Sure, Sean. We actually designed our facilities thinking that this may happen in Kentucky at some point. One of our thesis in investing to acquire P2E was that these properties were still on the early stages of their development and haven't reached maturity and in general, we see that. In 2023 campaigns, individuals tied to Churchill Downs have given large sums of money to incumbent Democratic Gov. Is it kind of fair to assume that share repurchases will be kind of close to none until we get through most of these growth projects. Get free summaries of new Ninth Circuit US Court of Appeals opinions delivered to your inbox! Web8 In House Counsel jobs available in Carwood, IN on Indeed.com. And generally, they've been quite strong, and we're quite optimistic looking forward. You can see it's a very competitive project -- product. endobj We're just going to execute as we have been executing. We read everything everybody else does as well. I would now like to introduce your host for today's conference, Mr. Phil Forbis, Vice President, Financial Planning and Analysis. Churchill Downs Ozair Shariff Current Workplace Ozair Shariff has been working as a Corporate Counsel at Churchill Downs for 2 years. There are no definitive dates yet for construction because the project hasn't officially gone out for bidding. And I guess, just going back to the hypothetical, if revenues and demand remain strong, are these margins that are sustainable at least for the year? All forward-looking statements should be considered in conjunction with the cautionary statements in our earnings release and the risk factors included in our filings with the SEC, specifically the most recent reports on Form 10-Q and Form 10-K. Any forward-looking statements that we make are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events. Ms. Beeding holds gaming licenses in several jurisdictions and is a member of the Mississippi Bar. Marcia Ann Dall; Executive VP & CFO; Churchill Downs Incorporated, William C. Carstanjen; CEO & Director; Churchill Downs Incorporated, Barry Jonathan Jonas; Gaming Analyst ; Truist Securities, Inc., Research Division, Chad C. Beynon; Head of US Consumer, SVP and Senior Analyst; Macquarie Research, Daniel Brian Politzer; Senior Equity Analyst; Wells Fargo Securities, LLC, Research Division, David Brian Katz; MD and Senior Equity Analyst of Gaming, Lodging & Leisure; Jefferies LLC, Research Division, Jordan Maxwell Bender; Director & Equity Research Analyst; JMP Securities LLC, Research Division, Shaun Clisby Kelley; MD in Americas Equity Research & Research Analyst; BofA Securities, Research Division. I think if you see the margins we drive from these facilities and the locations of some of them with the competition of other types of gaming on -- in our surrounding borders. We believe the B2B expansion related to our horseracing technology and related services will provide a further enhancement to our adjusted EBITDA and margins in the coming quarters. We will share more on these plans on our next earnings call and are very optimistic we are on a better path now. Those are a series of steps that we're processing through. The remainder of the proceeds will be used for capital projects or for the Exacta transaction.And lastly, on Tuesday this week, our Board approved a 2-for-1 stock split and a corresponding proportionate increase to the authorized shares of the company. In deciding whether or not the requested injunctive relief is appropriate, the Court must consider four factors: "(1) whether the movant has a strong likelihood of success on the merits, (2) whether the movant would suffer irreparable injury absent a stay, (3) whether granting the stay would cause substantial harm to others, and (4) whether the public interest would be served by granting the [motion]." Our 6 HRM properties are performing as we expected, and in some cases, are exceeding our expectations. So far, we've been really, really pleased with the P2E assets. WebPresident, Corporate & General Counsel Omar Amin is the President, Corporate, Chief Development Officer, and General Counsel at Palmetto responsible for the Companys Let's start with our historical racing machines or HRM initiatives. But I would also say that already we've achieved a quality product, but our goal is always to be as good as any of our competition has, and we always are going to have that extra step that we're HRM. We used a portion of the proceeds from this bond offering to repay our term loan B that would have matured in December 2024. After she finishes, we will take your questions. Churchill Downs entered two definitive contracts for those properties - the first on February 14, and the second on March 7. We are nowhere near the end of the journey. Pace-O-Matic has previously attempted to get Cameron in on a lawsuit in Rowan County by naming his office as a defendant, but Cameron won an appellate court ruling allowing his office to be excused, according to WDRB. There already is competition that's come online in Virginia. 