The iconic Churchill Downs is broadening its Kentucky horizons. The company recently acquired Ellis Park Racing & Gaming in Henderson for a hefty sum of $79 million. This purchase followed the Kentucky Horse Racing Commission’s approval, a necessary step to finalize the agreement with the former proprietors, Enchantment Holdings.
This strategic move extends beyond horse racing; it signifies Churchill Downs increasing its wager on historical horse racing devices. The company intends a significant expansion at Ellis Park and is constructing an entirely new track and entertainment venue in Owensboro, Kentucky. Situated within the Towne Square Mall, this new location will house an impressive 600 of these historical racing machines and offer simulcast betting amenities.
Churchill Downs’ Chief Executive Officer, Bill Carstanjen, appears enthusiastic about the developments. He has stated their commitment to substantial investments in enhancing the racing facilities at Ellis Park and emphasized that this acquisition will lead to a considerable increase in prize money, thanks to the inclusion of the numerous historical racing machines in Owensboro.
This acquisition represents the latest in a series of active endeavors for Churchill Downs this year. The company has been on a purchasing spree, having recently added Chasers Poker Room in Salem, New Hampshire, to its portfolio just a couple of months prior.
In early 2022, Churchill Downs Incorporated (CDI) took a major step, purchasing a substantial portion of Peninsula Pacific Entertainment (P2E) for almost $2.5 billion. This calculated acquisition laid the groundwork for CDI’s expansion throughout the year.
Although it’s premature to definitively determine if the purchase, coupled with certain strategic divestments, has yielded fruit, CDI’s latest quarterly earnings release reveals encouraging progress. The organization has experienced enhanced results relative to the corresponding timeframe last year, even reaching unprecedented income in the second quarter.