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v3.23.3

Segment Information (Tables) | 9 Months Ended
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Sep. 30, 2023
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) | 2023 |  | 2022 |  | 2023 |  | 2022
Net revenue from external customers: |  |  |  |  |  |  |
Live and Historical Racing: |  |  |  |  |  |  |
Churchill Downs Racetrack | $ | 10.6 |  |  | $ | 6.4 |  |  | $ | 191.3 |  |  | $ | 182.6 |
Louisville | 48.9 |  |  | 41.5 |  |  | 138.2 |  |  | 128.5 |
Northern Kentucky | 19.5 |  |  | 10.0 |  |  | 63.1 |  |  | 29.2 |
Southwestern Kentucky | 37.6 |  |  | 33.3 |  |  | 111.7 |  |  | 97.8 |
Western Kentucky | 11.6 |  |  | 0.2 |  |  | 25.8 |  |  | 0.2 |
Virginia | 88.1 |  |  | — |  |  | 280.4 |  |  | — |
New Hampshire | 3.2 |  |  | 0.9 |  |  | 8.4 |  |  | 0.9 |
Total Live and Historical Racing | $ | 219.5 |  |  | $ | 92.3 |  |  | $ | 818.9 |  |  | $ | 439.2 |
TwinSpires: | $ | 108.5 |  |  | $ | 106.2 |  |  | $ | 340.7 |  |  | $ | 343.3 |
Gaming: |  |  |  |  |  |  |
Florida | $ | 24.4 |  |  | $ | 26.3 |  |  | $ | 76.5 |  |  | $ | 81.2 |
Iowa | 24.0 |  |  | — |  |  | 72.5 |  |  | — |
Louisiana | 32.2 |  |  | 28.5 |  |  | 110.1 |  |  | 107.2 |
Maine | 30.9 |  |  | 31.6 |  |  | 88.1 |  |  | 87.8 |
Maryland | 32.0 |  |  | 33.3 |  |  | 82.9 |  |  | 82.0 |
Mississippi | 24.2 |  |  | 24.5 |  |  | 77.5 |  |  | 78.0 |
New York | 46.2 |  |  | — |  |  | 135.3 |  |  | — |
Pennsylvania | 30.4 |  |  | 39.2 |  |  | 97.3 |  |  | 108.8 |
Total Gaming | $ | 244.3 |  |  | $ | 183.4 |  |  | $ | 740.2 |  |  | $ | 545.0 |
All Other | 0.2 |  |  | 1.2 |  |  | 0.7 |  |  | 2.2 |
Net revenue from external customers | $ | 572.5 |  |  | $ | 383.1 |  |  | $ | 1,900.5 |  |  | $ | 1,329.7 |
Intercompany net revenues: |  |  |  |  |  |  |
Live and Historical Racing | $ | 6.0 |  |  | $ | 10.1 |  |  | $ | 30.4 |  |  | $ | 26.3 |
TwinSpires | 3.9 |  |  | 1.2 |  |  | 7.1 |  |  | 4.0 |
Gaming | 0.6 |  |  | 2.5 |  |  | 4.2 |  |  | 4.6 |
All Other | — |  |  | — |  |  | — |  |  | — |
Eliminations | (10.5) |  |  | (13.8) |  |  | (41.7) |  |  | (34.9) |
Intercompany net revenue | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
| Three Months Ended September 30, 2023
(in millions) | Live and Historical Racing |  | TwinSpires |  | Gaming |  | Total Segments |  | All Other |  | Total
Net revenue from external customers |  |  |  |  |  |  |  |  |  |  |
Pari-mutuel: |  |  |  |  |  |  |  |  |  |  |
Live and simulcast racing | $ | 16.0 |  |  | $ | 86.3 |  |  | $ | 5.1 |  |  | $ | 107.4 |  |  | $ | — |  |  | $ | 107.4 |
Historical racing(a) | 179.9 |  |  | — |  |  | 7.5 |  |  | 187.4 |  |  | — |  |  | 187.4 |
Racing event-related services | 3.3 |  |  | — |  |  | 1.4 |  |  | 4.7 |  |  | — |  |  | 4.7 |
Gaming(a) | 3.1 |  |  | 5.3 |  |  | 203.0 |  |  | 211.4 |  |  | — |  |  | 211.4 |
Other(a) | 17.2 |  |  | 16.9 |  |  | 27.3 |  |  | 61.4 |  |  | 0.2 |  |  | 61.6 |
Total | $ | 219.5 |  |  | $ | 108.5 |  |  | $ | 244.3 |  |  | $ | 572.3 |  |  | $ | 0.2 |  |  | $ | 572.5 |
| Three Months Ended September 30, 2022
(in millions) | Live and Historical Racing |  | TwinSpires |  | Gaming |  | Total Segments |  | All Other |  | Total
