Calder Race Course Unable to Simulcast Kentucky Derby, Kentucky Oaks Race Cards Due to Ongoing Horsemen's Dispute

The Kentucky Horsemen’s Benevolent and Protective Association (“KYHBPA”) is preventing Calder Race Course from offering wagering on the 134th running of the Kentucky Derby and its sister race, the Kentucky Oaks, at Churchill Downs this Saturday, May 3.

The Florida Horsemen’s Benevolent and Protective Association (“FHBPA) had previously denied Calder permission to distribute its simulcast signal to inter-state (ISW) and advanced-deposit wagering (“ADW”) sites when the track opened its meet on April 21.

Horsemen’s groups in Ohio, Delaware, Maryland and Kentucky subsequently blocked their state’s racing signals from coming into Calder and its in-state network for simulcasting. The action of the Kentucky horsemen includes blocking Calder from accepting wagers on this weekend’s Kentucky Oaks and Kentucky Derby race cards, which occur on Friday May 2, and Saturday May 3. All other races from Churchill Downs will be unavailable at Calder as well.

“It’s very disappointing that fans in the South Florida marketplace are being denied the opportunity to wager on the Kentucky Derby, the country’s most important horse race,” said Churchill Downs President Steve Sexton. “We have an impressive race day and wish the horsemen would allow Calder’s patrons to enjoy it.”

Because of the FHBPA’s refusal to approve the distribution of Calder races to out-of-state wagering outlets, including ADW sites, the racetrack was forced to cut purses by 30 percent, effective with the April 27 race card.

“We have attempted to discuss a purse contract with the Florida horsemen, but they refuse to do so without a slots agreement, on which we have diligently tried to reach resolution over the last several months. This demand is especially frustrating since 2008 purses will not be affected by the slots agreement,” said Sexton “At a time when our sport’s visibility is at its highest, the horsemen have chosen to alienate new fans and abandon existing fans.”

Calder Race Course, located on South Florida’s Miami-Dade / Broward county line, offers Thoroughbred horse racing during two consecutive meets and year-round simulcasting. The track is home of the Summit of Speed, Juvenile Showcase, Festival of the Sun, Florida Million and Grand Slam series of events. A wholly owned property of Churchill Downs Incorporated (NASDAQ Global Select Market: CHDN), Calder also operates the Tropical Meet. In 2008, the Calder Meet runs from April 21 through Oct. 19 and the Tropical Meet runs from Oct. 20 through Jan. 2, 2009. Information about Calder Race Course can be found on the Internet at www.calderracecourse.com.

Information set forth in this news release contains various “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The Private Securities Litigation Reform Act of 1995 (the “Act”) provides certain “safe harbor” provisions for forward-looking statements. All forward-looking statements made in this news release are made pursuant to the Act. The reader is cautioned that such forward-looking statements are based on information available at the time and/or management’s good faith belief with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the statements. Forward-looking statements speak only as of the date the statement was made. We assume no obligation to update forward-looking information to reflect actual results, changes in assumptions or changes in other factors affecting forward-looking information. Forward-looking statements are typically identified by the use of terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “predict,” “project,” “should,” “will,” and similar words, although some forward-looking statements are expressed differently. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from expectations include: the effect of global economic conditions; the effect (including possible increases in the cost of doing business) resulting from future war and terrorist activities or political uncertainties; the economic environment; the impact of increasing insurance costs; the impact of interest rate fluctuations; the effect of any change in our accounting policies or practices; the financial performance of our racing operations; the impact of gaming competition (including lotteries and riverboat, cruise ship and land-based casinos) and other sports and entertainment options in those markets in which we operate; the impact of live racing day competition with other Florida and Louisiana racetracks within those respective markets; costs associated with our efforts in support of alternative gaming initiatives; costs associated with customer relationship management initiatives; a substantial change in law or regulations affecting pari-mutuel and gaming activities; a substantial change in allocation of live racing days; changes in Illinois law that impact revenues of racing operations in Illinois; the presence of wagering facilities of Indiana racetracks near our operations; our continued ability to effectively compete for the country’s top horses and trainers necessary to field high-quality horse racing; our continued ability to grow our share of the interstate simulcast market; our ability to execute our acquisition strategy and to complete or successfully operate planned expansion projects; our ability to successfully complete any divestiture transaction; our ability to execute on our temporary and permanent slot facilities in Louisiana; market reaction to our expansion projects; the loss of our totalisator companies or their inability to provide us assurance of the reliability of their internal control processes through Statement on Auditing Standards No. 70 audits or to keep their technology current; the need for various alternative gaming approvals in Louisiana; our accountability for environmental contamination; the loss of key personnel; the impact of natural disasters, including Hurricanes Katrina, Rita and Wilma on our operations and our ability to adjust the casualty losses through our property and business interruption insurance coverage; any business disruption associated with a natural disaster and/or its aftermath; our ability to integrate businesses we acquire, including our ability to maintain revenues at historic levels and achieve anticipated cost savings; the impact of wagering laws, including changes in laws or enforcement of those laws by regulatory agencies; the effect of claims of third parties to intellectual property rights; and the volatility of our stock price.