Churchill Downs Incorporated reported a 5% year-over-year increase in second-quarter 2025 revenue, reaching an all-time high of $934.4 million.
The growth was primarily driven by the company’s Live and Historical Racing segment, which saw a 10.3% revenue increase to $540.9 million. Meanwhile, revenue from its Gaming segment declined 3% to $266.3 million.
Net income attributable to Churchill Downs rose 4% to $216.9 million, while adjusted EBITDA increased 1% to a record $450.9 million. The company returned $250.4 million to shareholders through the repurchase of over 2.5 million shares during the quarter. On July 22, the board authorized a new $500 million share repurchase program.
Live and Historical Racing benefited from increased activity at Kentucky and Virginia venues. In Virginia, the November 2024 opening of The Rose and the May 2025 expansion of the Richmond property contributed to segment gains.
Kentucky venues also recorded higher net revenue from operations in Louisville, Northern Kentucky, Western Kentucky, and the Southwestern region. Churchill Downs Racetrack saw higher wagering and licensing revenues during Derby Week, though ticketing revenue declined.
Adjusted EBITDA for the segment rose $17.3 million year-over-year to $296.5 million. The increase was led by a $15.3 million gain at Kentucky venues and a $3.0 million increase at Virginia properties. The racetrack recorded a $1.0 million decline in adjusted EBITDA due to lower ticketing revenue and higher taxes, offset in part by licensing and wagering.
The Wagering Services and Solutions segment reported $168.4 million in revenue, up 5.3% from the previous year. TwinSpires Horse Racing generated higher wagering during Derby Week, and Exacta contributed incremental revenue from historical racing machines in Virginia and New Hampshire. Adjusted EBITDA for the segment increased to $48.0 million from $46.2 million.
The Gaming segment posted an $8.1 million revenue decrease, largely tied to the closure of HRM operations in Louisiana and reduced contributions from Terre Haute Casino Resort. The latter was affected by a higher effective state gaming tax rate. Adjusted EBITDA declined by $13.4 million to $127.3 million, including an $11.6 million drop from wholly owned properties and a $1.8 million decrease from equity investments.
Churchill Downs also announced it would acquire 90% of Casino Salem in New Hampshire for $180 million. The company plans to develop the site into a charitable gaming and dining venue and will continue operating Chasers Poker Room while evaluating any operational impact.
The 151st Kentucky Derby posted average viewership of 17.7 million, up 6% from the previous year, and a peak audience of 21.8 million, up 8%.
Following the July 4 passage of H.R. 1, Churchill Downs expects reduced cash tax obligations due to the reinstatement of 100% bonus depreciation and a revised interest expense deduction cap. The company will begin utilizing a $91.2 million deferred tax asset linked to interest expenses.
