In February 2022, Churchill Downs Inc. agreed to buy most of Peninsula Pacific Leisure’s (P2E) on line casino and resort belongings. The roughly $2.5 billion acquisition supplied the Kentucky-based on line casino and racetrack group with a possible alternative to construct a brand new on line casino resort designed from the bottom up within the Virginia capital of Richmond.
Throughout Churchill’s first-quarter convention name Thursday morning, CEO Invoice Carstanjen revealed that the corporate’s earnings simply beat analyst expectations. Earnings per share got here in at $1.96 for him, beating consensus expectations by 21 cents.
Monetary disclosures skyrocketed on Thursday, coupled with Churchill planning a inventory break up subsequent month. Churchill shares rose about 14%, or $35 a share, to $287 in afternoon buying and selling.
Firms typically break up their shares to make them extra accessible to retail buyers in a wider sector. The transfer has fueled curiosity within the firm greatest recognized for proudly owning Churchill Downs, house of subsequent weekend’s Kentucky Derby.
richmond undertaking
When P2E was acquired by Churchill Downs, it partnered with black-focused media conglomerate City One on a $500+ million on line casino undertaking within the Virginia state capital. Richmond was one among 5 cities within the Commonwealth eligible to think about creating video games for financial stimulus, in response to a 2020 legislation.
Richmond residents narrowly rejected the presentation of City One and P2E in the course of the 2021 election. It beat out a number of different on line casino pitches via a aggressive bidding course of performed by the Richmond Metropolis Council’s On line casino Rankings Panel. The City One/P2E undertaking, known as ONE On line casino + Resort, was to be constructed adjoining to the Philip Morris tobacco manufacturing facility south of the town alongside Interstate 95.
Native leaders wish to re-question voters about casinos via one other referendum this fall. Metropolis officers imagine a extra particular message in regards to the financial advantages such resorts convey to the metropolitan space would have had a distinct end result.
Talking to analysts and buyers, Carstanjen stated he hopes the on line casino challenge might be introduced earlier than voters in November this yr. Legislative efforts by state legislators who do not need a on line casino in Richmond or to maneuver the town’s gaming license south to close by Petersburg fell flat within the state’s 2023 legislative session.
We’re engaged on the mandatory approvals to conduct a referendum this fall to acquire the mandatory permits to proceed with building of this undertaking, which features a on line casino, resort and occasion heart. “
Churchill’s boss added that “every little thing goes effectively” concerning the referendum.
divisive matter
Richmond’s 2021 gaming referendum was defeated 51% to 49%, with Richmond’s wealthier neighborhoods north of the James River voting in opposition to the on line casino challenge. Some residents say City One, a media firm with no expertise within the video games or hospitality trade, has managed to beat out extra well-known sport operators similar to Bally’s, Cordish His Firms and Golden His Nuggets. I additionally questioned why.
City One sought to allay these issues by introducing P2E, which has a protracted observe file in gaming. Regardless of P2E’s historical past of operation in Louisiana and Iowa, model consciousness was missing in Virginia.
Churchill Downs is one other story. The corporate is a family identify due to its Kentucky Derby roots. Are Richmonders inclined to assist ONE On line casino + Resort now that Churchill is concerned? A November referendum might present the reply.
