CDI, which set out plans to develop a new historical racing machine (HRM) venue in Kentucky last year, will undertake projects across four areas of the business over the next three years. The total cost of these infrastructure projects could reach $900m, the business said.
The plans include the Skye Terrace renovation and expansion project, which is expected to cost $455-$465m, a Conservatory project for premium admissions valued at $320-$330m, infield general admission upgrades costing $60-$70m and other infrastructure projects costing $45-$55m.
Pending approvals, CDI expects to spend $120-130m on the various projects this year, with all of the improvements complete ahead of the 154th Kentucky Derby in May 2028.
Long-term value
“These projects, as well as key infrastructure improvements, reflect the company’s commitment to providing world-class hospitality and premium seating options for guests for many decades to come,” said Bill Carstanjen, Chief Executive Officer of CDI.
“We have a proven track record of prudently investing capital in the Kentucky Derby to create once-in-a-lifetime experiences for our guests while also creating significant long-term value for our shareholders.”
Gaming growth
Plans for the HRM entertainment venue in Calvert City, Kentucky, include 250 machines, a sports bar and a sportsbook.
The venue will serve as an extension of Oak Grove Racing, Gaming and Hotel and will be the company’s eighth historical horse racing entertainment venue in Kentucky.
In the company’s latest quarterly financial update, covering Q3 of 2024, CDI posted growth across its three core segments – live and historical racing, the TwinSpires online horse race betting operation and gaming. Of the three verticals, gaming was the main source of revenue at $269.7m – a year-on-year increase of 10.4% and a new all-time high.
