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Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information
21. SEGMENT INFORMATION
We manage our operations through three reportable segments: Live and Historical Racing, Wagering Services and Solutions, and Gaming. Our operating segments reflect the internal management reporting used by our chief operating decision maker, Chief Executive Officer, 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.
•Wagering Services and Solutions
The Wagering Services and Solutions segment includes the revenue and expenses for TwinSpires Horse Racing, our sports betting business, United Tote, and Exacta.
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.
Our sports betting business includes the results of our retail sportsbooks at our wholly owned gaming properties, our retail sportsbooks in Kentucky, and our monetized online sports wagering licenses in Pennsylvania and Kentucky. The retail and online sportsbooks, if applicable, related to Rivers Des Plaines and MVG are included in the Gaming segment.
United Tote manufactures and operates pari-mutuel wagering systems for racetracks, 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.
Exacta is a leading provider of central determinant system technology in HRMs across the country. Exacta's system architecture supports multiple game vendors and virtually unlimited math modeling capabilities on a single system enabling Exacta to deliver a diverse gaming library to Company owned and third-party HRM entertainment venues in several states.
•Gaming
The Gaming segment includes revenue and expenses for the wholly owned casino properties and associated racetrack facilities which support the casino license in Florida, Indiana, Iowa, Louisiana, Maine, Maryland, Mississippi, New York, and Pennsylvania. The Gaming segment also includes our share of our equity investments in Illinois and Ohio.
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.
On June 26, 2023, the Company's management agreement for Lady Luck expired and was not renewed. The Company completed the sale of substantially all its assets at Lady Luck for an immaterial amount.
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. On February 15, 2023, the Company closed on the sale of the property to the Chicago Bears. Arlington's results and exit costs in 2022 and 2023 are treated as an adjustment.
The tables below present net revenue from external customers, intercompany revenue from each of our segments, Adjusted EBITDA by segment, and reconciliation of net income to Adjusted EBITDA. Refer to Note 12, Revenue from Contracts with Customers to see intercompany revenues by segment.
Net revenue from external customers by segment is comprised of the following:
Years Ended December 31,
(in millions)202420232022
Live and Historical Racing$1,225.6 $1,047.3 $614.6 
Wagering Services and Solutions469.5 444.9 436.4 
Gaming1,039.1 968.6 755.9 
All Other0.1 0.9 2.9 
Net Revenue$2,734.3 $2,461.7 $1,809.8 
Adjusted EBITDA by segment is comprised of the following:
Year Ended December 31, 2024
(in millions)Live and Historical RacingWagering Services and SolutionsGaming
Revenue$1,267.0 $500.7 $1,045.4 
Pari-mutuel taxes and purses(300.0)(19.7)(43.5)
Gaming taxes(5.7)(2.4)(291.6)
Marketing and advertising(42.1)(8.9)(35.4)
Salaries and benefits(127.0)(32.8)(164.6)
Content expense(6.4)(205.8)(8.5)
Selling, general and administrative expense(40.1)(15.5)(46.1)
Maintenance, insurance and utilities(46.5)(4.2)(42.1)
Gaming equipment rental and technology costs(41.6)(3.5)(15.4)
Food and beverage costs(12.9)— (16.7)
Other operating expense(1)
(70.6)(42.6)(62.9)
Equity in income of unconsolidated affiliates— — 186.4 
