Churchill Downs Incorporated (CDI) has finalised the sale of a 49% stake in its United Tote subsidiary to the New York Racing Association (NYRA).
The deal, agreed in August 2022, sees NYRA Content Management Solutions, a subsidiary of the NYRA, acquiring the stake. Financial terms of the United Tote sale were not disclosed by CDI.
United Tote primarily supplies totalisator systems, services and equipment. It also provides a range of technology services to process bets and pay-outs and pari-mutuel tote services.
The original deal said CDI would work with NYRA to provide a pari-mutuel solution through United Tote to reach customers. It was also agreed the United Tote pari-mutuel settlements business would be excluded from the sale and remain with CDI.
NYRA is a not-for-profit corporation that operates the three largest thoroughbred horse racing tracks in New York. These include Aqueduct Racetrack in South Ozone Park, Queens; Belmont Park in Elmont; and Saratoga Race Course in Saratoga Springs.
Record revenue for CDI in 2023
The sale comes on the back of CDI reporting record financial results for 2023. During the 12 months to 31 December 2023, revenue reached a record $2.46bn (£1.94bn/€2.27bn), up 36.0%.
Revenue was up across all business areas. However, it was CDI’s live and historical racing segment where this growth was most apparent. This means the division surpassed the gaming business to become CDI’s primary source of revenue.
While record revenue was the headline figure, adjusted EBITDA was also 39.0% higher at $1.02bn, a new annual high for CDI.
However, increased spending pushed net profit down 5.0% year-on-year to $417.3m.
CDI details new historical racing venues
Alongside the results, CDI also announced plans to open new facilities in both Virginia and Kentucky.
Phase one of The Rose Gaming Resort in Virginia has been approved and is now scheduled to open in September. It will feature 1,650 historical racing machines, a hotel and food and beverage options.
Meanwhile, plans are in place to also open Owensboro Racing & Gaming in Kentucky in Q1 of 2025. The facility will house 600 historical racing machines, a retail sportsbook, simulcast wagering and multiple food and beverage offerings.
