FOR IMMEDIATE RELEASE

CHURCHILL DOWNS INCORPORATED REPORTS

2024 FIRST QUARTER RESULTS

Company Highlights

Live and Historical Racing

TwinSpires

Gaming

All Other

United Tote Sale

Share Repurchase Program

The Duchossois Group Share Repurchase

Conference Call

Use of Non-GAAP Measures

About Churchill Downs Incorporated

This news release contains various “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by the use of terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “predict,” “project,” “seek,” “should,” “will,” “scheduled,” and similar words or similar expressions (or negative versions of such words or expressions), 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 following: the occurrence of extraordinary events, such as terrorist attacks, public health threats, civil unrest, and inclement weather, including as a result of climate change; the effect of economic conditions on our consumers' confidence and discretionary spending or our access to credit, including the impact of inflation; additional or increased taxes and fees; the impact of any pandemics, epidemics, or outbreaks of infectious diseases, including possible new variants of COVID-19, and related economic matters on our results of operations, financial conditions and prospects; lack of confidence in the integrity of our core businesses or any deterioration in our reputation; loss of key or highly skilled personnel, as well as general disruptions in the general labor market; the impact of significant competition, and the expectation that competition levels will increase; changes in consumer preferences, attendance, wagering, and sponsorships; risks associated with equity investments, strategic alliances and other third-party agreements; inability to respond to rapid technological changes in a timely manner; concentration and evolution of slot machine and historical racing machine (HRM) manufacturing and other technology conditions that could impose additional costs; failure to enter into or maintain agreements with industry constituents, including horsemen and other racetracks; inability to successfully focus on market access and retail operations for our TwinSpires sports betting business and effectively compete; online security risk, including cyber-security breaches, or loss or misuse of our stored information as a result of a breach including customers’ personal information could lead to government enforcement actions or other litigation; reliance on our technology services and catastrophic events and system failures disrupting our operations; inability to identify, complete, or fully realize the benefits of our proposed acquisitions, divestitures, development of new venues or the expansion of existing facilities on time, on budget, or as planned; difficulty in integrating recent or future acquisitions into our operations; cost overruns and other uncertainties associated with the development of new venues and the expansion of existing facilities; general risks related to real estate ownership and significant expenditures, including risks related to environmental liabilities; personal injury litigation related to injuries occurring at our racetracks; compliance with the Foreign Corrupt Practices Act or other similar laws and regulations, or applicable anti-money laundering regulations; payment-related risks, such as

risk associated with fraudulent credit card or debit card use; work stoppages and labor problems; risks related to pending or future legal proceedings and other actions; highly regulated operations and changes in the regulatory environment could adversely affect our business; restrictions in our debt facilities limiting our flexibility to operate our business; failure to comply with the financial ratios and other covenants in our debt facilities and other indebtedness; increases to interest rates (due to inflation or otherwise), disruption in the credit markets or changes to our credit ratings may adversely affect our business; increase in our insurance costs, or inability to obtain similar insurance coverage in the future, and any inability to recover under our insurance policies for damages sustained at our properties in the event of inclement weather and casualty events; and other factors described under the heading “Risk Factors” in our most recent Annual Report on Form 10-K and in other filings we make with the Securities and Exchange Commission.

We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

CHURCHILL DOWNS INCORPORATED

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

			Three Months Ended March 31,
(in millions, except per common share data)			2024						2023
Net revenue:
Live and Historical Racing			$	245.1					$	214.4
TwinSpires			106.6						94.8
Gaming			239.2						250.0
All Other			—						0.3
Total net revenue			590.9						559.5
Operating expense:
Live and Historical Racing			157.2						143.3
TwinSpires			67.9						65.7
Gaming			178.5						173.5
All Other			2.1						5.0
Selling, general and administrative expense			54.8						52.3
Transaction expense, net			4.1						(0.2)
Total operating expense			464.6						439.6
Operating income			126.3						119.9
Other (expense) income:
Interest expense, net			(70.4)						(64.7)
Equity in income of unconsolidated affiliates			37.8						38.3
Gain on sale of Arlington			—						114.0
Miscellaneous, net			8.1						1.4
Total other (expense) income			(24.5)						89.0
Income from operations before provision for income taxes			101.8						208.9
Income tax provision			(21.4)						(53.2)
Net income			$	80.4					$	155.7
Net income per common share data:
Basic net income			$	1.09					$	2.07
Diluted net income			$	1.08					$	2.05
Weighted average shares outstanding:
Basic			74.1						75.3
Diluted			74.7						76.1

CHURCHILL DOWNS INCORPORATED

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(in millions)			March 31, 2024						December 31, 2023
ASSETS
Current assets:
Cash and cash equivalents			$	149.4					$	144.5
Restricted cash			72.6						77.3
Accounts receivable, net			115.0						106.9
Income taxes receivable			—						12.6
Other current assets			79.0						59.5
Total current assets			416.0						400.8
Property and equipment, net			2,668.5						2,561.2
Investment in and advances to unconsolidated affiliates			647.8						655.9
Goodwill			900.2						899.9
Other intangible assets, net			2,415.0						2,418.4
Other assets			19.3						19.3
Total assets			$	7,066.8					$	6,955.5
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable			$	187.8					$	158.5
Accrued expenses and other current liabilities			423.3						426.8
Income taxes payable			4.1						—
Current deferred revenue			153.3						73.2
Current maturities of long-term debt			68.0						68.0
Dividends payable			0.7						29.3
Total current liabilities			837.2						755.8
Long-term debt, net of current maturities and loan origination fees			1,786.5						1,697.1
Notes payable, net of debt issuance costs			3,072.4						3,071.2
Non-current deferred revenue			11.8						11.8
Deferred income taxes			393.1						388.2
Other liabilities			138.9						137.8
Total liabilities			6,239.9						6,061.9
Commitments and contingencies
Shareholders' equity:
Preferred stock			—						—
Common stock			—						—
Retained earnings			827.8						894.5
Accumulated other comprehensive loss			(0.9)						(0.9)
Total shareholders' equity			826.9						893.6
Total liabilities and shareholders' equity			$	7,066.8					$	6,955.5

