Churchill Downs Reports Record Q3 2026 Net Revenue of $696 Million on Gaming Growth and United Tote Deal

Churchill Downs Incorporated has reported record third quarter net revenue of $696 million for 2026, up $13 million or 2% on the same period a year earlier. Net income attributable to the company was $80 million, and diluted earnings per share rose to $1.15 from $0.54.

The results, released on 28 October 2026 for the quarter ended 30 September 2026, were accompanied by a set of strategic moves across wagering infrastructure, regional gaming and capital returns. Adjusted EBITDA, which the company uses as its core performance measure, reached a record $264 million, up $2 million or 1% on the prior year quarter.

How Churchill Downs Reached Record Group Revenue

The record figures sit at the consolidated level. Reported net income rose $42 million year on year, but the company is clear that the prior-year quarter carried a one-time, non-cash impairment and an insurance recovery. Excluding those items, net income was up $10 million or 26%, which is the cleaner read on underlying performance.

That context matters because the quarter was not uniformly strong beneath the top line. The gains were concentrated rather than broad, and the segment detail shows where the momentum actually sat.

Gaming Segment Drives Churchill Downs’ Quarterly Growth

The Gaming segment was the clearest source of growth. Revenue rose to $272 million in external revenue (or $273 million total segment revenue) and Adjusted EBITDA increased $5 million to $128 million, helped by stronger performance at wholly-owned properties in New York, Pennsylvania and Maine and by equity investments in Rivers Des Plaines in Illinois and Miami Valley Gaming in Ohio.

The racing side was more mixed. Live and Historical Racing, the company’s largest segment, posted revenue of $315 million, but its Adjusted EBITDA eased to $111 million from $116 million, with gains at Kentucky historical racing machine venues offset by softer central Virginia results and a new tax expense. Wagering Services and Solutions held broadly flat, with revenue of $126 million and Adjusted EBITDA edging up to $48 million.

United Tote Deal Deepens CDI’s Grip on Wagering Infrastructure

One of the quarter’s clearest strategic signals came away from the income statement. On 3 August 2026, Churchill Downs completed the acquisition of a 49% stake in United Tote from a subsidiary of the New York Racing Association. As part of the same transaction, NYRA agreed to extend its tote services agreement with United Tote through 2035.

Tote systems sit at the centre of pari-mutuel betting, processing the pools that determine payouts. Taking a stake in that layer, rather than only competing for betting handle on top of it, points to a company investing in the mechanics of wagering itself.

NYRA Championship Series Ties Churchill Downs Closer to Racing’s Calendar

The company also announced a Thoroughbred Championship Series with NYRA, beginning with the Kentucky Oaks and Kentucky Derby in 2027. For an operator whose most recognisable asset is Churchill Downs Racetrack, the series strengthens its position across the premium end of the racing calendar and the betting activity that surrounds it.

Alongside this, the company received approval to relocate and expand its Rosie’s Collinsville historical racing venue to 150 machines in Henry County, Virginia, extending its regional gaming footprint in a competitive state.

Dividend, Buyback and Leverage: Churchill Downs’ Capital Picture

Churchill Downs declared a dividend of $0.469 per share, a 7% increase and the sixteenth consecutive year it has raised the payout, with a record date of 4 December 2026 and payment due on 5 January 2027. The board also approved a new $750 million share repurchase programme, which incorporates the $306 million that remained under the prior authorisation.

During the quarter the company repurchased 570,169 shares at a cost of $48 million and ended the period with net bank leverage of 3.8x. On financing, it entered a new $500 million Term Loan B due 2033 and amended and extended its Revolver and Term Loan A.

What Does a Record Quarter Signal for the Regulated Gaming Market?

The quarter shows an operator posting group records while its growth narrows at segment level, with gaming carrying the momentum and racing profit easing. The more durable signal is strategic: by taking a stake in United Tote, locking in a long NYRA tote agreement and anchoring a championship racing series, Churchill Downs is investing in the infrastructure and events that generate wagering rather than only the revenue that flows from them. For a regional US gaming market facing rising competition and shifting state tax structures, that points to a bet on owning the rails of pari-mutuel betting. The real test will be whether that ownership translates into durable segment margin as competition in states like Virginia intensifies.

Source: Churchill Downs Incorporated