Churchill Downs IncCHDN
Churchill Downs Inc Revenue Disclosure
12. REVENUE FROM CONTRACTS WITH CUSTOMERS
Performance Obligations
As of December 31, 2025, our Live and Historical Racing segment had remaining performance obligations on contracts with a duration greater than one year relating to television rights, sponsorships, personal seat licenses, and admissions, with an aggregate transaction price of $255.3 million. The revenue we expect to recognize on these remaining performance obligations is $70.8 million in 2026, $60.2 million in 2027, $35.6 million in 2028, and the remainder thereafter.
As of December 31, 2025, our remaining performance obligations on contracts with a duration greater than one year in segments other than Live and Historical Racing were not material.
Contract Assets and Contract Liabilities
Contract assets were not material as of December 31, 2025 and 2024.
Contract liabilities were $79.7 million as of December 31, 2025 and $81.5 million as of December 31, 2024. Contract liabilities are included in current deferred revenue, non-current deferred revenue, and accrued expense and other current liabilities in the accompanying Consolidated Balance Sheets. Contract liabilities primarily relate to our Live and Historical Racing segment. The decrease in contract liabilities from December 31, 2024 to December 31, 2025 was primarily due to the recognition of revenue for fulfilled performance obligations. We recognized $61.2 million of revenue during the year ended December 31, 2025 that
was included in the contract liabilities balance on December 31, 2024. We recognized $76.1 million of revenue during the year ended December 31, 2024 that was included in the contract liabilities balance on December 31, 2023.
Disaggregation of Revenue
The Company has included its disaggregated revenue disclosures as follows:
•For the Live and Historical Racing segment, revenue is disaggregated between Churchill Downs Racetrack and historical racing properties given that our racing facilities revenues primarily revolve around live racing events while our historical racing properties revenues primarily revolve around historical racing. This segment is also disaggregated by location given the geographic economic factors that affect the revenue of service offerings. Within the Live and Historical racing segment, revenue is further disaggregated between live and simulcast racing, historical racing, racing event-related services, and other services.
•For the Wagering Services and Solutions segment, revenue is disaggregated between live and simulcast racing, gaming, and other services.
•For the Gaming segment, revenue is disaggregated by location given the geographic economic factors that affect the revenue of Gaming service offerings. Within the Gaming segment, revenue is further disaggregated between live and simulcast racing, racing event-related services, gaming, and other services.
We believe that these disclosures depict how the amount, nature, timing, and uncertainty of cash flows are affected by economic factors. The tables below present net revenue from external customers and intercompany revenue from each of our segments:
| Years Ended December 31, | |||||||||||||||||
| (in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Net revenue from external customers: | |||||||||||||||||
| Live and Historical Racing: | |||||||||||||||||
| Churchill Downs Racetrack | $ | 262.4 | $ | 259.5 | $ | 205.8 | |||||||||||
| Louisville | 217.1 | 209.1 | 189.0 | ||||||||||||||
| Northern Kentucky | 113.2 | 98.9 | 85.8 | ||||||||||||||
| Southwestern Kentucky | 168.3 | 158.3 | 147.8 | ||||||||||||||
| Western Kentucky | 68.7 | 28.8 | 31.8 | ||||||||||||||
| Virginia | 546.1 | 458.2 | 375.4 | ||||||||||||||
| New Hampshire | 18.9 | 12.8 | 11.7 | ||||||||||||||
| Total Live and Historical Racing | $ | 1,394.7 | $ | 1,225.6 | $ | 1,047.3 | |||||||||||
| Wagering Services and Solutions: | $ | 488.2 | $ | 469.5 | $ | 444.9 | |||||||||||
| Gaming: | |||||||||||||||||
| Florida | $ | 97.9 | $ | 100.2 | $ | 100.7 | |||||||||||
| Iowa | 93.9 | 93.3 | 96.0 | ||||||||||||||
| Indiana | 129.9 | 96.6 | — | ||||||||||||||
| Louisiana | 131.4 | 150.2 | 145.6 | ||||||||||||||
| Maine | 106.5 | 106.0 | 114.1 | ||||||||||||||
