Core Viewpoint - Churchill Downs Incorporated (CDI) has signed definitive agreements to acquire a majority of the equity interests in Casino Salem, a joint venture in New Hampshire, which will feature historical horse racing machines and a charitable gaming, entertainment, and dining destination [1][5]. Company Overview - CDI has been creating entertainment experiences for over 150 years, with its most iconic asset being the Kentucky Derby. The company is headquartered in Louisville, Kentucky, and has expanded through acquisitions and operations in live and historical racing, online wagering, and regional casino gaming properties [6]. Casino Salem Development - Casino Salem is located at The Mall at Rockingham Park, approximately 30 minutes from downtown Boston. Local developers Joe Faro and Sal Lupoli will retain ownership, ensuring their experience contributes to the venue's success [2]. - The initial phase of Casino Salem opened on July 9, featuring around 100 historical racing machines and 13 live table games. Future phases will include venue rebranding, gaming floor expansion, and new food and beverage concepts [3]. - CDI aims to create a regional destination in Salem to attract patrons from the growing New England market, with plans to support charitable organizations throughout New Hampshire [4]. Financial Aspects - The Salem Transaction will be financed through CDI's existing credit facility, with the closing subject to customary conditions, including approval from the New Hampshire Lottery Commission. The transaction is expected to close in the third quarter of 2025 [5].

Financial Performance - The company experienced an 11% year-over-year revenue growth from 2023 to 2024[14] - Adjusted EBITDA increased by 13% from 2023 to 2024[14] - In Q1 2025, the company achieved a 9% year-over-year revenue growth[16] - Adjusted EBITDA grew by 1% in Q1 2025 compared to Q1 2024[16] Segment Performance (2024 vs 2023) - Live & Historical Racing revenue increased from $2.462 billion to $2.734 billion[14] - Wagering Services & Solutions revenue increased from $1.024 billion to $1.159 billion[14] - Gaming revenue increased from $591 million to $643 million[16] Capital Investments - The company plans to spend $250-290 million on project capital investments in 2025[22] - Maintenance capital expenditure is forecasted to be $90-100 million in 2025[168] Shareholder Returns - The company has returned nearly $2.1 billion of capital to shareholders since 2015 through dividends and share repurchases[171] - A new $500 million share repurchase program was announced on March 12, 2025[173] Kentucky Derby - The 150th Kentucky Derby had 167 million average viewers on NBC[60]