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Segment Information
 12 Months Ended
Dec. 31, 2020
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION
We manage our operations through three reportable segments: Churchill Downs, Online Wagering and Gaming. Our operating segments reflect the internal management reporting used by our chief operating decision maker to evaluate results of operations and to assess performance and allocate resources.
•Churchill Downs
The Churchill Downs segment includes live and historical pari-mutuel racing related revenue and expenses at Churchill Downs Racetrack and Derby City Gaming.
Churchill Downs Racetrack is the home of the Kentucky Derby and conducts live racing during the year. Derby City Gaming is an HRM facility that operates under the Churchill Downs pari-mutuel racing license at the auxiliary training facility for Churchill Downs Racetrack in Louisville, Kentucky.
Churchill Downs Racetrack and Derby City Gaming earn commissions primarily from pari-mutuel wagering on live races at Churchill Downs and on historical races at Derby City Gaming, simulcast fees earned from other wagering sites, admissions, personal seat licenses, sponsorships, television rights, and other miscellaneous services (collectively "racing event-related services"), as well as food and beverage services.
•Online Wagering
The Online Wagering segment includes the revenue and expenses for the TwinSpires Horse Racing business and the TwinSpires Sports and Casino business. Both businesses are headquartered in Louisville, Kentucky.
TwinSpires Horse Racing operates the online horse racing wagering business for TwinSpires.com, BetAmerica.com, and other white-label platforms; facilitates high dollar wagering by international customers (through Velocity); and provides the Bloodstock Research Information Services platform for horse racing statistical data.
Our TwinSpires Sports and Casino business operates our sports betting and casino iGaming platform in multiple states, including Colorado, Indiana, Michigan, Mississippi, New Jersey, and Pennsylvania. The TwinSpires sports and casino business includes the mobile and online sports betting and casino results and the results of our three retail sportsbooks in Colorado, Indiana and Michigan which utilize a third party's casino license.
The results of the two retail sportsbooks at our Mississippi properties, our retail sportsbook at Presque Isle in Pennsylvania and the retail and online BetRivers sportsbook in Illinois provided by Rivers Des Plaines and managed by Rush Street Interactive, are included in the Gaming segment.
•Gaming
The Gaming segment includes revenue and expenses for the casino properties and associated racetrack or jai alai facilities which support the casino license as applicable. The Gaming segment has approximately 11,000 slot machines and video lottery terminals ("VLTs") and 200 table games located in eight states.
The Gaming segment revenue and expenses includes the following properties:
◦Calder Casino and Racing ("Calder")
◦Fair Grounds Slots, Fair Grounds Race Course, and Video Services, LLC ("VSI") (collectively, "Fair Grounds and VSI")
◦Harlow’s Casino Resort and Spa ("Harlow's")
◦Lady Luck Casino Nemacolin management agreement
◦Ocean Downs Casino and Racetrack ("Ocean Downs")
◦Oxford Casino and Hotel ("Oxford")
◦Presque Isle
◦Riverwalk Casino Hotel ("Riverwalk")
The Gaming segment also includes net income for our ownership portion of the Company’s equity investments in the following:
◦61.3% equity investment in Midwest Gaming, the parent company of Rivers Des Plaines in Des Plaines, Illinois
◦50% equity investment in MVG
The Gaming segment generates revenue and expenses from slot machines, table games, VLTs, video poker, retail sports betting, ancillary food and beverage services, hotel services, commission on pari-mutuel wagering, racing event-related services, and / or other miscellaneous operations.
We have aggregated the following businesses as well as certain corporate operations, and other immaterial joint ventures in "All Other" to reconcile to consolidated results:
•Oak Grove
•Newport
•Turfway Park
•Arlington International Racecourse ("Arlington")
•United Tote
•Corporate
Eliminations include the elimination of intersegment transactions. We utilize non-GAAP measures, including EBITDA (earnings before interest, taxes, depreciation and amortization) and Adjusted EBITDA. Our chief operating decision maker utilizes Adjusted EBITDA to evaluate segment performance, develop strategy and allocate resources. Adjusted EBITDA includes the following adjustments:
Adjusted EBITDA includes our portion of EBITDA from our equity investments.
Adjusted EBITDA excludes:
•Transaction expense, net which includes:
◦Acquisition and disposition related charges, including fair value adjustments related to earnouts and deferred payments;
◦Calder racing exit costs; and
◦Other transaction expense, including legal, accounting, and other deal-related expense;
•Stock-based compensation expense;
•Midwest Gaming's impact on our investments in unconsolidated affiliates from:
◦The impact of changes in fair value of interest rate swaps; and
◦Recapitalization and transaction costs;
•Asset impairments;
•Gain on Ocean Downs/Saratoga Transaction;
•Loss on extinguishment of debt;
•Legal reserves;
•Pre-opening expense; and
•Other charges, recoveries and expenses
We utilize the Adjusted EBITDA metric to provide a more accurate measure of our core operating results and enable management and investors to evaluate and compare from period to period our operating performance in a meaningful and consistent manner. Adjusted EBITDA should not be considered as an alternative to operating income as an indicator of performance, as an alternative to cash flows from operating activities as a measure of liquidity, or as an alternative to any other measure provided in accordance with GAAP. Our calculation of Adjusted EBITDA may be different from the calculation used by other companies and, therefore, comparability may be limited. For segment reporting, Adjusted EBITDA includes intercompany revenue and expense totals that are eliminated in the accompanying consolidated statements of comprehensive (loss) income.
The tables below present net revenue from external customers and intercompany revenue from each of our segments, Adjusted EBITDA by segment and reconciles comprehensive (loss) income to Adjusted EBITDA:
 Years Ended December 31,
(in millions)202020192018
Net revenue from external customers:
Churchill Downs:
Churchill Downs Racetrack$63.3 $187.6 $181.0 
Derby City Gaming79.5 86.6 14.8 
Total Churchill Downs142.8 274.2 195.8 
Online Wagering:
TwinSpires Horse Racing403.4 289.9 290.2 
TwinSpires Sports and Casino4.9 0.6 — 
Total Online Wagering408.3 290.5 290.2 
Gaming:
Fair Grounds and VSI97.6 123.0 117.7 
Presque Isle75.2 138.5 — 
Ocean Downs60.3 85.9 25.9 
Calder51.8 99.8 98.6 
Oxford Casino44.9 101.7 102.0 
Riverwalk Casino49.1 58.9 54.5 
Harlow’s Casino41.8 55.3 50.2 
Lady Luck Nemacolin20.7 29.3 — 
Saratoga— — 0.6 
Total Gaming441.4 692.4 449.5 
All Other61.5 72.6 73.5 
Net revenue from external customers$1,054.0 $1,329.7 $1,009.0 
Intercompany net revenues:
Churchill Downs$17.7 $15.2 $12.7 
Online Wagering1.6 1.1 1.3 
Gaming:
Fair Grounds and VSI2.2 1.8 1.6 
Presque Isle0.2 0.5 — 
Calder0.1 0.1 0.1 
Total Gaming2.5 2.4 1.7 
All Other13.2 11.6 11.2 
Eliminations(35.0)(30.3)(26.9)
Intercompany net revenue$— $— $— 
Twelve Months Ended December 31, 2020
(in millions)Churchill DownsOnline WageringGamingTotal SegmentsAll OtherTotal
Net revenue from external customers
Pari-mutuel:
Live and simulcast racing$39.4 $387.5 $22.9 $449.8 $25.3 $475.1 
Historical racing(a)
76.0 — — 76.0 17.6 93.6 
Racing event-related services21.0 — 3.4 24.4 0.3 24.7 
Gaming(a)
— 5.1 387.5 392.6 — 392.6 
Other(a)
6.4 15.7 27.6 49.7 18.3 68.0 
Total$142.8 $408.3 $441.4 $992.5 $61.5 $1,054.0 

