It is hoped that the transaction will allow the casino and entertainment operator to enhance recent acquisitions made in the world of horse racing, as well as realising “significant and immediate” synergies related to CDI’s Virginia operations. This includes the region’s Colonial Downs Racetrack and Rosie’s Gaming Emporium facilities.

Furthermore, as a result of the transaction, which was funded with cash on hand and via the company’s existing credit facility, CDI also expects to achieve additional operational improvements through the diversification of games available at its historical racing machine facilities.

Exacta will operate within the company’s TwinSpires horse racing segment and will continue to service its growing portfolio of third-party HHR operators in Kentucky, Wyoming, and New Hampshire.

The company has integrated a number of HRM developers into its platform including AGS, IGT, Light & Wonder, Everi, Konami and Incredible Technologies. 

As the group first detailed the purchase in December 2022, Chief Executive Officer Bill Carstanjen stated: “For nearly a decade, Exacta has been a creative force supporting the growth of historical horse racing in the US.”

“We look forward to expanding Exacta’s national footprint and further diversifying the game offerings available to players at HRM facilities around the country.”

Last month, CDI declared record Q2 net revenue for the quarter of $768.5m, up 32 per cent year-over-year in comparison to Q2 2022’s performance of $582.5m, following significant gains across the live and historical racing and gaming divisions.

This was helped along by 2022’s $2.48bn acquisition of substantially all of the assets” of Peninsula Pacific Entertainment that was first detailed in February and comprises interests within Virginia and New York, as well as the operations of Illinois’ Hard Rock Hotel & Casino in Sioux City.

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Following the $250m purchase of Exacta Systems earlier in the month, the casino and entertainment operator has received a slew of approvals from the Kentucky Horse Racing Commission.

This has seen the regulatory green-light be issued for six of the company’s properties to begin accepting in-person sports wagers on Thursday, September 7, 2023.

Each will host grand opening events featuring ribbon-cutting celebrations and relevant promotions, in addition to housing a ‘Bet & Jet’ feature that offers guests designated parking spaces for 15 minutes in order to quickly and easily place their in-person sports wager.

Governor Andy Beshear will place the first ceremonial sports wager in the state at 10am EDT at Churchill Downs Racetrack, which will gain 15 sports betting kiosks, a 168 square foot video screen and 20 large format televisions.

A 300 square foot video screen will be gained by each of Derby City Gaming & Hotel, Turfway Park Racing & Gaming and Oak Grove Racing, Gaming & Hotel.

The former pair will also feature 15 sports betting kiosks, compared to the latter’s 20, in addition to 12, 16 and eight television screens, respectively.

Elsewhere, Newport Racing & Gaming’s sportsbook space will comprise 10 kiosks and 20 televisions, while Ellis Park Racing & Gaming will gain five sports betting kiosks.

Alongside this, the Kentucky regulatory has also approved temporary licences for three online sports wagering service providers that will operate in partnership with the group’s racetracks. 

This will see FanDuel, Penn Sports Interactive and Fanatics be cleared to begin accepting online wagers when the region’s digital marketplace opens on Thursday, September 28, 2023.

“CDI is excited to bring our experience operating retail sports wagering experiences to Kentucky with many thanks to the Kentucky General Assembly, Governor Beshear, the KHRC and the Kentucky Public Protection Cabinet for their efforts in making this a reality,” said Bill Carstanjen, CEO of CDI. 

“Sports betting as a tourism and economic development opportunity will further strengthen the state’s signature equine industry by bringing new guests into our live and historical racing venues.”

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During the quarter, the company said that its live and historical racing and gaming segments achieved new adjusted EBITDA highs, helping CDI achieve a new record in overall adjusted EBITDA.

Reporting its Q2 results, Churchill Downs declared a record net revenue for the quarter of $768.5m, up 32 per cent year-over-year in comparison to Q2 2022’s performance of $582.5m, following significant gains across the aforementioned divisions.

The company’s adjusted EBITDA reached a new high as well, coming in at $363.7m, a 25 per cent increase compared to the previous year’s $291.2m thanks to the performances of live and historical racing and gaming segments.

However, net income declined considerably, falling by 58 per cent to $143m in comparison to Q2 2022’s $339.3m due to after-tax gains and increases.

CDI noted that net income was impacted by a $193.6m after-tax gain on the sale of the Calder property in 2022, an $18.5m after-tax increase in costs in 2023 due to Presque Isle impairment, and a $6m after-tax net increase in all other nonrecurring expenses.

