Churchill Downs forced to cut purses

9 May 2008

LOUISVILLE, Kentucky -- (PRESS RELEASE) -- Churchill Downs Racetrack has been forced to cut purses by 20 percent, effective Wednesday, May 14, because the Kentucky Horsemen's Benevolent and Protective Association ("KHBPA") and the Kentucky Thoroughbred Association ("KTA") have blocked the distribution of Churchill Downs' simulcast signal to national advance-deposit wagering ("ADW") sites, including TwinSpires.com., the official ADW site for Churchill Downs Incorporated ("Company").

"We have been left with no option but to reduce overnight purses to offset the amount of lost handle because Kentucky horsemen have prevented horse racing fans from wagering through ADW platforms," said Churchill Downs President Steve Sexton. "We are disappointed because the failure to send the signal will negatively impact the product both on and off the racetrack. While we are still hopeful this impasse can be resolved, we have no choice but to act now."

KHBPA and KTA representatives continue to reject all offers from Churchill Downs and recently instructed further discussions be conducted with the Thoroughbred Horsemen's Group ("THG"), an alliance of horsemen's groups from around the country.

"Since Churchill Downs' entry into the ADW business in 2007, we have nearly doubled host fees paid by ADW businesses to our racetracks and horsemen partners through successful negotiations with local horsemen. Kentucky horsemen and the THG are now demanding even more, but their plan is simply not feasible for ADW companies, including TwinSpires.com," said Sexton. "As the result of over $3 million in online marketing we've spent so far this year, we have added 13,000 new TwinSpires.com customers and have added $25 million in new deposits. We would like those customers to be able to wager those funds on Churchill Downs races, but the KHBPA and KTA have refused to allow us to do so."

The Churchill Downs' purse reductions will affect overnight purses, with potential for Fall Meet stakes race purses to be reduced in the future.

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	Churchill Downs forced to cut purses 9 May 2008 LOUISVILLE, Kentucky -- (PRESS RELEASE) -- Churchill Downs Racetrack has been forced to cut purses by 20 percent, effective Wednesday, May 14, because the Kentucky Horsemen's Benevolent and Protective Association ("KHBPA") and the Kentucky Thoroughbred Association ("KTA") have blocked the distribution of Churchill Downs' simulcast signal to national advance-deposit wagering ("ADW") sites, including TwinSpires.com., the official ADW site for Churchill Downs Incorporated ("Company"). "We have been left with no option but to reduce overnight purses to offset the amount of lost handle because Kentucky horsemen have prevented horse racing fans from wagering through ADW platforms," said Churchill Downs President Steve Sexton. "We are disappointed because the failure to send the signal will negatively impact the product both on and off the racetrack. While we are still hopeful this impasse can be resolved, we have no choice but to act now." KHBPA and KTA representatives continue to reject all offers from Churchill Downs and recently instructed further discussions be conducted with the Thoroughbred Horsemen's Group ("THG"), an alliance of horsemen's groups from around the country. "Since Churchill Downs' entry into the ADW business in 2007, we have nearly doubled host fees paid by ADW businesses to our racetracks and horsemen partners through successful negotiations with local horsemen. Kentucky horsemen and the THG are now demanding even more, but their plan is simply not feasible for ADW companies, including TwinSpires.com," said Sexton. "As the result of over $3 million in online marketing we've spent so far this year, we have added 13,000 new TwinSpires.com customers and have added $25 million in new deposits. We would like those customers to be able to wager those funds on Churchill Downs races, but the KHBPA and KTA have refused to allow us to do so." The Churchill Downs' purse reductions will affect overnight purses, with potential for Fall Meet stakes race purses to be reduced in the future.