Churchill Downs weighs divestiture of nine regional casinos
2026-07-31
Source: Focus Gaming News
Churchill Downs is exploring the sale of nine regional gaming properties across eight states with Macquarie Capital as adviser, aiming to cut leverage, reinvest in core assets, and fund buybacks. The company reported second-quarter net revenue of $980m, up 5 per cent year-on-year.
Churchill Downs Incorporated has put nine of its regional gaming venues under review for a possible sale, according to a Form 8-K submitted to the SEC. The company has brought on Macquarie Capital to run the process.
The portfolio being evaluated spans eight states: Calder Casino (Florida), Terre Haute Casino Resort (Indiana), Hard Rock Hotel & Casino (Iowa), Oxford Casino Hotel (Maine), Ocean Downs Casino and Racetrack (Maryland), Harlow's Casino Resort and Spa and Riverwalk Casino Hotel (Mississippi), del Lago Resort and Casino (New York), and Presque Isle Downs and Casino (Pennsylvania).
CEO Bill Carstanjen said during the operator's earnings call that the assets are likely to be sold one by one or in small groups, depending on interest from buyers. Proceeds are earmarked for paying down debt, targeted reinvestment in Churchill Downs Racetrack and other ventures, and share buybacks. "We're selling proven strong assets that ought to fit in other people's portfolios and other people's plans," he added.
Churchill Downs stressed that its historical racing machine operations in Kentucky, Virginia, and New Hampshire are not on the block, nor are its Fair Grounds-related holdings in Louisiana.
The company posted $980m in net revenue for the second quarter, up 5 per cent year-on-year. The gains were fueled by the 152nd Kentucky Derby, which generated record all-sources wagering across Derby Week.