10 Best Casino Stocks to Buy According to Billionaires

7. Churchill Downs Incorporated (NASDAQ:CHDN)

Number of Billionaires: 10

Billionaire Holdings: 400,382,037

Churchill Downs Incorporated (NASDAQ:CHDN) is a firm that offers online betting, racing, and gaming entertainment. It is divided into three business segments: Gaming, Wagering Services, and Live and Historical Racing. Live and historical pari-mutuel racing is included in the Live and Historical Racing category. The Wagering Services section includes revenue and expenses from pari-mutuel wagers made through TwinSpires, the company’s retail and online sports betting operation, while the Gaming segment includes revenues and expenses for casino locations and affiliated racetracks that support the casino license. Slot machines, video lottery terminals, video poker, HRMs, ancillary food and beverage services, hotel services, pari-mutuel wagering commissions, and racing events all contribute to the Gaming segment’s revenue and expenses.

Revenue grew $27.3 million in the fourth quarter of 2024, an 11.07% YoY growth, driven by a $30.3 million raise from the opening of the Terre Haute Casino Resort, which was partially offset by a $3.0 million decline from the other wholly owned gaming locations, owing to regional gaming softness and greater competition.

In 2024, Churchill Downs Incorporated (NASDAQ:CHDN)’s net sales rose by 11% and its adjusted EBITDA grew by 13%, setting a new financial record. This achievement was mainly due to the Kentucky Derby, which saw record-adjusted EBITDA as a result of higher ticket sales, sponsorships, and pari-mutuel betting. The goal of Churchill Downs Racetrack’s expansion projects is to improve the Derby experience even more. These projects include the Conservatory and the Sky Terrace renovation. The company’s almost $1.2 billion adjusted EBITDA was derived from HRM venues in Virginia, with plans to expand in Richmond and Henrico County.

Churchill Downs Incorporated (NASDAQ:CHDN)’s solid financial position was reinforced by $688 million in free cash flow ($9.22 per share), which represented a roughly 33% increase per share over the prior year, making it one of the Best Casino Stocks.