Published on: October 24, 2025, at 11:22 AM.
Updated on: October 24, 2025, at 11:22 AM.
- Improvements set to happen at the renowned Kentucky racetrack
- Victory Run will be positioned between the First Turn Club and the Skye Terrace
Churchill Downs (NASDAQ: CHDN) has announced an exciting new initiative at its iconic racetrack, designed to attract a more upscale clientele to the Kentucky Derby and its associated events during Derby Week.
The gaming establishment has revealed plans to invest between $280 million and $300 million into the Victory Run initiative. This project will take the place of outdated box seating and dining options with modernized race view experiences and innovative dining facilities.
“This newly planned four-story structure will offer various high-end hospitality options with fantastic views of the racetrack’s finish line. It is set to feature private suites, both indoor and outdoor dining, as well as shaded box seating,” stated the company. “This initiative will replace around 6,400 current seats with upgraded seating for approximately 7,800 guests.”
The Kentucky gaming operator announced the Victory Run plans alongside its third-quarter earnings release on Wednesday.
Churchill’s Strategy for Enhanced Derby Week Success
Churchill is investing in new features at the historic Kentucky venue to support the diverse range of festivities and races surrounding Derby Week. Last year, during the 151st ‘run for the roses,’ betting amounts during Derby Week and the Derby set new records.
Earlier this year, the firm outlined projections for up to $920 million in spending, with $400 million anticipated in 2025, focusing on the Conservatory and Skye Terrace at the Kentucky Derby venue. Expansions and upgrades at the Skye Terrace will boost premium seating from 11,500 to 13,300. As with these projects, construction for Victory Run is expected to commence before the 2026 Derby, with completion aimed ahead of the 2028 event.
Analysts are optimistic about Churchill’s Derby improvements, predicting that even the temporary seats offered by Victory Run before 2028 may drive significant growth.
“We foresee a robust growth trajectory for the Derby in the upcoming three years as management has carefully outlined its strategic plans,” noted Truist Securities analyst Barry Jonas. “Last night, CHDN introduced the ‘Victory Run’ project, which will provide upgraded (albeit temporary) seating in 2027, with the full completion targeted for the 2028 Derby. Management estimates a ~20% return on the $280M-$300M investment (~$60M) by the third year due to increased pricing and amenities, with only an overall seating capacity increase of ~2%. They also believe that the temporary seating could potentially boost growth in 2027.”
Prudent Spending Strategy from Churchill
Gaming is a capital-intensive sector, and analysts frequently scrutinize the spending plans of operators. Fortunately for Churchill Downs investors, the company does not indicate that issuing new debt will be part of the planned expenditures.
The Derby-related projects may lay a strong foundation for Churchill Downs as it seeks additional ways to leverage the celebration of the “Run for the Roses.”
“Despite the Derby’s long-standing tradition, management believes it is still in the ‘third inning’ of growth, with many more small to medium projects on the horizon,” added Jonas.