CHURCHILL DOWNS INCORPORATED

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

			Three Months Ended March 31,
(in millions)			2024						2023
Cash flows from operating activities:
Net income			$	80.4					$	155.7
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			46.9						37.9
Distributions from unconsolidated affiliates			45.0						45.8
Equity in income of unconsolidated affiliates			(37.8)						(38.3)
Stock-based compensation			7.2						8.6
Deferred income taxes			4.9						33.2
Amortization of operating lease assets			1.4						2.2
Gain on sale of Arlington			—						(114.0)
Other			1.7						0.8
Changes in operating assets and liabilities:
Income taxes			17.0						19.9
Deferred revenue			80.1						81.8
Other assets and liabilities			7.9						(17.7)
Net cash provided by operating activities			254.7						215.9
Cash flows from investing activities:
Capital maintenance expenditures			(12.4)						(11.8)
Capital project expenditures			(142.6)						(122.9)
Proceeds from sale of Arlington			—						195.7
Other			1.6						(6.5)
Net cash (used in) provided by investing activities			(153.4)						54.5
Cash flows from financing activities:
Proceeds from borrowings under long-term debt obligations			355.5						615.5
Repayments of borrowings under long-term debt obligations			(266.7)						(797.5)
Payment of dividends			(28.6)						(26.7)
Repurchase of common stock			(141.7)						(0.5)
Taxes paid related to net share settlement of stock awards			(10.4)						(11.3)
Debt issuance costs			—						(2.5)
Change in bank overdraft			(8.6)						(14.2)
Other			(0.6)						(0.5)
Net cash used in financing activities			(101.1)						(237.7)
Net increase in cash, cash equivalents and restricted cash			0.2						32.7
Cash, cash equivalents and restricted cash, beginning of period			221.8						204.7
Cash, cash equivalents and restricted cash, end of period			$	222.0					$	237.4

CHURCHILL DOWNS INCORPORATED

SUPPLEMENTAL INFORMATION

(Unaudited)

CHURCHILL DOWNS INCORPORATED

SUPPLEMENTAL INFORMATION

(Unaudited)

CHURCHILL DOWNS INCORPORATED

SUPPLEMENTAL INFORMATION

(Unaudited)

			Three Months Ended March 31, 2024
(in millions)			Live and Historical Racing						TwinSpires						Gaming						Total Segments						All Other						Total
Net revenue from external customers
Pari-mutuel:
Live and simulcast racing			$	11.0					$	79.8					$	10.6					$	101.4					$	—					$	101.4
Historical racing(a)			212.1						—						8.8						220.9						—						220.9
Racing event-related services			1.1						—						2.2						3.3						—						3.3
Gaming(a)			3.1						5.7						193.1						201.9						—						201.9
Other(a)			17.8						21.1						24.5						63.4						—						63.4
Total			$	245.1					$	106.6					$	239.2					$	590.9					$	—					$	590.9

CHURCHILL DOWNS INCORPORATED

SUPPLEMENTAL INFORMATION

(Unaudited)

CHURCHILL DOWNS INCORPORATED

SUPPLEMENTAL INFORMATION

(Unaudited)

			Three Months Ended March 31,
(in millions)			2024						2023
Reconciliation of Comprehensive Income to Adjusted EBITDA:
Net income and comprehensive income			$	80.4					$	155.7
Additions:
Depreciation and amortization			46.9						37.9
Interest expense			70.4						64.7
Income tax provision			21.4						53.2
EBITDA			$	219.1					$	311.5
Adjustments to EBITDA:
Stock-based compensation expense			$	7.2					$	8.6
Pre-opening expense			8.3						3.2
Other expenses, net			0.2						3.7
Transaction expense, net			4.1						(0.2)
Other income, expense:
Interest, depreciation and amortization expense related to equity investments			10.3						9.8
Other charges and recoveries, net			(6.7)						0.3
Gain on Arlington sale			—						(114.0)
Total adjustments to EBITDA			23.4						(88.6)
Adjusted EBITDA			$	242.5					$	222.9
Adjusted EBITDA by segment:
Live and Historical Racing			$	100.8					$	82.1
TwinSpires			39.6						29.4
Gaming			122.8						129.5
Total segment Adjusted EBITDA			263.2						241.0
All Other			(20.7)						(18.1)
Total Adjusted EBITDA			$	242.5					$	222.9

CHURCHILL DOWNS INCORPORATED

SUPPLEMENTAL JOINT VENTURE FINANCIAL STATEMENTS

(Unaudited)

CHURCHILL DOWNS INCORPORATED

SUPPLEMENTAL INFORMATION

(Unaudited)