Excluding the after-tax gains and increases listed above, the company stated that its Q2 net income increased by $21.8m YoY due to a $43.9m after-tax increase primarily driven by operation results, while also being partially offset by a $22.1m after-tax increase in interest expense associated with higher outstanding debt balances.

Taking a look at CDI’s Q2 results per segment, live and historical racing revenue rose by 48 per cent to $408m (2022: $275.9m), while adjusted EBITDA for the segment increased by 36 per cent to $223.5m (2022: $163.9m).

The company highlighted a record Derby Week all-sources handle when the Churchill Downs Racetrack ran the 149th Kentucky Derby, contributing to adjusted EBITDA and the debut of the new First Turn Experience.

The performance of the live and historical racing segment could be expected to keep improving into the future, as a new 123-room hotel with dining facilities was opened at Derby City Gaming and Hotel in Louisville, Kentucky in June.

CDI has also recently announced that the Jockey Club Suites at Churchill Downs Racetrack will receive a $14m renovation, to be completed in time for the 150th Kentucky Derby in May next year.

The company’s gaming segment also saw YoY improvements in revenue and adjusted EBITDA, with revenue rising by 34 per cent to $247.9m (2022: $184.5), while adjusted EBITDA improved by 16 per cent to $123.4m (2022: $106.8m).

Increases in both figures were attributed to the New York and Iowa properties acquired in the P2E Transaction, partially offset by a decrease from other gaming properties.

As for TwinSpires operations, the segment’s revenue slightly increased to $139.1m (2022: $138.5m) while adjusted EBITDA stayed flat at $33.9m (2022: $33.9m), impacted by the B2B horse racing expansion strategy and the decision to exit the direct online sports and casino business in Q1 2022.

CDI also stated that it closed an offering of $600m of 6.75 per cent senior notes due 2031 on April 25, 2023, and that effective May 22, 2023, the company’s common stock was split two-for-one with a proportionate increase in the number of its authorised shares of common stock.

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Speaking on the company’s recent earnings call for its fourth quarter and 2022 full-year financials, CEO Bill Carstanjen highlighted the pathway CDI’s online operations have already taken, and the direction they expect to go in.

Publishing its financial results, CDI declared that its TwinSpires digital operations saw revenue fall through Q4 and FY to $94.3m (2021: $101.2m) and $441.6m (2021: $457.8m) respectively, with AEBITDA up across each time frame to $25m (2021: $12.9m) and $114.1m (2021: $82.7m) respectively. 

The company noted that its decision to exit the direct online sports betting and casino business in Q1 2022 and a decline in horse racing wagering affected the result.

During the earnings call, Carstanjen was asked to elaborate on the TwinSpires results and provide growth trajectories for the medium and long term.

The CEO stated how the online business’ share in handle “greatly increased” during COVID, rising north of around 60 per cent, before sliding back to a new norm of around 52 per cent once restrictions were lifted and customers returned to brick-and-mortar venues.

While CDI is yet to publish its final numbers for its TwinSpires operations, Carstanjen believes these numbers will be around 52 per cent.

He said: “We haven’t seen the final industry numbers for 2022, but we think online will show up in those numbers at around 52 per cent or so. We think that’s stable right now, we expect it’ll start to grow with the trend that’s been going on for many years of handles shifting between brick and mortar to online. 

“We don’t know for sure what will happen, but prior to COVID, there was a consistent trend of handle moving to online, we’ve had some disruption because of COVID. Now, it’s a reasonable expectation that over time, you’ll see the trend at a new stepped-up level, in the 50-52 per cent area. It’s a reasonable expectation it might start to grow.”

However, Carstanjen made sure to highlight that online growth could be impacted by CDI’s B2C model and its pari-mutuel product, but the company has “cause for optimism”.

The CEO continued: “The only thing that affects all of this is our B2C model and our efforts to provide the pari-mutuel product directly to the sports fans out there, which ought to affect in ways that are not entirely clear, the overall online picture for horse racing. 

“It should introduce millions more customers out there that currently don’t belong to horse racing AEWs, it ought to introduce them to the product and that ought to be a good thing. But how market share shifts between providers within that whole is something that we’ll just have to watch and monitor. 

“We have a cause for optimism, but we’ll see how that plays out over the next couple of years. But generally, it’s an optimistic picture for us as it often is when you have a plan and you’re executing and you feel like you have the best strategy given all the circumstances.”

