Officials of Churchill Downs Incorporated ("Company” or "CDI”) (NASDAQ:
CHDN) and representatives of the Kentucky Horsemen’s Benevolent and
Protective Association ("KHBPA”) and the Kentucky Thoroughbred
Association ("KTA”) have come to an agreement that allows, under
specified terms and conditions, Churchill Downs racetrack to offer its
live racing signal for distribution to national advance-deposit wagering
("ADW”) platforms, including TwinSpires.com. The agreement covers the
2009 spring meeting at Churchill Downs.
"We are pleased to have reached a mutually acceptable resolution with
Kentucky horsemen on this issue,” said Steve Sexton, executive vice
president of Churchill Downs Incorporated and president of Churchill
Downs racetrack. "The real winners today are our customers, who finally
will be able to enjoy access to Churchill Downs races when live racing
resumes in the spring. We are deeply grateful to our customers for their
understanding, loyalty and patience throughout these negotiations.”
"We are pleased to have reached a resolution for the spring 2009 meet at
Churchill Downs,” said Rick Hiles, president of the KHBPA. "We believe
the agreement will bring great benefits to our horsemen and will promote
Kentucky racing throughout the country.”
"We look forward to moving forward together in an effort to preserve and
promote racing in Kentucky and at Churchill Downs,” said David
Richardson, president of the KTA. "This agreement is one step in that
important process.”
Churchill Downs’ 52-day Spring Meet opens on Saturday, April 25, 2009.
Wagering will be available through TwinSpires.com beginning on opening
day and continuing through the close of racing on July 5, 2009. The
signal will also be offered to certain other national online wagering
companies. Terms for distribution to those ADW companies have not been
finalized.
Churchill Downs Incorporated ("Churchill Downs”), headquartered in
Louisville, Ky., owns and operates world-renowned horse racing venues
throughout the United States. Churchill Downs’ four racetracks in
Florida, Illinois, Kentucky and Louisiana host many of North America’s
most prestigious races, including the Kentucky Derby and Kentucky Oaks,
Arlington Million, Princess Rooney Handicap and Louisiana Derby.
Churchill Downs racetracks have hosted seven Breeders’ Cup World
Championships. Churchill Downs also owns off-track betting facilities
and has interests in various advance-deposit wagering, television
production, telecommunications and racing services companies, including
a 50-percent interest in the national cable and satellite network
HorseRacing TV™, that support the Company’s network of simulcasting and
racing operations. Churchill Downs trades on the Nasdaq Global Select
Market under the symbol CHDN and can be found on the Internet at www.churchilldownsincorporated.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 Quarterly Report
on Form 10-Q 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, including any disruptions in the credit markets;
the effect (including possible increases in the cost of doing business)
resulting from future war and terrorist activities or political
uncertainties; the overall 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 and obtain the
consents of horsemen’s groups to interstate simulcasting; 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 permanent slot
facility in Louisiana and permanent slot facility in Florida; 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 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 outcome of pending or threatened litigation,
including the outcome of any counter-suits or claims arising in
connection with a pending lawsuit in federal court in the Western
District of Kentucky styled Churchill Downs Incorporated, et al v.
Thoroughbred Horsemen's Group, LLC, Case #08-CV-225-S; changes in
our relationships with horsemen's groups and their memberships; our
ability to reach agreement with horsemen's groups on future purse and
other agreements (including, without limiting, agreements on the sharing
of revenues from gaming and advance deposit wagering); the effect of
claims of third parties to intellectual property rights; and the
volatility of our stock price.