2004). However, commission staff asked Churchill Downs to offer an update due to the importance of the change. Of course, this letter was prior to the Consent Decree and therefore its probative value is limited. First, I want to touch on the Kentucky, the gray market. Our overarching objective is to pursue what we have demonstrated we are good at, growing the Kentucky Derby, developing greenfield and organic opportunities as well as executing strategic acquisitions that fit our profile. Or is it really just the same? So we do see initial signs that FanDuel is investing and pushing horse racing and that others will as well. Our capital projects to grow the scale and profitability of the Kentucky Derby will be supported by our continued ramp-up of sales efforts across the country as well as a more focused and strategic sales process in numerous foreign markets. Andy Beshear the Democrats presumed 2023 nominee and Craft. Bill? We also were very encouraged to see early benefits of our decision to -- for the launch in the first quarter of our services to deliver racing content to FanDuel, DraftKings. So we have to look at the results as they come in. So if one particular property feels pressure versus another because of competition, essentially, that's an opportunity to move product around the state. 3:02CV-176-H (W.D. Summary. Terre Haute city and Vigo County leaders joined officials from Churchill Downs on Tuesday morning. William Bill C. Carstanjen was named the Companys 12th Chief Executive Officer in August 2014 after serving as CDIs President and Chief Operating lW{bToH9V'>YP8|J bnV`w=(*+_V]uu* Ru-Ts],HK(nI\wnMVoN\pFGQnv*%+#1crb_El+AXr+}:;l. Contact: Darren Rogers Senior Director, Communications & Media Services Churchill Downs Racetrack (502) 636-4461 (office) (502) 345-1030 (mobile) endobj A distinguished attorney and leader with extensive experience in companies with global operations, he will be responsible for JLL's legal and compliance functions. Our most recent gaming floor expansion there is now complete, and the new hotel is on track to open by the end of the second quarter. We are excited about these projects, and we'll share more details on our next earnings call.We will also discuss in more detail on the next call, our plans with respect to our 50-50 partnership with Urban One to pursue a full Class III casino in the city of Richmond, Virginia. Before we get started, I would like to remind you that some of the statements that we make today may include forward-looking statements. However, commission staff asked Churchill Downs to offer an update due to the importance of the change. Make your practice more effective and efficient with Casetexts legal research suite. So for everyone else on the call, during the first quarter, the Kentucky legislature passed new legislation that was signed by the governor banning the category of gaming machines that sort of euphemistically we refer to as gray games. If we did see these things developing in our operations, then we move to plans where we tighten up the cost structure and tighten up the operations in order to best maintain our margins. That bill took a rocky path towards final passage, particularly in the House where a surprise motion to table held it up. This represents a 48% margin collectively for these properties. There are lots of pieces of content and some manufacturers that we haven't reached yet, that we haven't developed and it will be a constant state of catch-up because the businesses -- the manufacturing businesses really are run and oriented towards the Class III machines. As a consequence, the parties entered into a Consent Decree which this Court signed on January 6, 2003. And our next question comes from the line of Jordan Bender with JMP. These were popping up in bars and taverns and restaurants and convenience stores across the state. Yes, there are challenges on labor. Moving to Virginia. <> And Marcia, it looks like share repurchases were somewhat minimal or none in the quarter. I wanted to go back to an issue and I apologize if this sort of came out in the remarks. You can explore additional available newsletters here. Magazine; News; Contact; ABOUT. Therefore, the terms of Sections I-C and I-D are in almost direct contradiction with one another. And as a company that's driven first and foremost by margins, I think you see the evidence of that and see why we're excited about it. In order to make the project a reality, Churchill Downs is in the process of completing several steps. Pace-O-Matic continues to be in the unfair position of defending its legal business against entities like Churchill Downs Inc., and others, that have enormous political capital in the state. Churchill Downs claims that Defendants