Churchill Downs is coming to Owensboro.
The mecca of horse racing announced on Thursday its $79 million cash acquisition of the Henderson-based Ellis Park Racing & Gaming, which had been developing Owensboro Racing & Gaming — a track extension and entertainment venue planned for Towne Square Mall.
Churchill Downs will now take over that project.
“The opportunity to bring Churchill Downs to Owensboro is particularly significant to us,” said Jason Sauer, senior vice president of corporate development for Churchill Downs. “We are eager to start the work to elevate Ellis Park’s reputation as a summer destination for thoroughbred racing while delivering a premier gaming and entertainment experience to Daviess County.”
The closing of the acquisition is still subject to approval of the Kentucky Horse Racing Commission, which will meet Tuesday to consider the matter.
Public officials are already celebrating the announced deal.
“This is an exciting announcement for the horse racing industry, the cities of Henderson and Owensboro, and the entire commonwealth of Kentucky,” Kentucky Gov. Andy Beshear said.
“We are very excited about the announcement Churchill Downs plans to purchase Ellis Park and begin making progress towards building a gaming and entertainment venue in Owensboro,” Owensboro Mayor Tom Watson said. “Churchill Downs is a globally recognized name and their investment in our city will create jobs, boost tourism and generate further economic development.”
The Ellis Park-led Owensboro Racing & Gaming project was initially scheduled to be completed by early 2023 at an estimated cost of $16.7 million.
Sauer indicated that the timeline may be extended as Churchill Downs takes a “fresh look” how to make it bigger and better. The facility will still feature at least 600 “historical racing machines” — which allow people to bet on old races — a simulcast wagering center, and multiple food and beverage offerings.
“Our team’s going to take a fresh look at 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 the Messenger-Inquirer.
As part of the acquisition, Churchill Downs has committed to investing an additional $75 million in its Henderson and Daviess county facilities.
Sauer said the “bulk” of that investment will go toward the Owensboro development.
Sauer added that Owensboro was the main reason Churchill Downs sought the acquisition.
Churchill Downs — which in addition to hosting the Kentucky Derby, is involved in online betting and casino gaming — has been on a buying spree as of late. It is in the midst of a $2.75 billion bid to acquire Peninsula Pacific Entertainment, which owns a variety of racing and gambling properties.
As the online betting industry has grown in recent years, so has Churchill Downs — with its stock price increasing by about 200% over the last five years, from $66.57 to $199.65 at Thursday’s closing bell.
“We’re in the middle of a tremendous growth trajectory. We have a lot of projects going on right now, but this one [in Owensboro] is personal and is a bit of a passion project because we can do something in our backyard in Kentucky,” said Sauer, who is an Owensboro native.
Sauer said he hopes to announce more details about Owensboro Racing & Gaming “soon.”
Along with the track extension project in Owensboro, Churchill will operate the horse racing track just south of Evansville, which celebrated 100 years of racing this year and has a gaming center with about 300 historical racing machines.
“Churchill Downs Incorporated is a proven partner in communities it already operates in, providing both entertainment and economic development benefits,” said Kentucky House Speaker David Osborne. “This acquisition is also a boost to one of our state’s signature industries and the direct result of legislation we passed to help make our tracks more competitive. Churchill Downs’ commitment to a year-round horse racing circuit in the Commonwealth is not only a smart business move, but also necessary to sustain and grow an industry that provides 80,000 jobs and millions to local and state economies.”
