COVID19 pandemic has made industries innovate and change their priorities. The US-based Churchill Down Incorporated (CDI) has shifted the focus on TwinSpires Advanced Deposit wagering site. This came after the land-based sites were shut due to the COVID19 pandemic.
As per the latest figures, CDI has generated revenue of $185.1mn in the three months ended on June 30. This is a sharp decline of 61.2% from the same time period last year. The earnings have tumbled by 86% to $30.1mn. The company has booked a net loss of $118.8mn. In the Q2 of 2019, the company made $107.1mn profit.
COVID19 was the crucial factor for the loss and most of the loss came due to discontinued operations. The $124 settlement in May with the disgruntled customers of CDI’s formal social casino Unit Big Fish Games also contributed to the loss. The unit was sold by CDI to the Aristocrat Leisure of Australia in 2017.
CDI was forced to shut down the operations since March due to the lockdown imposed to arrest the growth of the COVID19. However, since then CDI could reopen all the venues in the USA except Calder Casino in Florida. The Calder Casino opened for sometime before shutting down again as COVID19 increased in Florida.
The shutdown of the venues has caused CDI to lose huge revenue and the company has recorded $37.3mn revenue, down by 80%. The casino division has announced a $2mn earnings loss in contrast to $76.1mn gain for the same period the last year.
However, the good news is that the revenue of wholly-owned casinos is up by 9% and 38% in May and June after the venues were reopened on a year-on-year basis.
The land-based racing revenue for CDI has also gone down the hill. The revenue fell by 84.3% to $30.2mn and the earnings fell by 96.3% to $4.5mn. The pandemic has already postponed the Kentucky Derby until September 5. The historical racing Derby City Gaming at Louisville has also been halted. This might further dent the business for CDI.
However, like others, CDI has managed to do very well in the online wagering division. The revenue in Q2 has gone up by 26.7% to $121.6mn, the earnings also increased to $38.8mn. TwinSpires ADW site also jumped 21.6% on a year-on-year.
CDI Noted that TwinSpires’ ranks of active players were down by 55.5% during the Q2. However, the company sights absence of Kentucky Derby. However, revenue per active player almost tripled.
BetAmerica’s online gambling brand has added $1.3mn. This is twice of Q1 2020. The gain came due to the full activity in Pennsylvania.
CDI announced that BetAmerica had a deal enter Michigan’s Legal Online Gambling through Hannahville Indian Community.
BetAmerica will offer online sports betting and casino products statewide pending regulatory approval. A retail sportsbook at the tribe’s Island Resort and Casino in Harris is also planned.