Churchill Downs Acquires Exacta Systems to Expand Reach in HHR Market

The renowned Churchill Downs Incorporated is taking a significant step to solidify its presence in the profitable electronic gaming market, specifically historical horse racing (HHR). The corporation has reached an agreement to purchase Exacta Systems, a prominent supplier of technological solutions for HHR ventures, for a substantial $250 million.

This calculated acquisition is poised to generate a collaborative advantage with Churchill Downs’ recent purchase of Colonial Downs Racetrack and Rosie’s Gaming Emporium in the Commonwealth of Virginia. Exacta’s HHR system, already incorporated with major game developers such as IGT and Konami, will be a valuable asset to Churchill Downs’ holdings.

Exacta’s influence extends beyond the borders of Virginia, as the company currently provides services to HHR operators in Kentucky, Wyoming, and New Hampshire. This acquisition strategically places Churchill Downs to capitalize on the increasing prevalence of HHR throughout the United States.

Churchill Downs Chief Executive Officer Bill Carstanjen commended Exacta’s ten-year history as a trailblazer in the HHR sector, highlighting the company’s enthusiasm for expanding Exacta’s reach and enhancing gaming choices for patrons across the nation.

The acquisition, organized as an asset purchase for fiscal purposes, will also unlock substantial tax advantages for Churchill Downs, further amplifying the deal’s financial appeal.

The famed racetrack is leveraging its available funds and credit facilities to acquire the gaming enterprise. Anticipated to finalize sometime in 2023, the transaction awaits approval from regulatory bodies.

This purchase follows an unusual financial period for Churchill Downs. Despite achieving unprecedented profits (modified EBITDA reached $163.2 million), income actually declined in comparison to the corresponding timeframe last year.