Churchill Downs Business Summary

Churchill Downs Incorporated (CDI) operates a diversified entertainment and gaming model structured across three primary segments: Live and Historical Racing, Gaming, and Wagering Services. The company generates revenue through pari-mutuel wagering commissions, gaming floor "win" from regional casinos and high-growth Historical Racing Machine (HRM) facilities, and premium hospitality and media rights anchored by the iconic Kentucky Derby. CDI’s competitive advantage lies in its ownership of the most prestigious intellectual property in horse racing, which it leverages to drive record-breaking wagering handles and lucrative sponsorship deals. In the broader market, CDI competes with diversified gaming operators such as Caesars Entertainment, Boyd Gaming, and Red Rock Resorts, as well as digital wagering giants like DraftKings, positioning itself as a premium, vertically integrated leader in the racing and regional gaming sectors. The leadership team is led by Chief Executive Officer William C. Carstanjen, who has spearheaded the company’s aggressive diversification into HRMs and regional gaming since 2014, following a career at General Electric and Cravath, Swaine & Moore. He is supported by President and COO William E. Mudd, also a GE veteran, and EVP and CFO Marcia A. Dall, who brings over 30 years of international financial leadership. Benjamin Murr serves as President of TwinSpires and Online Gaming, overseeing the company’s digital strategy and technological infrastructure. Originally founded in 1875 by Meriwether Lewis Clark Jr., the company is now a NASDAQ-listed entity with significant institutional backing from major shareholders including The Vanguard Group, BlackRock, and State Street, and is governed by a board chaired by R. Alex Rankin.