are violating a Consent Decree that the parties entered into on January 6, 2003. We expect to see our B2B business accelerate in the second quarter with the Kentucky Derby. Kater v. Churchill Downs Inc., No. Web55 Counsel jobs available in Carwood, IN on Indeed.com. And every quarter is better than the last -- and I thought we showed great, great improvement between our opening last year and the first quarter of this year. TERRE HAUTE, Ind. Churchill Downs initiated this litigation in March 2002. Second, the proof of noncompliance is not clear and convincing, given the ambiguity of the Consent Decree. Happy to do that. So it's part of the chess game of how to maximize the utilization of these machines so that we maximize our margins in the state. There's nothing to report or dig deeper into at this time. Hopefully achieve all the required approvals, hopefully, you then conduct a referendum and win the referendum and then the process to construct would start. We haven't achieved that yet. All of the covered stadium seats are sold and more than 3/4 of the indoor reserve seats are also sold with the remainder selling quickly each day. Thanks for that update. Considering that Defendants could have faced significant damages if they were found liable in the underlying action, it is not entirely inconceivable that Defendants would give up their rights under trademark law. It could mean that Defendant may not use Churchill Downs' Marks and Designs in any way except as permitted by law; that is, that fair use under trademark law would be allowed. Despite a slight decline in adjusted EBITDA, we are pleased with the strong margins that this business delivered in first quarter. Kentucky, at Louisville. I think we were very, very pleased with the path we're on towards improvement. Apply to Senior Counsel, Counsel, Associate Attorney and more! And really, if you'll show some patients, I think we'll be able to provide you a better, more complete answer in the second quarter after there's a chance for the Triple Crown events around which some of these folks can actually do comprehensive marketing because they have events to push people towards. She will also work closely with The Cordish Companies corporate development team on new projects. That's just a function of how Kentucky law works. So I don't really have anything material to say or any material concerns about the interplay between people that go to Newport versus Turfway. Can you talk about maybe some of the puts and takes in that Northern Kentucky market? We also had nice growth in our Northern Kentucky market as Turfway Park and Newport Gaming continued to improve and expand their market presence during the first quarter. (Operator Instructions) And our first question comes from the line of Barry Jonas with Truist. But we're not where we're going to be over the long term yet. Alternatively, it could mean that Defendants cannot use the Marks in any way that would mislead consumers into believing that Churchill Downs is affiliated with Defendants' businesses and activities except as permitted by law. WebMichael G. Rowles was appointed as Executive Vice President and General Counsel of Live Nation in March 2006. So initial signs prior to those events, I found encouraging but not the sort of thing that we should use this call to drill deeply into. When we decide that we want to and you'll see us buy shares back opportunistically in the future as well. Web10 General Counsel jobs available in Carwood, IN on Indeed.com. Some markets are better than others, but across a portfolio that is as broad and as diverse as ours, I don't have any yellow or red flags to raise with you at this time. You can help! In addition, we are building a significantly larger HRM facility in Dumfries, which is located in Northern Virginia, approximately 30 miles south of Washington, D.C., also directly off of Interstate 95. . Luttrell v. Cooper Industries, Inc., 60 F.Supp.2d 629, 631 (E.D. I think your proposal has been around much longer, but just kind of a couple of the pros, cons there because I believe that the scope and scale there is pretty material. Executives at Kentuckys biggest so-called gray machine company gave $100,000 in donations to a political action committee supporting Attorney General Daniel Camerons campaign for governor in mid-March. The company's 2023 first quarter business results were released yesterday afternoon. Based on our planned acquisition of Exacta and our capital investments, we expect our bank covenant net leverage to remain in the 4x range over the coming year. But I've been around doing this for a long time. And Churchill Downs and Mr. Carstanjen knew full well that imposing its suspension, based on zero factual or legal support, would give illegitimate credibility to a Fruition of the project is still something that's not measured in 2023 time frame or probably even 