v3.26.3
Segment Information (Tables)
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Net Revenue From External Customers and Intercompany Revenue From Each Operating Segment The tables below present net revenue from external customers and intercompany revenue from each of our segments:
Three Months Ended September 30,Nine Months Ended September 30,
(in millions)2026202520262025
Net revenue from external customers:
Live and Historical Racing:
Churchill Downs Racetrack$12 $11 $262 $243 
Louisville54 54 168 163 
Northern Kentucky29 26 94 84 
Southwestern Kentucky48 42 141 126 
Western Kentucky23 22 60 50 
Virginia139 140 410 406 
New Hampshire3 5 13 11 
Total Live and Historical Racing$308 $300 $1,148 $1,083 
Wagering Services and Solutions:$116 $118 $392 $383 
Gaming:
Florida$21 $23 $69 $74 
Iowa23 24 71 71 
Indiana34 33 102 97 
Louisiana27 26 92 103 
Maine31 29 82 81 
Maryland32 31 81 77 
Mississippi23 22 71 71 
New York51 48 148 139 
Pennsylvania30 29 83 81 
Total Gaming$272 $265 $799 $794 
All Other— — — — 
Net revenue from external customers$696 $683 $2,339 $2,260 
Intercompany net revenues:
Live and Historical Racing$7 $5 $43 $40 
Wagering Services and Solutions10 9 30 28 
Gaming1 1 6 5 
All Other2 2 6 6 
Eliminations(20)(17)(85)(79)
Intercompany net revenue$— $— $— $— 
Three Months Ended September 30, 2026
(in millions)Live and Historical RacingWagering Services and SolutionsGamingTotal SegmentsAll OtherTotal
Net revenue from external customers
Pari-mutuel:
Live and simulcast racing$16 $87 $5 $108 $— $108 
Historical racing(a)
258 — — 258 — 258 
Racing event-related services4 — — 4 — 4 
Gaming(a)
3 3 237 243 — 243 
Other(a)
27 26 30 83 — 83 
Total$308 $116 $272 $696 $— $696 


Three Months Ended September 30, 2025
(in millions)Live and Historical RacingWagering Services and SolutionsGamingTotal SegmentsAll OtherTotal
Net revenue from external customers
Pari-mutuel:
Live and simulcast racing$16 $87 $5 $108 $— $108 
Historical racing(a)
252 — — 252 — 252 
Racing event-related services4 — — 4 — 4 
Gaming(a)
5 4 230 239 — 239 
Other(a)
23 27 30 80 — 80 
Total$300 $118 $265 $683 $— $683 
(a)     Food and beverage, hotel, and other services furnished to customers for free as an inducement to wager or through the redemption of our customers' loyalty points are recorded at the estimated standalone selling prices in other revenue with a corresponding offset recorded as a reduction in historical racing pari-mutuel revenue for historical racing machines ("HRMs") or gaming revenue for our casino properties. These amounts were $16 million for the three months ended September 30, 2026 and $15 million for the three months ended September 30, 2025.
Nine Months Ended September 30, 2026
(in millions)Live and Historical RacingWagering Services and SolutionsGamingTotal SegmentsAll OtherTotal
Net revenue from external customers
Pari-mutuel:
Live and simulcast racing$80 $301 $19 $400 $— $400 
Historical racing(a)
780 — — 780 — 780 
Racing event-related services197 — 1 198 — 198 
Gaming(a)
10 13 687 710 — 710 
Other(a)
81 78 92 251 — 251 
Total$1,148 $392 $799 $2,339 $— $2,339 
Nine Months Ended September 30, 2025
(in millions)Live and Historical RacingWagering Services and SolutionsGamingTotal SegmentsAll OtherTotal
Net revenue from external customers
Pari-mutuel:
Live and simulcast racing$81 $292 $20 $393 $— $393 
Historical racing(a)
741 — 14 755 — 755 
Racing event-related services178 — 1 179 — 179 
Gaming(a)
11 12 669 692 — 692 
Other(a)
72 79 90 241 — 241 
Total$1,083 $383 $794 $2,260 $— $2,260 
(a)     Food and beverage, hotel, and other services furnished to customers for free as an inducement to wager or through the redemption of our customers' loyalty points are recorded at the estimated standalone selling prices in other revenue with a corresponding offset recorded as a reduction in historical racing pari-mutuel revenue for HRMs or gaming revenue for our casino properties. These amounts were $48 million for the nine months ended September 30, 2026 and $45 million for the nine months ended September 30, 2025.
