Churchill Downs Incorporated Statement on Kentucky Supreme Court Ruling Regarding the Exacta System Used in Historical Horse Racing Machines

Rhea-AI Summary

Churchill Downs Incorporated (CHDN) announced that it does not utilize the Exacta system for historical horse racing machines in Kentucky, following a Kentucky Supreme Court ruling. The company will collaborate with Kentucky legislators to maintain its HRM operations, essential for the equine industry's funding. Governor Andy Beshear emphasized the significance of historical horse racing, noting its contribution of over $21 million to the state budget. Churchill Downs operates renowned gaming and online wagering platforms, enhancing its position within the industry.

Positive

• Churchill Downs does not use the Exacta system, minimizing legal exposure.
• Continued commitment to work with legislators ensures operation of HRM facilities.
• Historical horse racing contributes over $21 million to Kentucky's budget, supporting local economy.

Negative

• None.

LOUISVILLE, Ky., Sept. 24, 2020 (GLOBE NEWSWIRE) -- Churchill Downs Incorporated (“CDI”) (Nasdaq: CHDN) released today the following statement regarding the Kentucky Supreme Court ruling on the Exacta system used in historical horse racing machines (“HRMs”) in Kentucky. CDI does not use the Exacta system in any of its HRMs in any facility in Kentucky.

We will work within our legal rights and in coordination with Kentucky legislators to ensure the ongoing legal operation of our HRM facilities in Kentucky so that we can continue to provide critical funding for the equine industry and support the citizens in the Commonwealth of Kentucky.

Although CDI does not use the Exacta system in question at any of our HRM facilities, we appreciate Kentucky Governor Andy Beshear’s support of the industry in his statement regarding Historical Horse Racing today:

“Historical Horse Racing is an important part of Kentucky’s economy that supports jobs and contributes over $21 million to the state budget,” Beshear said. “We are working with various partners to find a path forward.”

About Churchill Downs Incorporated

Churchill Downs Incorporated is an industry-leading racing, online wagering and gaming entertainment company anchored by our iconic flagship event, the Kentucky Derby. We also own and operate two pari-mutual gaming entertainment venues, Derby City Gaming and Oak Grove Racing, Gaming, and Hotel, in Kentucky. Our online wagering business owns and operates TwinSpires.com, the largest and most profitable online horse racing wagering platform in the U.S., and BetAmerica, an online sports betting and iGaming platform in the U.S. We are also a leader in brick-and-mortar casino gaming with approximately 11,000 slot machines and video lottery terminals and 200 table games in eight states. Additional information about CDI can be found online at www.churchilldownsincorporated.com.

Certain statements made in this news release contain 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,” 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, among others, that may affect actual results or outcomes include the following: the impact of the novel coronavirus (COVID-19) pandemic and related economic matters on our results of operations, financial conditions and prospects; the effect of economic conditions on our consumers' confidence and discretionary spending or our access to credit; additional or increased taxes and fees; public perceptions or lack of confidence in the integrity of our business or any deterioration in our reputation; loss of key or highly skilled personnel; restrictions in our debt facilities limiting our flexibility to operate our business; general risks related to real estate ownership, including fluctuations in market values and environmental regulations; catastrophic events and system failures disrupting our operations; online security risk, including cyber-security breaches; inability to recover under our insurance policies for damages sustained at our properties in the event of inclement weather and casualty events; increases in insurance costs and inability to obtain similar insurance coverage in the future; inability to identify and complete acquisition, expansion or divestiture projects, on time, on budget or as planned; difficulty in integrating recent or future acquisitions into our operations; costs and uncertainties relating to the development of new venues and expansion of existing facilities; risks associated with equity investments, strategic alliances and other third-party agreements; inability to respond to rapid technological changes in a timely manner; inadvertent infringement of the intellectual property of others; inability to protect our own intellectual property rights; payment-related risks, such as risk associated with fraudulent credit card and debit card use; compliance with the Foreign Corrupt Practices Act or applicable money-laundering regulations; risks related to pending or future legal proceedings and other actions; inability to negotiate agreements with industry constituents, including horsemen and other racetracks; work stoppages and labor issues; changes in consumer preferences, attendance, wagering and sponsorship with respect to Churchill Downs Racetrack and the Kentucky Derby; personal injury litigation related to injuries occurring at our racetracks; weather and other conditions affecting our ability to conduct live racing; the occurrence of extraordinary events, such as terrorist attacks and public health threats; changes in the regulatory environment of our racing operations; increased competition in the horse racing business; difficulty in attracting a sufficient number of horses and trainers for full field horse races; our inability to utilize and provide totalizator services; changes in regulatory environment of our online horse wagering business; A reduction in the number of people wagering on live horse races; increase in competition in our online horse racing wagering business; uncertainty and changes in the legal landscape relating to our online horse racing wagering business; continued legalization of online sports betting and iGaming in the United States and our ability to predict and capitalize on any such legalization; inability to expand our sports betting operations and effectively compete; failure to manage risks associated with sports betting; failure to comply with laws requiring us to block access to certain individuals could result in penalties or impairment with respect to our mobile and online wagering products; increased competition in our casino business; changes in regulatory environment of our casino business; concentration and evolution of slot machine manufacturing and other technology conditions that could impose additional costs; and inability to collect gaming receivables from the customers to whom we extend credit.

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: Nick Zangari  (502) 394-1157  Nick.Zangari@kyderby.com

Media Contact: Tonya Abeln  (502) 386-1742  Tonya.Abeln@kyderby.com

FAQ

What is the recent statement from Churchill Downs regarding the Exacta system?

Churchill Downs stated that it does not use the Exacta system in any of its HRMs in Kentucky and will work with legislators to maintain operations.

What does the Kentucky Supreme Court ruling mean for Churchill Downs?

The ruling does not directly affect Churchill Downs since it does not use the Exacta system; however, the company plans to collaborate with lawmakers to safeguard HRM operations.

How much does historical horse racing contribute to Kentucky's budget?

Historical horse racing contributes over $21 million to the Kentucky state budget.

What is the significance of historical horse racing according to Governor Beshear?

Governor Beshear highlighted that historical horse racing is vital for Kentucky's economy and supports jobs.