Churchill Downs Reports Record Q2 2026, Reacquires Full United Tote Ownership

All-time quarterly records across the board

Churchill Downs Inc. (Nasdaq: CHDN) reported net revenue of $980 million for the quarter ending June 30, 2026, an increase of $46 million (5 per cent) year over year and an all-time record for a single quarter in company history.

Net income attributable to CDI grew 11 per cent to $241 million. Adjusted EBITDA set a separate all-time record at $477 million, up $26 million (6 per cent) versus the same quarter in 2025.

The quarter\'s outperformance was anchored by Derby Week, with the 152nd Kentucky Derby producing what CDI described as an all-time record Derby Week contribution to adjusted EBITDA.

Derby broadcast draws 24.4 million peak viewers

NBC\'s broadcast of the 152nd Kentucky Derby, run May 2, 2026, drew a peak audience of 24.4 million viewers, up 12 per cent year over year. Average viewership hit a high of 19.6 million, up 11 per cent. Golden Tempo\'s 23-1 upset victory under trainer Cherie DeVaux (the first female trainer to win the Kentucky Derby) drove viewership across the broadcast window.

The broadcast performance reflects a broader pattern: mainstream horse racing attention is concentrating around the three or four biggest race days on the North American calendar. The 152nd Derby was the highest-rated Kentucky Derby broadcast in several years and produced meaningful direct financial impact for CDI through on-track hospitality, pari-mutuel handle, and streaming revenue.

United Tote reacquisition: rebuilding vertical integration

Alongside the earnings release, CDI announced a definitive agreement to acquire the remaining 49 per cent of United Tote Company from the New York Racing Association (NYRA), returning the company to 100 per cent CDI ownership.

CDI sold that 49 per cent stake to NYRA in 2024 as part of a partnership agreement under which NYRA agreed to use United Tote for pari-mutuel wagering systems across NYRA tracks and gaming operations. The 2026 buyback restores full ownership without disrupting the underlying operating agreement.

United Tote is a totalisator company, meaning it supplies the wagering computer systems that calculate pari-mutuel odds and pool payouts in real time at racetracks and through Advance Deposit Wagering (ADW) apps. When you bet the Kentucky Derby through TwinSpires (CDI\'s own ADW platform), the pool math and settlement runs through totalisator infrastructure.

CDI described the reacquisition as supporting its "long-term strategy to own and vertically integrate key technologies and services related to pari-mutuel wagering and horse racing, while strengthening the company\'s position as a leading B2B distributor of horse racing content and provider of racing services."

What it means for Kentucky bettors

CDI\'s vertical integration play matters to Kentucky bettors in three practical ways:

1. TwinSpires stability. CDI\'s ADW platform, TwinSpires, is the primary way most Kentucky racing bettors wager on Churchill Downs cards. Full ownership of United Tote reduces third-party vendor risk in the settlement chain, which historically has been the source of both intermittent tote outages and pricing delays on major race days.
2. B2B content distribution. CDI is increasingly the B2B backbone under other operators\' horse racing feeds. FanDuel Racing, DraftKings Horse Racing, and multiple other ADW apps depend on CDI-sourced racing content, video, and pool integration. Deeper CDI infrastructure typically translates to better in-app race replay and streaming for Kentucky users of those apps.
3. Continued Derby Week reinvestment. Record Derby Week revenue funds continued reinvestment in Churchill Downs Racetrack facilities, on-track hospitality, and the broader Derby Week experience for the roughly 150,000 patrons attending Oaks and Derby in person each year. See our Kentucky Derby betting guide for the full Derby Week context.

Looking ahead

The Q3 report (covering July, August, September 2026) will be released in late October and will capture the summer meet at Ellis Park and the run-up to the Breeders\' Cup World Championships at Keeneland on October 30-31. Keeneland is not a CDI-owned track (it is operated by the Keeneland Association independently), so the immediate 2026 Breeders\' Cup revenue impact for CDI will be indirect via TwinSpires ADW handle and B2B content distribution rather than direct hosting economics. See our 2026 Breeders\' Cup guide for full coverage of the Keeneland championship weekend.

CDI\'s core Kentucky footprint (Churchill Downs Racetrack, Turfway Park, Ellis Park) continues to expand its sports betting retail partnerships alongside the pari-mutuel core business. Turfway Park is Fanatics Sportsbook\'s Kentucky retail partner; Ellis Park hosts Caesars Sportsbook retail operations.