Other income 0.5 0.3 1.9 
Adjusted EBITDA$574.6 $165.6 $506.9 

Year Ended December 31, 2023
(in millions)Live and Historical RacingWagering Services and SolutionsGaming
Revenue$1,084.6 $458.4 $974.6 
Pari-mutuel taxes and purses(262.5)(19.9)(39.2)
Gaming taxes(5.2)(2.7)(283.6)
Marketing and advertising(37.6)(9.8)(35.4)
Salaries and benefits(107.0)(29.3)(146.0)
Content expense(6.5)(205.1)(8.8)
Selling, general and administrative expense(31.9)(12.4)(42.7)
Maintenance, insurance and utilities(43.2)(3.8)(40.0)
Gaming equipment rental and technology costs(48.7)(3.7)(15.6)
Food and beverage costs(11.3)— (14.9)
Other operating expense(1)
(56.6)(40.6)(53.2)
Equity in income of unconsolidated affiliates— — 191.6 
Other income 1.3 1.0 1.8 
Adjusted EBITDA$475.4 $132.1 $488.6 
Year Ended December 31, 2022
(in millions)Live and Historical RacingWagering Services and SolutionsGaming
Revenue$646.4 $441.6 $761.8 
Pari-mutuel taxes and purses(167.1)(18.7)(36.4)
Gaming taxes(1.5)(8.3)(241.7)
Marketing and advertising(19.8)(13.0)(18.9)
Salaries and benefits(63.4)(26.8)(102.7)
Content expense(3.4)(203.3)(8.3)
Selling, general and administrative expense(18.6)(9.7)(31.3)
Maintenance, insurance and utilities(24.3)(3.0)(31.1)
Gaming equipment rental and technology costs(18.6)(3.4)(11.8)
Food and beverage costs(6.0)— (10.0)
Other operating expense(1)
(36.6)(41.4)(38.6)
Equity in income of unconsolidated affiliates— — 184.5 
Other income0.4 0.1 6.4 
Adjusted EBITDA$287.5 $114.1 $421.9 
(1) Other operating expense primarily includes supplies, regulatory licenses and fees, property taxes, and third-party service fees and costs.
 Years Ended December 31,
(in millions)202420232022
Reconciliation of Net Income to Adjusted EBITDA:
Net income attributable to Churchill Downs Incorporated$426.8 $417.3 $439.4 
Net income attributable to noncontrolling interest2.3 — — 
Net income 429.1 417.3 439.4 
Adjustments:
Depreciation and amortization199.1 169.0 113.7 
Interest expense289.8 268.4 147.3 
Income tax provision 144.1 144.5 169.4 
Stock-based compensation expense 36.1 32.9 31.8 
Legal reserves— (1.2)3.8 
Pre-opening expenses29.6 18.6 13.2 
Arlington exit costs— 9.4 5.7 
Other expense, net4.2 7.0 1.7 
Transaction (benefit) expense, net(12.1)4.8 42.1 
Asset impairments3.9 24.6 38.3 
Other income, expense:
Interest, depreciation and amortization expense related to equity investments42.0 40.2 42.8 
Changes in fair value of Rivers Des Plaines' interest rate swaps— — (12.6)
Rivers Des Plaines' legal reserves and transactions costs0.3 — 0.6 
Other charges and recoveries, net(6.9)2.4 1.0 
Gain on sale of assets— (114.0)(274.6)
Total adjustments730.1 606.6 324.2 
Adjusted EBITDA$1,159.2 $1,023.9 $763.6 
Adjusted EBITDA by segment:
Live and Historical Racing$574.6 $475.4 $287.5 
Wagering Services and Solutions165.6 132.1 114.1 
Gaming506.9 488.6 421.9 
Total segment Adjusted EBITDA1,247.1 1,096.1 823.5 
All Other(87.9)(72.2)(59.9)
Total Adjusted EBITDA$1,159.2 $1,023.9 $763.6 
The table below presents total asset information for each of our segments:
 December 31,
(in millions)20242023
Total assets:
Live and Historical Racing$4,143.3 $3,872.9 
Wagering Services and Solutions460.6 473.9 
Gaming1,953.7 1,920.9 
Total segment assets6,557.6 6,267.7 
All Other718.3 687.8 
$7,275.9 $6,955.5 
The table below presents total capital expenditures for each of our segments:
 Years Ended December 31,
(in millions)202420232022
Capital expenditures:
Live and Historical Racing$385.4 $461.1 $307.0 
Wagering Services and Solutions19.0 14.6 87.6 
Gaming130.0 188.1 11.8 
Total segment capital expenditures534.4 663.8 406.4 
All Other12.6 12.7 17.1 
Total capital expenditures$547.0 $676.5 $423.5