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Subject to working capital and other purchase price agreements, the deal has a total consideration of $250m to be provided in cash as Churchill Downs look to bolster existing projects. 

The transaction will allow Churchill Downs to enhance recent acquisitions made in the world of Horse Racing, realising synergies between Exacta’s product, its Colonial Downs Racetrack and Rosie’s Gaming Emporium facilities in Virginia.

Bill Carstanjen, Chief Executive Officer of CDI, stated: “For nearly a decade, Exacta has been a creative force supporting the growth of historical horse racing in the US.”

“We look forward to expanding Exacta’s national footprint and further diversifying the game offerings available to players at HRM facilities around the country.”

Supporting operations in Virginia, Wyoming, Kentucky and New Hampshire, Exacta has integrated a number of historical racing machine developers into its platform including AGS, IGT, Light & Wonder, Everi, Konami and Incredible Technologies. 

The acquisition is to be treated as an asset purchase, providing the company with incremental tax advantages that will provide additional cash flow and enhance the transaction. 

Churchill Downs recently hailed a “significant moment in the evolution” of the company, after closing the $2.75bn purchase of substantially all assets within Peninsula Pacific Entertainment.

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2.75 

Churchill Downs signalled “a significant moment in the evolution” of the company after closing the $2.75bn purchase of substantially all of the assets of Peninsula Pacific Entertainment.

The acquisition, which was first detailed in February of this year, includes all of P2E’s assets and operations in Virginia, New York and Sioux City, Iowa.

Completion followed receipt of customary licensing approvals from the Virginia Racing Commission, New York State Gaming Commission and Iowa Racing and Gaming Commission.

“Today marks a significant moment in the evolution of Churchill Downs Incorporated,” noted Bill Carstanjen, Chief Executive Officer of CDI. 

2023

Caesars Entertainment confirmed that the potential divestment of a Las Vegas asset is no longer a part of company plans after the group backtracked on long-mooted plans.

One year earlier the group noted that such a sale formed part of a larger strategy to reduce the company’s debt load, however, during a Q3 earnings call, and following further talk earlier this year, Tom Reeg, CEO of Caesars, confirmed that this is no longer in the works. 

Despite this, expansion on both the retail and digital front formed a key component of the third quarter breakdown, with Anthony Carano, President and COO, delving into the group’s capital update program.

Renovations in Atlantic City are expected to be finalised during H1 2023, with Louisiana’s Horseshoe Lake Charles, which sees Isle of Capri come ashore, and an expanded casino offering in Pompano, Florida, set to be showcased in December.

Elsewhere, Caesars expects to open temporary casinos in both Danville, Virginia, and Columbus, Nebraska, by the midpoint of next year, with New Orleans property improvements “progressing well”.

With Texan prospects once again touched upon, Caesars also offered a little more on an expected “very competitive process” in pursuing a downstate casino licence in New York alongside its SL Green partner.

83.7

Bally’s is to commence an in-house evaluation of loss making North American interactive businesses as the operator looks to hone in on “faster paths to profitability”.

This refocussed effort was disclosed during a third quarter performance update that saw revenue and AEBITDA increases be reported alongside a slight rise in net income.

The former of these financial reporting segments saw the enlarged group report a 83.7 per cent increase year-on-year to $578.24m (2021: $314.77m), which came against a tough macroeconomic environment and foreign exchange headwinds.

3

Three subsidiaries of Australia’s Star Entertainment were officially issued with show cause notices in relation to last month’s much publicised casino licence unsuitability findings.

Shannon Fentiman, Queensland Attorney General and Minister, confirmed the issue to the group, which boasts two properties in the state, with it being believed that “grounds have arisen for taking disciplinary action against The Star”.

These are rooted in the findings of an external review into the company that was undertaken by Robert Gotterson, which saw the firm deemed unsuitable to hold a casino licence within Queensland in developments that mirrored those that had already been encountered further south in New South Wales.

Gotterson found that the company’s business, whose network includes casinos in Brisbane and the Gold Coast, with the licence of the former to be transferred to a near A$4bn development upon completion next year, was operated “in a way that is inconsistent with the achievement of the objectives of the Casino Control Act 1982”.

These show cause notices set out the potential disciplinary actions which may be taken, which range from taking no further disciplinary action to a letter of censure, written directions, a penalty of up to A$100m and licence cancellation or suspension.

