wagering

Churchill Downs will shift simulcast wagering operations to its Trackside Louisville facility at 4520 Poplar Level Road starting Wednesday for the month-long lead-up to Kentucky Derby 136. The necessary annual move is done to minimize inconvenience for customers as track officials prepare the landmark Louisville racetrack for hosting the typical Derby Day crowd of about 150,000.

Churchill Downs recently installed 60 new 47-inch flat screen televisions at Trackside Louisville. Other improvements, including a new roof above the popular hangout “Warner’s Corner,” were made as well.

Simulcast wagering will be offered five days a week (dark Mondays and Tuesdays) for an admission fee of $3 ($1 for Twin Spires Club members and seniors age 60 and up). Admission gates at Trackside Louisville will open at 11:30 a.m. (Note: Churchill Downs’ Gold Room 6 will remain open throughout the month of April for eligible Twin Spires Club Members.)

Simulcast wagering will return to Churchill Downs on Saturday, April 24 for the start of the 42-day Spring Meet. It will remain on-track through Thursday, April 29, before shifting back to Trackside Louisville for Kentucky Derby weekend (Friday, April 30 through Sunday, May 2). Trackside Louisville admission gates will open at 9 a.m. for the Kentucky Oaks and Kentucky Derby, and admission for those days will be $10. Gates will open at noon on Sunday, May 2 and admission will be free.

Simulcast wagering will return to Churchill Downs on Thursday, May 6, following dark days at the racetrack May 2-5.

The temporary relocation of Churchill Downs’ simulcast wagering operation comes just prior to opening day at Keeneland Race Course in Lexington, Ky., on Friday, April 2.

    Churchill Downs, the world’s most legendary racetrack, has conducted Thoroughbred racing and presented America’s greatest race, the Kentucky Derby, continuously since 1875. Located in Louisville, the flagship racetrack of Churchill Downs Incorporated (NASDAQ Global Select Market: CHDN) also operates Trackside at Churchill Downs, which offers year-round simulcast wagering at the historic track. Churchill Downs will host the 136th running of the Kentucky Derby Presented by Yum! Brands on Saturday, May 1 and the Kentucky Oaks on Friday, April 30. The track will conduct its 2010 Spring Meet from Saturday, April 24 through Sunday, July 4. Churchill Downs is scheduled to host the Breeders’ Cup World Championships for a record seventh time on Nov. 5 and 6, 2010. Churchill Downs tickets are available at http://tickets.churchilldowns.com or by calling (502) 636-4400. Additional information about Churchill Downs can be found on the Internet at www.churchilldowns.com.
    
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Churchill Downs will add a third Pick 4 to its Spring Meet wagering menu, effective Friday, May 29.

The multi-race wager, offered for the bargain minimum of 50 cents, requires bettors to select the winner of four consecutive races.

The new mid-card Pick 4 will encompass Races 4-7 each day and will join the early (Races 1-4) and late (final four races) Pick 4s on the daily betting menu.

The largest Kentucky Derby crowd of the 21st century gathered under the historic Twin Spires to watch undefeated Derby favorite Big Brown power through the stretch and dominate a full field of 20 horses in the Grade I Kentucky Derby Presented by Yum! Brands.
 
The attendance mark of 157,770 was the second largest in Kentucky Derby history and trails only the crowd of 163,628 that witnessed Cannonade win the centennial Derby in 1974.  It is the seventh time in 10 years that Kentucky Derby Day attendance has topped 150,000.

Total wagering from all sources on the Kentucky Derby race, which includes on-track and off-track wagers was $114,557,364, down 3.2 percent from the 2007 all-sources total of $118,317,714. On-track wagering for America’s greatest race totaled $12,118,527, an increase of 0.3 percent compared to the $12,076,490 wagered on the Kentucky Derby race in 2007. Off-track wagering on the Kentucky Derby race was 102,438,837, a decrease of 3.6 percent compared to the $106,241,224 wagered by fans through simulcast-wagering centers and advanced-deposit wagering (“ADW”) services around the country one year ago.
 