| Maryland | 99.3 | 101.8 | 106.9 | ||||||||||||||
| Mississippi | 93.5 | 98.7 | 100.9 | ||||||||||||||
| New York | 184.5 | 183.0 | 180.5 | ||||||||||||||
| Pennsylvania | 106.0 | 109.3 | 123.9 | ||||||||||||||
| Total Gaming | $ | 1,042.9 | $ | 1,039.1 | $ | 968.6 | |||||||||||
| All Other | 0.1 | 0.1 | 0.9 | ||||||||||||||
| Net revenue from external customers | $ | 2,925.9 | $ | 2,734.3 | $ | 2,461.7 | |||||||||||
| Intercompany net revenues: | |||||||||||||||||
| Live and Historical Racing | $ | 47.7 | $ | 41.4 | $ | 37.3 | |||||||||||
| Wagering Services and Solutions | 38.1 | 31.2 | 13.5 | ||||||||||||||
| Gaming | 6.4 | 6.3 | 6.0 | ||||||||||||||
| All Other | 8.6 | 6.5 | — | ||||||||||||||
| Eliminations | (100.8) | (85.4) | (56.8) | ||||||||||||||
| Intercompany net revenue | $ | — | $ | — | $ | — | |||||||||||
| Year Ended December 31, 2025 | |||||||||||||||||||||||||||||||||||
| (in millions) | Live and Historical Racing | Wagering Services and Solutions | Gaming | Total Segments | All Other | Total | |||||||||||||||||||||||||||||
| Net revenue from external customers | |||||||||||||||||||||||||||||||||||
| Pari-mutuel: | |||||||||||||||||||||||||||||||||||
| Live and simulcast racing | $ | 98.3 | $ | 367.2 | $ | 26.0 | $ | 491.5 | $ | — | $ | 491.5 | |||||||||||||||||||||||
Historical racing(a) | 1,003.4 | — | 13.7 | 1,017.1 | — | 1,017.1 | |||||||||||||||||||||||||||||
| Racing event-related services | 183.6 | — | 1.4 | 185.0 | — | 185.0 | |||||||||||||||||||||||||||||
Gaming(a) | 14.1 | 19.7 | 883.9 | 917.7 | — | 917.7 | |||||||||||||||||||||||||||||
Other(a) | 95.3 | 101.3 | 117.9 | 314.5 | 0.1 | 314.6 | |||||||||||||||||||||||||||||
| Total | $ | 1,394.7 | $ | 488.2 | $ | 1,042.9 | $ | 2,925.8 | $ | 0.1 | $ | 2,925.9 | |||||||||||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||||||||||||||||||||
| (in millions) | Live and Historical Racing | Wagering Services and Solutions | Gaming | Total Segments | All Other | Total | |||||||||||||||||||||||||||||
| Net revenue from external customers | |||||||||||||||||||||||||||||||||||
| Pari-mutuel: | |||||||||||||||||||||||||||||||||||
| Live and simulcast racing | $ | 91.3 | $ | 352.2 | $ | 26.4 | $ | 469.9 | $ | — | $ | 469.9 | |||||||||||||||||||||||
Historical racing(a) | 854.9 | — | 37.0 | 891.9 | — | 891.9 | |||||||||||||||||||||||||||||
| Racing event-related services | 188.0 | — | 6.6 | 194.6 | — | 194.6 | |||||||||||||||||||||||||||||
Gaming(a) | 12.6 | 17.3 | 856.0 | 885.9 | — | 885.9 | |||||||||||||||||||||||||||||
Other(a) | 78.8 | 100.0 | 113.1 | 291.9 | 0.1 | 292.0 | |||||||||||||||||||||||||||||
| Total | $ | 1,225.6 | $ | 469.5 | $ | 1,039.1 | $ | 2,734.2 | $ | 0.1 | $ | 2,734.3 | |||||||||||||||||||||||
| Year Ended December 31, 2023 | |||||||||||||||||||||||||||||||||||
| (in millions) | Live and Historical Racing | Wagering Services and Solutions | Gaming | Total Segments | All Other | Total | |||||||||||||||||||||||||||||
| Net revenue from external customers | |||||||||||||||||||||||||||||||||||
| Pari-mutuel: | |||||||||||||||||||||||||||||||||||
| Live and simulcast racing | $ | 81.9 | $ | 359.7 | $ | 26.6 | $ | 468.2 | $ | — | $ | 468.2 | |||||||||||||||||||||||
Historical racing(a) | 739.1 | — | 28.6 | 767.7 | — | 767.7 | |||||||||||||||||||||||||||||
| Racing event-related services | 145.9 | — | 6.4 | 152.3 | — | 152.3 | |||||||||||||||||||||||||||||
Gaming(a) | 11.4 | 17.3 | 803.5 | 832.2 | — | 832.2 | |||||||||||||||||||||||||||||
Other(a) | 69.0 | 67.9 | 103.5 | 240.4 | 0.9 | 241.3 | |||||||||||||||||||||||||||||
| Total | $ | 1,047.3 | $ | 444.9 | $ | 968.6 | $ | 2,460.8 | $ | 0.9 | $ | 2,461.7 | |||||||||||||||||||||||
(a)Food and beverage, hotel, and other services furnished to customers for free as an inducement to wager or through the redemption of our customers' loyalty points are recorded at the estimated standalone selling prices in Other revenue with a corresponding offset recorded as a reduction in historical racing pari-mutuel revenue for HRMs or gaming revenue for our casino properties. These amounts were $60.8 million in 2025, $56.0 million in 2024, and $50.9 million in 2023.
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About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.