2024. The 150th run for the roses will be a remarkable milestone for the longest continually run sporting event in the United States. WebChurchill Downs, Inc. is associated with terms like public, gambling & casinos, e-commerce, b2c, entertainment & recreation by their customers and industry analysts. Camerons gubernatorial campaign manager Gus Herbert indicated the same. We did generate lower adjusted EBITDA from our online TwinSpires horseracing business as a result of higher content-related expenses and slightly higher ADW taxes in certain jurisdictions. So we're very excited to see the first real milestone of that, though, around the Kentucky Derby. Churchill Downs looks ahead with plans for casino on the east side, Officials break ground on new Terre Haute casino, Crews bring in the cranes as Terre Haute casino work continues, Churchill Downs site plan for the east side of Terre Haute, Zoning board approves variance for casino, hotel, "Our town is not fine" One Local Man Gives Back to Hometown Destroyed By Storms, Rubber duck season has started in the Wabash Valley - here's how you can adopt one and help a good cause, Officials identify the man who died in Labor Day drowning in Sullivan County, Murder charges filed against mother, brother of dumped boy, Library connecting community through the 'Big Read', Indiana zoos 3 surviving penguins improve after deaths of 6 others, Create a new subdivision plat that combines the two properties into one new parcel, Rezone the property from its current agricultural use to a commercial use, Obtain a variance to exceed 125 in height which is required on any site in Terre Haute, Receive approval from the FAA given the proximity to the airport, March 17 Terre Haute Board of Zoning Appeals Height Variance Approval Meeting, April 6 Vigo County Area Plan approves Subdivision Plat, Target closing on the property in April or May after all land-use approvals have been obtained, including the FAA permit. The company has proposed moving its site from near Haute City Center to Margaret Avenue near Interstate 70. We have announced a number of new guest experiences and ticket offerings that will be available for this very special Kentucky Derby. There's been more concern, I think, across the market on the health of the consumer. We will look to go live in our retail locations once regulators have promulgated all of the required regulations and operational standards. View All Contacts Details Industries Casino Casual Games Gaming Internet Racing Social Media Headquarters Regions Southern US Founded Date May 1, 1875 fj+{e_pKD9}Mj?JUK?UA!zZF}fG?0b0;z{v%#-V zZ-sLGxNI j[Q6VdU?mktC".H ]ZWDwA Never a guarantee that you get to the finish line, but so far, everything is going well, and we'll proceed down this path over the second and third quarter. Prior to joining Cordish Gaming Group, Ms. Beeding served as Vice President, Senior Counsel and Corporate Compliance Officer at Churchill Downs Incorporated in Louisville, KY, where she was responsible for overseeing and managing compliance across the company's casinos, racinos, racetracks and interactive verticals, including the company's online ADW, interactive sports books and interactive casinos. Code 9.46.0285s definition of a thing of value. The panel concluded that Big Fish Casino fell within Washingtons definition of an illegal gambling game. That was a week before they filed a joint lawsuit against the state on March 28 challenging a bill passed to ban the machines in Kentucky. We are disciplined in our decisions regarding our long-term capital investments and sometimes that means taking additional time to determine the final location that will best meet our long-term return expectations and that is optimal for the communities in which we choose to invest significant time and capital to build long-term relationships. The panel held that Big Fish Casino constituted illegal gambling under Washington law because its virtual chips were a "thing of value." Can you maybe talk about the size of what the grade market was in Kentucky, maybe the properties that you could see the most uplift or that had -- you've seen the most drag there from this? And we're up for it, though. 502-636-4400. We will issue a press release after the Derby with all of the details. So we're also, of course, really excited about the growth projects that hadn't been executed on, and that's a big part of what a portion of our team spends our time on. But right now, we've deployed 2,700, but we will get to 5,000 relatively quickly as we expand our footprint. Each of our racetracks and HRM facilities in Kentucky already have a sports bar that will be enhanced with sports betting kiosks so that our customers can easily and conveniently play their retail sports bets. I think in the first quarter, we were pleased with the consumer trends that we saw across our properties. They were unauthorized. Our team is also working hard to prepare for the opening of Derby City Gaming Downtown, our HRM entertainment venue in downtown Louisville set to open in the fourth quarter of 2023. However, Pace-O-Matic has pointed out that the horse industry which operates its own slot-like machines and calls them Historical Horse Racing holds significant sway in the legislature and argued that their efforts to shut gray machines out . WebChurchill Downs Incorporated 3.6 Senior Counsel, M&A & Corporate Development Louisville, KY $102K - $170K (Glassdoor est.) '-3:(LQTiQR ]Si&LV[Y`g?