170

Boyd Gaming elaborated on the “attractive growth opportunity” presented by igaming across the US after the group closed its $170m Pala Interactive purchase.

The acquisition, which was first announced in March 2022, saw the operator secure igaming technology that includes a player management system; casino, social casino and poker platforms, along with integrated sports and a suite of managed services. 

“Online casino gaming is an attractive growth opportunity for our company, and the acquisition of Pala Interactive provides us with the technology, products and expertise to create a profitable regional online casino business,” explained Keith Smith, President and Chief Executive Officer of Boyd Gaming.

1.51

PENN Entertainment heaped praise on an omnichannel strategy that “continues to drive growth” as well as strong year-on-year interactive gains after the company reported a Q3 that represented “another solid quarter”.

Set against an uncertain economic environment, Jay Snowden, Chief Executive Officer and President, cited a “successful” Kansas retail and online sports betting launch and early Ontarian success as Q3 high points.

The former, said Snowden, “underscores the advantage of our leading omnichannel strategy,” with the Canadian province said to be “benefitting from theScore Bet’s seamless transition to our own fully-integrated, proprietary tech stack”.

Coming almost a month after the company outlined a four-part $850m growth project that spans Illinois, Nevada and Ohio, PENN reported Q3 revenue of $1.62bn, up 7.5 per cent YoY from $1.51bn.

20

Rush Street Interactive cited currency fluctuations impacting international revenue as a key reason in lowering 2022 revenue expectations, as the group CEO Richard Schwartz reflected on the “fantastic progress” made towards profitability through Q3.

This aforementioned ambition has long targeted reaching this EBITDA target by the second half of 2023, which, as Schwartz reaffirmed, will be achieved through “a combination of solid revenue growth, disciplined marketing spend, improving gross margins and modest growth in our corporate G&A costs”.

An analysis of key growth markets offered during a third quarter earnings call followed RSI reporting a 20 per cent revenue increase through Q3 to $148m (2021: $122.9m). 

Despite this, net loss and AEBITDA loss tracked the reverse after closing the period at $22.7m (2021: $18.9m) and $12.5m (2021: $12.2m), respectively.

98.7

LeoVegas witnessed a series of struggles through the year’s third quarter, with revenue, profit and earnings all taking a hit as the operator’s acquisition by MGM Resorts looms closer still.

The former of these reporting segments witnessed a slight one per cent decline to €98.7m (2021: €99.4m), as net profit of €4.12m one year earlier swung to a loss of $10.65m and adjusted EBITDA dropped 62.13 per cent to €7m (2021: €11.51m).

Delving into group revenue on a geographic basis, the Nordics posted a 20 per cent year-on-year increase, with “another good quarter” in Sweden driven by “all-time highs” for the Expekt brand.

However, the online gambling operator noted that Finland “declined substantially”, which is aligned to a change in legislation from the beginning of the year. 

An 18 per cent drop compared to the corresponding period one year earlier was evidenced across the rest of Europe segment, where Germany “continued to negatively impact the region’s sales” while the Netherlands also reportedly slowed development. Elsewhere, the rest of the world also detailed a drop, this time of ten per cent.

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Live and Historical racing proved to be a high-performing business unit during Q3 for CDI, which has made significant investments in the unit through M&A activity. 

Posting its Q3 trading report, CDI posted total corporate revenues reached $383.1m for the three-month period ending Sep 30, down 2.5 per cent from Q3 2021’s figure of $393m. 

Similarly, net income was slashed by 7.2 per cent to $57m, down from $61.4m in the same period last year. 

But broken down by segment, it is clear to see the reasoning behind the racing investment, as revenues grew by 25.6 per cent in this segment up to $102.4m from $81.5m just a year ago. Adjusted EBITDA in racing also grew 25.4 per cent to $34.5m. 

Racing success was attributed to an increased handle from holding more live race days in the third quarter of 2022 as compared to the same quarter of 2021.

The gaming unit, the most lucrative business unit in terms of both revenue and EBITDA, was relatively flat in terms of revenue which hit $185.9m for Q3, stagnant from Q3 2021’s $185.6m. 

This slight increase was primarily down to tough comparatives, considering a repeat of Hurricane Ida did not occur in Q3 of 2022 which severely impacted Fair Grounds and Ocean Downs. 

Adjusted EBITDA for the gaming unit was up slightly to $111.6m, attributed to a $1.4m increase in equity investments offset by a $500,000 decrease in wholly-owned gaming properties. 

