60 Minutes Rewind. >> There are few feats in all sport more challenging than winning horse racing's Triple Crown. It takes not only a perfect match of horse and rider, but a perfect blend of speed, durability, and that elusive quality called heart, the will to win.As was proven yet again this year, winning three races at three tracks over three different distances over five weeks is to achieve the almost impossible. Only 11 horses have done it. And as you'll see, only one has done it with a style, charisma, ...

Financial Data and Key Metrics Changes - The company reported all-time record net revenue of $934 million and adjusted EBITDA of $451 million for the second quarter of 2025, marking the fifth consecutive second quarter of record results [8][29] - Adjusted EBITDA for the Live and Historical Racing segment grew by $17 million or 6% compared to the prior year, driven primarily by HRM growth in Kentucky and Virginia [30] - The company generated $455 million or $6.29 per share of free cash flow in the first half of the year, with a reduction in maintenance capital projection by $10 million to $80 million to $90 million [35][36] Business Line Data and Key Metrics Changes - Churchill Downs Racetrack adjusted EBITDA was down $1 million, less than 1%, due to a high prior year comparison from the 150th Kentucky Derby [30] - All HRM properties in Kentucky delivered growth in the second quarter, with strong performance from Northern Kentucky and Louisville venues [31] - The Exacta business contributed over $3 million to adjusted EBITDA growth from third-party customers and HRM properties [32] Market Data and Key Metrics Changes - Wagering on the Derby race increased by 11% over last year's all-time high, with Derby Day wagering up 9% and Derby Week wagering rising 6% [15] - Virginia properties collectively delivered over $8 million of growth compared to the prior year, despite a higher handle tax rate [31] - The company expects to close the transaction for the Casino Salem project in New Hampshire in the third quarter, targeting a state-of-the-art gaming and entertainment destination [23] Company Strategy and Development Direction - The company aims to grow Derby Week through ticketing revenue, broadcast rights, wagering, sponsorships, and selective renovations [10][18] - A new seven-year contract with NBC is expected to provide a $10 million increase in adjusted EBITDA for 2026 [13] - Strategic investments in capital improvements are planned to enhance guest experiences and broaden appeal [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in Virginia and Kentucky, with a strong focus on building customer relationships and brand awareness [21][92] - The company anticipates generating significant growth for Derby Week in 2026 based on various catalysts [20] - Management highlighted the importance of international marketing efforts to enhance the global presence of the Kentucky Derby [50] Other Important Information - The company announced a new common stock repurchase program of up to $500 million, reflecting confidence in future growth [36] - The federal tax bill is expected to reduce cash taxes by $50 million to $60 million in 2025, with similar benefits anticipated for 2026 [37][56] Q&A Session Summary Question: Expectations around pricing at the Starting Gate Pavilion - Management expects increased demand and pricing for the Starting Gate Pavilion due to positive word-of-mouth from last year's introduction [40] Question: Discussion on the New Hampshire market - Management indicated that the Salem location is strategically positioned to tap into both New Hampshire and Massachusetts markets, with a strong demographic outlook [44] Question: International attendance and marketing for the Derby - Management noted that thoroughbred racing is a global sport, and efforts are underway to build international connections and sponsorships [50] Question: Impact of the federal tax bill on future cash flow - Management expects similar cash tax savings for 2026 as in 2025, with a focus on strategic capital management and shareholder returns [56][58] Question: Growth potential for HRM properties in Kentucky and Virginia - Management believes there is substantial runway for growth in both states, with strong metrics supporting continued expansion [61] Question: Strategies for driving visitation to The Rose - Management emphasized the importance of building brand awareness and customer relationships in the Northern Virginia market [90]

