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CHURCHILL DOWNS TO SHUTTER LUCKITY BINGO
Thursday October 30,2014 : CHURCHILL DOWNS TO SHUTTER LUCKITY BINGO
Failed to meet financial expectations
Louisville gambling firm Churchill Downs Incorporated (CDI) will reportedly shutter its two-year-old Luckity bingo operation according to a filing with the Securities and Exchange Commission.
"Management determined that Luckity did not achieve the expected financial returns and was unlikely to significantly improve its results," the filing said.
In its most recent report CDI reported a decrease in third quarter revenues for its Online Business of $2.2 million which it attributed to the loss of Texas resident wagering which began September 25, 2013.
However, the company said excluding Texas resident wagering from the prior year, Online Business handle had increased 3 percent compared to a total industry handle decline of 4.2 percent, thereby outpacing industry growth by 7.2 percent.
CDI's online business comprises internet wagering business, TwinSpires.com, United Tote, a totalisator systems supplier, an interest in horse racing television network HRTV and its Bloodstock Research and Information Services business.
"Online Business Adjusted EBITDA decreased $1.9 million due to the loss of Texas resident wagering, which resulted in a handle decline of $13.2 million and a corresponding Adjusted EBITDA decline of $1.7 million," the company said. "Additionally, new online pari-mutuel taxes in New York and Pennsylvania reduced Adjusted EBITDA by $0.7 million during the quarter."
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