Gaming News

Churchill Downs Spring Numbers Up

LOUISVILLE, Kentucky -- (PRESS RELEASE) -- The Spring Meet at Churchill Downs, its first race meet since the completion of its ambitious $121 million renovation, ended its 52-day run on Sunday with double-digit gains in on-track attendance and wagering, but a slight decline in off-track betting.

Meet highlights included a spectacular renewal of the Kentucky Derby that attracted the second largest crowd in its history and saw the "Run for the Roses" become the first in U.S. history to attract more than $100 million in wagering on a single race. Kentucky Derby Day also established a North American record for wagering on a racing day and the Kentucky Oaks smashed its record for all-time attendance.

The historic racetrack's new areas and its increased emphasis on guest service throughout the facility helped boost its on-track performance, but its overall results continued to reflect the expansion of gaming competition in its region and competition for horses from tracks in racing states with purses that continue to be bolstered by slot machine revenues and other expanded gaming. Field sizes declined slightly during the meet, a concern that can be partly attributed to the increased competition for horses.

On-track wagering and attendance, both of which declined in a 53-day meet in 2004 that was hindered by construction of the track's new clubhouse, rebounded strongly in this year's session. On-track wagering for this year's 52-day session totaled $95,976,633, an increase of 10 percent from last year's total of $87,236,407. An average of $1,845,704 was wagered on-track each day, a rise of 12.1 percent from the daily average of $1,645,970 in 2004. The Spring Meet attendance total rose to 718,270, an increase of 13.4 percent from last year's total of 633,616. The meet's average daily attendance rose to 13,813, a jump of 15.5 percent from last year's figure of 11,955.

While on-track wagering registered healthy increases, off-track betting declined and contributed to a small decrease in daily averages for total wagering during the meet. Off-track wagering on the meet totaled $489,220,707 for the 52-day session in 2005, a decrease of 3.9 percent from the 53-day total of $509,135,463 in 2004. Average daily off-track wagering in 2005 stood at $9,408,091, a decline of 2.1 percent from the 2004 average of $9,606,329.

The decline in off-track wagering contributed to a drop in total wagering on Churchill Downs races during the spring session. Total wagering for the meet - which includes on-track betting and all money wagered at off-track sites and simulcast centers - stood at $585,197,340 after the meet's 52 days. That reflected a decrease of 1.9 percent from the 53-day total of $596,371,870 for 2004. The daily average for total betting in the just-completed meet stood at $11,253,795, which reflected a small increase of .01 percent from the 2004 average of $11,252,299.

Among the factors that contributed to the declines in off-track and total wagering was a drop in the average number of betting interests per race during the Spring Meet. Races during the 2005 session average 8.26 starters per race, a slight decline from the average of 8.48 betting interests that competed in the Spring Meet of 2004 and a sharper drop from the average of 8.88 wagering interests in the 2003 spring racing session. This year's decline occurred as competition for horses intensified with racetracks in racing states that offer race purses supplemented by revenues from slot machines and other alternative gaming.

Field sizes at Churchill Downs also felt the impact of quarantines ordered by the Kentucky Department of Agriculture. Sections of two barns at Trackside Louisville training center were quarantined for the equine bacterial disease known as strangles in March. A similar quarantine in Florida affected a number of Kentucky-based horses as it limited their training and delayed their departure for Kentucky. Then, shortly after the Spring Meet opened, three Churchill Downs barns were placed under quarantine following the confirmation of cases of the contagious equine herpes virus. More than 90 horses were affected by that quarantine and kept out of competition for nearly a month.

Total wagering for the 2005 Churchill Downs Spring Meet included a record-smashing 131st renewal of the Kentucky Derby on Saturday, May 7. A crowd of 156,435 gathered for the first Derby held in the renovated Churchill Downs - the second largest attendance figure in the history of America's greatest race - and saw Mr. and Mrs. Jerome Moss' 50-1 longshot Giacomo shock 19 opponents with a stretch-running victory.

Wagering on the Derby itself totaled $103,325,518, marking the first time that more than $100 million had been wagered on a single race in North America. Total betting on the Derby's 12-race program rose to a North American record of $155,133,631, an increase of nine percent from the previous daily racing record of $142,848,289 established on Derby Day 2004. On-track wagering on the 12-race Derby Day program rose by 22 percent to $22,117,166, which eclipsed a record established in 2003. On-track betting on the Derby itself in 2005 was $10,055,508.

A record crowd of 111,243 attended the Kentucky Oaks Day card on Friday, May 6. On-track wagering topped the $12 million mark for the first time and total wagering on the Oaks Day racing card topped $31 million.

"Churchill Downs' first racing meet in its completely renovated facility will be memorable for many things, but mostly for the smiles on the faces of patrons who enjoyed our new facilities and the top level guest service provided in our new racetrack," said Steve Sexton, president of Churchill Downs. "We are excited about the public response to our new amenities and improved service, and we deeply appreciate the efforts of our Churchill Downs team, which worked non-stop for weeks to get the track ready for its public unveiling during Kentucky Derby Week and maintained that high level of performance throughout the meet.

"Although the meet's on-track results were encouraging and gratifying, they could have been even better if not for the increasing competitive pressures from a continued expansion of gambling in our market and throughout the region," continued Sexton. "Casino competition, present in our market since late 1998, continues to grow and mature. And our daily racing program faces increasing pressure from competition for horses from states such as West Virginia, which has sent its race purses boosted significantly from revenues from expanded gambling and slot machines. More racetracks in racing states such as New York and Pennsylvania will boost their purses and improve their racing product through slot revenues in the coming months. Those developments will only intensify the competition for horses, so the size of our race fields looms as a long-term competitive concern."

Race purses for the 2005 Spring Meet rose slightly from the year before. Purses paid during the meet totaled $25,164,885, an increase of 2.9 percent over the 2004 total of $24,463,392. Daily purses averaged $483,940 - an increase of 4.9% percent from last year's average of $461,573.

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