Churchill Downs Incorporated (CDI) saw revenues and earnings decline in Q3 despite their online business performing impressively. Net revenues for the group as a whole dropped 1 percent to $164.9million with earnings declining from $43m last year to just $21.3m this year. The company’s online busines, which includes Twinspires.com, Luckity.com, Velocity and an equity investment in HRTV, saw net revenues increase 9 percent to 45.6 million. TwinSpires.com saw a handle increase of 10.6 percent, or $20.5m, which compares very favorably to the rest of the US thoroughbred industry’s 2.2 percent growth. There was still a bleak drop in online EBITDA of 8 percent that was blamed on $1m bill for the launch of Luckity.com and spending on the development of an exchange-wagering platform.
CDI Chairman and Chief Executive Officer, Robert L. Evans, commented: “We hope to see the revenue and EBITDA growth impact of these new opportunities starting in the fourth quarter of this year, and into 2013 and 2014, including our decision to proceed with construction of our joint venture casino project near Lebanon, Ohio; the completion of the acquisition of Riverwalk Casino Hotel; the launch of the real-money gaming site, Luckity.com; and significant progress on the 15 million renovation and rebuilding of Harlow’s following the 2011 Mississippi River flood which we expect to complete by year-end.”
International Game Technology has launched its latest Star Trek based slot with Against All Odds now available. Three years after Simon Pegg and Leonard Nimoy starred in the film of the same name the CBS licensed slot has been released and Leigh Nissim, from IGT, commented: “Its frequent payouts, engaging game play and revolutionary skill-based bonus feature gives this game universal appeal. We think this game will prove to be a huge hit.”
Amaya Gaming Group has confirmed a deal to acquire Cadillac Jack Inc. Previously announced on September 25, it sees Amaya spending $177million to takeover the product and technology supplier and gives them a foothold in over 200 venues in both the US and Mexican land-based markets. David Baazov, CEO of Amaya, commented: “The acquisition of Cadillac Jack is a significant event for Amaya. In combining Amaya’s growth in digital gaming with Cadillac Jack’s strength in traditional land-based gaming we have extended our capabilities as a fully integrated and dynamic technology provider. We are thrilled by the growth opportunities that we believe this acquisition brings.”
