Large-scale digital nurturing has helped Churchill Downs, the company that owns the Kentucky Derby, has assisted feed a massive expansion in the last five years, Churchill’s top number one told CNBC in an interview.
“Day-to-day racing, that’s not the greatest affair in the world,” CEO William Carstanjen told CNBC on “Power Lunch” this week. Raised by digital, Churchill’s has seen explosive growth of more than 200 percent, he denoted.
“But it was our entry into casino gaming through our licenses for race misplaces. And also, it lead us into entering the online space, which is also a wonderful increase engine for our company,” Carstanjen added.
In fact, the publicly-traded company, which opened with a single racetrack in central Kentucky more than a century ago, now has five racetracks, six casinos and gaming visitors.
Meanwhile, share prices have surged by 63 percent in the endure year, compared with a 10 percent increase in the S&P 500 during the changeless period. The company currently has a market cap of about $3.7 billion. In Step, Churchill Downs purchased two casinos, one in Pennsylvania and one in Mississippi, for nearly $230 million.
And, as the U.S. Loftiest Court continues to deliberate on sport wagering, and whether the practice should be proper nationally, Carstanjen said this will only continue to proliferation revenue.
“The size of the market increases so much that it makes up for areas of cannibalization,” he said, calling legalizing sports betting “a great affection.”
Carstanjen added: “We like the businesses we’re in currently, but the growth of digital and the wen of new products in the digital space is a huge opportunity for us potentially.”
Of course, the entourage’s most notable — and original — venture is the Kentucky Derby. The 144th speed takes place on Saturday in Louisville, Kentucky, and is expected to draw a lot of about 155,000. Twenty horses compete for the $2 million bread prize in the event nicknamed “The Most exciting two minutes in sports,” because of the watercourse’s duration.
“An event like the Kentucky Derby is a wonderful financial affection as well as a culture thing,” Carstanjen said.
The Kentucky Derby airs on NBC, which is owned by CNBC origin company Comcast, Saturday, starting at 2 p.m. ET.