Investor Presentation
March 17, 2026
Business Overview and Case for Investing
Segment Overviews:
Live and Historical Racing
Wagering Services and Solutions
Gaming
Capital Management
Appendix
Business Overview and Case for Investing
Case for Investing
Case for Investing Iconic Asset - Kentucky Derby Industry-Leading, Diversified Businesses Highly Profitable Financial Profile with Disciplined Capital Management Clearly Defined Pathway for Growth Proven Management TeamCase for Investing
Iconic Asset - Kentucky DerbyOne of kind & irreplaceable asset
The longest continually held annual sporting event in the U.S.
Most prestigious event in racing surrounded by a week-long celebration of fashion, entertainment, and horse racing
Setting all-time record-breaking viewership and social media impressions
Focused on growing a premier international sporting & entertainment eventPremium entertainment experiences
Sponsorship & licensing
Broadcast rights
Wagering
Strategic capital investment
Provides high margin growth & significant free cash flowRealizing benefit of increased consumer focus on live sporting events and luxury entertainment experiences
Harvesting the value created by recent capital investments
Strategically investing for long-term value creation
Case for Investing
Industry-Leading, Diversified Businesses Beyond the Kentucky Derby, we have a diverse collection of entertainment assets that generate high margins with significant Adjusted EBITDA & Free Cash FlowHistorical Racing Machines ("HRMs")
Kentucky: Eight entertainment venues with ~5,355 HRMs
Virginia: Eight entertainment venues with ~4,835 HRMs
New Hampshire: Rockingham Grand Casino under construction with HRMs and table games (mid-2027) and Chasers Poker Room
Wagering Services & Solutions
One of the largest and most profitable U.S. online wagering platforms for horse racing
Expanding pari-mutuel content and technology services to B2C sports betting platforms
Exacta provides HRM technology in our Virginia and Kentucky venues and to third parties in the U.S. and globally
Regional Gaming
Ten wholly-owned gaming properties and underlying real estate in nine states
Two equity investments in best-in-class gaming properties1
~14,340 slot machines and video lottery terminals and ~360 table games
1. Miami Valley Gaming, 50% owned Ohio joint venture, and Rivers Casino Des Plaines, 61% owned Illinois joint venture.
Case for Investing
Live and Historical Racing
Gaming
Industry-Leading, Diversified BusinessesNew Hampshire
Kentucky
Virginia
Colonial Downs/ New Kent
Northern Virginia
Collinsville
Emporia
Hampton
Notes:
Richmond
Vinton
Henrico
Highly Profitable Financial Profile Consistent growth in Adjusted EBITDA & free cash flow
Case for Investing
Free Cash Flow1
$1,024
$ in millions
$764
$688
$700
$460 $528
Adjusted EBITDA
$1,159 $1,205
With High Free Cash Flow Conversion & Free Cash Flow Yield
2022 | 2023 | 2024 | 2025 |
60% | 52% | 59% | 58% |
7% | 8% | 11% | 11% |
Free Cash Flow Conversion: Yield2:
Free cash flow includes maintenance capital spend and excludes project capital spend.
Free cash flow yield is calculated using a closing stock price of $86.36 as of March 13, 2026.
Case for Investing
Disciplined Capital Management Investments focused on creating long-term shareholder valueOrganic investments to expand offerings in high growth areas with returns above cost of capital
Strategic acquisitions
Annual dividends with 15 years of consecutive increase in dividend per share
Opportunistic share repurchases dependent upon free cash flow generation, leverage levels, and other investment opportunities to grow the business
Maintain broad and expedient access to the capital marketsIdeal target is 3.0x-4.0x bank covenant net leverage - willing to go higher for a strategic investment
4.1x bank covenant net leverage as of December 31, 2025 - expect to be below 4.0x in 2026
Significant balance sheet flexibility
Demonstrated ability to access debt markets with attractive rates / terms
Case for Investing
Disciplined Capital Management Our capital investments have provided strong returns and long-term shareholder valueProperty1 | Initial Year of Investment | Cumulative Investment ($ millions)2 | Projected Unlevered IRR |
Derby City Gaming (HRM) | 2018 | $154 | > 65% |
Newport Racing & Gaming (HRM) | 2020 | $36 | > 30% |
Oak Grove (HRM) | 2020 | $196 | > 30% |
Turfway Park (HRM) | 2022 | $179 | Mid-teens |
Homestretch Club at CDRT | 2022 | $37 | > 30% |
First Turn at CDRT | 2023 | $87 | > 20% |
Paddock at CDRT | 2024 | $178 | > 20% |
Properties with greater than 2 years of actual performance included using an unlevered DCF analysis.
Investment represents capital spend and acquisition costs.
Case for Investing
Disciplined Capital Management2026 Planned Spend
Target Completion
Project Capital Investments
$ millions
The Kentucky Derby
CDRT - Finish Line Suites & The Mansion | April 2026 | $20-25 |
CDRT - Victory Run | April 2028 | $25-30 |
Historical Racing Machines
Southwestern Kentucky - Calvert City (Marshall Yards Racing & Gaming) | Completed | $15-20 |
New Hampshire -Rockingham Grand Casino | Mid-2027 | $70-80 |
All Other
All Other $50-65
2026 Capital Forecast: Project $180-220 million Maintenance $90-110 million
Case for Investing
Disciplined Capital Management Disciplined acquirer & seller of strategic assetsDisciplined Acquisitions | |||
$ in millions Asset | Initial Year of Investment | Purchase Price | Implied Multiple1 |
Rivers Casino Des Plaines | 2019 | $407 | < 5x |
P2E2 & Exacta | 2022 & 2023 | $3,000 | 7-8x |
Based on purchase price and 2025 Adjusted EBITDA.
