purses

For the second time in a week’s period, Churchill Downs Racetrack will raise overnight purses because of higher than expected all-sources wagering levels. Effective immediately (Friday, Nov. 19), overnight race purses will be increased 20 percent for the final eight days of the Fall Meet, which concludes its 21-day run on Sunday, Nov. 28.

On Nov. 12, Churchill Downs announced that overnight race purses would jump 6.3 percent for the final 10 days of the season.

Purses for the final 83 scheduled overnight races – which include allowance, maiden special weight, claiming and maiden claiming events – will rise from the announced prize money in the condition book by an approximate blended average of $6,600 per race.

The revised projection for total overnight purses awarded at the meet is $6.8 million, up from the original forecast of $6.2 million at the start of the season. The daily average purse distribution (not including the Nov. 5-6 Breeders’ Cup World Championships programs) will be approximately $459,000 per day.

“We’ve been fortunate to have good weather and full, competitive fields during our boutique, four-week Fall Meet, which has limited competition from other racetracks during the fall,” said Kevin Flanery, president of Churchill Downs Racetrack. “Also, some of our high-level allowance and claiming races for our top-tier horses have not filled and were not used, which means there’s more money available to distribute. We’re thrilled that horse racing fans have responded to our product through strong all-sources wagering, and that our owners, trainers, jockeys and breeders will benefit from a 20-percent increase in prize money over the final stretch of our season.

 “As we’ve said before, these positive purse adjustments aren’t long-term solutions to the problems we continue to face in Kentucky’s signature horse racing industry. Purses remain well shy of their highest levels of recent years, and Kentucky still isn’t on a level playing field with states whose racetracks have an immense competitive advantage by having their purses fueled by slot machine and casino revenues.”

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 137th running of the Kentucky Derby on May 7, 2011. The track’s 2010 Fall Meet is scheduled for Oct. 31-Nov. 28.  Churchill Downs has hosted the Breeders’ Cup World Championships a record seven times and the event will return to the track for its next renewal on Nov. 4-5, 2011. Information about Churchill Downs can be found on the Internet at www.churchilldowns.com.

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Effective Wednesday, Nov. 17, Churchill Downs will raise overnight race purses 6.3 percent because of higher than expected all-sources wagering levels through the early stages of the 21-day Fall Meet.

Overnight purses will be increased 10 percent, but projected Kentucky Thoroughbred Development Fund (KTDF) award money will be reduced by 20 percent because of a shift in the wagering mix. The net result will be a 6.3% increase for the final 10 days of the meet.

Purses for overnight races – which include allowance, maiden special weight, claiming and maiden claiming events – will rise by an approximate blended average of $3,000 per race.

Total overnight purses for the meet are projected to be $6.4 million, up from the original forecast of $6.2 million. The daily average purse distribution (not including the Nov. 5-6 Breeders’ Cup World Championships programs) will be approximately $437,000 per day.

The KTDF is administered by the Kentucky Horse Racing Commission (KHRC) and consists of money allocated to the fund through an excise tax imposed on all tracks conducting pari-mutuel wagering under the jurisdiction of the KHRC. The funds are intended to promote, enhance, improve and encourage development of thoroughbred breeding in Kentucky.

“There’s been a recent shift in the way purse money is being earned and the funds are being reallocated accordingly,” said Kevin Flanery, president of Churchill Downs racetrack. “While we’re delighted that our horsemen will be competing for larger-than-anticipated purses over the final 10 days of the Fall Meet, our purses remain well shy of their highest levels of recent years, and the pressure to compete against racetracks which have their purses fueled by slot machine and casino revenues continues to intensify.

“This 6.3 percent increase in overnight purses is good news because it stems from a stronger than anticipated wagering in the early stages of our boutique Fall Meet. However, these slight increases aren’t long-term solutions to the problems facing Kentucky’s signature industry; it merely eases the growing pressure on our horse industry as we wait for the Kentucky legislature to authorize slots at our state’s tracks, allow us to invest in Kentucky jobs and take on those out-of-state tracks that now possess a huge competitive advantage.”

Churchill Downs’ 121st Fall Meet continues through Sunday, Nov. 28.

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 137th running of the Kentucky Derby on May 7, 2011. The track’s 2010 Fall Meet is scheduled for Oct. 31-Nov. 28.  Churchill Downs has hosted the Breeders’ Cup World Championships a record seven times and the event will return to the track for its next renewal on Nov. 4-5, 2011. Information about Churchill Downs can be found on the Internet at www.churchilldowns.com.

