{"id":294141,"date":"2023-10-16T18:02:47","date_gmt":"2023-10-16T23:02:47","guid":{"rendered":"https:\/\/www.casino.org\/news\/?p=294141"},"modified":"2023-10-18T22:56:26","modified_gmt":"2023-10-19T03:56:26","slug":"churchill-downs-boosted-by-virginia-court-ruling","status":"publish","type":"post","link":"https:\/\/www.casino.org\/news\/churchill-downs-boosted-by-virginia-court-ruling\/","title":{"rendered":"Churchill Downs Benefits from Virginia Court Ruling, Says Analyst"},"content":{"rendered":"

Virginia\u2019s Supreme Court recently ruled that skill games don\u2019t have First Amendment protections and are again illegal in the state. That decision could benefit Churchill Downs (NASDAQ: CHDN).<\/p>\n

\"Virginia
A person plays a Queen of Virginia<\/em> skill gaming machine inside a Richmond restaurant. Virginia’s Supreme Court ruled against the devices, potentially benefiting Churchill Downs. (Image: Richmond Times-Dispatch<\/em>)<\/figcaption><\/figure>\n

That\u2019s the take of Truist Securities analyst Barry Jonas, who, in a new note to clients, observed that Virginia\u2019s refreshed ban on skill games<\/a> is a \u201cmeaningful positive\u201d for Churchill Downs.<\/p>\n

We see the state Supreme Court decision as a big win for the company just months following the Exacta transaction closing,\u201d<\/strong> Jonas wrote. \u201cThis ruling comes 4 months after Kentucky issued a similar ban, and speaks to CHDN management\u2019s political savvy.\u201d<\/strong><\/p><\/blockquote>\n

The gaming company currently has 2,750 historical horse racing machines in Virginia and would like to boost that count to 5,000. Jonas noted that allowing the 9,000 skill game machines to continue operating in Virginia would have been a drag on Churchill\u2019s HRM revenue opportunity set.<\/p>\n

Virginia Important Market for Churchill Downs<\/h2>\n

Virginia\u2019s highest court ruling to again impose the ban on skill games devices is pivotal for Churchill Downs\u2019 growth ambitions<\/a> in the Cavalier State.<\/p>\n

\n

While some investors more readily associate the operator with horse racing and its eponymous race track in its home state of Kentucky, Virginia is a new growth frontier for the company. At the state level, Virginia could catalyze long-term growth for Churchill Downs. The operator has a 50% stake<\/a> in a Richmond casino project and a growing number of HHR venues in the state. That proposed gaming venue is expected to have 1,800 slot machines, 100 table games, and a sportsbook.<\/p>\n<\/div>\n

Churchill\u2019s established Virginia footprint consists of seven Rosie\u2019s 777 Gaming Emporiums, and the operator is planning to add the Rose Gaming Resort in Dumfries.<\/p>\n

\u201cFollowing the Supreme Court\u2019s ruling that the lower court acted improperly, we believe recourse options for skill-based companies are limited,\u201d added Jonas. \u201cWhile it\u2019s not clear exactly when the ban would be implemented, we think it could occur quickly and have a relatively immediate benefit to CHDN\u2019s [Virginia] properties.\u201d<\/p>\n

Analysts Bullish on Churchill Downs<\/h2>\n

Although the stock is up a middling 6.60% year-to-date, Churchill Downs remains one of Wall Street\u2019s favorite ideas among gaming equities. Virginia is one of the factors supporting that bullish outlook.<\/p>\n

It has ~$1.1B in development spend earmarked for the next year and a half to increase the portfolio of slots\/historical racing machines by 21%, table games by 9%, and rooms by 25% into 2025,\u201d<\/strong>\u00a0Capital One Securities analyst Dan Guglielmo wrote in a note to clients last week.<\/p><\/blockquote>\n

Guglielmo initiated coverage of Churchill Downs with an \u201coverweight\u201d rating and a $144 price target, calling the name a potential standout in the casino sector. His price forecast implies upside of 27.7% from the stock\u2019s Oct. 16 close.<\/p>\n","protected":false},"excerpt":{"rendered":"

Virginia\u2019s Supreme Court recently ruled that skill games don\u2019t have First Amendment protections and are again illegal in the state. That decision could benefit Churchill Downs (NASDAQ: CHDN). That\u2019s the take of Truist Securities analyst Barry Jonas, who, in a new note to clients, observed that Virginia\u2019s refreshed ban on skill games is a \u201cmeaningful […]<\/p>\n","protected":false},"author":46,"featured_media":285433,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[10,86432,86438],"tags":[81903,86697,86457],"acf":[],"yoast_head":"\nChurchill Downs Boosted By Virginia Court Ruling<\/title>\n<meta name=\"description\" content=\"Churchill Downs stock gets a lift from Virginia high court ruling.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.casino.org\/news\/churchill-downs-boosted-by-virginia-court-ruling\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Churchill Downs Boosted By Virginia Court Ruling\" \/>\n<meta property=\"og:description\" content=\"Churchill Downs stock gets a lift from Virginia high court ruling.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.casino.org\/news\/churchill-downs-boosted-by-virginia-court-ruling\/\" \/>\n<meta property=\"og:site_name\" content=\"Casino.org\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/Casino.OrgNews\" \/>\n<meta property=\"article:published_time\" content=\"2023-10-16T23:02:47+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-10-19T03:56:26+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/08\/60da5bf412925.image_.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"800\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Todd Shriber\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@etfgodfather\" \/>\n<meta name=\"twitter:site\" content=\"@Casino_Org\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Todd Shriber\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.casino.org\/news\/churchill-downs-boosted-by-virginia-court-ruling\/\",\"url\":\"https:\/\/www.casino.org\/news\/churchill-downs-boosted-by-virginia-court-ruling\/\",\"name\":\"Churchill Downs Boosted By Virginia Court Ruling\",\"isPartOf\":{\"@id\":\"https:\/\/www.casino.org\/news\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.casino.org\/news\/churchill-downs-boosted-by-virginia-court-ruling\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.casino.org\/news\/churchill-downs-boosted-by-virginia-court-ruling\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/08\/60da5bf412925.image_.jpg\",\"datePublished\":\"2023-10-16T23:02:47+00:00\",\"dateModified\":\"2023-10-19T03:56:26+00:00\",\"author\":{\"@id\":\"https:\/\/www.casino.org\/news\/#\/schema\/person\/f4cecf70a5032bc4e60eb73fc86d4a85\"},\"description\":\"Churchill Downs stock gets a lift from Virginia high court ruling.\",\"breadcrumb\":{\"@id\":\"https:\/\/www.casino.org\/news\/churchill-downs-boosted-by-virginia-court-ruling\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.casino.org\/news\/churchill-downs-boosted-by-virginia-court-ruling\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.casino.org\/news\/churchill-downs-boosted-by-virginia-court-ruling\/#primaryimage\",\"url\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/08\/60da5bf412925.image_.jpg\",\"contentUrl\":\"https:\/\/www.casino.org\/news\/wp-content\/uploads\/2023\/08\/60da5bf412925.image_.jpg\",\"width\":1200,\"height\":800,\"caption\":\"A person plays a \\\"Queen of Virginia\\\" skill gaming machine inside a Richmond restaurant. 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