Churchill Downs Incorporated (CHDN) Stock Analysis

Churchill Downs Incorporated’s primary competitive advantage is its ownership of the Kentucky Derby, the most recognized and lucrative event in U.S. horse racing. The Derby’s brand power drives high-margin revenue from ticketing, sponsorships, and wagering, with Derby Week consistently setting all-time handle records¹². This event anchors customer loyalty and provides a marketing platform unmatched by rivals such as Penn National Gaming or The Stronach Group.

CHDN’s diversified business model further strengthens its position. The company operates a portfolio of racetracks, regional casinos, and historical racing machine (HRM) venues, generating revenue from both traditional and alternative gaming. In 2024, HRM and gaming segments contributed over $1.9 billion in revenue, outpacing most competitors in the hybrid “racino” space³. The TwinSpires online wagering platform is among the most profitable in the industry, benefiting from exclusive Derby content and integration with live racing⁴.

Operationally, CHDN maintains industry-leading margins—2024 operating margin was 26%, compared to low double digits for most peers. The company’s disciplined capital allocation, including targeted reinvestment and share repurchases, supports sustained growth and shareholder returns.⁵

While regulatory risk and event concentration remain challenges, CHDN’s strong brand, diversified assets, and consistent execution provide a durable edge over both traditional racetrack operators and broader gaming conglomerates such as Caesars and MGM.⁶⁷