 million share repurchase program[7].

In other news, the Kentucky Derby had the highest peak viewership for a single event, with 21.8 million viewers, marking an 8% year-over-year increase[8]. Churchill Downs reported record earnings of $934.4 million for the second quarter, up 5% year-over-year[9]. Net income attributable to Churchill Downs was $216.9 million, an increase of 4% or $7.6 million compared to the second quarter of 2024[10].

Despite the slight decline in casino revenue, Churchill Downs is actively strengthening its commercial casino portfolio through targeted acquisitions and operational expansion in key U.S. markets, which are expected to drive future growth.

[1] Churchill Downs Reports Q2 2025 Results [2] Churchill Downs Q2 2025 Earnings Call Transcript [3] Churchill Downs Acquires Majority Stake in Casino Salem [4] Churchill Downs Q2 2025 Earnings Call Transcript [5] Churchill Downs Acquires Majority Stake in Casino Salem [6] Churchill Downs Acquires Majority Stake in Casino Salem [7] Churchill Downs Announces $500 Million Share Repurchase Program [8] Kentucky Derby Sets Record Viewership [9] Churchill Downs Reports Q2 2025 Results [10] Churchill Downs Reports Q2 2025 Results

  1. Churchill Downs, a reputable player in the American racing and gambling industry, reported a mixed performance in its casinos during Q2 2025, with a slight dip in revenue, contrasted by a significant growth in its historical racing machine segment.
  2. The company's strategic wealth-management decisions, such as financing acquisitions through existing credit facilities and executing share repurchase programs, demonstrate a commitment to disciplined capital management and personal-finance practices.
  3. In summary, Churchill Downs' second-quarter performance showed a challenging casino-related revenue, coupled with an impressive 10% growth in the historical racing machine segment, leading to an overall revenue of $934.4 million and a profit of $216.9 million.
  4. The expansion of Churchill Downs' business portfolio includes the acquisition of 90% of Casino Salem in New Hampshire, a strategic move aimed at bolstering growth and increasing market penetration in the lucrative New England area, particularly near Boston.
  5. The exceptional growth in the HRM segment was seen across Churchill's venues, with notable increases from Virginia, Kentucky, and Southwestern locations, as well as Churchill's Richmond venue expansion.
  6. Beyond the racing and gambling sector, Churchill Downs made waves in the sports world as the Kentucky Derby achieved the highest peak viewership for a single event, totaling 21.8 million viewers and marking an 8% year-over-year increase, solidifying Churchill Downs' influence in the American football and sports finance sphere.

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