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Churchill Downs is coming to Owensboro.
The horse racing mecca announced Thursday that it has acquired Henderson-based Ellis Park Racing & Gaming, which has been developing Owensboro Racing & Gaming, a track extension and entertainment venue planned for Towne Square Mall, for $79 million in cash.
Churchill Downs will now take over the project.
“The opportunity to bring Churchill Downs to Owensboro is especially important to us,” said Jason Sauer, Senior Vice President of Corporate Development for Churchill Downs. “We are eager to set out to enhance Ellis Park’s reputation as a summer thoroughbred racing destination, while providing Davis County with a top-notch gaming and entertainment experience.”
Completion of the acquisition still needs to be approved by the Kentucky Derby Commission, which will meet on Tuesday to consider the matter.
Public officials are already celebrating the announced deal.
“This is exciting news for the racing industry, the cities of Henderson and Owensboro, and the entire state of Kentucky,” said Kentucky Gov. Andy Beshear.
“We are very excited about Churchill Downs announcing plans to acquire Ellis Park and begin making progress on building a gaming and entertainment venue in Owensboro,” said Owensboro Mayor Tom Watson. “Churchill Downs is a globally recognized brand and their investment in our city will create jobs, boost tourism and further the economy.”
The Owensboro Racing & Gaming project, led by Ellis Park, was originally planned for completion in early 2023 at an estimated cost of $16.7 million.
Sauer said the timetable could be extended as Churchill Downs “revisits” how to make it bigger and better. The facility will still feature at least 600 “historic racing machines” – allowing people to place bets on old events – a hook-up betting centre, and a variety of food and beverage offerings.
“Our team is going to revisit the design to make sure we get this project right. If you look at our track record in Kentucky and beyond, we like to go big,” he told Messenger-Inquirer.
As part of the acquisition, Churchill Downs has committed to invest an additional $75 million in its Henderson and Davies Counties facilities.
Sauer said “the bulk” of the investment will go towards the Owensboro development.
Sauer added that Owensboro was the main reason Churchill Downs was looking for a takeover.
Churchill Downs — which, in addition to hosting the Kentucky Derby, is involved in online gambling and casino games — has been on a buying spree lately. It is buying Peninsula Pacific Entertainment, which owns various racing and gambling properties, for $2.75 billion.
As the online gaming industry has grown in recent years, Churchill Downs has grown too — its shares have risen about 200% over the past five years, from $66.57 to $199.65 by Thursday’s close.
“We are in the midst of a huge growth trajectory. We have a lot of projects going on right now, but this [in Owensboro] It was personal and a bit of a passion project because we could do something in our backyard in Kentucky,” said Owensboro native Sauer.
Sauer said he expects to reveal more details about Owensboro Racing & Gaming “soon”.
In addition to the track expansion project in Owensboro, Churchill will also operate the racetrack south of Evansville, which celebrates its 100th anniversary this year and has a game center with about 300 historic racing machines.
“Churchill Downs Incorporated is a proven partner in the communities in which it already operates, providing entertainment and economic development benefits,” said Kentucky House Speaker David Osborne. “This acquisition is also a boost to an iconic industry in our state and a direct result of our passing legislation to help make our track competitive. Churchill Downs’ commitment to hosting horse racing tracks in the Commonwealth year-round is not only a smart move business initiatives, and are necessary to maintain and grow an industry that provides 80,000 jobs and millions of dollars to the local and state economy.”
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