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Due to a decline of purse money earned from wagering sources during its 2008 Spring Meet, Churchill Downs Racetrack has been forced to reduce $975,000 from its stakes program for the upcoming 2008 Fall Meet through purse reductions in 11 stakes races and the elimination of two other stakes.

Churchill Downs’ 26-day Fall Meet is scheduled to open Sunday, Oct. 26, for a five-week run through Saturday, Nov. 29.

The reduction was due to wagering handle that was lost when the Kentucky Horsemen’s Benevolent and Protective Association (“KHBPA”) and the Kentucky Thoroughbred Association (“KTA”) blocked distribution of Churchill Downs’ simulcast signal to all national advance-deposit wagering (“ADW”) sites, including TwinSpires.com., the official ADW site for Churchill Downs Incorporated (“Company”).

“To offset the amount of lost wagering handle during our Spring Meet resulting in less money available in the purse account for races, we need to reduce our fall stakes program,” said Churchill Downs President Steve Sexton. “Negotiations with Kentucky horsemen are ongoing and we remain hopeful this impasse can be resolved.”

Five races were lowered in value by $100,000: the Oct. 26 Ack Ack Handicap (Grade III) from $200,000 to $100,000; the Nov. 22 River City Handicap (GIII) from $200,000 to $100,000; the Nov. 27 Falls City Handicap (GII) from $300,000 to $200,000; and closing day’s Kentucky Jockey Club (GII) and Golden Rod (GII) from $250,000 to $150,000 each.

Four Grade III events received a $50,000 cutback from $150,000 to $100,000: the Iroquois and Pocahontas on Nov. 1; the Commonwealth Turf on Nov. 9; and the Cardinal Handicap on     Nov. 15.

Additionally, the Nov. 2 Chilukki (GII) was lowered from $200,000 to $150,000, and the Nov. 8 Mrs. Revere (GII) was reduced from $200,000 to $175,000.

The two cancelled stakes were a pair of ungraded $100,000 five-furlong turf sprints: the   Nov. 8 Mariah’s Storm for fillies and mares and the Nov. 16 Cherokee Run.

The lone unaffected stakes race was the Fall Meet’s signature event, the $500,000 Clark Handicap (GII) for 3-year-olds and up at 1 1/8 miles on dirt scheduled for Friday, Nov. 28.

All told, the 2008 Fall Meet will now feature 12 stakes events – all graded – cumulatively worth $1,925,000.

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 135th running of the Kentucky Derby on May 2, 2009. The track’s 2008 Fall Meet runs from October 26 through November 29. 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 Racetrack has been forced to cut purses by 20 percent, effective Wednesday, May 14, because the Kentucky Horsemen’s Benevolent and Protective Association (“KHBPA”) and the Kentucky Thoroughbred Association (“KTA”) have blocked the distribution of Churchill Downs’ simulcast signal to national advance-deposit wagering (“ADW”) sites, including TwinSpires.com., the official ADW site for Churchill Downs Incorporated (“Company”).

“We have been left with no option but to reduce overnight purses to offset the amount of lost handle because Kentucky horsemen have prevented horse racing fans from wagering through ADW platforms,” said Churchill Downs President Steve Sexton. “We are disappointed because the failure to send the signal will negatively impact the product both on and off the racetrack. While we are still hopeful this impasse can be resolved, we have no choice but to act now.”

KHBPA and KTA representatives continue to reject all offers from Churchill Downs and recently instructed further discussions be conducted with the Thoroughbred Horsemen’s Group (“THG”), an alliance of horsemen’s groups from around the country.

“Since Churchill Downs’ entry into the ADW business in 2007, we have nearly doubled host fees paid by ADW businesses to our racetracks and horsemen partners through successful negotiations with local horsemen. Kentucky horsemen and the THG are now demanding even more, but their plan is simply not feasible for ADW companies, including TwinSpires.com,” said Sexton. “As the result of over $3 million in online marketing we’ve spent so far this year, we have added 13,000 new TwinSpires.com customers and have added $25 million in new deposits. We would like those customers to be able to wager those funds on Churchill Downs races, but the KHBPA and KTA have refused to allow us to do so.”

The Churchill Downs’ purse reductions will affect overnight purses, with potential for Fall Meet stakes race purses to be reduced in the future.

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 135th running of the Kentucky Derby 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.