According to a new report by Thomas Lambert, an economics professor at the University of Louisville Equine Business Program, the Kentucky Derby and Churchill Downs generate $396 million in direct, indirect, and induced spending and approximately $47 million in local, state, and federal tax revenue in a typical year. The report also estimates that the local and state governments provide $3-4 million in tax incentives and services to Churchill Downs and the Kentucky equine industry each year. However, these tax losses are offset by $17 million in tax revenue for local and state government generated by Churchill Downs and local businesses during Derby week. The report also notes that COVID-19 significantly reduced revenues for Churchill Downs, the community, and taxing authorities in 2020 and 2021. Despite this, Churchill Downs has been able to offset a trend of declining revenues and attendance at most racetracks in the United States, thanks to Derby Week and diversification into historical horse racing and racing casinos like Turfway Park in Florence, Kentucky.
Figures:
- Estimated Derby Week economic impact of Churchill Downs: $302 million
- Estimated Derby Week direct, indirect, and induced spending on hotels, restaurants, etc.: $94 million
- Total Derby Week economic activity: $396 million
- Article: https://www.uoflnews.com/post/uofltoday/financial-impact-of-churchill-downs-and-derby-week/
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