Total wagering from all sources on the 12-race Kentucky Derby Day card at Churchill Downs was $164,668,176, a decline of 2.0 percent from the $168,018,982 wagered on the 12-race Kentucky Derby 134 racing program.  On-track wagering on the Kentucky Derby Day card was $24,275,864, an increase of 0.9 percent from the $24,065,098 wagered by on-track fans one year ago.  Off-track wagering on the Kentucky Derby Day program was $140,392,312, a dip of 2.5 percent from the $143,953,884 wagered by fans around the country in 2007.

Churchill Downs President Steve Sexton said off-track wagering totals were affected by the fact that tens of thousands of ADW customers could only bet on the Kentucky Derby race and the Woodford Reserve Turf Classic because Kentucky horsemen would not permit ADW wagering via TwinSpires.com and Xpressbet.com on the full Kentucky Derby Day card. Additionally, fewer Florida pari-mutuel facilities could wager on the entire Derby Day card due to an ongoing dispute with Florida horsemen. “The strength of this year’s Kentucky Derby Day racing program was evident in our on-track results with increases in both on-track wagering and attendance,” Sexton noted.  “It is unfortunate that horsemen in Kentucky and Florida prevented so many fans from enjoying a full day of wagering on Churchill Downs’ races. Had more ADW and Florida customers been given an opportunity to participate, we could have seen a record day.

“Despite these challenges, the Churchill Downs team put on an exceptional day that included the successful launch of several new Derby innovations, including an outstanding Red Carpet program, our chief party officer promotion that was a hit with the fans and the media, and our new Derby Super Hi-5 wager that generated a $331,928 carryover pool. Race fans also generated a Pick 6 carryover pool of $410,598, so while Kentucky Derby weekend may be over for another year, fans returning to Churchill Downs for our next day of racing – Wednesday, May 7 – have another chance to enjoy a big dose of ‘winnertainment’.”

Kentucky Derby Day attendance increased at Churchill Downs’ Trackside Louisville off-track betting facility, where 9,547 race fans wagered on the Kentucky Derby Day card, an increase of 2.2 percent compared to the 9,339 patrons who spent Kentucky Derby 133 at Trackside Louisville.

Wagering on the Kentucky Derby race at Trackside totaled 1,249,941, a slight decline of 0.2 percent from the 2007 total of $1,252,230. A total of $1,905,396 was wagered on the Kentucky Derby Day racing program at Trackside Louisville, an increase of 1.6 percent from the 2007 total of $1,876,257.  

Trackside Louisville attendance and wagering figures are not included in on-track attendance and wagering figures for Churchill Downs racetrack.

Churchill Downs returned $134,418,750 to bettors on the Kentucky Derby Day race card, which amounts to 82 percent of total wagering.  In 2007, bettors took home a total of $137,752,898, or 82 percent of total wagering. The Commonwealth of Kentucky benefited from $906,817 in revenues generated through the state’s excise tax on pari-mutuel wagering.  In 2007, the Kentucky Derby Day race card contributed $898,566 to the state through the pari-mutuel excise tax. The approximate contribution to purses from wagering on the 2008 Kentucky Derby Day race card was $6,883,130, compared to $7,030,661 one year ago.

KENTUCKY DERBY 134 ATTENDANCE AND WAGERING

                                                                           2008                     2007                 Change

Attendance                                                    157,770                156,635             +0.7%    

On-Track Wagering (Derby Race)            $12,118,527       $12,076,490      +0.3%              

On-Track Wagering (Derby Day)               $24,275,864       $24,065,098      +0.9%                

Off-Track Wagering (Derby Race)            $102,438,837     $106,241,224    -3.6%          

Off-Track Wagering (Derby Day)               $140,392,312     $143,953,884    -2.5%          

Total (All Sources – Derby Race)              $114,557,364      $118,317,714    -3.2%          

Total (All Sources – Derby Day)                 $164,668,176      $168,018,982    -2.0%          
    
    Churchill Downs, the world’s most legendary racetrack, has conducted Thoroughbred racing and presented America’s greatest race, the Kentucky Derby, continuously since 1875. Located in Louisville, the flagship racetrack of Churchill Downs Incorporated (NASDAQ Global Select Market: CHDN) also operates Trackside at Churchill Downs, which offers year-round simulcast wagering at the historic track. Churchill Downs will conduct Kentucky Derby 135 on May 2, 2009. The track’s 2008 Spring Meet runs from April 26 through July 6. Churchill Downs has hosted the Breeders’ Cup World Championships a record six times. Information about Churchill Downs can be found on the Internet at www.churchilldowns.com.

