Churchill Downs Incorporated Announces Exacta Expansion in New Hampshire
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Insights
The installation of 175 Exacta-technology driven terminals at The Brook by Churchill Downs Incorporated represents a strategic move to expand its footprint in the gaming and entertainment sector. From a market research perspective, the deployment of these terminals is expected to enhance the customer experience by providing a diverse array of gaming content, which could potentially lead to increased customer engagement and higher revenue streams for CDI.
The choice of New Hampshire for this expansion is notable, given its proximity to the populous Massachusetts market, suggesting a tactic to attract cross-border patrons. The inclusion of top HRM gaming titles from recognized manufacturers like Everi and IGT indicates a commitment to quality, which may positively influence the brand perception of CDI and The Brook among consumers.
It's essential to monitor the performance of these terminals and the market's response over the coming quarters to assess the success of this investment and its contribution to CDI's overall revenue.
Churchill Downs Incorporated's recent investment in historical racing machines (HRMs) technology through the acquisition of Exacta and subsequent installation at The Brook could have significant implications for the company's financial health. HRMs have been a growing segment within the gaming industry, often enjoying favorable legal and regulatory statuses compared to traditional slot machines.
Investors should consider the capital expenditure involved in the installation of the terminals and weigh it against the anticipated incremental cash flows from the operation of these machines. The partnership with The Brook and the use of popular titles from leading manufacturers may enhance CDI's competitive edge and result in a positive impact on the company's earnings per share (EPS) if the adoption rate and utilization of the terminals meet expectations.
Long-term financial implications hinge on the sustained popularity of HRMs and the potential for further regulatory changes. As with any capital-intensive venture, there is a risk of underperformance relative to the initial outlay.
Historical racing machines (HRMs) represent an intersection between traditional pari-mutuel betting and electronic gaming technology. The installation of Exacta-technology driven terminals by CDI is a reflection of the broader trend in the gaming industry towards adopting innovative technologies that appeal to a new generation of gamers while navigating the complex legal landscape surrounding gambling.
The strategic partnership with established gaming content manufacturers for HRMs could potentially set a new industry standard for the quality and variety of gaming experiences offered in racetracks and casinos. The long-term success of this initiative will depend on the ability of these terminals to consistently draw patrons and maintain high levels of engagement.
It would be prudent to analyze the performance metrics of these terminals, such as average daily win per unit, to gauge their market acceptance and profitability. Furthermore, the potential impact on the traditional horse racing and gaming sectors should be considered, as HRMs may cannibalize or complement existing offerings.
175 Exacta-Technology Driven Terminals Installed at The Brook in Seabrook, New Hampshire
LOUISVILLE, Ky., March 04, 2024 (GLOBE NEWSWIRE) -- Churchill Downs Incorporated (Nasdaq: CHDN, “CDI,” or the “Company”) announced today that Exacta Systems® (“Exacta”) has completed the installation of 175 Exacta-technology driven terminals at The Brook in Seabrook, New Hampshire. Exacta, acquired by CDI in August 2023, is a leading provider of central determinate system technology for historical racing machines (“HRMs”). The Brook is a casino-entertainment destination located in the easternmost part of the state next to the Massachusetts border. The new Exacta-powered terminals feature top HRM gaming titles from leading manufacturers including Everi, AGS, Light & Wonder, IGT, and Incredible Technologies.
“We are pleased to partner with The Brook to expand Exacta’s industry leading HRM technology in New Hampshire,” said Bill Mudd, President and Chief Operating Officer of CDI. “Our Exacta team is focused on growing our customers businesses by delivering the highest performing and most diverse gaming content available in the market.”
About Churchill Downs Incorporated
Churchill Downs Incorporated (“CDI”) (Nasdaq: CHDN) has been creating extraordinary entertainment experiences for nearly 150 years, beginning with the company’s most iconic and enduring asset, the Kentucky Derby. Headquartered in Louisville, Kentucky, CDI has expanded through the development of live and historical racing entertainment venues, the growth of the TwinSpires horse racing online wagering business and the operation and development of regional casino gaming properties. www.churchilldownsincorporated.com
About Exacta Systems®
Exacta, owned and operated by Churchill Downs Incorporated (“CDI”), is a leading provider of central determinate system technology in HRMs across the country. Exacta’s system architecture supports various game manufacturers and leverages virtually unlimited math modeling capabilities on a central determinate system enabling the delivery of a diverse gaming library to CDI-owned and third-party entertainment venues in Kentucky, Virginia, Wyoming, and New Hampshire. www.exactasystems.com
This news release contains various “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by the use of terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “predict,” “project,” “seek,” “should,” “will,” “scheduled,” and similar words or similar expressions (or negative versions of such words or expressions).
Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Important factors, that could cause actual results to differ materially from expectations include the following: the occurrence of extraordinary events, such as terrorist attacks, public health threats, civil unrest, and inclement weather, including as a result of climate change; the effect of economic conditions on our consumers' confidence and discretionary spending or our access to credit, including the impact of inflation; additional or increased taxes and fees; the impact of any pandemics, epidemics, or outbreaks of infectious diseases, including possible new variants of COVID-19, and related economic matters on our results of operations, financial conditions and prospects; lack of confidence in the integrity of our core businesses or any deterioration in our reputation; loss of key or highly skilled personnel, as well as general disruptions in the general labor market; the impact of significant competition, and the expectation the competition levels will increase; changes in consumer preferences, attendance, wagering, and sponsorships; risks associated with equity investments, strategic alliances and other third-party agreements; inability to respond to rapid technological changes in a timely manner; concentration and evolution of slot machine and historical racing machine (HRM) manufacturing and other technology conditions that could impose additional costs; failure to enter into or maintain agreements with industry constituents, including horsemen and other racetracks; inability to successfully focus on market access and retail operations for our TwinSpires sports betting business and effectively compete; online security risk, including cyber-security breaches, or loss or misuse of our stored information as a result of a breach including customers’ personal information could lead to government enforcement actions or other litigation; reliance on our technology services and catastrophic events and system failures disrupting our operations; inability to identify, complete, or fully realize the benefits of our proposed acquisitions, divestitures, development of new venues or the expansion of existing facilities on time, on budget, or as planned; difficulty in integrating recent or future acquisitions into our operations; cost overruns and other uncertainties associated with the development of new venues and the expansion of existing facilities; general risks related to real estate ownership and significant expenditures, including risks related to environmental liabilities; personal injury litigation related to injuries occurring at our racetracks; compliance with the Foreign Corrupt Practices Act or other similar laws and regulations, or applicable anti-money laundering regulations; payment-related risks, such as risk associated with fraudulent credit card or debit card use; work stoppages and labor problems; risks related to pending or future legal proceedings and other actions; highly regulated operations and changes in the regulatory environment could adversely affect our business; restrictions in our debt facilities limiting our flexibility to operate our business; failure to comply with the financial ratios and other covenants in our debt facilities and other indebtedness; increases to interest rates (due to inflation or otherwise), disruption in the credit markets or changes to our credit ratings may adversely affect our business; increase in our insurance costs, or inability to obtain similar insurance coverage in the future, and any inability to recover under our insurance policies for damages sustained at our properties in the event of inclement weather and casualty events; and other factors described under the heading “Risk Factors” in our most recent Annual Report on Form 10-K and in other filings we make with the Securities and Exchange Commission.
We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
| Investor Contact: Kaitlin Buzzetto | Media Contact: Tonya Abeln |
| (502) 394-1091 | (502) 386-1742 |
| Kaitlin.Buzzetto@kyderby.com | Tonya.Abeln@kyderby.com |
FAQ
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