Churchill Downs earns record $890 million revenue in Q2. Here's what we know

Coming off the historical success of the 150th Kentucky Derby , Churchill Downs Inc. posted a record more than $890 million in net revenue for the second quarter of the year.

This revenue win — while supported by a record $37.6 million revenue increase during Derby week — indicates Churchill Downs' move to focus on a variety of gaming segments including brick-and-mortar gaming venues and online sports betting has proven fruitful for the 150-year-old company.

Churchill Downs Inc. CEO William "Bill" Carstanjen , previously told the Courier Journal the company is no longer a single-minded business supported solely by on-track horseracing but has emerged as a leader within new and growing gaming markets .

More: How Churchill Downs plans to lean into gaming, racetrack projects and Kentucky Derby as it grows

"Over the last decade, we've become a really accomplished and capable gaming company that doesn't have to shy away from competing against anybody," Carstanjen previously said.

The company saw its live and historical horseracing segment revenue increase 20% compared to the same quarter of last year. In Kentucky alone at historical racing machine venues such as Derby City Gaming and Hotel and Turfway Park Racing and Gaming, Churchill accumulated a $10.3 million revenue increase when compared to Q2 2023.

The brand's online sports betting product, TwinSpires, saw revenue spike by 15% this quarter. Its gaming arm, which includes casinos in states where legal, hit a revenue jump of 11%.

"These are excellent results across all our segments, we are demonstrating quarter after quarter that we can deliver strong returns on the strategic choices and capital investments we make," Carstanjen said Thursday during the company's quarterly earnings call.

Here's what else to know about what's going on at Churchill Downs:

Churchill Downs announces new track renovation project

With Churchill's continued success through 2024, the company has shared further expansion plans. Construction will start in August on a new $90 million Grandstand Club and Grandstand Pavillion renovation project , bringing more seating options and a new upscale vibe to the track.

The project will convert the current 10,000 aluminum bleacher seats into 8,300 stadium seating options and "trackside" box seating. This "substantial upgrade" will be coupled with an "increase in premium pricing."

"We are taking a section of lower end hospitality, and we are moving it toward a premium hospitality and that's a combination of both the seating options but also the amenities we associate with those seating options," Carstanjen said Thursday.

ICYMI: Churchill Downs announces $90M Grandstand Club and Pavilion renovation plan. What to know

Carstanjen said the company's $200 million Paddock project , which debuted for the 150th Kentucky Derby this year, creates a "foundation" for the company to explore future innovative projects at its historical racetrack in Louisville.

While Carstanjen did not provide explicit details on projects other than the upcoming Grandstand Club and Pavilion project, he teased that the company is "developing plans that will provide new experiences for our guests on both on the front side of Churchill Downs racetrack as well as in the infield."

Churchill Downs expanding physical gaming venues

Earlier this year, the company also expanded its physical footprint, opening the Terre Haute Casino Resort in Terre Haute, Indiana. Churchill attributes much of the revenue growth in its casino gaming sector to the opening of this facility, which offset some net revenue losses at facilities in Louisiana, Maryland, and Mississippi.

Nationwide, Churchill Downs has 27 gaming facilities and continues to seek opportunities for future expansion and entry into new markets.

In the next several months, Churchill Downs expects to open two additional historical racing machine venues. The company is also exploring "expansion opportunities" in Kentucky, Virginia, and New Hampshire.

The company announced Thursday it has filed permits in Henrico County, Virginia to convert a retail space into a historical racing machine gaming venue. Churchill Downs anticipates its Owensboro facility is still on track to open in early 2025, marking the seventh facility type in Kentucky.

Contact business reporter Olivia Evans at oevans@courier-journal.com or on X, the platform formerly known as Twitter at @oliviamevans_ .

This article originally appeared on Louisville Courier Journal: Churchill Downs earns record $890 million revenue in Q2. Here's what we know