Churchill Downs to Spend Up to $300M on Victory Run Project
Posted on: October 24, 2025, 11:22h.
Last updated on: October 24, 2025, 11:46h.
- Enhancement will take place at the company’s famed Kentucky racetrack
- Victory Run will be located between the First Turn Club and the Skye Terrace
Churchill Downs (NASDAQ: CHDN) unveiled a new project at its namesake racecourse aimed at bringing more high-end customers to the Kentucky Derby and Derby Week events.
The gaming company said it plans to spend $280 million to $300 million on the Victory Run project, which will be situated between the First Turn Club and the Skye Terrace. Victory Run will replace some box seats and aging eateries with improved race viewing and updated dining concepts.
This new four-story structure features a variety of premium hospitality experiences with tremendous views of the finish line of the racetrack, and will include private suites, indoor and outdoor dining, and covered box seating,” said the company in a statement. “The project will replace approximately 6,400 existing seats with premium seating for approximately 7,800 guests.”
The Kentucky-based gaming operator unveiled plans for Victory Run in conjunction with the release of its third-quarter results on Wednesday.
Churchill Downs Betting on More Derby Week Success
Churchill is committing to new amenities at the iconic Kentucky track as an avenue for supporting the broader suite of Derby Week festivities and races. In the 151st edition of the “run for the roses” last year, handle for Derby Week and the Derby itself topped records.
Earlier this year, the company forecast spending of up to $920 million, with $400 million expected in 2025, on the Conservatory and the Skye Terrace at the track that hosts the Kentucky Derby. Expansion and enhancement at the Skye Terrace will include raising the number of premium seats to 13,300 from 11,500. As is the case with those projects, construction on Victory Run is expected to start before the 2026 Derby and be completed in advance of the 2028 event.
Analysts are bullish on Churchill’s Derby-enhancing efforts, and some believe even the temporary seating provided by Victory Run prior to 2028 could support growth.
“We see a solid growth profile for the Derby over the next three years as management has laid out its detailed plans,” said Truist Securities analyst Barry Jonas in a note. “Last night, CHDN announced a new growth project ‘Victory Run,’ which will offer upgraded (but temporary) seating in 2027 and fully completed in time for the 2028 Derby. Management is targeting a ~20% return on the $280M-$300M spend (~$60M) by year 3 driven by increased pricing/amenities with only a ~2% overall increase in seating capacity. Management also noted that the temporary seating could potentially drive growth in 2027 as well.”
Churchill Spending Appears Prudent
Gaming is a capital-intensive industry, and analysts and investors often apply scrutiny to operators’ spending plans. The good news for Churchill Downs investors is that the company isn’t signaling the issuance of new debt as part of the aforementioned spending program.
The aforementioned Derby-related projects could be more floor than ceiling as Churchill Downs looks for more ways to capitalize on the “Run for the Roses.”
“Despite the longevity of the Derby, management still believes it’s in the ‘third inning’ of growth, with more small to medium-scale projects in the pipeline,” adds Jonas.
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