Churchill Downs Incorporated Files Suit Against KHBPA, KTA

Churchill Downs Incorporated, Churchill Downs Technology Initiatives Company and Calder Race Course, Inc. today filed suit against the Kentucky Horsemen’s Benevolent and Protective Association (“KHBPA”), the Kentucky Thoroughbred Association (“KTA”) and officers of each organization in the United States District Court for the Western District of Kentucky.

The suit alleges violations under the Sherman Antitrust Act and is a result of the refusal of the KHBPA and the KTA to approve the distribution of Churchill Downs races to national advance-deposit wagering (“ADW”) companies and Calder Race Course (“Calder”) in Miami, Florida. The suit requests that the defendants be prevented from boycotting racetracks and ADW operators that do not comply with their demands, which include uniform terms for the pricing of racing signals.

“It is in the best interest of our racetrack, our horsemen and certainly our customers for the Churchill Downs signal to be made available to racing fans throughout the country,” said Steve Sexton, executive vice president of Churchill Downs Incorporated. “Unfortunately, our negotiations with Kentucky horsemen have not advanced. We still have not heard from them what they are looking for, other than to be pointed to representatives in Ohio. The KHBPA and KTA continue to block the Churchill Downs signal from being offered to national ADW platforms and Calder, despite the fact that since our entry into the ADW business last year we have nearly doubled host fees paid by ADW businesses to our racetracks and horsemen partners.”

The suit amends the complaint filed on April 24 against the Thoroughbred Horsemen’s Group, the Florida Horsemen’s Benevolent and Protective Association and the officers of each organization over their refusal to approve the distribution of Calder Race Course races to out-of-state off-track betting sites.

Churchill Downs opened its 134th spring meet on Saturday, April 26, and races through Sunday, July 6.

Churchill Downs Incorporated (“Churchill Downs”), headquartered in Louisville, Ky., owns and operates world-renowned horse racing venues throughout the United States. Churchill Downs’ four racetracks in Florida, Illinois, Kentucky and Louisiana host many of North America’s most prestigious races, including the Kentucky Derby and Kentucky Oaks, Arlington Million, Princess Rooney Handicap and Louisiana Derby. Churchill Downs racetracks have hosted seven Breeders’ Cup World Championships. Churchill Downs also owns off-track betting facilities and has interests in various advance-deposit wagering, television production, telecommunications and racing services companies, including a 50-percent interest in the national cable and satellite network HorseRacing TV™, that support the Company’s network of simulcasting and racing operations. Churchill Downs trades on the NASDAQ Global Select Market under the symbol CHDN and can be found on the Internet at www.churchilldownsincorporated.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 the economic environment; 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; a substantial change in law or regulations affecting pari-mutuel and gaming activities; a substantial change in allocation of live racing days; 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; the impact of wagering laws, including changes in laws or enforcement of those laws by regulatory agencies; the outcome of pending or threatened litigation, including the outcome of any counter-suits or claims arising in connection with the THG litigation; changes in our relationships with horsemen’s groups and their memberships; and the volatility of our stock price.