Twelve Months Ended December 31, 2019
(in millions)Churchill DownsOnline WageringGamingTotal SegmentsAll OtherTotal
Net revenue from external customers
Pari-mutuel:
Live and simulcast racing$59.0 $277.1 $30.7 $366.8 $41.1 $407.9 
Historical racing(a)
81.6 — — 81.6 — 81.6 
Racing event-related services118.7 — 4.1 122.8 5.6 128.4 
Gaming(a)
— 0.6 585.2 585.8 — 585.8 
Other(a)
14.9 12.8 72.4 100.1 25.9 126.0 
Total$274.2 $290.5 $692.4 $1,257.1 $72.6 $1,329.7 

Twelve Months Ended December 31, 2018
(in millions)Churchill DownsOnline WageringGamingTotal SegmentsAll OtherTotal
Net revenue from external customers
Pari-mutuel:
Live and simulcast racing$54.9 $278.4 $27.1 $360.4 $43.1 $403.5 
Historical racing(a)
13.8 — — 13.8 — 13.8 
Racing event-related services115.2 — 3.9 119.1 5.8 124.9 
Gaming(a)
— — 365.9 365.9 — 365.9 
Other(a)
11.9 11.8 52.6 76.3 24.6 100.9 
Total$195.8 $290.2 $449.5 $935.5 $73.5 $1,009.0 

(a)Food and beverage, hotel, and other services furnished to customers for free as an inducement to wager or through the redemption of our customers' loyalty points are recorded at the estimated standalone selling prices in Other revenue with a corresponding offset recorded as a reduction in historical racing pari-mutuel revenue for HRMs or gaming revenue for our casino properties. These amounts were $13.1 million in 2020, $33.4 million in 2019, and $26.1 million in 2018.
Adjusted EBITDA by segment is comprised of the following:
Year Ended December 31, 2020
(in millions)Churchill DownsOnline WageringGaming
Net revenue$160.5 $409.9 $443.9 
Taxes and purses(54.1)(23.7)(173.0)
Marketing and advertising(4.1)(16.5)(7.5)
Salaries and benefits(26.5)(13.0)(75.9)
Content expense(1.0)(204.9)(3.5)
Selling, general and administrative expense(7.0)(8.9)(25.4)
Other operating expense(29.6)(33.7)(60.8)
Other income 0.1 0.1 78.9 
Adjusted EBITDA$38.3 $109.3 $176.7 