Net revenue from external customers |  |  |  |  |  |  |  |  |  |  |
Pari-mutuel: |  |  |  |  |  |  |  |  |  |  |
Live and simulcast racing | $ | 1.8 |  |  | $ | 91.0 |  |  | $ | 3.6 |  |  | $ | 96.4 |  |  | $ | — |  |  | $ | 96.4 |
Historical racing(a) | 78.7 |  |  | — |  |  | 3.5 |  |  | 82.2 |  |  | — |  |  | 82.2 |
Racing event-related services | 3.0 |  |  | — |  |  | 0.1 |  |  | 3.1 |  |  | — |  |  | 3.1 |
Gaming(a) | 0.9 |  |  | 5.3 |  |  | 160.6 |  |  | 166.8 |  |  | — |  |  | 166.8 |
Other(a) | 7.9 |  |  | 9.9 |  |  | 15.6 |  |  | 33.4 |  |  | 1.2 |  |  | 34.6 |
Total | $ | 92.3 |  |  | $ | 106.2 |  |  | $ | 183.4 |  |  | $ | 381.9 |  |  | $ | 1.2 |  |  | $ | 383.1 |
(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 $13.3 million for the three months ended September 30, 2023 and $8.4 million for the three months ended September 30, 2022.
| Nine Months Ended September 30, 2023
(in millions) | Live and Historical Racing |  | TwinSpires |  | Gaming |  | Total Segments |  | All Other |  | Total
Net revenue from external customers |  |  |  |  |  |  |  |  |  |  |
Pari-mutuel: |  |  |  |  |  |  |  |  |  |  |
Live and simulcast racing | $ | 67.2 |  |  | $ | 283.2 |  |  | $ | 19.9 |  |  | $ | 370.3 |  |  | $ | — |  |  | $ | 370.3 |
Historical racing(a) | 549.3 |  |  | — |  |  | 20.5 |  |  | 569.8 |  |  | — |  |  | 569.8 |
Racing event-related services | 141.0 |  |  | — |  |  | 4.8 |  |  | 145.8 |  |  | — |  |  | 145.8 |
Gaming(a) | 8.2 |  |  | 10.9 |  |  | 615.4 |  |  | 634.5 |  |  | — |  |  | 634.5 |
Other(a) | 53.2 |  |  | 46.6 |  |  | 79.6 |  |  | 179.4 |  |  | 0.7 |  |  | 180.1 |
Total | $ | 818.9 |  |  | $ | 340.7 |  |  | $ | 740.2 |  |  | $ | 1,899.8 |  |  | $ | 0.7 |  |  | $ | 1,900.5 |
| Nine Months Ended September 30, 2022
(in millions) | Live and Historical Racing |  | TwinSpires |  | Gaming |  | Total Segments |  | All Other |  | Total
Net revenue from external customers |  |  |  |  |  |  |  |  |  |  |
Pari-mutuel: |  |  |  |  |  |  |  |  |  |  |
Live and simulcast racing | $ | 53.9 |  |  | $ | 290.9 |  |  | $ | 22.0 |  |  | $ | 366.8 |  |  | $ | — |  |  | $ | 366.8 |
Historical racing(a) | 230.7 |  |  | — |  |  | 4.8 |  |  | 235.5 |  |  | — |  |  | 235.5 |
Racing event-related services | 125.4 |  |  | — |  |  | 0.7 |  |  | 126.1 |  |  | — |  |  | 126.1 |
Gaming(a) | 0.9 |  |  | 21.8 |  |  | 469.6 |  |  | 492.3 |  |  | — |  |  | 492.3 |
Other(a) | 28.3 |  |  | 30.6 |  |  | 47.9 |  |  | 106.8 |  |  | 2.2 |  |  | 109.0 |
Total | $ | 439.2 |  |  | $ | 343.3 |  |  | $ | 545.0 |  |  | $ | 1,327.5 |  |  | $ | 2.2 |  |  | $ | 1,329.7 |
(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 $37.8 million for the nine months ended September 30, 2023 and $23.2 million for the nine months ended September 30, 2022. 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 September 30, |  | Nine Months Ended September 30,
(in millions) | 2023 |  | 2022 |  | 2023 |  | 2022
Live and Historical Racing | $ | 219.5 |  |  | $ | 92.3 |  |  | $ | 818.9 |  |  | $ | 439.2 |
TwinSpires | 108.5 |  |  | 106.2 |  |  | 340.7 |  |  | 343.3 |
Gaming | 244.3 |  |  | 183.4 |  |  | 740.2 |  |  | 545.0 |
