Churchill Downs Inc. had record revenue of $2.46 billion in 2023, but its net income fell 5 percent compared to 2022 due to lower gains from the sales of property, according to financial statements released by the company on Wednesday. Revenue for the year increased 36 percent compared to 2022, largely due to new revenue provided by historical horse racing machines in operation in Kentucky and Virginia. Revenue from casinos operated by Churchill also increased markedly. Late in 2022, Churchill closed on a deal to purchase a company, Peninsula Pacific Entertainment, that owned and operated Colonial Downs and its off-track betting parlors in Virginia, all of which operate historical horse racing machines. The deal also included casinos in New York and Iowa.   Net income for the year fell from $439.4 million last year to $417.3 million this year, according to the financial statements. In 2022, Churchill had much higher after-tax gains from its sale of the Calder Race Course property than the proceeds on its sale last year of Arlington International Racecourse outside of Chicago. :: KENTUCKY DERBY 2024: Derby Watch, point standings, prep schedule, news, and more Total revenue from live and historical racing jumped from $614.6 million in 2022 to $1.05 billion last year. In addition to the full-year results from the properties in Virginia, Churchill also opened new historical horse racing venues in Kentucky. Its live racing results were boosted by a $20.7 million increase in revenue from its Kentucky Derby week operations, the company said. Revenue from TwinSpires, the company’s account-wagering and online casino operations, increased slightly during the year, from $441.6 million in 2022 to $458.4 million in 2023. Churchill said that its 2022 acquisition of Exacta Systems, which provides technology to support historical horse racing, led to a $19.1 million gain in the online casino segment in 2023 when compared to 2022. Revenue from casino gaming, which does not include historical horse racing machines, increased from $761.8 million in 2022 to $974.6 million, with $230.0 million in revenue provided by the casinos acquired in the Peninsula transaction late in 2022. Revenue from its other casino properties was essentially flat for the year. Late in 2023, Churchill reached a privately negotiated agreement with the Duchossois Group to repurchase one million of the company’s shares, at a total cost of $123.8 million. That agreement closed on Jan. 2 and was not reflected in the 2023 results. Churchill has bought back a total of $600 million worth of stock from the Duchossois family since 2015. The Duchossois Group acquired the brunt of its shares when Churchill merged with Arlington in 2000. Interest expense for the year was $268.4 million, compared to $147.3 million in 2022. The company had cash of $221.8 million at the end of 2023, compared to $204.7 million at the end of 2022. Long-term debt, including notes payable, was $4.77 billion at the end of 2023, compared to $4.55 billion at the end of 2022. :: Get the Inside Track with the FREE DRF Morning Line Email Newsletter. Subscribe now.  Churchill also announced on Wednesday that it has received approval from the town of Dumfries, Va., to build a new casino that will operate 1,650 historical horse racing machines. Churchill said that the new casino is scheduled to open in September 2024. The project also includes a parking garage and 102-room hotel. Under existing Virginia law, the owner of Colonial Downs is required to run one race day per 100 historical horseracing machines in operation in the state. Colonial ran 27 race dates in 2023, and the construction of the new casino will likely trigger a 16-day increase in the number of live racing dates at the track. :: Want to learn more about handicapping and wagering? Check out DRF's Handicapping 101 and Wagering 101 pages.