Large-scale digital growth has helped Churchill Downs, the company that will owns the Kentucky Derby, has helped feed a massive expansion inside the last several years, Churchill’s top executive told CNBC in an interview.
“Day-to-day racing, that will’s not the greatest business inside the globe,” CEO William Carstanjen told CNBC on “Power Lunch” This specific week. Boosted by digital, Churchill’s has seen explosive growth of more than 0 percent, he said.
“although This specific was our entry into casino gaming through our licenses for race tracks. as well as also, This specific lead us into entering the online space, which is actually also a wonderful growth engine for our company,” Carstanjen added.
In fact, the publicly-traded company, which began with just one racetrack in central Kentucky more than a century ago, today has several racetracks, six casinos as well as gaming companies.
Meanwhile, share prices have surged by 63 percent inside the last year, compared using a 10 percent increase inside the S&P 500 during the same period. The company currently incorporates a market cap of about $3.7 billion. In March, Churchill Downs purchased two casinos, one in Pennsylvania as well as one in Mississippi, for nearly $230 million.
as well as, as the U.S. Supreme Court continues to deliberate on sport wagering, as well as whether the practice should be legal nationally, Carstanjen said This specific will only continue to boost revenue.
“The size of the market increases so much that will This specific makes up for pockets of cannibalization,” he said, calling legalizing sports betting “a great thing.”
Carstanjen added: “We like the businesses we’re in currently, although the growth of digital as well as the growth of completely new products inside the digital space is actually a huge opportunity for us potentially.”