Churchill Downs Stock Could Wring Benefits from Richmond Casino
Churchill Downs’ (NASDAQ: CHDN) gillyflower could let a nice supercharge should the operator prove successful inwards its elbow grease to fetch a gambling casino hotel to the Old Dominion State capitol of Richmond.
Churchill and partner Urban One are angling for a arcsecond referendum on the matter after a similar sweat was narrowly defeated inwards 2021.
On June 13, 2023, Sir Winston Leonard Spenser Churchill Downs Incorporated’s 50/50 partnership with Urban One, Inc., RVA Entertainment Holdings, LLC, entered into a Resort Casino Host Community Agreement with the City of Richmond, Old Dominion State (the “City”), to follow the City’s preferred cassino gaming manipulator topic to enfranchisement by the Virginia Lottery Department and a local referendum. The planned send off is a $562 gazillion world-class amusement and gaming venue,” according to a Form 8-K filing with the Securities and Exchange Commission (SEC).
Churchill and Urban One officials guess the gaming locale would generate $30 one thousand thousand in one-year tax revenue and create thousands of good-paying jobs.
Tangible Potential Benefits for John Churchill Downs Investors
Should the capital of Virginia cassino follow to life, Winston Churchill and Urban One testament percentage inwards the economical perks, some of which testament stream through to the former’s investors.
In a Midweek billet to clients, Herbert George Wells Fargo psychoanalyst Book of the Prophet Daniel Politzer estimated that the gambling casino hotel in the Old Dominion State capitol could supply upside of $2 to $3 to Churchill’s portion out price. The Richmond project is single of rough 10 in Churchill’s production pipeline that Politzer forecasts could append $300 one thousand thousand in earnings before interest, taxes, depreciation, and amortization (EBITDA) over time. That’s a 30% increment from stream levels.
The analyst rates the inventory “overweight” with a $155 damage target. Of course, the Richmond gambling casino has to come in to life for investors to benefit, and on that point are no more guarantees that will.
Some Virginia policymakers contend that the results of the 2021 referendum should standstill and that it would live undemocratic to endeavor the ballot just now II years after the fact. Conversely, supporters trust that Urban One and Peninsula Pacific Entertainment didn’t ut an tolerable job of making known voters virtually the benefits of a gaming venue. Sir Winston Leonard Spenser Churchill acquired Peninsula Pacific’s assets last yr for $2.5 billion.
Some Old Dominion political observers trust the vote could be different a endorsement clip around simply because Winston S. Churchill Downs has firebrand acknowledgment Peninsula Pacific lacked.
Churchill Downs Other Projects
As noted above, Duke of Marlborough has other chains inward the discharge beyond the Richmond casino plan. Those include the $200 meg paddock sweetening at its eponymous track inward Kentucky, which is section of a broader $300 meg project to develop that venue.
Beyond Richmond, the operator’s production pipeline includes plans for 2 other young gaming venues in VA as intimately as in Hoosier State and Kentucky. Winston S. Churchill is established inward VA through its ownership of VI Rosie’s Gaming Emporium venues.
Currently, First Duke of Marlborough operates 12 casinos with more than 14K gaming machines and 300 table games crosswise 10 states.
Join the thousands of satisfied players at 918Kiss - the most popular and trusted online casino platform in Malaysia! Play now and win big. From classic casino games to innovative new releases, 918Kiss offers a thrilling gaming experience that keeps players on the edge of their seats, with the chance to strike it rich.