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Segment Information
 6 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
Segment Information
15. 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, our Chief Executive Officer, to evaluate results of operations and to assess performance and allocate resources.
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 and the portion of EBITDA attributable to a noncontrolling interest.
Adjusted EBITDA excludes, as applicable:
•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;
•Rivers Des Plaines' impact on our investments in unconsolidated affiliates from legal reserves and transaction costs;
•Asset impairments;
•Gain on property sales;
•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 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 June 30,Six Months Ended June 30,
(in millions)2025202420252024
Live and Historical Racing$509.9 $464.7 $782.4 $709.8 
Wagering Services and Solutions158.4 151.7 265.3 258.3 
Gaming266.0 274.2 529.2 513.4 
All Other0.1 0.1 0.1 0.1 
Net Revenue$934.4 $890.7 $1,577.0 $1,481.6 





Adjusted EBITDA by segment is comprised of the following:
Three Months Ended June 30, 2025
(in millions)Live and Historical RacingWagering Services and SolutionsGaming
Revenues$540.9 $168.4 $266.3 
Pari-mutuel taxes and purses(115.8)(7.7)(7.5)
Gaming taxes(1.4)(0.5)(80.0)
Marketing and advertising(15.7)(5.2)(8.8)
Salaries and benefits(37.0)(9.0)(42.7)
Content expense(1.9)(76.9)(2.6)
Selling, general and administrative expense(10.8)(4.7)(10.6)
Maintenance, insurance and utilities(11.2)(1.1)(9.7)
Gaming equipment rental and technology costs(12.6)(0.8)(4.4)
Food and beverage costs(3.9)— (4.1)
Other operating expense(34.1)(14.5)(15.7)
Equity in income of unconsolidated affiliates— — 46.7 
Other income — — 0.4 
Adjusted EBITDA$296.5 $48.0 $127.3 
Three Months Ended June 30, 2024
(in millions)Live and Historical RacingWagering Services and SolutionsGaming
Revenues$490.2 $159.9 $274.4 
Pari-mutuel taxes and purses(98.4)(6.8)(9.5)
Gaming taxes(1.6)(0.5)(74.0)
Marketing and advertising(12.5)(4.9)(9.2)
Salaries and benefits(36.5)(8.0)(40.3)
Content expense(2.1)(73.3)(2.6)
Selling, general and administrative expense(8.5)(4.3)(11.8)
Maintenance, insurance and utilities(11.5)(1.0)(11.1)
Gaming equipment rental and technology costs(10.5)(0.7)(4.2)
Food and beverage costs(3.3)— (4.3)
Other operating expense(26.3)(14.2)(15.0)
Equity in income of unconsolidated affiliates— — 48.2 
Other income 0.2 — 0.1 
Adjusted EBITDA$279.2 $46.2 $140.7 
Six Months Ended June 30, 2025
(in millions)Live and Historical RacingWagering Services and SolutionsGaming
Revenues$817.3 $284.2 $533.5 
Pari-mutuel taxes and purses(187.7)(12.1)(22.1)
Gaming taxes(2.9)(0.9)(152.4)
Marketing and advertising(29.5)(6.6)(17.0)
Salaries and benefits(69.7)(17.1)(87.0)
Content expense(3.3)(120.6)(4.4)
Selling, general and administrative expense(21.3)(9.9)(21.7)
Maintenance, insurance and utilities(21.6)(2.0)(19.2)
Gaming equipment rental and technology costs(24.4)(1.5)(8.6)
Food and beverage costs(7.5)— (8.3)
Other operating expense(51.0)(24.2)(32.5)
Equity in income of unconsolidated affiliates— — 89.9 
Other income 0.1 — 0.6 
Adjusted EBITDA$398.5 $89.3 $250.8 
Six Months Ended June 30, 2024
(in millions)Live and Historical RacingWagering Services and SolutionsGaming
Revenues$739.1 $274.0 $517.6 
Pari-mutuel taxes and purses(162.0)(10.9)(23.7)
Gaming taxes(3.0)(1.3)(140.3)
Marketing and advertising(21.8)(6.1)(17.0)
Salaries and benefits(63.3)(15.9)(78.3)
Content expense(3.4)(117.3)(4.4)
Selling, general and administrative expense(17.3)(8.8)(22.0)
Maintenance, insurance and utilities(21.8)(2.0)(20.7)
Gaming equipment rental and technology costs(20.6)(1.7)(7.5)
Food and beverage costs(6.4)— (8.1)
Other operating expense(39.7)(24.2)(29.6)
Equity in income of unconsolidated affiliates— — 95.7 
Other income 0.2 — 1.8 
Adjusted EBITDA$380.0 $85.8 $263.5 
Adjusted EBITDA by segment is comprised of the following:
Three Months Ended June 30,Six Months Ended June 30,
(in millions)2025202420252024
Reconciliation of Comprehensive Income to Adjusted EBITDA:
Net income and comprehensive income attributable to Churchill Downs Incorporated$216.9 $209.3 $293.6 $289.7 
Net income attributable to noncontrolling interest0.7 0.9 1.2 0.9 
Net income217.6 210.2 294.8 290.6 
Adjustments
Depreciation and amortization57.8 49.2 117.0 96.1 
Interest expense74.2 73.5 146.5 143.9 
Income tax provision 74.4 84.1 93.1 105.5 
Stock-based compensation expense 7.2 8.9 10.8 16.1 
Pre-opening expense2.4 7.5 6.6 15.8 
Other expenses, net5.2 0.1 4.8 0.3 
Asset impairments2.4 — 2.4 — 
Transaction expense, net1.1 0.6 1.5 4.7 
Other income, expense:
Interest, depreciation and amortization expense related to equity investments9.6 10.5 19.5 20.8 
Rivers Des Plaines' legal reserves and transaction costs— 0.3 — 0.3 
Other charges and recoveries, net(1.0)(0.1)(1.0)(6.8)
Total adjustments233.3 234.6 401.2 396.7 
Adjusted EBITDA$450.9 $444.8 $696.0 $687.3 
Adjusted EBITDA by segment:
Live and Historical Racing$296.5 $279.2 $398.5 $380.0 
Wagering Services and Solutions48.0 46.2 89.3 85.8 
Gaming127.3 140.7 250.8 263.5 
Total segment Adjusted EBITDA471.8 466.1 738.6 729.3 
All Other(20.9)(21.3)(42.6)(42.0)
Total Adjusted EBITDA$450.9 $444.8 $696.0 $687.3 
The table below presents total asset information for each of our segments:
(in millions) June 30, 2025December 31, 2024
Total assets:
Live and Historical Racing$4,237.9 $4,143.3 
Wagering Services and Solutions483.5 460.6 
Gaming1,931.0 1,953.7 
Total segment assets6,652.4 6,557.6 
All Other723.3 718.3 
Total assets$7,375.7 $7,275.9 
The table below presents total capital expenditures for each of our segments:
Six Months Ended June 30,
(in millions)20252024
Capital expenditures:
Live and Historical Racing$135.2 $188.3 
Wagering Services and Solutions11.7 7.2 
Gaming14.4 88.5 
Total segment capital expenditures161.3 284.0 
All Other3.5 8.0 
Total capital expenditures$164.8 $292.0