Thursday, September 11, 2008
Churchill Downs Incorporated, FTBOA Reach Slots Agreement at Calder Race Course
Officials of Churchill Downs Incorporated (“Company” or “CDI”) (NASDAQ: CHDN) and representatives of the Florida Thoroughbred Breeders’ Association, Inc. d/b/a the Florida Thoroughbred Breeders’ and Owners’ Association (“FTBOA”) have come to agreement on a slots contract for when Calder Race Course (“Calder”) begins slots operations on a yet-to-be-determined date.
Under the terms of the slots agreement, Florida breeders would receive 0.75 percent of slot revenue for the duration of the agreement, which has an initial ten-year term. The Company previously reached an agreement with the Florida Horsemen’s Benevolent and Protective Association (“FHBPA”) on a 2008 purse contract at Calder Race Course and on a slots contract, which also has a ten-year term.
“As we have previously noted, CDI plans to invest tens of millions of dollars in the construction and operation of a slots facility at Calder, which we believe will benefit the horse industry. We estimate at this time that horsemen and breeders should realize approximately $50 million, potentially, from our efforts over the term of the agreement.”
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 http://www.churchilldownsincorporated.com.
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