The TwinSpires unit saw revenues fall slightly to $107.4m from $109m last year, however, adjusted EBITDA for the period climbed from $22.1m to $31.1m, an increase of 40.7 per cnet attributed to a vast reduction in online marketing and promotional spending.

The company noted three key acquisitions made during Q3 to grow its business and diversify its offering across the US.

This includes purchasing Chasers Poker Room in Salem New Hampshire, with a total investment package of around $150m and plans to develop an ‘expanded charitable gaming facility in Salem’. 

Moreover, CDI acquired Ellis Park in Henderson Kentucky for $79m cash. The racetrack purchase features 300 historical racing machines and the firm also ‘assumes the opportunity to construct a track extension facility in Owensboro, Kentucky. 

Finally, CDI has agreed a deal to acquire Peninsula Pacific Entertainment (P2E) for a total consideration of $2.75bn, covering Colonial Downs Racetrack in New Kent, Virginia, six historical racing entertainment venues across Virginia, del Lago Resort & Casino in Waterloo, New York, and Hard Rock Hotel & Casino in Sioux City, Iowa.

This acquisition of P2E also includes rights in Virginia to develop up to five HGRM venues in the state with up to 2,300 HRMs.

Due to decreasing marketing spending and increasing revenues in the racing unit, CDI celebrated record Q3 adjusted EBITDA of $163.2m

However, CDI’s total net income came down by 7.2 per cent to $57m, which was impacted by a $2.4m after-tax expense increase relating to transaction, pre-opening and other expenses, net; and a $1.4m after-tax reduction in the benefit related to its equity portion of the non-cash change in the value of Rivers Des Plaines’ interest rate.

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In a move that progresses a prior pledge of placing horse racing at the forefront of a five point transformation plan, the transaction will also see the company gain the Henderson-based entity’s opportunity to construct a track extension facility in nearby Owensboro, Kentucky.

Ellis Park, which celebrated 100 years of racing this year, also features a gaming facility venue with approximately 300 historical racing machines.

“This is an exciting announcement for the horse racing industry, the cities of Henderson and Owensboro, and the entire commonwealth of Kentucky,” said Kentucky Governor Andy Beshear. 

“Churchill Downs has proven it has the experience, resources, and desire to reinvigorate Ellis Park into a premier racing destination and provide unmatched gaming entertainment.”

Alongside this transaction, CDI has commenced planning for investments in both the Ellis Park racing infrastructure and to construct Owensboro Racing & Gaming.

This latter venue will have 600 HRMs, a simulcast wagering centre, and multiple food and beverage offerings, and forms part of an expected $75m outlay in Kentucky’s Henderson and Daviess Counties over the next 12 months.

“We are very enthused to welcome Ellis Park to the Churchill Downs racing family,” added Bill Carstanjen, Chief Executive Officer of CDI. 

“Our team is committed to building a summer meet at the ‘Pea Patch’ that keeps more Kentucky-bred horses and Kentucky-based trainers’ in their home state while attracting top horse racing talent from across the country to the Bluegrass State each July and August.”

The closing of the transaction is contingent upon approval by the Kentucky Horse Racing Commission. If change of control is approved, the parties expect to close the transaction shortly thereafter.

“This investment will ensure our Kentucky horsemen and women have the best year-round racing circuit in the country and create jobs throughout the region and state,” added Beshear. “Churchill Downs is a great corporate citizen and an important part of Team Kentucky.”

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One key facet of this will be a renewed focus on driving a profitable online TwinSpires horse racing business amid a much detailed exit from online sports betting and igaming.

This would see the group become a distributor of horse racing content through a business-to-business model that would enable “the online distribution of horse racing content to millions of new customers who have opened online sports wagering accounts”.

“We believe fundamentally that horse racing content should and will become available over time on sports wagering platforms to reach every wagering customer across the US,” Carstanjen commented.

Adding: “Given our expertise and extensive knowledge of pari-mutuel wagering on horse racing, we have the technical expertise, access to racing content, and technology to seamlessly integrate pari-mutuel wagering into existing third-party online sports wagering platforms. 

“We will also provide user interfaces and ancillary services that may be necessary or desired by online sports wagering platforms.”

With a number of key partnerships said to be forthcoming before the close of the year, CDI notes that the strategy would enable key sponsorships to be established and drive incremental content fees for its racetracks.

