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Segment Information
 3 Months Ended
Mar. 31, 2024
Segment Reporting [Abstract]  
Segment Information
15. 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.
On September 7, 2023, the Company began operating retail sports betting at its racetracks and HRM facilities in Kentucky. In addition to retail sports betting, third-party service providers began operating online sports wagering in partnership with the Company’s racetracks on September 28, 2023. Our retail and online sports betting business is included in the TwinSpires segment.
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;
–Other transaction expense, including legal, accounting, and other deal-related expense;
•Stock-based compensation expense;
•Asset impairments;
•Gain on property sales;
•Legal reserves;
•Pre-opening expense; and
•Other charges, recoveries, and expenses
As of December 31, 2021, our property in Arlington Heights, Illinois ("Arlington") ceased racing and simulcast operations and the property was sold on February 15, 2023 to the Chicago Bears. Arlington's results and exit costs in 2023 are treated as an adjustment to EBITDA and are included in other expenses, net in the Reconciliation of Comprehensive Income to Adjusted EBITDA.
On June 26, 2023, the Company's management agreement for Lady Luck Casino Nemacolin ("Lady Luck") in Farmington, Pennsylvania expired and was not renewed. The Company completed the sale of substantially all its assets at Lady Luck for an immaterial amount.
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 Condensed Consolidated Statements of Comprehensive Income.
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)20242023
Live and Historical Racing$245.1 $214.4 
TwinSpires106.6 94.8 
Gaming239.2 250.0 
All Other— 0.3 
Net Revenue$590.9 $559.5 





Adjusted EBITDA by segment is comprised of the following:
Three Months Ended March 31, 2024
(in millions)Live and Historical RacingTwinSpiresGaming
Revenues$248.9 $114.1 $243.2 
Gaming taxes and purses(65.0)(4.9)(80.5)
Marketing and advertising(9.3)(1.2)(7.8)
Salaries and benefits(26.8)(7.9)(38.0)
Content expense(1.3)(44.0)(1.8)
Selling, general and administrative expense(8.8)(4.5)(10.2)
Maintenance, insurance and utilities(10.3)(1.0)(9.6)
Property and other taxes(2.7)(0.1)(3.4)
Other operating expense(23.9)(10.9)(18.3)
Other income — — 49.2 
Adjusted EBITDA$100.8 $39.6 $122.8 
Three Months Ended March 31, 2023
(in millions)Live and Historical RacingTwinSpiresGaming
Revenues$215.8 $96.3 $251.6 
Gaming 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)
Maintenance, insurance and utilities(9.3)(0.9)(9.8)
Property and other taxes(1.2)— (3.3)
Other operating expense(26.5)(9.1)(16.9)
Other income — 1.0 48.6 
Adjusted EBITDA$82.1 $29.4 $129.5 
Adjusted EBITDA by segment is comprised of the following:
Three Months Ended March 31,
(in millions)20242023
Reconciliation of Comprehensive Income to Adjusted EBITDA:
Net income and comprehensive income $80.4 $155.7 
Additions:
Depreciation and amortization46.9 37.9 
Interest expense70.4 64.7 
Income tax provision 21.4 53.2 
EBITDA$219.1 $311.5 
Adjustments to EBITDA:
Stock-based compensation expense $7.2 $8.6 
Pre-opening expense8.3 3.2 
Other expenses, net0.2 3.7 
Transaction expense, net4.1 (0.2)
Other income, expense:
Interest, depreciation and amortization expense related to equity investments10.3 9.8 
Other charges and recoveries, net(6.7)0.3 
Gain on sale of Arlington— (114.0)
Total adjustments to EBITDA23.4 (88.6)
Adjusted EBITDA$242.5 $222.9 
Adjusted EBITDA by segment:
Live and Historical Racing$100.8 $82.1 
TwinSpires39.6 29.4 
Gaming122.8 129.5 
Total segment Adjusted EBITDA263.2 241.0 
All Other(20.7)(18.1)
Total Adjusted EBITDA$242.5 $222.9 

The table below presents total asset information for each of our segments:
(in millions) March 31, 2024December 31, 2023
Total assets:
Live and Historical Racing$3,936.9 $3,872.9 
TwinSpires465.1 473.9 
Gaming1,956.5 1,920.9 
Total segment assets6,358.5 6,267.7 
All Other708.3 687.8 
Total assets$7,066.8 $6,955.5 
The table below presents total capital expenditures for each of our segments:
Three Months Ended March 31,
(in millions)20242023
Capital expenditures:
Live and Historical Racing$84.8 $108.4 
TwinSpires3.8 3.0 
Gaming61.3 20.7 
Total segment capital expenditures149.9 132.1 
All Other5.1 2.6 
Total capital expenditures$155.0 $134.7