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Churchill Downs, Incorporated.

CHDN.US | Gambling and betting activities

Churchill Downs, Incorporated is a racing, gaming, and online entertainment company. It owns and operates horse racing tracks, including its flagship Churchill Downs Racetrack, home of the Kentucky Derby. The company also operates casinos and gaming facilities, and provides online wagering platforms...Show More

Ethical Profile

Mixed.

Churchill Downs Incorporated (CDI) faces ethical scrutiny. Reports indicate at least 15 horse deaths at its track in 2024. The company banned trainer Bob Baffert for three years after a drug test failure, following reports alleging 75 deaths under his training. Critics link CDI's gambling operations to public health issues; Kentucky's problem gambling hotline calls quadrupled 2022-2024, with 19% of 2024 calls tied to sports betting. A subsidiary was fined $2.79 million by the EPA for Clean Water Act violations. While CDI implements "Go Green" initiatives and recycles cooking oil, OSHA safety violations were reported in 2022.

Value Scores

Better Health for All-40
-100100
Fair Money & Economic Opportunity-10
-100100
Fair Pay & Worker Respect-30
-100100
Fair Trade & Ethical Sourcing0
-100100
Honest & Fair Business0
-100100
Kind to Animals-20
-100100
No War, No Weapons0
-100100
Planet-Friendly Business0
-100100
Respect for Cultures & Communities0
-100100
Safe & Smart Tech0
-100100
Zero Waste & Sustainable Products-20
-100100

Better Health for All

-40

Churchill Downs Incorporated's (CDI) core business model, which includes live and historical racing, wagering services, and gaming, inherently conflicts with the value of "Better Health for All." The company's operations are linked to negative health outcomes, primarily through gambling addiction and associated mental health issues. Articles

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,
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,
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,
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, and
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highlight the increasing gambling problem in Kentucky, with calls to the problem gambling hotline quadrupling between 2022 and 2024
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,
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,
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. Sports betting legalization has exacerbated this issue, with 19% of hotline calls in 2024 related to sports betting
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. These articles also mention the social costs of gambling, including family breakdown, crime, and suicide
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,
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. While CDI has responsible gaming initiatives
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, these do not negate the fundamental conflict between its business model and health outcomes. Given the potential for harm and limited direct contributions to health improvement, a score of -40 is appropriate. This aligns with the rubric tier indicating that ~30% of products have negative health effects, and there is a strong commitment to positive health impact with major investment, which is not evident in the provided articles.

Fair Money & Economic Opportunity

-10

Churchill Downs Incorporated (CDI) is primarily a racing, gaming, and online entertainment company, and does not offer consumer lending or deposit services. Therefore, KPIs related to loan books, APRs, fee structures, debt burden, customer financial data, or product simplicity are not applicable. The company's charitable contributions totaled over $4 million in cash donations in 2024 and over $13 million annually in grants and in-kind donations to more than 800 organizations.

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With net income attributable to CDI of $426.8 million in 2024,
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this represents approximately 0.94% of net income reinvested, which maps to a -90 tier for profit reinvestment. The company's focus on 'out-of-town, rich folk/celeb types' and pricing that has 'priced themselves right out of the neighborhood' suggests a lack of geographic inclusion for local residents, mapping to a -90 tier.
3
CDI supports various community initiatives, including those focused on underserved populations and economic impact in Louisville communities, and career-launching opportunities in the equine industry.
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However, these are not direct profit reinvestment in community finance or profit-sharing with underserved communities as defined by the 'profit_reinvestment' KPI, which requires a percentage of pre-tax profit reinvested in community finance or profit-sharing.

Fair Pay & Worker Respect

-30

In 2024, the CEO to median employee pay ratio was 507:1, with the CEO earning $15,103,663 and the median employee earning $29,775.

