Yahoo Finance Churchill Downs (CHDN) Enters Malta, Boosts HHR Solutions
Exacta Systems, a subsidiary of Churchill Downs Incorporated CHDN, along with International Game Technology PLC, partnered with National Lottery plc (IZI Group’s subsidiary) to offer historical horse racing (HHR) solutions in Malta.
This collaborative agreement marks the international debut of HHR technology outside the United States. It also caters to the international expansion objective of International Game and Exacta Systems.
Per the deal, Exacta Services, Inc., which is a part of Exacta Systems, will power the property's gaming floor with its Exacta Connect system solution. Exacta Connect, with its all-in-one pari-mutuel system, will make sure the gaming floors are compliant, runs smoothly and drives handles. Furthermore, alongside International Game, Exacta Systems will power HHR at various other National Lottery gaming venues throughout the country.
Players will have the opportunity to enjoy HHR-versions of top-tier games such as Prosperity Link, accompanied by International Game’s classic games such as Cleopatra Gold, Wolf Run Gold and Stinkin' Rich Skunks Gone Wild!.
Churchill Downs is optimistic about this international opportunity. Given the buzz about HHR gaming, the company believes that the flexibility of its Exacta Connect system to adapt to different markets and legislative environments will likely foster growth prospects.
Strategic Investments Bode Well
Churchill Downs tends to focus on strategic project capital investments as its main growth initiative, which is incorporated in the form of building new properties or revamping the existing ones. Capital investments focus on inorganic initiatives and reflect organic growth strategies, accompanied by the expansion and diversification of product offerings.
During the first quarter of 2024, Churchill Downs completed the new Paddock project, which is the most significant construction development ever at Churchill Downs Racetrack, for an investment of about $200 million. Furthermore, it expects the Rose Gaming Resort, which is a historical racing machine (HRM) entertainment venue, to open in the third quarter of 2024. The total investment in this resort was approximately $460 million. For 2024, the company expects to spend $90-$105 million for maintenance and $450-$550 million for new projects.
The company is optimistic about its project pipeline, which includes the 2025 Derby project and the Owensboro HRM venue in Kentucky (expected to open in the first quarter of 2025).
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Consistent investments in growth-driving strategies and effective implementation of such strategies have ensured the uptrend in the company’s prospects. Shares of CHDN have gained 15.6% in the past three months, outperforming the Zacks Gaming industry’s 7.2% growth.
Zacks Rank & Other Key Picks
Churchill Downs currently carries a Zacks Rank #2 (Buy).
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