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Segment Information
 3 Months Ended
Mar. 31, 2023
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION
We manage our operations through three reportable segments: Live and Historical Racing, TwinSpires, 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.
•Live and Historical Racing
The Live and Historical Racing segment includes live and historical pari-mutuel racing related revenue and expenses at Churchill Downs Racetrack and our historical racing properties in Kentucky, Virginia, and New Hampshire.
Our Live and Historical Racing properties earn commissions primarily from pari-mutuel wagering on live and historical races; simulcast fees earned from other wagering sites, fees from racing event-related services including admissions, personal seat licenses, sponsorships, television rights, and other miscellaneous services, and revenue from food and beverage services.
•TwinSpires
The TwinSpires segment includes the revenue and expenses for TwinSpires Horse Racing, TwinSpires Sports and Casino and United Tote businesses and these 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; and provides the Bloodstock Research Information Services platform for horse racing statistical data.
TwinSpires Sports and Casino includes retail and online sports betting and online casino operations.
Our TwinSpires Sports and Casino business includes the results of our nine retail sportsbooks at our wholly-owned properties and our casino platform in Pennsylvania. Rivers Des Plaines retail and online BetRivers sportsbook and MVG sportsbook results are included in the Gaming segment.
The Company exited the direct online Sports and Casino business in every state except Arizona.  
United Tote manufactures and operates pari-mutuel wagering systems for racetracks, off-track betting facilities ("OTBs") and other pari-mutuel wagering businesses. United Tote provides totalisator services which accumulate wagers, calculate payoffs and displays wagering data to patrons who wager on horse races. United Tote has contracts to provide totalisator services to third-party racetracks, OTBs and other pari-mutuel wagering businesses and also provides these services at our facilities.
•Gaming
The Gaming segment includes revenue and expenses for the casino properties and associated racetrack facilities which support the casino license as applicable. The Gaming segment has approximately 13,980 slot machines and video lottery terminals ("VLTs") and 358 table games located in ten states.
The Gaming segment revenue and expenses includes the following properties:
•Florida - Calder Casino ("Calder")
▪Iowa - Hard Rock Hotel & Casino ("Hard Rock Sioux City")
▪Louisiana - Fair Grounds Slots, Fair Grounds Race Course, and Video Services, LLC ("VSI") (collectively, "Fair Grounds and VSI")
▪Maryland - Ocean Downs Casino & Racetrack ("Ocean Downs")
▪Maine - Oxford Casino & Hotel ("Oxford")
▪Mississippi
•Harlow’s Casino Resort and Spa ("Harlow's")
•Riverwalk Casino Hotel ("Riverwalk")
▪New York - del Lago Resort & Casino ("del Lago")
▪Pennsylvania
•Presque Isle Downs & Casino ("Presque Isle")
•Lady Luck Casino Nemacolin ("Lady Luck Nemacolin") management agreement
The Gaming segment also includes net income for our ownership portion of the Company’s equity investments in the following:
•Illinois - 61.3% equity investment in Midwest Gaming, the parent company of Rivers Des Plaines
•Ohio - 50% equity investment in MVG
The Gaming segment generates revenue and expenses from slot machines, table games, VLTs, video poker, HRMs, ancillary food and beverage services, hotel services, commission on pari-mutuel wagering, racing event-related services, and other miscellaneous operations.
We have aggregated Arlington as well as certain corporate operations, and other immaterial joint ventures in All Other to reconcile to consolidated results.
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, disposition, and property sale related charges;
–Direct online Sports and Casino business exit costs; and
–Other transaction expense, including legal, accounting, and other deal-related expense;
•Stock-based compensation expense;
•Rivers Des Plaines' impact on our investments in unconsolidated affiliates from:
–The impact of changes in fair value of interest rate swaps; and
–Legal reserves and transaction costs;
•Asset impairments;
•Gain on property sales;
•Legal reserves;
•Pre-opening expense; and
•Other charges, recoveries, and expenses
As of December 31, 2021, Arlington ceased racing and simulcast operations and the property was sold on February 15, 2023 to the Chicago Bears. Arlington's results in 2022 and 2023 are treated as an adjustment to EBITDA and are included in other expenses, net in the Reconciliation of Comprehensive Income to Adjusted EBITDA.
