Churchill Downs Incorporated has reported massive profits in the third quarter of 2020. The result is mostly because of record online betting on Kentucky Derby.
CDI generated $337.8mn in the three months, ending September 30. This is 10.2% more than last year’s same period. The adjusted earnings were up by 38.5% to $121.9mn, and the net income soared to $43.2mn from $14.8mn in Q3 2019.
CDI has many properties around the county for the last couple of years. It has expanded the BetAmerica online casino and sports betting operations as well.
Kentucky Derby was postponed to September from May. The segment revenue shot up to $68mn, increasing almost 100% from Q3, 2019. The earnings also increased to $23.9mn thanks to racing of Derby City Gaming.
The TwinSpires online advance deposit wagering site’s revenue shot up by 77% to a record high $124.1mn. The online handle surged 69% to $622.4mn.
BetAmerica contributed $1.8mn to online revenue. This comes after the $100k loss in Q3 2019. BetAmerican is operating for the US states New Jersey, Pennsylvania, Indiana, and Mississippi.
The gaming revenue fell thanks to the pandemic. The revenue off 26% to $775.8mn, operating income reduced by 82.3% to $37.5mn. It has a net loss of $99mn versus a profit of $133.5mn in the first quarters of 2019.
CDI launched historical racing operations at its Oak Grove racetrack in late-September before Kentucky Supreme Court issued that cast doubt on the legality.