Acquisition of Virginia HRMs and Iowa and New York casinos. Excludes the investment in and Adjusted EBITDA from Emporia, The Rose, Richmond expansion, and Henrico County.
Strategic Seller of Assets | |||
$ in millions Asset | Year of Sale | Sale Price | After-Tax Gain on Sale |
Big Fish Games | 2018 | $990 | $168 |
Calder Land Sales | 2016 & 2022 | $318 | $298 |
Arlington Property Sale | 2023 | $197 | $86 |
Case for Investing
Clearly Defined Pathway for GrowthThe Kentucky Derby
Delivery of luxury live sports & entertainment experiences supports long-term pricing expansion |
Incremental sponsorships |
Record-setting wagering from world class horse racing and expanding Derby Week race days |
Harvest benefits from recent capital investments & selective new capital investments |
Realize benefit of NBC contract renewal for broadcast rights and Kentucky Oaks on primetime |
Historical Racing Machines
Harvest benefits from recent capital investments |
Virginia - The Rose (4Q'24), Richmond Expansion (3Q'25) |
Western Kentucky - Owensboro Racing & Gaming (1Q'25) |
Virginia - Henrico - Roseshire (3Q'25) |
Southwestern Kentucky - Marshall Yards Racing & Gaming (1Q'26) |
Realize benefits of new capital investments |
Kentucky - Roulette electronic table games (1Q'26) |
Rockingham Grand Casino (mid-2027) |
Wagering Services & Solutions
Exacta - Ongoing expansion in Kentucky, Virginia, New Hampshire, Kansas & Alabama |
TwinSpires - B2B partnership growth |
Regional Gaming
Harvest benefits from recent capital investments |
Indiana - Terre Haute (2Q'24) |
Slot Capital - < 2-year payback |
Targeted marketing to attract new players and grow existing players |
Live and Historical Racing Segment
Live and Historical Racing Segment
Live and Historical Racing OverviewKey Metrics | |
$ in millions Revenue VPY / VPQ | 2025 |
$1,442 +14% | |
Adjusted EBITDA $637 VPY / VPQ +11% | |
CDI's flagship asset and global brand platform
The longest continuously held major sporting event in the United States, first run in 1875
High margin asset with continued growth
Historical Racing Machines & Entertainment VenuesHistorical racing machines ("HRMs") are electronic gaming devices that allow players to wager on previously run horse races
HRMs support live racing in Kentucky and Virginia
CDI has led the industry in the development of HRM technology and HRM entertainment venues
CDI's HRM entertainment venues in Kentucky and Virginia typically include HRMs, food and beverage offerings, retail sports betting, simulcast, and entertainment options such as live music
Live RacingPurses at our racetracks directly benefit from HRMs due to the tax structure
Provides racing content for TwinSpires online wagering
The Kentucky Derby
The Kentucky Derby Overview The Kentucky Derby utilizes the magic and mystique of Churchill Downs to create unique experiences for our guestsThe Kentucky Derby
The Celebration Leading Up to the Kentucky Derby
The Kentucky Derby
The 151st Kentucky Derby - By The Numbers Significant media interest creates long-term support for iconic entertainment event21.8 million peak viewership1 (8% growth YoY), largest ever NBC peak audience for the Kentucky Derby
17.7 million average viewership1 (6% growth YoY), highest NBC average viewership since 1989
NBC's most watched Saturday program since the NFL Divisional Playoffs in January 2024
Over 285 million social media impressions across Facebook, X (Twitter), Instagram,TikTok,YouTube, LinkedIn, and Pinterest (67% growth YoY)
~374,000 attendees during Derby Week, equivalent of ~5 Super Bowls
Race For The Crown debuted as a Top 10 Netflix series
Record-breaking Derby Week all sources wageringKentucky Derby Week of ~$474 million (6% growth YoY)
Kentucky Derby Day Program of ~$349 million (9% growth YoY)
Kentucky Derby Race of ~$234 million (11% growth YoY)
Comparable Viewership | 2025 Date | Network | Avg. Viewers2 |
151st Kentucky Derby | May 3rd | NBC | 17.7 |
NBA Finals, Game 7 | June 22nd | ABC | 16.4 |
Masters Final Round | Apr 13th | CBS | 12.7 |
Indy 500 | May 25th | Fox | 7.1 |
Daytona 500 | Feb 16th | Fox | 6.8 |
F1 Miami Grand Prix | May 4th | ABC | 2.2 |
Average & Peak Viewership of
The Kentucky Derby
in millions
+39%
Peak Viewership
+22%
Average Viewership
25
20
15
1. Includes viewership on NBC and Peacock streaming
10
2021 2022 2023 2024 2025
The Kentucky Derby
Kentucky Derby Growth Catalysts| Attention: This is an excerpt of the original content. To continue reading it, access the original document here. |