Churchill Downs Incorporated to Acquire Preakness Stakes Intellectual Property Rights for $85 Million

Louisville, KY – On April 21, 2026, Churchill Downs Incorporated (Nasdaq: CHDN) announced it has signed a definitive agreement to acquire the intellectual property rights, including all trademarks and associated rights, of the Preakness Stakes and Black-Eyed Susan Stakes (collectively, the “Preakness IP Rights”) from 1/ST Maryland LLC, an affiliate of 1/ST Racing. The purchase price for the transaction is $85 million, subject to customary closing conditions.

The Preakness IP Rights are currently subject to an Exclusive License Agreement under which Churchill Downs Incorporated will license the necessary intellectual property rights to the State of Maryland. This arrangement enables Maryland to continue conducting the Preakness Stakes and Black-Eyed Susan Stakes in exchange for an annual fee.

The Preakness Stakes, inaugurated in 1873, is the second jewel in the prestigious Triple Crown of Thoroughbred Racing. The Black-Eyed Susan Stakes is a prominent race for three-year-old fillies traditionally held at Pimlico Race Course on the day preceding the Preakness.

Bill Carstanjen, Chief Executive Officer of Churchill Downs Incorporated, commented on the acquisition, stating, “This acquisition adds one of the most iconic brands in American sports to our portfolio and is consistent with our strategy of investing in premier Thoroughbred racing assets with long-term growth potential. In keeping ownership of the Preakness intellectual property in the racing industry, CDI will support efforts to fully realize the potential of a redeveloped Pimlico and Preakness Stakes within the Triple Crown and the broader sports and entertainment landscape.”

The parties anticipate closing the transaction following the running of the 2026 Preakness Stakes. Funding for the acquisition will come from Churchill Downs’ cash on hand and its existing credit facility.

Churchill Downs Incorporated, headquartered in Louisville, Kentucky, has a storied history spanning over 150 years, beginning with its flagship event, the Kentucky Derby. The company has expanded its portfolio through acquisitions and operations of live and historical racing venues, online wagering businesses, and regional casino gaming properties.

The announcement also included a reminder of upcoming events, such as Oak Grove Racing, Gaming & Hotel’s inaugural Festival of Racing in May, featuring a $1.5 million harness racing card, and Churchill Downs Racetrack’s Sunday racing during Kentucky Derby Week, offering free general admission to guests wearing an official 2026 Kentucky Derby Festival Pegasus Pin.

Additionally, Churchill Downs Incorporated highlighted a recent ruling by the United States District Court for the Western District of Kentucky. The court found that the Horseracing Integrity and Safety Authority (HISA) acted arbitrarily and capriciously in its purse-weighted fee methodology, rendering associated fee collection efforts unlawful.

The company’s press release included standard forward-looking statements disclaimers, outlining various risks and uncertainties that could affect future results, such as economic conditions, regulatory changes, competition, cybersecurity risks, and other factors detailed in its filings with the Securities and Exchange Commission.

This acquisition marks a significant strategic move by Churchill Downs Incorporated to consolidate ownership of key intellectual property within the Thoroughbred racing industry, positioning the company to leverage the historic Preakness Stakes brand within the evolving sports and entertainment marketplace.