All Other | 0.2 |  |  | 1.2 |  |  | 0.7 |  |  | 2.2 |
Net Revenue | $ | 572.5 |  |  | $ | 383.1 |  |  | $ | 1,900.5 |  |  | $ | 1,329.7 |
Schedule of Segment Reporting Information | Adjusted EBITDA by segment is comprised of the following:
| Three Months Ended September 30, 2023
(in millions) | Live and Historical Racing |  | TwinSpires |  | Gaming
Revenues | $ | 225.5 |  |  | $ | 112.4 |  |  | $ | 244.9 |
Taxes and purses | (62.0) |  |  | (5.8) |  |  | (81.4) |
Marketing and advertising | (7.6) |  |  | (1.3) |  |  | (8.9) |
Salaries and benefits | (27.9) |  |  | (7.0) |  |  | (35.2) |
Content expense | (1.6) |  |  | (49.4) |  |  | (2.4) |
Selling, general and administrative expense | (7.4) |  |  | (3.0) |  |  | (9.9) |
Other operating expense | (39.0) |  |  | (12.0) |  |  | (32.1) |
Other income | 0.9 |  |  | — |  |  | 47.3 |
Adjusted EBITDA | $ | 80.9 |  |  | $ | 33.9 |  |  | $ | 122.3 |
| Three Months Ended September 30, 2022
(in millions) | Live and Historical Racing |  | TwinSpires |  | Gaming
Revenues | $ | 102.4 |  |  | $ | 107.4 |  |  | $ | 185.9 |
Taxes and purses | (31.6) |  |  | (6.6) |  |  | (70.6) |
Marketing and advertising | (3.6) |  |  | (1.3) |  |  | (4.1) |
Salaries and benefits | (13.3) |  |  | (6.3) |  |  | (24.6) |
Content expense | (0.6) |  |  | (49.3) |  |  | (2.7) |
Selling, general and administrative expense | (3.4) |  |  | (2.7) |  |  | (7.1) |
Other operating expense | (15.6) |  |  | (10.1) |  |  | (21.7) |
Other income | 0.2 |  |  | — |  |  | 56.5 |
Adjusted EBITDA | $ | 34.5 |  |  | $ | 31.1 |  |  | $ | 111.6 |
| Nine Months Ended September 30, 2023
(in millions) | Live and Historical Racing |  | TwinSpires |  | Gaming
Revenues | $ | 849.3 |  |  | $ | 347.8 |  |  | $ | 744.4 |
Taxes and purses | (203.9) |  |  | (17.8) |  |  | (246.7) |
Marketing and advertising | (27.9) |  |  | (8.0) |  |  | (26.5) |
Salaries and benefits | (80.0) |  |  | (20.7) |  |  | (109.2) |
Content expense | (5.1) |  |  | (161.1) |  |  | (6.9) |
Selling, general and administrative expense | (23.4) |  |  | (8.1) |  |  | (32.4) |
Other operating expense | (123.6) |  |  | (36.0) |  |  | (92.1) |
Other income | 1.1 |  |  | 1.1 |  |  | 144.6 |
Adjusted EBITDA | $ | 386.5 |  |  | $ | 97.2 |  |  | $ | 375.2 |
| Nine Months Ended September 30, 2022
(in millions) | Live and Historical Racing |  | TwinSpires |  | Gaming
Revenues | $ | 465.5 |  |  | $ | 347.3 |  |  | $ | 549.6 |
Taxes and purses | (118.0) |  |  | (21.3) |  |  | (206.1) |
Marketing and advertising | (12.9) |  |  | (11.4) |  |  | (11.3) |
Salaries and benefits | (43.1) |  |  | (19.9) |  |  | (72.0) |
Content expense | (2.2) |  |  | (160.5) |  |  | (6.4) |
Selling, general and administrative expense | (9.7) |  |  | (7.9) |  |  | (20.4) |
Other operating expense | (53.6) |  |  | (37.2) |  |  | (63.9) |
Other income | 0.3 |  |  | — |  |  | 140.0 |
Adjusted EBITDA | $ | 226.3 |  |  | $ | 89.1 |  |  | $ | 309.5 |
Adjusted EBITDA by segment is comprised of the following:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
(in millions) |  | 2023 |  | 2022 |  | 2023 |  | 2022
Reconciliation of Comprehensive Income to Adjusted EBITDA: |  |  |  |  |  |  |  |
