Churchill Downs opens new casino, Derby City Gaming Downtown. What that means for you

Churchill Downs' presence in Louisville is once again growing as the famed horse racing and betting company opens Derby City Gaming Downtown on Wednesday, exactly 150 days before the 150th Kentucky Derby.

The $90 million venue located at 140 S. 4th St., a prominent corner in downtown, functions as an annex of the iconic Twin Spires racetrack and will provide guests with historical horse racing betting machines, multiple bar concepts, and entertainment.

"The opening of Derby City Gaming Downtown shows that organizations are doubling down and affirming their commitment to growing in our region," Sarah Davasher-Wisdom, president and CEO, Greater Louisville Inc., the metro area chamber of commerce, told the Courier Journal. "It should make our entire community optimistic about the future of our downtown and the future of our regional economy."

Earlier this year, Derby City Gaming and Hotel, 4520 Poplar Level Road, saw its hotel piece finally open in June. The gaming facility originally opened in 2018 for Kentuckians to play historical racing machines and has expanded to feature a luxury hotel and dining options.

Now, coming off the success of that venue expansion and the continued decline of downtown Louisville following the COVID-19 pandemic, Churchill Downs Inc. is taking a "lead by example approach" and investing heavily in the reinvention of downtown Louisville.

"It's my favorite because the goal was really to contribute to our community, in an area where we thought our community really needed help, which was downtown Louisville," said Churchill Downs Inc. CEO William “Bill” Carstanjen. "We wanted to find an opportunity to invest in our downtown because we've seen how it's changed through COVID and over the last few years. We need to make Louisville a special place."

Here's a look at how Derby City Gaming Downtown stands to impact the city and become a key feature for the future of Churchill Downs Inc.

What is Derby City Gaming Downtown?

Derby City Gaming Downtown is a 43,000-square-foot entertainment facility featuring 500 Historical Racing Machines located in the heart of downtown Louisville. This property is the sixth of its kind in the commonwealth and one of 27 properties across 13 states, Churchill Downs Inc. said in a statement.

The venue includes gaming, a gift shop, and three dining spots that pay homage to the Kentucky Derby — First Turn Sports Bar & Stage, Trophy Bar Bourbon & Cigars, and Fascinator Wine Bar.

The casino-style venue is expected to create between 150-200 permanent jobs, many of which will be filled with local hires, Carstanjen told the Courier Journal.

"Casinos offer people careers, most of the jobs do not require college degrees but they're solid jobs with benefits, and we just put a bunch of those downtown," Carstanjen said.

Why downtown Louisville?

Carstanjen noted that part of the draw to downtown Louisville for the homegrown business is a corporate responsibility to continue to invest and support the city which has supported its business for going on 150 years.

"I think [Derby City Gaming Downtown] can have a real impact on helping to reinvent our downtown," Carstanjen said.

The classic, clear and central location of the venue at the corner of 4th and Market streets made it a desirable site for the company. Carstanjen said the location provides easy access for potential guests to the Kentucky International Convention Center, major downtown hotels, museums, bourbonism, and other tourist attractions. The hope, Carstanjen said, is to inspire "lots of ancillary businesses to pop up around us and for other significant companies to make investments in the downtown area."

"We want to contribute to the redevelopment of the downtown area of Louisville. We think it needs to be great ... so that it can return to what it's been in the past and what it isn't currently," Carstanjen said.

The casino business will create an atmosphere of gaming, entertainment, and energy, seven days a week.

"[Derby City Gaming Downtown] helps create a more vibrant downtown after work hours, especially as we see more office-based businesses utilize hybrid work," Davasher-Wisdom said. "The vibrancy is critical as we work to revitalize downtown ... This will also lead to more businesses opening in downtown and the adjacent areas to support growing population and foot traffic."

Derby City Gaming Downtown anticipates a $28.6 million economic impact

While this venue stands to provide a social boost to downtown Louisville, the potential economic growth through historical horse racing machine gaming is high.

"Historical horse racing is a growing industry in our region that has continued to rise in popularity in recent years. It helps bring new tax revenue to our state enabled for the seamless introduction of sports wagering into our region," Davasher-Wisdom said.

From July to September, historical horse racing has raked in $2.3 billion but actual horseracing has only garnered $34 million, Thomas Lambert, an economist and assistant professor of economics and equine industry at the University of Louisville, shared with the Courier Journal.

"The lion's share of the tax money for horseracing is also actually [historical horse racing] now," Lambert said.

Lambert estimates the anticipated economic impact of the downtown gaming facility — which measures jobs, income and other dollars generated directly and indirectly from the venue — sits around $28.6 million annually.

Churchill Downs Inc. as a whole company receives at least $4 million in tax breaks, the Courier Journal previously reported. While the economic impact created on Kentucky Derby weekend alone is enough to counterbalance these tax breaks, the new Derby City Gaming Downtown facility is expected to produce $4.9 million in tax revenue for the county, state and federal governments, Lambert shared.

Lambert said while it is certain the venue will make money, factors such as "inflation and possible saturation of the games" could cause the facility to earn more than expected, noting the pinch consumers are facing with disposable income.

"I think it will have a positive effect overall ... particularly if it also helps to bring in folks" back to downtown, Lambert said.

Problems with gaming?

Carstanjen noted that for a company like Churchill Downs Inc., being aware of problem gaming and training staff to address these issues is a key "moral responsibility and a moral obligation" for the business.

"Most people enjoy it responsibly. Most people find it entertaining, and it's just another form of entertainment that's available to them," said Carstanjen. "But like most things, there is a small portion of the population that can develop a bad habit and can do it irresponsibly and we never want that to happen."

The company provides funding to programs to assist with gambling issues such as The Healing Place Lifestyle Program.

Note: If you or someone you know has a gambling addiction, you can call the Kentucky helpline at 270-689-1069 or the National Problem Gambling Helpline at 800-522-4700. Chat with someone online at ncpgambling.org/chat. 

Contact reporter Olivia Evans at oevans@courier-journal.com or on Twitter at @oliviamevans_

Derby City Gaming Downtown

WHERE: 140 S. 4th St.

HOURS: Sunday – Thursday 9 a.m. to 2 a.m. and Friday and Saturday 9 a.m. to 4 a.m.

PARKING: 130 on-site parking spots

This article originally appeared on Louisville Courier Journal: Churchill Downs opens Derby City Gaming Downtown. What it means