The tables below present net revenue from external customers, Adjusted EBITDA by segment and reconcile net income to Adjusted EBITDA:
Net revenue by segment is comprised of the following:
Three Months Ended September 30,Nine Months Ended September 30,
(in millions)2026202520262025
Live and Historical Racing$308 $300 $1,148 $1,083 
Wagering Services and Solutions116 118 392 383 
Gaming272 265 799 794 
All Other— — — — 
Net Revenue$696 $683 $2,339 $2,260 
Schedule of Segment Reporting Information
Adjusted EBITDA by segment is comprised of the following:
Three Months Ended September 30, 2026
(in millions)Live and Historical RacingWagering Services and SolutionsGaming
Revenues$315 $126 $273 
Pari-mutuel taxes and purses(87)(6)(6)
Gaming taxes(1)— (84)
Marketing and advertising(12)— (9)
Salaries and benefits(38)(9)(43)
Content expense(1)(47)(2)
Selling, general and administrative expense(11)(3)(11)
Maintenance, insurance and utilities(13)(3)(10)
Gaming equipment rental and technology costs(15)(1)(5)
Food and beverage costs(4)— (4)
Other operating expense(1)
(23)(9)(18)
Equity in income of unconsolidated affiliates— — 47 
Other income 1 — — 
Adjusted EBITDA$111 $48 $128 
Three Months Ended September 30, 2025
(in millions)Live and Historical RacingWagering Services and SolutionsGaming
Revenues$305 $127 $266 
Pari-mutuel taxes and purses(80)(6)(7)
Gaming taxes(2)(1)(82)
Marketing and advertising(13)(1)(9)
Salaries and benefits(37)(9)(41)
Content expense(2)(49)(3)
Selling, general and administrative expense(11)(3)(10)
Maintenance, insurance and utilities(11)(1)(11)
Gaming equipment rental and technology costs(13)— (4)
Food and beverage costs(3)— (4)
Other operating expense(1)
(21)(11)(16)
Equity in income of unconsolidated affiliates— — 44 
Other income 4 — — 
Adjusted EBITDA$116 $46 $123 
(1) Other operating expense primarily includes supplies, regulatory licenses and fees, property taxes, and third-party service fees and costs.
Nine Months Ended September 30, 2026
(in millions)Live and Historical RacingWagering Services and SolutionsGaming
Revenues$1,191 $422 $805 
Pari-mutuel taxes and purses(282)(18)(24)
Gaming taxes(5)(1)(240)
Marketing and advertising(40)(8)(25)
Salaries and benefits(112)(26)(127)
Content expense(3)(168)(5)
Selling, general and administrative expense(36)(11)(35)
Maintenance, insurance and utilities(38)(8)(29)
Gaming equipment rental and technology costs(42)(4)(14)
Food and beverage costs(12)— (13)
Other operating expense(1)
(80)(33)(53)
Equity in income of unconsolidated affiliates— — 143 
Other income 1 — 1 
Adjusted EBITDA$542 $145 $384 
Nine Months Ended September 30, 2025
(in millions)Live and Historical RacingWagering Services and SolutionsGaming
Revenues$1,123 $411 $799 
Pari-mutuel taxes and purses(268)(18)(29)
Gaming taxes(5)(2)(234)
Marketing and advertising(43)(8)(26)
Salaries and benefits(107)(26)(128)
Content expense(5)(169)(7)
Selling, general and administrative expense(32)(13)(32)
Maintenance, insurance and utilities(33)(3)(30)
Gaming equipment rental and technology costs(37)(2)(13)
Food and beverage costs(11)— (12)
Other operating expense(1)
(71)(35)(49)
Equity in income of unconsolidated affiliates— — 134 
Other income 4 — 1 
Adjusted EBITDA$515 $135 $374 
(1) Other operating expense primarily includes supplies, regulatory licenses and fees, property taxes, and third-party service fees and costs.
The table below reconciles net income to Adjusted EBITDA:
Three Months Ended September 30,Nine Months Ended September 30,
(in millions)2026202520262025
Reconciliation of Net Income to Adjusted EBITDA:
Net income attributable to Churchill Downs Incorporated$80 $38 $404 $332 
Net income attributable to noncontrolling interests— 1 1 2 
Net income80 39 405 334 
Adjustments
Depreciation and amortization61 57 176 174 
Interest expense69 75 211 222 
Income tax provision 31 22 147 115 
Stock-based compensation expense 6 7 19 18 
Pre-opening expense2 3 7 9 
Other expenses, net— 3 2 7 
Asset impairments, net— 46 — 48 
Transaction expense, net4 1 6 3 
Other income, expense:
Interest, depreciation and amortization expense related to equity investments9 9 28 29 
Other charges and recoveries, net2 — (3)(1)
Total adjustments184 223 593 624 
Adjusted EBITDA$264 $262 $998 $958 
Adjusted EBITDA by segment:
Live and Historical Racing$111 $116 $542 $515 
Wagering Services and Solutions48 46 145 135 
Gaming128 123 384 374 
Total segment Adjusted EBITDA287 285 1,071 1,024 
All Other(23)(23)(73)(66)
Total Adjusted EBITDA$264 $262 $998 $958 
Schedule of Total Assets and Capital Expenditures by Operating Segment
The table below presents total capital expenditures for each of our segments:
Nine Months Ended September 30,
(in millions)20262025
Capital expenditures:
Live and Historical Racing$139 $178 
Wagering Services and Solutions15 18 
Gaming20 24 
Total segment capital expenditures174 220 
All Other2 5 
Total capital expenditures$176 $225