Churchill Downs approves $750M share repurchase after record $696M quarter
Board authorises $750M buyback, raises dividend and plans 150 HRMs in Virginia
Key Takeaways
- Churchill Downs Incorporated authorised a $750 million share repurchase that replaces the prior programme.
- The company reported record Q3 revenue of $696 million and net income attributable to CDI of $80 million.
- CDI raised the annual dividend to $0.469 per share, payable 5 January 2027 to holders of record 4 December 2026.
- A proposed Virginia venue would replace Rosie’s Game Room in Collinsville and increase HRMs from 37 to 150.
Churchill Downs Incorporated (CDI) authorised a share repurchase programme for $750 million and raised its annual dividend after reporting record third-quarter revenue of $696 million. The authorisation, approved in the period disclosed on October 30, 2026, includes $306 million that remained available from the prior programme and replaces that prior programme rather than adding to it. CDI repurchased $48 million of stock during the third quarter.
Repurchase and dividend
The $750 million repurchase authorised replaces the prior programme and is not additive to its outstanding balance; of that total, $306 million were carryover funds from the previous plan. The company also increased its annual dividend to $0.469 per share, a 7% increase. The dividend will be paid on 5 January 2027 to shareholders of record on 4 December 2026.
Virginia project to replace Collinsville
Churchill Downs Incorporated secured a special-use permit from the Henry County Board of Zoning Appeals for a new entertainment venue featuring historical racing machines (historical racing machines, HRM). The proposed site sits north of the U.S. 58 Bypass and east of Old Greensboro Road, near Martinsville Speedway.
Plans call for 150 HRM, simulcast racing and food-and-beverage options, and to replace the Rosie’s Game Room in Collinsville, which currently operates 37 machines. CDI is still finalising design and development plans. The project aligns with the three areas CEO Bill Carstanjen identified as central to future growth: the Churchill Downs racetrack and the Kentucky Derby, historical racing operations and TwinSpires.
"Each combines strong cash generation, durable competitive advantages, and attractive opportunities for profitable growth," said Bill Carstanjen to investors.
Expansion of the racing series and tote agreement
Churchill Downs Incorporated and the New York Racing Association will expand the Thoroughbred Championship Series ahead of its inaugural season in 2027. Initially announced as a six-race competition for 3-year-olds, the series was expanded to include separate Derby and Oaks divisions. Together they will offer 10 races and more than $22 million in purses and prize money. Each race will be televised nationally on NBC or FOX.
CDI completed the acquisition of 49% of United Tote Company from NYRA and extended the tote services agreement with NYRA through 2035.
Financial results and liquidity
Third-quarter revenue rose by $13 million, or 2%, to $696 million. Adjusted EBITDA reached $264 million, up $2 million, or 1%. Net income attributable to CDI increased to $80 million from $38 million a year earlier. The company also signed a new Term Loan B for $500 million due in 2033 and amended and extended its revolver and Term Loan A on terms it described as favourable.
For information on casino operations and historical machines, see casino. For details on racing coverage, see sports.
Frequently Asked Questions
What does the new Churchill Downs share repurchase authorisation cover?
The authorisation covers $750 million and replaces the previous programme rather than adding to its outstanding balance; it includes $306 million that remained available from the prior plan.
When will the approved dividend be paid and what is the per-share amount?
The approved annual dividend is $0.469 per share and will be paid on 5 January 2027 to shareholders of record on 4 December 2026.
What changes does CDI plan for historical racing machines in Virginia?
CDI obtained a special-use permit from the Henry County Board of Zoning Appeals for a proposed site near Martinsville Speedway featuring 150 HRMs, replacing the Rosie’s Game Room in Collinsville, which operates 37 machines.
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Gonzalo Marín
Industry Deals Correspondent
Gonzalo Marín covers the corporate deal flow of gambling — operator strategy, M&A, regulated-market entries, and product launches. The reports open with the transaction, cite companies, valuations, and jurisdictions exactly as released, and keep the announcement apart from its actual effect. When a Latin American operator raises capital or a European brand lands in the region, Gonzalo Marín reports who signs, for how much, and on what terms.
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