Financial Data and Key Metrics Changes - The company reported all-time record net revenue of $934 million and adjusted EBITDA of $451 million for the second quarter of 2025, marking the fifth consecutive second quarter of record results [6][26] - Adjusted EBITDA for the Live and Historical Racing segment grew by $17 million or 6% compared to the prior year quarter, driven primarily by HRM growth in Kentucky and Virginia [27][29] - The company generated $455 million or $6.29 per share of free cash flow in the first half of the year, with a reduction in 2025 maintenance capital projection by $10 million to $80 million to $90 million [32][35] Business Line Data and Key Metrics Changes - Churchill Downs Racetrack experienced a slight decline in adjusted EBITDA by $1 million, less than 1%, due to a high prior year comparison from the 150th Kentucky Derby [27] - All HRM properties in Kentucky delivered growth in the second quarter, with particularly strong performance from Northern Kentucky and Louisville venues [28] - The Exacta business contributed over $3 million to adjusted EBITDA growth from both third-party customers and HRM properties [29] Market Data and Key Metrics Changes - Average viewership for the Kentucky Derby broadcast reached nearly 18 million, a 6% increase over 2024, with peak viewership climbing to almost 22 million, up 8% from last year [10] - Social media impressions during Derby Week totaled over 285 million, a 67% increase from 2024 [11] - Wagering on the Derby race was up 11% over last year's all-time high, with Derby Day wagering increasing by 9% [13] Company Strategy and Development Direction - The company plans to grow Derby Week through ticketing revenue, broadcast rights, wagering, sponsorships, and selective renovations [8][15] - A new seven-year contract with NBC will provide a $10 million increase in adjusted EBITDA for 2026, with prime-time coverage for the Kentucky Oaks race expected to enhance visibility and engagement [11][12] - Strategic investments in renovations and expansions at Churchill Downs Racetrack are aimed at elevating guest experiences and broadening appeal [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued growth in Derby Week driven by ticket revenue, strategic investments, and increased wagering [18][24] - The company is focused on building brand awareness and customer relationships in new markets, particularly in Virginia and New Hampshire [19][20] - Management highlighted the importance of capital management and disciplined allocation to support long-term growth [32][35] Other Important Information - The company is targeting to close the acquisition of 90% of the Casino Salem project in New Hampshire in the third quarter, with plans for a state-of-the-art gaming and entertainment destination [21] - The company has retained rights to the associated HRM license in Salem and is evaluating alternative uses for a second HRM license [22] - The company is working on implementing HRM-based electronic table games and has developed a new HRM roulette product [23] Q&A Session Summary Question: Expectations around pricing at the Starting Gate Pavilion - Management expects increased demand and pricing for the Starting Gate Pavilion due to positive reviews and word-of-mouth from last year [38] Question: Discussion around the New Hampshire market - Management indicated that further details will be shared post-transaction closure, emphasizing the strong market demographics and location advantages [41][44] Question: International attendance and marketing for the Derby - Management noted that thoroughbred racing is a global game and emphasized ongoing efforts to build international connections and sponsorships [49][50] Question: Federal tax bill impact on cash flow and capital allocation - Management expects similar cash tax savings for 2026 as in 2025, with a focus on strategic investments and share repurchases when stock value is not reflective of long-term potential [55][56] Question: Growth potential in Kentucky and Virginia HRM markets - Management believes there is substantial runway for growth in both states, with strong metrics supporting ongoing optimism [59] Question: Impact of prediction markets on horse racing - Management does not see prediction markets as a significant risk due to the nature of pari-mutuel wagering and existing legal protections [64][66] Question: Future M&A opportunities in New Hampshire - Management is focused on executing the Salem project but is open to evaluating future opportunities in the region [68] Question: Strategic goals for the Oaks schedule change - The change aims to enhance national visibility for the Oaks and drive attendance and wagering leading into the Derby [72][74] Question: Plans for the area between the First Turn and Sky Terrace - Management confirmed that this area will not disrupt the 2026 Derby and will be detailed in future communications [80] Question: Sponsorship relationships and growth - Management emphasized a strategic approach to sponsorships, focusing on building win-win partnerships and increasing international interest [86]

Core Points - The Alcohol and Gaming Commission of Ontario (AGCO) has imposed a 10-year suspension and a $40,000 penalty on Standardbred trainer Jeffrey Gillis due to violations of horseracing anti-doping rules [1][4] - The AGCO's investigation is linked to a broader international criminal investigation led by the FBI, which has resulted in charges against 27 individuals, including trainers and veterinarians, for the distribution of illegal performance-enhancing drugs (PEDs) [2] - Evidence obtained by the AGCO indicates that Gillis purchased illegal PEDs, including synthetic erythropoietin (EPO), from veterinarian Seth Fishman, who is also among those charged in the U.S. [3] Regulatory Actions - The AGCO's Rules of Racing prohibit possession or attempts to possess banned, non-therapeutic substances, and the commission has acted swiftly to uphold the integrity of the sport and protect horse welfare [4] - The AGCO's Equine Drug Unit collaborates with various authorities to monitor and enforce anti-doping regulations in Ontario [5] - Licensed participants have the right to appeal AGCO's rulings to the Horse Racing Appeal Panel (HRAP) [6] Statements and Commitments - Dr. Karin Schnarr, Registrar and CEO of AGCO, emphasized the commission's commitment to maintaining the integrity of horse racing and the welfare of horses, stating that doping will not be tolerated [7]