=VtR\G(^T2t+@%99 Should we expect to see or possibly see something a little bit more material in terms of contribution coming through with the Derby? Ms. Beeding joins Howard Weinstein, who has served as General Counsel for the company since 2012. If we do see in the future, if we do see economic headwinds -- external economic headwinds in the economy, we'll adjust our marketing and our expense structure to deal with it appropriately because we're always going to be focused on our margins. Apply to Senior Counsel, Associate General Counsel, Senior Corporate Counsel and more! And then separately, just on the HRM content side of things. And we think given the -- while not precisely counted clearly a huge number of these machines all around us that it's likely to have a positive impact when they go away on legal authorized gaming. Ultimately, our real challenge in the State of Virginia is the number of machines we have and we have 10 places we can move those machines around based on the competitive environment. Apply to Senior Counsel, Senior Corporate Counsel, Legal Assistant and more! wQ+4Fejh{col!DkD- G@m>];i3YxZ^. Churchill Downs, Inc. also goes by or is associated with the names Churchill Downs Inc., Churchill Downs. We will save any material investment in the HRM portion of Ellis Park until we complete and then evaluate its HRM extension in Owensboro to ensure these properties complement each other and are as efficient as possible from a customer offering and operational perspective. A city referendum is required for authorization to move forward with the project. They were unregulated. That's a really good series of questions. WebCole Carter was named Executive Vice President and General Counsel in July 2018. And so based on all things considered based on our leverage, we have tremendous capacity, as you just saw with our credit facility to be in the market to buy shares back. And we look at Turfway and Newport as one combined product offering. During the 2022 election cycle, Churchill Downs CEO Bill Carstanjen gave $2,000 or $1,000 to more than 100 state legislative candidates on both sides of the political aisle. Churchill Downs is part of the Gambling & Gaming industry, and located in Kentucky, United States. Churchill Downs is part of the Gambling & Gaming industry, and located in Kentucky, United States. We are working through the required city of Richmond approvals to conduct a referendum this fall to obtain the authorization necessary to proceed with the construction of this project, which would include a casino, hotel and event center. The grant or denial of a temporary restraining order and preliminary injunction is discretionary with the Court. v. Blackwell, 388 F.3d 547, 553 (6th Cir. Churchill Downs is projecting a 14-month construction window. What are you guys seeing across your businesses? And our next question comes from the line of Shaun Kelley with Bank of America. It doesn't get implemented until the late summer. There was a problem saving your notification. We are extremely excited about this project. Churchill Downs Incorporated Promotes Brad Blackwell to Senior Vice President and General Counsel. In Western Kentucky, we have shifted our plans for our Owensboro HRM extension and are evaluating new locations that will better meet our long-term growth profile and better enable us to create a premier entertainment destination for all of the residents of the region. 4 0 obj ui. f Za:Kx U/z-{H%fkfUEHp2|.[I(h8m 2, 2007). Both Draws to be Held in Aristides Lounge, Streamed Live on With respect to online wagering, we have entered into contracts to provide certain online wagering platforms, including FanDuel, access to the Kentucky market in connection with which we received a revenue stream. Churchill Downs Chad Riney Current Workplace Chad Riney has been working as a Senior Counsel at Churchill Downs for 4 years. In this specific instance, the Attorney Generals office has already been defending the legislation passed by the General Assembly. Mr. Blackwell served as Vice President of Operations at Churchill Downs Incorporated from March 2015 to March 01, 2017. Good day, ladies and gentlemen, and welcome to the Churchill Downs Inc. 2023 First Quarter Earnings Conference Call.

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