Churchill Downs (CHDN) risk factors, FY2024 10-K

Churchill Downs's FY2024 10-K, filed Feb 20, 2025, lists 15 risk factors in 4 groups. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
154 groups
Section length
9k wordsItem 1A

Churchill Downs's biggest risks in the FY2024 10-K

  • Company faces intense competition across physical, online, and mobile gaming and wagering platforms.
  • Operations depend heavily on continuous technological advancements and software advantages.
  • Heavy regulation, unionized labor, and debt covenants restrict operational flexibility.

The risks most specific to Churchill Downs

  • Strategic Risks

    Our Company faces significant competition, and we expect competition levels to increase

    The company faces intense competition from destination, riverboat, and land-based casinos, video lottery, iGaming, and sports betting platforms.

  • Strategic Risks

    We may not be able to respond to rapid technological changes in a timely manner, which may cause customer dissatisfaction

    Failure to maintain software lead-time and internet-based wagering network advantages in the Wagering Services and Solutions segment could cause customer dissatisfaction.

  • Strategic Risks

    especially those with greater financial resources. The Company's competitors may adopt new technologies and technological advancements, such as using artificial intelligence and machine learning, to pursue new products, services and approaches more quickly, successfully, and effectively than the Company

    Competitors may outpace the company in adopting new technologies like artificial intelligence and machine learning for new wagering platforms and features.

  • Operational Risks

    penalties. If we fail to follow payment card industry security standards, even if no customer information is compromised, we could incur significant fines or experience a significant increase in payment card transaction costs

    Failure to follow payment card industry security standards or sufferance of sophisticated hacking attacks could result in significant fines.

  • Operational Risks

    Horse racing is an inherently dangerous sport, and our racetracks are subject to personal injury litigation

    Horse racing injuries can trigger personal injury litigation, negative publicity, and avoidance of racetracks by customers and horse owners.

  • Legal and Regulatory Risks

    Our operations are highly regulated and changes in the regulatory environment could adversely affect our business

    Extensive state and local regulations govern live and historical pari-mutuel wagering, online ADWs, casino gaming, and sports betting operations.

All 15 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01Lower consumer confidence or reductions in consumers’ discretionary spending could result in fewer patrons spending money at our racetracks, our online wagering sites and gaming and wagering facilities, and reduced consumer spending overall

Strategic Risks

  1. 02Our Company faces significant competition, and we expect competition levels to increase
  2. 03We pursue certain license opportunities, development projects, and other strategic business opportunities through equity investments, joint ventures, license arrangements, and other alliances with third parties
  3. 04We may not be able to respond to rapid technological changes in a timely manner, which may cause customer dissatisfaction
  4. 05especially those with greater financial resources. The Company's competitors may adopt new technologies and technological advancements, such as using artificial intelligence and machine learning, to pursue new products, services and approaches more quickly, successfully, and effectively than the Company

Operational Risks

  1. 06penalties. If we fail to follow payment card industry security standards, even if no customer information is compromised, we could incur significant fines or experience a significant increase in payment card transaction costs
  2. 07We pursue acquisitions, divestitures, development of new venues, and expansion of existing facilities to grow our business
  3. 08We may experience difficulty in integrating recent or future acquisitions into our operations
  4. 09Horse racing is an inherently dangerous sport, and our racetracks are subject to personal injury litigation
  5. 10Work stoppages and other labor problems could negatively impact our future plans and limit our operational flexibility

Legal and Regulatory Risks

  1. 11We face risks related to pending or future legal proceedings and other actions
  2. 12Our operations are highly regulated and changes in the regulatory environment could adversely affect our business

Financial Risks

  1. 13Our debt facilities contain restrictions that limit our flexibility in operating our business
  2. 14While we currently generate significant cash flows from ongoing operations and have access to global credit markets through our various financing activities, interest rate increases, disruption in the credit markets, or changes to our credit ratings could negatively impact the availability or cost of funding
  3. 15Reduced access to credit or increased costs could adversely affect our liquidity and capital resources or significantly increase our cost of capital

Other Churchill Downs 10-Ks

  • FY2025 10-K risk factors
    21 risks9 new3 dropped4 reworded

    Churchill Downs added comprehensive risk disclosures covering machine supply costs, vendor tariffs, catastrophic technology failures, and real estate environmental liabilities.

    Filed Feb 25, 2026

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.