Information set forth in this news release contains various “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  The Private Securities Litigation Reform Act of 1995 (the “Act”) provides certain “safe harbor” provisions for forward-looking statements.  All forward-looking statements made in this news release are made pursuant to the Act.  The reader is cautioned that such forward-looking statements are based on information available at the time and/or management’s good faith belief with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements.  Forward-looking statements speak only as of the date the statement was made. We assume no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information.  Forward-looking statements are typically identified by the use of terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “predict,” “project,” “should,” “will,” and similar words, although some forward-looking statements are expressed differently.  Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.  Important factors that could cause actual results to differ materially from expectations include: the effect of global economic conditions; the effect (including possible increases in the cost of doing business) resulting from future war and terrorist activities or political uncertainties; the economic environment; the impact of increasing insurance costs; the impact of interest rate fluctuations; the effect of any change in our accounting policies or practices; the financial performance of our racing operations; the impact of gaming competition (including lotteries and riverboat, cruise ship and land-based casinos) and other sports and entertainment options in those markets in which we operate; the impact of live racing day competition with other Florida and Louisiana racetracks within those respective markets; costs associated with our efforts in support of alternative gaming initiatives; costs associated with customer relationship management initiatives; a substantial change in law or regulations affecting pari-mutuel and gaming activities; a substantial change in allocation of live racing days; changes in Illinois law that impact revenues of racing operations in Illinois; the presence of wagering facilities of Indiana racetracks near our operations; our continued ability to effectively compete for the country’s top horses and trainers necessary to field high-quality horse racing; our continued ability to grow our share of the interstate simulcast market; our ability to execute our acquisition strategy and to complete or successfully operate planned expansion projects; our ability to successfully complete any divestiture transaction; our ability to execute on our temporary and permanent slot facilities in Louisiana; market reaction to our expansion projects; the loss of our totalisator companies or their inability to provide us assurance of the reliability of their internal control processes through Statement on Auditing Standards No. 70 audits or to keep their technology current; the need for various alternative gaming approvals in Louisiana; our accountability for environmental contamination; the loss of key personnel; the impact of natural disasters, including Hurricanes Katrina, Rita and Wilma on our operations and our ability to adjust the casualty losses through our property and business interruption insurance coverage; any business disruption associated with a natural disaster and/or its aftermath; our ability to integrate businesses we acquire, including our ability to maintain revenues at historic levels and achieve anticipated cost savings; the impact of wagering laws, including changes in laws or enforcement of those laws by regulatory agencies; the effect of claims of third parties to intellectual property rights; and the volatility of our stock price.

Officials with Churchill Downs Racetrack announced today that TwinSpires.com, the official advanced-deposit wagering (“ADW”) site for Churchill Downs Incorporated (the “Company”), and Xpressbet.com would be accepting wagers on the Kentucky Derby Presented by Yum! Brands, the Kentucky Oaks and The Woodford Reserve.  All Churchill Downs Racetrack races will continue to be available through other off-track betting and simulcast wagering facilities, except for the off-track betting (“OTB”) facilities located in Clarksville and Evansville, Ind., and Calder Race Course.  

Kentucky Horsemen’s Benevolent and Protective Association (“KYHBPA”) and the Kentucky Thoroughbred Association (“KTA”) have blocked distribution of the remaining Churchill Downs signal to ADW providers, including TwinSpires.com and Xpressbet.com.  

