Churchill Downs Inc. moved to consolidate control of its wagering‑technology operations and accelerate upgrades at its flagship racetrack, announcing Wednesday that it will reacquire full ownership of United Tote while reporting another quarter of record Kentucky Derby–driven financial results.
The Louisville‑based company said it has reached a definitive agreement to buy back the 49% stake in United Tote that it sold to a New York Racing Association subsidiary in April 2024. The deal, expected to close Aug. 5, restores Churchill Downs as sole owner of the pari‑mutuel wagering technology firm, which provides betting systems for racetracks, off‑track betting facilities and gaming operators nationwide. Financial terms were not disclosed.
As part of the reacquisition, Churchill Downs and NYRA extended their existing technology‑services agreement through 2035, ensuring United Tote will continue powering NYRA’s racetrack and gaming‑related wagering systems for nearly a decade.
In a statement, Churchill Downs said the move aligns with its long‑term strategy to “own and vertically integrate key technologies and services related to pari‑mutuel wagering and horse racing,” adding that full control of United Tote strengthens its position as a business‑to‑business racing‑content distributor and enhances its ability to develop and manage critical wagering platforms.
Derby Upgrades Accelerate Ahead of 2027 and 2028 Races
Alongside the technology announcement, Churchill Downs provided new details on several major capital projects underway at its namesake racetrack following a record‑setting 2026 Kentucky Derby Week.
The company highlighted three initiatives:
Victory Run
A large‑scale hospitality expansion located between the First Turn Club and Skye Terrace. Churchill Downs previously estimated the project would cost between $280 million and $300 million. The company now expects temporary amenities to be in place for the 2027 Derby, with full completion targeted for 2028.
Homestretch Expansion
A new suite of bars, restaurants and premium seating areas along the homestretch is on track for completion ahead of the 2027 Derby.
Infield Seating Upgrade
Churchill Downs confirmed plans to remove the infield tote boards to create new spectator areas with direct views of the homestretch, finish line and trophy presentation. The project includes 1,400 temporary seats and a pilot “infield cabana” concept featuring 500 covered reserved seats along the turf course.
“These enhancements are designed to elevate the customer experience in one of the most desirable areas of the infield,” the company said.
Record Derby Week Drives Strong Q2 Earnings
Churchill Downs also reported second‑quarter financial results, delivering another performance boosted by Derby Week’s surging media, sponsorship and wagering revenue.
The company posted adjusted diluted earnings of $3.45 per share on $980 million in net revenue — a 5% year‑over‑year increase and an all‑time quarterly record. GAAP earnings of $3.42 per share were slightly below consensus estimates.
The Live and Historical Racing segment remained the company’s primary growth engine, generating $575 million in revenue and $318 million in adjusted EBITDA. Churchill Downs Racetrack itself contributed a $21 million revenue lift, driven by record NBC media‑rights fees, ticket sales, sponsorships and wagering handle.
Historical Racing Machine (HRM) properties also continued to expand. Kentucky HRM venues added $12 million in revenue, with gains across Southwestern, Northern and Western Kentucky. Virginia HRM operations contributed an additional $1 million.
Across all divisions, consolidated adjusted EBITDA reached $477 million, up 6% from the prior year.
