Churchill Downs Posts Record Q1 Revenue, Opens Marshall Yards Racing Machine and Sets $3M Preakness Fee
Churchill Downs reported record Q1 revenues driven by the on-budget launch of Marshall Yards Historical Racing Machine in Kentucky and a smoother Kentucky Derby sales cycle. It set a Preakness fee structure with a $3 million base fee and 2% of handle for Black-Eyed Susan and Preakness days.
1. Q1 Financial Performance
Churchill Downs reported record first-quarter revenues driven by growth across its racing, wagering and hospitality segments. Leadership highlighted smoother demand for Kentucky Derby hospitality packages compared to last year’s tariff-affected cycle.
2. Marshall Yards Venue Launch
The company completed the Marshall Yards Historical Racing Machine venue in Kentucky on time and on budget, contributing to local job creation and expanding its historical racing terminal footprint. Management expects the facility to bolster operating income as it reaches full capacity.
3. Preakness Fee Structure
Churchill Downs outlined a two-part fee arrangement for its Preakness Stakes intellectual property in Maryland: a $3 million base fee increasing 2.5% annually from 2028, plus 2% of total handle on Black-Eyed Susan and Preakness days. Last year’s combined handle for those events reached approximately $140 million.
4. Regulatory Environment and Digital Strategy
Executives noted a legislative win in Virginia that provides a stable framework for gaming expansion and affirmed a flexible stance on digital growth, including iGaming. The company plans to tailor its approach on a state-by-state basis, balancing public policy considerations with market potential.