Despite achieving a significant income increase, the CEO of Churchill Downs perceives further growth possibilities.
Churchill Downs Outlines Growth Strategies for 2026 and Beyond
Churchill Downs, the iconic racetrack known for hosting the Kentucky Derby, has revealed its plans for expansion and growth in the coming years. CEO Bill Carstanjen highlighted several potential growth areas, focusing on expanded Derby Week offerings, enhanced broadcast agreements, and HRM (historical racing machine) market development.
Starting with Derby Week, strategic ticket pricing and new premium experiences are expected to boost sponsorship, wagering, and adjusted EBITDA significantly in 2026 and beyond. One of the key initiatives is moving the Kentucky Oaks to prime time, which will be broadcast between 8-9 p.m. the Friday before the Kentucky Derby in 2026. Carstanjen expressed optimism about the potential for increased viewership and wagering due to this prime-time coverage.
In terms of HRM market development, Churchill Downs is investing in new and existing HRM facilities in Kentucky, Virginia, and New Hampshire. While these markets require sustained marketing and operational ramp-up, they present a significant growth runway. The company is also actively pursuing regulatory approvals and investments in new gaming markets, such as the recent acquisition of Casino Salem in New Hampshire. CEO Carstanjen considers the market for Casino Salem to be strong, with potential to tap into both New Hampshire and Massachusetts suburbs for Boston.
Regarding future sponsorships for the Kentucky Derby, Carstanjen emphasizes the importance of connecting with international sponsors. Horse racing has an international appeal, and Churchill Downs is focused on developing its brand in international markets. The company is also exploring paths to entering horses in the Kentucky Derby for European, Middle Eastern, and Japanese interests, which are seen as steps to solidify connections to these markets and attract high-end consumers.
Churchill Downs' revenue for the second quarter of 2025 reached a record of $934.4 million, an increase of 5 percent compared to the same quarter in 2024. This growth was driven by several factors, including the demographics in the market, which are favourable with a high number of people and wealth. The company's focus on expanding its offerings and developing its brand in international markets is expected to contribute to further growth in the coming years.
However, there are challenges to be addressed. Approval from the content producer is needed to conduct wagering activity on Churchill's races or other parimutuel horse races, which may impede the use of prediction markets. Prediction markets are a topic of discussion, but they are not currently a concern for Churchill Downs' parimutuel horse racing wagering.
In conclusion, Churchill Downs is positioning itself for step-function growth in 2026 and beyond, with a focus on expanded Derby Week offerings, enhanced broadcast agreements, and HRM market development. The company's strategic initiatives, combined with favourable market conditions and international appeal, are expected to drive continued growth and success in the future.
[1] Source: Churchill Downs Inc. Q2 2025 Earnings Call Transcript. [3] Source: Churchill Downs Inc. 2025 Corporate Presentation.
- Churchill Downs, in its 2026 and beyond growth strategies, aims to expand in the finance sector by exploring paths to enter into international sponsorships, strengthening its global brand presence, and attracting high-end consumers from Europe, Middle East, and Japan.
- The company's business expansion also includes investments in the finance and industry spheres, as they are actively pursuing regulatory approvals and investments in new gaming markets, and are planning to develop existing and new HRM facilities, particularly in Kentucky, Virginia, and New Hampshire.
