Remarking that historical horse racing gaming would be "a key strategic focus over the next five to 10 years for our company," Churchill Downs Inc. CEO Bill Carstanjen outlined upcoming CDI projects featuring the devices during a July 25 conference call with financial analysts.
Carstanjen said that a HHR location remains scheduled to open in Owensboro, Kentucky's fourth-largest city, during the first quarter of next year. CDI plans to expand from 2,750 to 5,000 HHR machines over 10 locations in Virginia by the end of 2025.
The Owensboro facility is a gaming extension connected to CDI-owned Ellis Park in Henderson, Ky. CDI also owns and operates Colonial Downs in New Kent, Va.
Carstanjen's remarks came a day after the company announced a $80-$90 million grandstand renovation at Churchill Downs racetrack near the top of its stretch. On Thursday, Carstanjen indicated that more areas are also being considered for renovation or seating expansion.
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HHR devices, which resemble slot machines but whose results are based on previously run horse races, have boosted purses in states operating them and led to sizable profits for track operators. CDI reported July 24 record second-quarter revenue, bolstered by Kentucky Derby (G1) week returns and its gaming business across multiple states.
CDI's acquisition of Exacta Systems, an HHR technology provider, in August 2023 has also provided the company with further opportunities. He said Exacta Systems continues to "make progress" in developing HHR-based electronic table games.