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 Income (Loss).
The tables below present net revenue from external customers, Adjusted EBITDA by segment and reconciles comprehensive income to Adjusted EBITDA:
Net revenue by segment is comprised of the following:
Three Months Ended March 31,
(in millions)20232022
Live and Historical Racing$214.4 $86.0 
TwinSpires94.8 100.3 
Gaming250.0 177.3 
All Other0.3 0.5 
Net Revenue$559.5 $364.1 





Adjusted EBITDA by segment is comprised of the following:
Three Months Ended March 31, 2023
(in millions)Live and Historical RacingTwinSpiresGaming
Revenues$215.8 $96.3 $251.6 
Taxes and purses(56.5)(5.0)(83.6)
Marketing and advertising(8.2)(1.4)(8.6)
Salaries and benefits(21.8)(6.2)(34.5)
Content expense(1.5)(43.0)(1.8)
Selling, general and administrative expense(8.7)(2.3)(12.2)
Other operating expense(37.0)(10.0)(30.0)
Other income — 1.0 48.6 
Adjusted EBITDA$82.1 $29.4 $129.5 
Three Months Ended March 31, 2022
(in millions)Live and Historical RacingTwinSpiresGaming
Revenues$87.2 $101.4 $179.2 
Taxes and purses(26.8)(7.5)(67.3)
Marketing and advertising(2.9)(5.1)(3.5)
Salaries and benefits(10.9)(6.7)(23.9)
Content expense(0.6)(43.1)(1.5)
Selling, general and administrative expense(3.3)(2.6)(6.6)
Other operating expense(14.8)(12.3)(20.0)
Other income — — 34.7 
Adjusted EBITDA$27.9 $24.1 $91.1 
Adjusted EBITDA by segment is comprised of the following:
Three Months Ended March 31,
(in millions)20232022
Reconciliation of Comprehensive Income to Adjusted EBITDA:
Net income and comprehensive income $155.7 $42.1 
Additions:
Depreciation and amortization37.9 25.1 
Interest expense64.7 21.3 
Income tax provision 53.2 16.5 
EBITDA$311.5 $105.0 
Adjustments to EBITDA:
Stock-based compensation expense $8.6 $7.0 
Pre-opening expense3.2 2.1 
Other expenses, net3.7 2.5 
Asset impairments— 4.9 
Transaction expense, net(0.2)5.0 
Other income, expense:
Interest, depreciation and amortization expense related to equity investments9.8 11.1 
Changes in fair value of Rivers Des Plaines' interest rate swaps— (10.4)
Rivers Des Plaines' legal reserves and transaction costs— 0.3 
Other charges and recoveries, net0.3 1.0 
Gain on sale of Arlington(114.0)— 
Total adjustments to EBITDA(88.6)23.5 
Adjusted EBITDA$222.9 $128.5 
Adjusted EBITDA by segment:
Live and Historical Racing$82.1 $27.9 
TwinSpires29.4 24.1 
Gaming129.5 91.1 
Total segment Adjusted EBITDA241.0 143.1 
All Other(18.1)(14.6)
Total Adjusted EBITDA$222.9 $128.5 
The table below presents total asset information for each of our segments:
(in millions) March 31, 2023December 31, 2022
Total assets:
Live and Historical Racing$3,440.5 $3,345.4 
TwinSpires279.6 287.9 
Gaming1,818.5 1,824.2 
Total segment assets5,538.6 5,457.5 
All Other734.9 749.3 
Total assets$6,273.5 $6,206.8 
The table below presents total capital expenditures for each of our segments:
Three Months Ended March 31,
(in millions)20232022
Capital expenditures:
Live and Historical Racing$108.4 $44.5 
TwinSpires3.0 3.1 
Gaming20.7 7.5 
Total segment capital expenditures132.1 55.1 
All Other2.6 0.4 
Total capital expenditures$134.7 $55.5