“Our TwinSpires strategy going forward will be to maintain and grow our existing TwinSpires platform, while growing the distribution of online horse racing content to the millions of us sports betting customers who have been acquired by sports betting platforms over the past couple of years,” it said.

Alongside this, a number of “major organic investments” were outlined which will deliver projects of $90m, $76m, and $148m at the Churchill Downs Racetrack, Derby City Gaming, and Turfway Park, respectively.

Furthermore, a $260m dollar development regarding Queen of Terre Project Haute Casino Resort, which was purchased last month, will be finalised during late 2023.

The casino will have up to 1,000 slots, 50 table games, a high limit gaming lounge and a sports bar along with several food and beverage venues. 

Carstanjen also reaffirmed that the $2.48bn purchase of substantially all of the assets” of Peninsula Pacific Entertainment is on track to close before the end of the current year, with the gain of Chasers Poker Room in Salem, New Hampshire anticipated during the third quarter.

“Our current plans contemplate opening a new facility with up to 800 gaming positions including HRM and table games, with the potential to add more after we opened,” he noted on the latter of those.

“We aren’t ready to announce the schedule yet. We will provide an update on our next earnings call.”

The final stage of the five-stage strategy saw a brief update issued on the sale of 116 acres next at the Calder Casino in Arlington Park property for $291m.

“We intend to utilise a real property we have already purchased for Derby City Gaming Downtown and the Queen of Terre Haute casino as well as real property we will be purchasing as part of the P2E acquisition and various 1031 exchange transactions to defer the tax on the gains from the sale of the Calder land,” Carstanjen closed.

“We’re also still on track to sell the 326-acre Arlington Park property to the Chicago Bears for $197m in the first quarter of 2023, pending completion of remaining conditions. We plan to utilise temporary one to change transactions to defer the tax on the gain on this sale as well.”

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The former of the acquisitions regards the $2.48bn gain of substantially all of the assets” of Peninsula Pacific Entertainment that was first detailed in February and comprises interests within Virginia and New York, as well as the operations of Illinois’ Hard Rock Hotel & Casino in Sioux City.

Issuing an update on the deal, the group has gained ownership approval from the Virginia Racing Commission and is awaiting similar rubber stamps being issued by the New York State Gaming Commission and the Iowa Racing and Gaming Commission. The transaction is expected to close before the end of 2022.

Elsewhere, CDI expects to finalise a deal for Salem, New Hampshire’s Chasers Poker Room during the third quarter of 2022.

“Following the closing of the acquisition, the company plans to develop an expanded charitable gaming facility in Salem to accommodate historical racing machines,” it was noted by the firm.

“The company expects the total investment in Salem, inclusive of the Chasers purchase price, to be approximately $150m.”

As the elimination of capacity restrictions brought a significant boost to CDI’s live and historical racing segment, the company saw record revenue and adjusted EBITDA performances through Q2 via upticks of 13 per cent and 24.81 per cent to $582.5m (2021: $515.1m) and $291.2m (2021: $233.3m), respectively.

Furthermore, the group also scored a high in net income courtesy of a significant increase to $339.3m (2021: $108.3m) through the three month period, although the group does note a number of factors impacting comparability.

Most notably among these is a $193.6m after-tax gain on the sale of 115.7 acres of excess land near Florida’s Calder Casino to Link Logistics, a Blackstone portfolio company.

Delving into these figures further, and it’s the aforementioned racing division that has raced to the summit, with revenue and AEBITDA up 44.82 per cent and 66.56 per cent to $275.9m (2021: $190.5m) and $163.9m (2021: $98.4m), respectively.

This is aligned with the running of the Kentucky Derby in 2022 without capacity restrictions that were in place in 2021, as historical racing machine properties also benefited from this as well as the overall continued growth in the businesses.

On a land-based gaming basis, decreases were felt across both revenue and AEBITDA to $184.5m (2021: $186m) and $106.8m (2021: $119.8m), respectively, primarily as a result of the current economic conditions and competitive pressures.

Twinspires saw revenue decrease 2.85 per cent to $138.5m (2021: $142.6m) which is put down to the decision to exit the online sports betting and igaming space, in addition to a drop across horse racing as punters returned to wagering at brick-and-mortar facilities.

AEBITDA increased 37.8 per cent to $33.9m (2021: $24.6m) driven by a $10.8m increase across sports and casino due to decreased online marketing and promotional activities, which was offset by a $1.2m horse racing drop.

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