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As of December 31, 2021, approximately 14.5% of the company's full-time employees (550 out of 3,800) were covered by 18 collective bargaining agreements.
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The company has faced substantiated labor violations, including a wage and hour violation in 2023 at Del Lago Resort & Casino, resulting in a $29,947 penalty.
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Additionally, an arbitrator ruled that Churchill Downs should compensate workers for lost wages due to a violation of a collective bargaining agreement by outsourcing work at Derby City Gaming, a dispute that was subject to a case filed in July 2022.
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Fair Trade & Ethical Sourcing

0

No evidence available to assess Churchill Downs, Incorporated on Fair Trade & Ethical Sourcing.

Honest & Fair Business

0

No specific, quantitative evidence was found across the provided articles to assess Churchill Downs, Incorporated against any of the 'Honest & Fair Business' KPIs. The articles primarily consist of corporate governance documents or were inaccessible, and explicitly state a lack of relevant data points for regulatory fines, transparency index scores, whistleblower policies, financial restatements, audit coverage, ESG controversy scores, complaint resolution times, board conflict-free percentages, anti-corruption policies, or third-party verification.

1

Kind to Animals

-20

For animal agriculture ethics, Churchill Downs has implemented several measures for horse welfare, including investing over $8 million since 2019 to expand the backside and construct an on-site Equine Medical Center,

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installing a PET scan machine in early 2023,
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and using StrideSAFE biometric sensor technology.
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They have strict rules such as limiting horses to four starts in an eight-week period,
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making horses ineligible to race if beaten by 12 lengths or more in five consecutive starts until approved by the Equine Medical Director,
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and requiring official veterinary exams for first-time starters or those with extended layoffs.
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Any owner or trainer selling or transporting a horse for slaughter will have stalls permanently revoked.
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However, the company has faced significant issues, with 12 horse deaths occurring in a few weeks at Churchill Downs in 2023,
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leading to a suspension of racing upon the recommendation of the Horseracing Integrity and Safety Authority (HISA).
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At least 15 horses died at Churchill Downs during racing or training in 2024,
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and 7 horses died by Derby Day in 2023.
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These fatalities indicate that despite efforts, the welfare outcomes are not consistently positive, and the company's operations have resulted in significant animal mortality. For public policy engagement, Churchill Downs collaborates with regulatory bodies like HISA and the Kentucky Horse Racing Commission (KHRC) to create and implement policies and protocols for horse safety and welfare,
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and complies with HISA regulations.
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However, the National Horsemen's Benevolent and Protective Association has filed lawsuits to block the changes HISA seeks to make,
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indicating a fragmented industry approach to reforms, and Churchill Downs' direct advocacy for *higher* standards beyond compliance is not explicitly detailed.

No War, No Weapons

0

No evidence available to assess Churchill Downs, Incorporated on No War, No Weapons.

Planet-Friendly Business

0

The company has achieved validation for near-term GHG reduction targets aligned with the 1.5°C pathway, committing to reduce absolute Scope 1 and 2 GHG emissions by 50.4% by FY2032.

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85% of electricity consumed in its own estate is sourced from renewable sources.
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The landfill diversion rate has increased to 98%.
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Respect for Cultures & Communities

0

No specific, quantifiable evidence was found in the provided articles that directly maps to the quantitative thresholds of the defined KPIs for 'Respect for Cultures & Communities'. While Churchill Downs, Incorporated has announced partnerships, such as a multi-year partnership with the Kentucky Derby Museum

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and a partnership with the Ed Brown Society
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, the number of these partnerships (2) does not align with the exact quantitative ranges provided in the rubric for 'num_formal_partnerships'. Similarly, financial contributions like the $150,000 to the Kentucky Derby Museum
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and $50,000 to the Ed Brown Society
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are noted, but the articles do not provide the company's total revenue or the percentage of revenue reinvested in local community development or cultural preservation, which are required for other KPIs.

Safe & Smart Tech

0

No evidence available to assess Churchill Downs, Incorporated on Safe & Smart Tech.

Zero Waste & Sustainable Products

-20

Churchill Container uses 50% recycled polypropylene (rPP) in its reusable souvenir cups.

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The company has implemented several waste reduction initiatives, including a "Go Green" zero-waste campaign for the Kentucky Derby, an oil recycling program that reduces cooking oil use by approximately 90,000 gallons annually, and a partnership with PureCycle's PureZero Program for stadium recycling.
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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.