“We are disappointed that the Kentucky horsemen have chosen to prevent horse racing fans from wagering on Churchill Downs Racetrack races during the most important weekend for the horse racing industry,” said Churchill Downs President Steve Sexton. “Wagering on the Kentucky Oaks and Kentucky Derby race day cards helps to supplement purses throughout the year at Churchill Downs Racetrack. The action of the horsemen’s representatives today will have a negative impact on purses for the entire year.”
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“We are perplexed that the horsemen would seek to penalize the ADW distribution channel.  Since the Company’s entry into the ADW business, we have successfully negotiated higher host fees paid by ADW businesses to our racetracks and horsemen partners.  Both groups have benefited,  ” said Sexton.  “Fortunately, wagering on the Kentucky Derby, Kentucky Oaks and Woodford Reserve will be allowed under prior agreements.”

KYHBPA representatives have rejected all offers from Churchill Downs  and  instructed  that any further discussions be conducted with the Thoroughbred Horsemen's Group (“THG”), an alliance of horsemen’s groups from around the country. The THG is led by Bob Reeves who also serves on the board of the Ohio Horsemen’s Benevolent and Protective Association.  

“Kentucky takes great pride in billing itself as the horse capital of the world,” said Sexton.  “On Tuesday, we were encouraged by the discussions with KYHBPA representatives.  On Wednesday, our offer was rejected, but neither the KYHBPA nor the KTA could tell us what was needed to resolve this issue.  Today, the Kentucky horsemen have told us that if we want to send our ADW signal to the rest of the country, then we have to negotiate with and get  permission from horsemen representing them in Ohio.”

The 134th Kentucky Derby and Kentucky Oaks anchor this weekend’s race card at Churchill Downs. Pre-race festivities, including a celebrity filled red carpet, will be aired nationally on NBC beginning at 4 p.m. on May 3, 2008, followed by an hour and a half of racing coverage beginning at 5 p.m.

“At a time when Churchill Downs is working diligently to bring new customers to the sport, the actions of the horsemen will serve to block these potential fans from participating and alienate loyal patrons who look forward to this weekend all year,” said Sexton.

    Churchill Downs, the world’s most legendary racetrack, has conducted Thoroughbred racing and presented America’s greatest race, the Kentucky Derby, continuously since 1875. Located in Louisville, the flagship racetrack of Churchill Downs Incorporated (NASDAQ Global Select Market: CHDN) also operates Trackside at Churchill Downs, which offers year-round simulcast wagering at the historic track. Churchill Downs will conduct the 134th running of the Kentucky Derby on May 3, 2008. The track’s 2008 Spring Meet runs from April 26 through July 6. Churchill Downs has hosted the Breeders’ Cup World Championships a record six times. Information about Churchill Downs can be found on the Internet at www.churchilldowns.com.

Information set forth in this news release contains various “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.  The Private Securities Litigation Reform Act of 1995 (the “Act”) provides certain “safe harbor” provisions for forward-looking statements.  All forward-looking statements made in this news release are made pursuant to the Act.  The reader is cautioned that such forward-looking statements are based on information available at the time and/or management’s good faith belief with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements.  Forward-looking statements speak only as of the date the statement was made. We assume no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information.  Forward-looking statements are typically identified by the use of terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “predict,” “project,” “should,” “will,” and similar words, although some forward-looking statements are expressed differently.  Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.  Important factors that could cause actual results to differ materially from expectations include: the effect of global economic conditions; the effect (including possible increases in the cost of doing business) resulting from future war and terrorist activities or political uncertainties; the economic environment; the impact of increasing insurance costs; the impact of interest rate fluctuations; the effect of any change in our accounting policies or practices; the financial performance of our racing operations; the impact of gaming competition (including lotteries and riverboat, cruise ship and land-based casinos) and other sports and entertainment options in those markets in which we operate; the impact of live racing day competition with other Florida and Louisiana racetracks within those respective markets; costs associated with our efforts in support of alternative gaming initiatives; costs associated with customer relationship management initiatives; a substantial change in law or regulations affecting pari-mutuel and gaming activities; a substantial change in allocation of live racing days; changes in Illinois law that impact revenues of racing operations in Illinois; the presence of wagering facilities of Indiana racetracks near our operations; our continued ability to effectively compete for the country’s top horses and trainers necessary to field high-quality horse racing; our continued ability to grow our share of the interstate simulcast market; our ability to execute our acquisition strategy and to complete or successfully operate planned expansion projects; our ability to successfully complete any divestiture transaction; our ability to execute on our temporary and permanent slot facilities in Louisiana; market reaction to our expansion projects; the loss of our totalisator companies or their inability to provide us assurance of the reliability of their internal control processes through Statement on Auditing Standards No. 70 audits or to keep their technology current; the need for various alternative gaming approvals in Louisiana; our accountability for environmental contamination; the loss of key personnel; the impact of natural disasters, including Hurricanes Katrina, Rita and Wilma on our operations and our ability to adjust the casualty losses through our property and business interruption insurance coverage; any business disruption associated with a natural disaster and/or its aftermath; our ability to integrate businesses we acquire, including our ability to maintain revenues at historic levels and achieve anticipated cost savings; the impact of wagering laws, including changes in laws or enforcement of those laws by regulatory agencies; the effect of claims of third parties to intellectual property rights; and the volatility of our stock price.

