Racing"News"

[Dusty]

From Rick Needham

RACING NEWS: Casino at Ocean Downs, a harness track on the Eastern Shore of Maryland, is in the process of being purchased by Churchill Downs Inc. and Saratoga Casino Holdings from Delaware Park owner William Rickman. Under the joint venture, announced Aug. 2, the two parties will purchase all equity interests in Ocean Enterprise 589 LLC, Ocean Downs LLC, and Racing Services LLC. CDI and SCH, which owns and operates Saratoga Casino & Raceway, a harness facility in upstate New York, have formed a new 50-50 entity called Old Bay Gaming & Racing. Because CDI owns 25% of SCH, it will "indirectly own" another 12.5% of Old Bay, according to a release. Ocean Downs, like Delaware Park, is privately owned by Rickman; economic terms of the transaction are confidential. Ocean Downs, located not far from Ocean City, has about 800 video lottery terminals and electronic table games. It offers a summer harness meet and offers year-round simulcasts. The deal was announced the same day The Stronach Group closed on its purchase of Rosecroft Raceway, located in Maryland south of Washington, D.C., from Penn National Gaming Inc. The purchase gives the TSG a major simulcast outlet to go along with its growing off-track betting network in Maryland. TSG owns and operates Laurel Park and Pimlico Race Course under the Maryland Jockey Club banner. The purchase of Ocean Downs—it is subject to approval from state agencies such as the Maryland Lottery and Gaming Control Agency and Maryland Racing Commission—gives CDI, which operates the TwinSpires.com account wagering service, a presence in Maryland. Rickman will serve as a senior adviser to Old Bay in his capacity as executive vice president of Maryland Gaming.

Interesting,,,,,

[Dusty]

RACING NEWS: Continued growth in the week leading up to the Kentucky Derby fueled an increase in earnings for the racing segment of Churchill Downs Inc. in the second quarter of 2016. Overall, it was a solid quarter for CDI, which reported record net income of $69.8 million—up 27% from the second quarter of 2015—and record net revenue of $438.5 million. CDI chief executive officer Bill Carstanjen during an Aug. 4 earnings webcast said a "spectacular Kentucky Derby week drove the performance of the racing division. We're generally encouraged by all metrics. We think we can build on that momentum and build on it next year." Carstanjen said the company is in the process of finalizing its 2017 capital investment plan for Churchill Downs, which hosts the Derby and Longines Kentucky Oaks (gr. I). The CDI racing segment produced adjusted earnings before interest, taxes, depreciation, and amortization of $6.1 million, with $5.2 million attributed to Kentucky Derby week proceeds. A racing calendar shift resulted in a $1.3 million decrease in earnings at Churchill Downs and Arlington International Racecourse. "The Kentucky Derby is a unique event that does not follow the overall trends in horse racing," Carstanjen said. TwinSpires.com, the company's advance deposit wagering system that is broken out into its own earnings segment, reported a 16.4% increase in pari-mutuel handle for the second quarter; Carstanjen noted the increase outpaced overall United States Thoroughbred wagering by almost 17 percentage points. TwinSpires.com also reported net revenue growth of $7.5 million, which CDI attributed to a 26% increase in active players and a $1.2 million marketing spend it expects to recoup with one year. Carstanjen said the ADW service "has been a real juggernaut that has proven there is growth even in a flat industry. We haven't found the ceiling yet (with online wagering)."

Give you a clue What CDI IS interested in??

[curtis]

Making money?