Revenue from Contracts with Customers

9 Months Ended

Sep. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

11. REVENUE FROM CONTRACTS WITH CUSTOMERS

Performance Obligations

As of September 30, 2023, our Live and Historical Racing segment had remaining performance obligations on contracts with a duration greater than one year relating to television rights, sponsorships, personal seat licenses, and admissions, with an aggregate transaction price of $138.5 million. The revenue we expect to recognize on these remaining performance obligations is $1.0 million for the remainder of 2023, $54.9 million in 2024, $41.7 million in 2025, and the remainder thereafter.

As of September 30, 2023, our remaining performance obligations on contracts with a duration greater than one year in segments other than Live and Historical Racing were not material.

Contract Assets and Contract Liabilities

As of September 30, 2023 and December 31, 2022, contract assets were not material.

As of September 30, 2023 and December 31, 2022, contract liabilities were $48.1 million and $58.7 million, respectively, which are included in current deferred revenue, non-current deferred revenue, and accrued expense in the accompanying Condensed Consolidated Balance Sheets. Contract liabilities primarily relate to the Live and Historical Racing segment and the decrease was primarily due to revenue recognized for fulfilled performance obligations. We recognized $1.2 million and $43.6 million of revenue during the three months and nine months ended September 30, 2023, respectively, which was included in the contract liabilities balance at December 31, 2022. We recognized $1.3 million and $48.1 million of revenue during the three months and nine months ended September 30, 2022, respectively, which was included in the contract liabilities balance at December 31, 2021.

Disaggregation of Revenue

The Company has included its disaggregated revenue disclosures as follows: 

•For the Live and Historical Racing segment, revenue is disaggregated between Churchill Downs Racetrack and historical racing properties given that our racing facilities revenues primarily revolve around live racing events while our historical racing properties revenues primarily revolve around historical racing. This segment is also disaggregated by location given the geographic economic factors that affect the revenue of service offerings. Within the Live and Historical Racing segment, revenue is further disaggregated between live and simulcast racing, historical racing, racing event-related services, and other services.

•For the TwinSpires segment, revenue is disaggregated between live and simulcast racing, gaming, and other services.

•For the Gaming segment, revenue is disaggregated by location given the geographic economic factors that affect the revenue of gaming service offerings. Within the Gaming segment, revenue is further disaggregated between live and simulcast racing, racing event-related services, gaming, and other services.

We believe that these disclosures depict how the amount, nature, timing, and uncertainty of cash flows are affected by economic factors. The tables below present net revenue from external customers and intercompany revenue from each of our segments:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2023		2022		2023		2022
Net revenue from external customers:
Live and Historical Racing:
Churchill Downs Racetrack	$	10.6	$	6.4	$	191.3	$	182.6
Louisville	48.9		41.5		138.2		128.5
Northern Kentucky	19.5		10.0		63.1		29.2
Southwestern Kentucky	37.6		33.3		111.7		97.8
Western Kentucky	11.6		0.2		25.8		0.2
Virginia	88.1		—		280.4		—
New Hampshire	3.2		0.9		8.4		0.9
Total Live and Historical Racing	$	219.5	$	92.3	$	818.9	$	439.2
TwinSpires:	$	108.5	$	106.2	$	340.7	$	343.3
Gaming:
Florida	$	24.4	$	26.3	$	76.5	$	81.2
Iowa	24.0		—		72.5		—
Louisiana	32.2		28.5		110.1		107.2
Maine	30.9		31.6		88.1		87.8
Maryland	32.0		33.3		82.9		82.0
Mississippi	24.2		24.5		77.5		78.0
New York	46.2		—		135.3		—
Pennsylvania	30.4		39.2		97.3		108.8
Total Gaming	$	244.3	$	183.4	$	740.2	$	545.0
All Other	0.2		1.2		0.7		2.2
Net revenue from external customers	$	572.5	$	383.1	$	1,900.5	$	1,329.7
Intercompany net revenues:
Live and Historical Racing	$	6.0	$	10.1	$	30.4	$	26.3
TwinSpires	3.9		1.2		7.1		4.0
Gaming	0.6		2.5		4.2		4.6
All Other	—		—		—		—
Eliminations	(10.5)		(13.8)		(41.7)		(34.9)
Intercompany net revenue	$	—	$	—	$	—	$	—

