Churchill Downs Inc. Furloughs Gaming Employees

Churchill Downs Inc. announced March 25 the temporary furlough of employees at certain properties that temporarily ceased operations following local or state government-ordered closure undertaken to combat the impact of the COVID-19 pandemic.

Temporary furloughs at properties that have been impacted by the closures will begin immediately. CDI will continue to provide health, dental, vision, and life insurance benefits to furloughed employees, CDI said in a release.

All remaining salaried employees across the company will receive a reduction in pay based on a percentage that varies depending on each employee's salary. The most senior level of executive management will receive the largest salary decrease based on both percentage and dollar amount. These salary reductions will be in effect until CDI begins to return to normalized operations.

"This is not a decision any company ever wishes to make and it is particularly tough when those affected are deeply respected team members who have helped us build great facilities and strong businesses of which we are all very proud," said Bill Carstanjen, CEO of CDI. "We look forward to welcoming our team members and customers back when we are able to reopen our properties and return to normal operations."   

Angst: COVID-19 Impact Costing Racing Millions of Dollars

In its latest annual report, CDI reported record 2019 earnings before interest, taxes, depreciation, and amortization of $451.4 million, up 37% from 2018. Carstanjen earned more than $10.6 million in 2019, counting stock awards and other compensation. William E. Mudd, president and chief operating officer, made more than $5.2 million.

CDI, which owns gaming and racing properties throughout the country in addition to the advance deposit wagering platform Twinpsires.com, will work with relevant authorities in each state to determine when each property is permitted to reopen, the company release stated.

CDI properties that will be affected by the temporary furloughs include:

• Derby City Gaming (Louisville, KY)
• Calder Casino (Miami Gardens, FL)
• Fair Grounds Slots and VLT operations (New Orleans, LA)
• Harlow's Casino (Greenville, MS)
• Lady Luck Casino Nemacolin (Farmington, PA)
• Ocean Downs Casino (Berlin, MD)
• Oxford Casino (Oxford, ME)
• Presque Isle Downs & Casino (Erie, PA)
• Riverwalk Casino (Vicksburg, MS)
• Arlington International Racecourse (Arlington Heights, IL)

On March 17, CDI announced postponement of the Kentucky Derby Presented by Woodford Reserve (G1) at Churchill Downs from May 2 until Sept. 5. Its spring meet has not yet been delayed, though a postponement of that meet, set to begin April 25, appears likely following a delayed opening until April 14 of its stable area.