Net income and comprehensive income |  | $ | 61.0 |  |  | $ | 57.0 |  |  | $ | 359.7 |  |  | $ | 438.4 |
Additions: |  |  |  |  |  |  |  |
Depreciation and amortization |  | 42.1 |  |  | 27.5 |  |  | 121.8 |  |  | 78.7 |
Interest expense, net |  | 67.9 |  |  | 36.2 |  |  | 197.8 |  |  | 92.6 |
Income tax provision |  | 20.8 |  |  | 16.4 |  |  | 130.2 |  |  | 173.5 |
EBITDA |  | $ | 191.8 |  |  | $ | 137.1 |  |  | $ | 809.5 |  |  | $ | 783.2 |
Adjustments to EBITDA: |  |  |  |  |  |  |  |
Stock-based compensation expense |  | $ | 8.1 |  |  | $ | 9.1 |  |  | $ | 24.8 |  |  | $ | 23.5 |
Legal reserve |  | — |  |  | — |  |  | — |  |  | 3.2 |
Pre-opening expense |  | 5.0 |  |  | 4.2 |  |  | 11.4 |  |  | 8.9 |
Arlington exit costs |  | 0.1 |  |  | 1.4 |  |  | 9.4 |  |  | 5.7 |
Other expenses, net |  | 0.7 |  |  | — |  |  | 7.6 |  |  | — |
Transaction expense, net |  | 1.5 |  |  | 1.2 |  |  | 1.8 |  |  | 7.4 |
Asset impairments |  | — |  |  | — |  |  | 24.5 |  |  | 4.9 |
Other income, expense: |  |  |  |  |  |  |  |
Interest, depreciation and amortization expense related to equity investments |  | 10.1 |  |  | 10.1 |  |  | 29.8 |  |  | 31.7 |
Changes in fair value of Rivers Des Plaines' interest rate swaps |  | — |  |  | — |  |  | — |  |  | (12.6) |
Rivers Des Plaines' legal reserves and transaction costs |  | — |  |  | 0.1 |  |  | — |  |  | 0.6 |
Other charges and recoveries, net |  | 0.9 |  |  | — |  |  | — |  |  | 1.0 |
Gain on sale of assets |  | — |  |  | — |  |  | (114.0) |  |  | (274.6) |
Total adjustments to EBITDA |  | 26.4 |  |  | 26.1 |  |  | (4.7) |  |  | (200.3) |
Adjusted EBITDA |  | $ | 218.2 |  |  | $ | 163.2 |  |  | $ | 804.8 |  |  | $ | 582.9 |
Adjusted EBITDA by segment: |  |  |  |  |  |  |  |
Live and Historical Racing |  | $ | 80.9 |  |  | $ | 34.5 |  |  | $ | 386.5 |  |  | $ | 226.3 |
TwinSpires |  | 33.9 |  |  | 31.1 |  |  | 97.2 |  |  | 89.1 |
Gaming |  | 122.3 |  |  | 111.6 |  |  | 375.2 |  |  | 309.5 |
Total segment Adjusted EBITDA |  | 237.1 |  |  | 177.2 |  |  | 858.9 |  |  | 624.9 |
All Other |  | (18.9) |  |  | (14.0) |  |  | (54.1) |  |  | (42.0) |
Total Adjusted EBITDA |  | $ | 218.2 |  |  | $ | 163.2 |  |  | $ | 804.8 |  |  | $ | 582.9 |
Schedule of Total Assets and Capital Expenditures by Operating Segment | The table below presents total asset information for each of our segments:
(in millions) | September 30, 2023 |  | December 31, 2022
Total assets: |  |  |
Live and Historical Racing | $ | 3,742.1 |  |  | $ | 3,345.4 |
TwinSpires | 461.4 |  |  | 287.9 |
Gaming | 1,844.2 |  |  | 1,824.2 |
Total segment assets | 6,047.7 |  |  | 5,457.5 |
All Other | 702.8 |  |  | 749.3 |
Total assets | $ | 6,750.5 |  |  | $ | 6,206.8 |
The table below presents total capital expenditures for each of our segments:
| Nine Months Ended September 30,
(in millions) | 2023 |  | 2022
Capital expenditures: |  |  |
Live and Historical Racing | $ | 358.3 |  |  | $ | 177.4 |
TwinSpires | 12.0 |  |  | 9.3 |
Gaming | 120.5 |  |  | 63.0 |
Total segment capital expenditures | 490.8 |  |  | 249.7 |
All Other | 7.3 |  |  | 14.0 |
Total capital expenditures | $ | 498.1 |  |  | $ | 263.7 |

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