Churchill Downs Inc. plans to cut seven race dates this year as the home of the Kentucky Derby struggles to compete with thoroughbred racetracks that offer more gambling options and bigger purses.
The company that runs the Louisville, Kentucky, track will ask the Kentucky Horse Racing Commission to eliminate six Wednesdays in May, June and July, and the May 28 meet from the current 52-day schedule that runs between April 25 and July 5.
Fewer horses have been entering races at Churchill Downs this year because a decline in gambling income has led to lower prize money. The venue had four consecutive days in which at least one race was canceled because too few horses were entered.
“We’re now clearly seeing the impact of competing with thoroughbred racetracks that supplement their purses with revenue from additional gaming options, such as slots and video lottery terminals,” Bill Carstanjen, Churchill Downs chief operating officer, said yesterday in a statement. “Tracks with these enhanced purses are attracting more horses.”
Gamblers risked $156 million on the 13-race Kentucky Derby day card on May 2, 5.3 percent less than last year, the track said. Betting on the Derby, both on- and off-track, dropped 8.7 percent to $104.6 million.
Churchill Downs hasn’t been able to draw enough horses to fill its race cards and remain competitive in the national wagering market, which accounts for almost 90 percent of the company’s handle, Carstanjen said.
“As a result, our wagering handle, which funds purses, has been down 20 percent outside of Oaks and Derby days,” he added.
The company said it will also lower purses by $425,000 in total for six stakes races, though none of the reductions will affect the grade of those races.
Shares in Churchill Downs, which have dropped 14 percent in the past year, fell 53 cents, or 1.33 percent, yesterday to $39.41, valuing the company at $539.6 million.
In addition to May 28, the track wants to cancel racing on May 20, June 3, 10, 17 and 24, and July 1.
(Source: Bloomberg)
