Churchill Downs Inc.

Today, Churchill Downs Incorporated (CDI) is a diversified, nearly a half billion dollar market cap company, delivering racing, gaming and entertainment, onsite and online. But how did we get to this size and scope?

The beginning of CDI is rooted in the history of the Kentucky Derby, North America’s premier race for Thoroughbreds, and the grand tradition of Thoroughbred racing.

After visiting European racecourses in 1873, Col. M. Lewis Clark envisioned a world-class racetrack in Kentucky. He leased 80 acres of land from his uncles, John and Henry Churchill, and sold membership subscriptions to fund the construction of Churchill Downs. He opened the Louisville track in 1875 for its inaugural meet and the first running of the Kentucky Derby.

The popularity of the Kentucky Derby blossomed during the 20th century under the direction of Matt Winn, who purchased the struggling track with a group of local investors in 1902. Winn’s leadership sparked decades of growth for both the Kentucky Derby and Churchill Downs, which was organized as a Kentucky corporation in 1928 and officially became known as Churchill Downs Incorporated in 1942.

Following Winn’s death in 1949, the track continued to host the Kentucky Derby every Spring, but over the next few decades, the quality of the racing and the condition of the property at Churchill Downs slowly declined. It wasn’t until the mid-1980s that a renaissance began under the leadership of then President and CEO Thomas H. Meeker, who led CDI through a period of expansion and capital improvements that culminated in April 2005 with the completion of the track’s $121 million renovation of its grandstand and clubhouse areas.

Also under Meeker’s leadership, CDI expanded beyond its flagship operation in Louisville to own and operate racetracks and simulcast-wagering operations in Kentucky, Illinois, Florida and Louisiana, while also holding interests in various racing service companies. With its acquisition of Fair Grounds Race Course and its other Louisiana operations in October 2004, Churchill Downs added alternative gaming to its entertainment options.

Robert L. Evans joined CDI as its current president and CEO in August 2006. A business strategist, entrepreneur and Thoroughbred breeder by trade, Evans is exploring growth opportunities for CDI and the horse racing industry through technology initiatives and international distribution channels.

In early 2007, Evans announced the launch of TwinSpires.com, CDI’s first owned and operated advance deposit wagering (ADW) platform, in addition to a 50% ownership in HorseRacing TV (HRTV), a national television network featuring live horse racing from popular tracks around the country, and TrackNet Media Group LLC, a digital media rights management company created to buy and sell horse racing content.

CDI acquired three additional ADW platforms (Winticket.com, BrisBET.com and TsnBET.com) in June 2007 and, later in the year, consolidated all four businesses under the TwinSpires.com brand. As part of the June 2007 acquisition, CDI also acquired the industry-leading data and pedigree information provider, Bloodstock Research Information Services (BRIS) and continues to operate the data business under the BRIS brand.

CDI invested in a 33,000 square foot expansion and Fair Grounds Race Course & Slots was opened in November, 2008 with a facility capacity of over 700 slot machines, in conjunction with their simulcasting relocation and the opening of their new racing season.

Churchill Downs Entertainment Group was created in 2009, and is a wholly-owned subsidiary of CDI created to expand CDI entertainment management opportunities. Under the leadership of Steve Sexton as president of the division, CDE will be conceiving, developing, producing and managing large-scale entertainment events, utilizing CDI-owned and other properties.

Calder Casino and Studz Poker Club were completed and opened in January 2010 and, coupled with Fair Grounds Slots, put 1,863 slot machines and 807 video poker machines into operation for CDI, between Louisiana and Florida, complimenting its core racing business.

CDI completed its acquisition of U.S.-based and U.S.-licensed Youbet.com, the premier online horse racing and wagering site in June, 2010. Youbet.com is one of the longest-established Advance Deposit Wagering (ADW) services in the country. Utilizing and developing cutting edge technology offers customers an enjoyable online experience, ensuring customer’s trust and confidence as well.

Youbet.com’s website offers the ability to watch and, in most states, wager on the widest variety of horse racing content available worldwide. Through this platform, Youbet.com also offers commingled track pools, live audio/video, up-to-the-minute track information, real-time wagering information, phone wagering, race replays, simultaneous multi-race viewing and value-added handicapping products.

As part of the acquisition of Youbet.com, CDI also acquired Youbet’s United Tote subsidiary, a leading supplier of totalizator systems, equipment and technology that process wagers and payouts and is a provider of pari-mutuel tote services to racing operations such as leading racetracks Aqueduct, Belmont, Churchill Downs, Keeneland and Saratoga.

United Tote designs, manufactures and operates pari-mutuel wagering systems for more than 150 racing companies and numerous OTB facilities in North America and around the world. Each hardware and software component, while a leader in its own right, was developed for deployment as part of a comprehensive wagering system to increase player satisfaction, attract new customers and decrease the costs of operation.

Churchill Downs Incorporated is a publicly traded company and is listed on the NASDAQ Global Select Market under the symbol CHDN.
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