Churchill Downs will offer a daily opportunity for its racing fans to win big when it introduces its new Super Hi-5 wager starting with Saturday’s opening day of the historic track’s April 26-July 6 Spring Meet.  A special Super Hi-5 wager on the 2008 Kentucky Derby Presented by Yum! Brands will offer fans a chance of a massive payout and a possible bonus of a new Mercedes Benz SL550 valued at more than $100,000.

The Super Hi-5 is a minimum $1 wager that challenges bettors to select the first five finishers in correct order in a designated race.  If there is no winning ticket in that race, the betting pool will be carried over to the next day’s designated Super Hi-5 race.  The Super Hi-5 betting pool could grow very large if the wager goes several days without being hit.

The Super Hi-5 Special offered on the 134th running of the $2 million-guaranteed Kentucky Derby Presented by Yum! Brands on Saturday, May 3 will provide a new opportunity for fans to win big on America’s greatest race and the best betting opportunity of the year.  Fans who correctly select the first five finishers in order in the expected 20-horse field in the “Run for the Roses” not only have a chance for a huge winning payout, but if there is only one winner that bettor will take home a 2009 Mercedes Benz SL550 valued at more than $100,000.

The luxurious Mercedes Benz SL550, furnished by Louisville’s Tafel Motors, will be awarded as a bonus only if there is a single winning ticket in the Kentucky Derby Hi-5.  If there is no winning ticket, the pool will carry over, as usual, to the first post-Derby racing program at Churchill Downs on Wednesday, May 7.

“Fans of Churchill Downs racing love the prospect of competitive fields and large winning payouts, and the new Super Hi-5 provides a new product with the potential to build to a huge payout if the betting pool carries over for a few days,” said Jim Gates, general manager of Churchill Downs.  “The Kentucky Derby Hi-5 is a great addition to an already exciting wagering menu on the Kentucky Derby, which in recent years has seen huge payouts in exactas, trifectas, superfectas and multi-race wagers like the Pick 3, Pick 4 and Pick 6.  And the bonus of a $100,000 Mercedes Benz SL550 if yours is the only winning ticket should only add to its attraction and excitement.  Whether you’re a skilled handicapper or just plain lucky, you can end up in the same place: cashing a big Super Hi-5 payout at Churchill Downs.”

The 2009 Mercedes Benz SL550 that is being offered as the bonus to a lone winning ticket holder in the Kentucky Derby Hi-5 will be on display in front of the centerfield tote board at the track throughout Kentucky Derby Week.

The Super Hi-5 will be offered as a daily betting option beginning with the final race of Saturday’s 11-race opening day racing program.

Churchill Downs, the world’s most legendary racetrack, has conducted Thoroughbred racing and presented America’s greatest race, the Kentucky Derby, continuously since 1875. Located in Louisville, the flagship racetrack of Churchill Downs Incorporated (NASDAQ Global Select Market: CHDN) also operates Trackside at Churchill Downs, which offers year-round simulcast wagering at the historic track. Churchill Downs will conduct the 134th running of the Kentucky Derby on May 3, 2008. The track’s 2008 Spring Meet runs from April 26 through July 6. Churchill Downs has hosted the Breeders’ Cup World Championships a record six times. Information about Churchill Downs can be found on the Internet at www.churchilldowns.com.