Year Ended December 31, 2019
(in millions)Churchill DownsOnline WageringGaming
Net revenue$289.4 $291.6 $694.8 
Taxes and purses(66.5)(15.3)(270.3)
Marketing and advertising(7.1)(12.2)(21.5)
Salaries & benefits(32.0)(11.4)(103.3)
Content expense(2.4)(152.8)(6.0)
Selling, general and administrative expense(8.0)(7.2)(29.0)
Other operating expense(35.9)(26.4)(84.1)
Other income 0.2 — 100.3 
Adjusted EBITDA$137.7 $66.3 $280.9 

Year Ended December 31, 2018
(in millions)Churchill DownsOnline WageringGaming
Net revenue$208.5 $291.5 $451.2 
Taxes and purses(41.3)(15.2)(153.4)
Marketing and advertising(5.7)(6.0)(15.5)
Salaries & benefits(23.7)(9.2)(68.9)
Content expense(2.2)(152.0)(4.1)
Selling, general and administrative expense(5.3)(5.9)(18.6)
Other operating expense(28.0)(24.2)(60.0)
Other income 0.1 — 43.3 
Adjusted EBITDA$102.4 $79.0 $174.0 
 Years Ended December 31,
(in millions)202020192018
Reconciliation of Comprehensive (Loss) Income to Adjusted EBITDA:
Comprehensive (loss) income attributable to Churchill Downs Incorporated$(81.9)$137.5 $353.2 
Foreign currency translation, net of tax— — (0.6)
Change in pension benefits, net of tax— — 0.2 
Net (loss) income attributable to Churchill Downs Incorporated(81.9)137.5 352.8 
Net loss attributable to noncontrolling interest0.2 0.3 — 
Net (loss) income before noncontrolling interest(82.1)137.2 352.8 
Loss (income) from discontinued operations, net of tax95.4 2.4 (170.2)
Income from continuing operations, net of tax13.3 139.6 182.6 
Additions:
Depreciation and amortization92.9 96.4 63.6 
Interest expense80.0 70.9 40.1 
Income tax (benefit) provision(5.3)56.8 51.3 
EBITDA$180.9 $363.7 $337.6 
Adjustments to EBITDA:
Selling, general and administrative:
Stock-based compensation expense $23.7 $23.8 $17.7 
Legal reserves— 3.6 — 
Other, net0.8 0.4 (0.6)
Pre-opening expense11.2 5.1 4.8 
Other income, expense:
Interest, depreciation and amortization expense related to equity investments38.5 32.6 13.9 
Changes in fair value of Midwest Gaming's interest rate swaps12.9 12.4 — 
Midwest Gaming's recapitalization and transactions costs— 4.7 — 
Other charges and recoveries, net— (0.2)— 
Gain on Ocean Downs/Saratoga transaction— — (54.9)
Transaction expense, net1.0 5.3 10.3 
Impairment of tangible and other intangible assets17.5 — — 
Total adjustments to EBITDA105.6 87.7 (8.8)
Adjusted EBITDA$286.5 $451.4 $328.8 
Adjusted EBITDA by segment:
Churchill Downs$38.3 $137.7 $102.4 
Online Wagering109.3 66.3 79.0 
Gaming176.7 280.9 174.0 
Total segment Adjusted EBITDA324.3 484.9 355.4 
All Other(37.8)(33.5)(26.6)
Total Adjusted EBITDA$286.5 $451.4 $328.8 
The table below presents information about equity in income of unconsolidated affiliates included in our reported segments:
Years Ended December 31,
(in millions)202020192018
Gaming$27.5 $50.5 $29.4 
All Other0.2 0.1 0.2 
$27.7 $50.6 $29.6 

The table below presents total asset information for each of our segments:
 As of December 31,
(in millions)20202019
Total assets:
Churchill Downs$377.7 $370.3 
Online Wagering249.1 241.5 
Gaming957.4 1,030.1 
Total segment assets1,584.2 1,641.9 
All Other1,102.2 909.1 
$2,686.4 $2,551.0 

The table below presents total capital expenditures for each of our segments:
 Years Ended December 31,
(in millions)202020192018
Capital expenditures:
Churchill Downs$38.2 $31.4 $109.6 
Online Wagering11.6 9.7 9.7 
Gaming6.5 37.1 20.7 
Total segment capital expenditures56.3 78.2 140.0 
All Other177.9 53.0 9.4 
Total capital expenditures$234.2 $131.2 $149.4