	Three Months Ended September 30, 2023
(in millions)	Live and Historical Racing		TwinSpires		Gaming		Total Segments		All Other		Total
Net revenue from external customers
Pari-mutuel:
Live and simulcast racing	$	16.0	$	86.3	$	5.1	$	107.4	$	—	$	107.4
Historical racing(a)	179.9		—		7.5		187.4		—		187.4
Racing event-related services	3.3		—		1.4		4.7		—		4.7
Gaming(a)	3.1		5.3		203.0		211.4		—		211.4
Other(a)	17.2		16.9		27.3		61.4		0.2		61.6
Total	$	219.5	$	108.5	$	244.3	$	572.3	$	0.2	$	572.5

	Three Months Ended September 30, 2022
(in millions)	Live and Historical Racing		TwinSpires		Gaming		Total Segments		All Other		Total
Net revenue from external customers
Pari-mutuel:
Live and simulcast racing	$	1.8	$	91.0	$	3.6	$	96.4	$	—	$	96.4
Historical racing(a)	78.7		—		3.5		82.2		—		82.2
Racing event-related services	3.0		—		0.1		3.1		—		3.1
Gaming(a)	0.9		5.3		160.6		166.8		—		166.8
Other(a)	7.9		9.9		15.6		33.4		1.2		34.6
Total	$	92.3	$	106.2	$	183.4	$	381.9	$	1.2	$	383.1

(a) Food and beverage, hotel, and other services furnished to customers for free as an inducement to wager or through the redemption of our customers' loyalty points are recorded at the estimated standalone selling prices in other revenue with a corresponding offset recorded as a reduction in historical racing pari-mutuel revenue for HRMs or gaming revenue for our casino properties. These amounts were $13.3 million for the three months ended September 30, 2023 and $8.4 million for the three months ended September 30, 2022.

	Nine Months Ended September 30, 2023
(in millions)	Live and Historical Racing		TwinSpires		Gaming		Total Segments		All Other		Total
Net revenue from external customers
Pari-mutuel:
Live and simulcast racing	$	67.2	$	283.2	$	19.9	$	370.3	$	—	$	370.3
Historical racing(a)	549.3		—		20.5		569.8		—		569.8
Racing event-related services	141.0		—		4.8		145.8		—		145.8
Gaming(a)	8.2		10.9		615.4		634.5		—		634.5
Other(a)	53.2		46.6		79.6		179.4		0.7		180.1
Total	$	818.9	$	340.7	$	740.2	$	1,899.8	$	0.7	$	1,900.5

	Nine Months Ended September 30, 2022
(in millions)	Live and Historical Racing		TwinSpires		Gaming		Total Segments		All Other		Total
Net revenue from external customers
Pari-mutuel:
Live and simulcast racing	$	53.9	$	290.9	$	22.0	$	366.8	$	—	$	366.8
Historical racing(a)	230.7		—		4.8		235.5		—		235.5
Racing event-related services	125.4		—		0.7		126.1		—		126.1
Gaming(a)	0.9		21.8		469.6		492.3		—		492.3
Other(a)	28.3		30.6		47.9		106.8		2.2		109.0
Total	$	439.2	$	343.3	$	545.0	$	1,327.5	$	2.2	$	1,329.7

(a) Food and beverage, hotel, and other services furnished to customers for free as an inducement to wager or through the redemption of our customers' loyalty points are recorded at the estimated standalone selling prices in other revenue with a corresponding offset recorded as a reduction in historical racing pari-mutuel revenue for HRMs or gaming revenue for our casino properties. These amounts were $37.8 million for the nine months ended September 30, 2023 and $23.2 million for the nine months ended September 30, 2022.