Churchill Downs Incorporated (CHDN) — ESG & Values Scores

Environment story

Churchill Downs discloses minimal environmental data. No Scope 1, 2, or 3 emissions figures are reported in the 10-K. The company acknowledges CAFO (Concentrated Animal Feeding Operations) regulations and wastewater/stormwater management obligations at racetracks but provides no quantified emissions targets, net-zero commitments, or renewable energy percentages. Environmental initiatives center on facility renovation and equine medical care rather than decarbonization. A significant regulatory loss in Louisiana (HHR operations shutdown per Louisiana Supreme Court ruling March 2025) demonstrates operational vulnerability to environmental/regulatory challenge. The absence of disclosed Scope 3 emissions (product-usage carbon from gaming operations and customer transportation) and lack of a verifiable net-zero target trigger substantial deductions under the deterministic rubric.

Criticisms on file

Louisiana HHR Operations Shutdown – Regulatory Loss
Source: CHDN 10-K: Louisiana Supreme Court opinion March 21, 2025, affirming District Court ruling that 2021 Historical Horse Racing Act is unconstitutional. Company discontinued HRM operations in Louisiana effective May 8, 2025, and relocated HRMs to Virginia venues. Significant revenue impact in Gaming segment.
CAFO & Wastewater Compliance Risk
Source: CHDN 10-K, Environmental Matters section: Company acknowledges subject to EPA and state CAFO regulations addressing manure and wastewater impacts on water quality. Compliance can require significant capital expenditures; violations result in penalties and possible operational cessation.
Hazardous Materials & Contamination Liability
Source: CHDN 10-K, Risk Factors – Ownership and Development of Real Estate: Company is liable for cleanup of hazardous substances on owned/operated properties regardless of causation. Potential for material remediation costs and operational restrictions.

Disclosed initiatives

Churchill Downs Racetrack Capital Investments

Multi-year renovation projects including Starting Gate Pavilion, First Turn Club, Homestretch Club, and planned $280–300M new first-turn building; $30M Finish Line/Mansion renovation. Investments enhance facility infrastructure and guest amenities.

Infrastructure modernization; no direct emissions reduction quantified.
Equine Medical Center & Safety Programs

State-of-the-art equine medical center and quarantine barns at Churchill Downs Racetrack; established safety programs across all properties.

Animal welfare focused; not environmental decarbonization.

Social story

Churchill Downs employs approximately 9,000 team members (6,600 full-time) as of December 31, 2025. Approximately 840 full-time employees (12.7% of full-time workforce) are covered by 11 collective bargaining agreements; the company reports no material labor disputes or operational disruptions due to strikes. The 10-K affirms commitment to competitive compensation, comprehensive benefits, safety programs, and talent development, including regular succession planning with the Board and CEO. However, the filing provides no disclosed CEO-to-worker pay ratio, workforce diversity percentages (women, underrepresented groups), executive/board diversity metrics, gender or racial pay-gap data, or supply-chain human-rights audits. Absence of these quantified DEI disclosures and pay-equity commitments prevents higher scoring despite no flagged union-suppression activities or major recent labor controversies.

Criticisms on file

Absence of Disclosed Diversity & Pay-Equity Metrics
Source: CHDN 10-K Human Capital section: No workforce-wide or leadership-specific representation percentages for women, racial/ethnic minorities disclosed. No CEO-to-median-worker pay ratio, gender pay gap, or racial pay gap disclosed. No civil-rights audit or EEO-1 filing confirmation stated.
Supply-Chain Labor & Human-Rights Due Diligence Not Addressed
Source: CHDN 10-K: No documented supply-chain audits, forced-labor policies, conflict-minerals assessments, or modern slavery statements disclosed in 10-K. High-risk geographic sourcing (e.g., gaming-machine manufacturers relying on foreign components) not audited in filings.

Disclosed initiatives

Talent Acquisition, Development & Retention

Clear purpose and strategy; ambitious goal-setting; accountability; continuous talent assessment and advancement; leadership-led growth culture. Opportunities for skill expansion within current roles and cross-functional development.

Enhanced employee career development and retention; succession planning with CEO and Board.
Compensation, Benefits, Safety & Wellness

Competitive salaries and wages; comprehensive health and retirement benefits; voluntary benefits; paid time-off. Supplementary programs for physical, emotional, and financial well-being. Safety programs established across all properties.

Employee health, retention, and workplace safety prioritized.
Regulatory Compliance – Employment Preferences

In certain jurisdictions, company required to give employment preference to minorities, women, and in-state residents.

Regulatory mandate; extent of implementation not quantified in filing.

Governance story

Churchill Downs operates with a standard single-class common stock structure (no dual-class voting disclosed), mitigating governance concentration risk. The 10-K does not explicitly state board independence percentage; without independent confirmation of >80% independence, a conservative 75% estimate is applied, triggering a 15-point deduction. No active antitrust, consumer-safety, or financial-fraud regulatory proceedings are disclosed in the 10-K; however, the Louisiana HHR lawsuit (regulatory/constitutional challenge) and ongoing competitive gaming/iGaming regulatory dynamics present material legal/compliance complexity. Lobbying expenditures are not quantified in the filing. The company's extensive gaming-license dependencies across multiple jurisdictions create structural governance vulnerability: gaming authorities have broad investigative and licensing revocation powers, subjecting the company to significant regulatory discretion. No evidence of litigation against shareholder climate/social proposals or active climate-deregulation lobbying is disclosed, avoiding Greenwashing Checklist penalties. Overall governance profile reflects standard gaming-industry regulatory framework without egregious red flags, but limited transparency on board composition, lobbying spend, and ESG governance initiatives.

Criticisms on file

Louisiana HHR Regulatory Loss – Constitutionality Challenge
Source: CHDN 10-K Regulatory section: On February 23, 2024, District Court ruled 2021 HHR Act unconstitutional; affirmed by Louisiana Supreme Court March 21, 2025. Company discontinued Louisiana HRM operations May 8, 2025, moving machines to Virginia. Significant operational and revenue impact.
Broad Gaming-Authority Regulatory Discretion
Source: CHDN 10-K Risk Factors & Regulatory sections: Gaming authorities have broad discretion to investigate, deny/revoke licenses, impose fines, and appoint supervisors/conservators. Officers, directors, key employees subject to licensing investigations. Shareholder suitability investigations required. Company acknowledges material operational risk from regulatory determinations.
No Disclosed Board Independence or Lobbying Transparency
Source: CHDN 10-K: Board composition, independence percentage, and lobbying expenditures not quantified in filing. Governance structure and political-engagement activities opaque to investors.

Disclosed initiatives

Gaming Regulatory Compliance Framework

Comprehensive compliance with multi-jurisdictional gaming licenses (FL, IN, IA, LA, ME, MD, MS, NY, PA, and others). Regular filings, background checks, suitability determinations for officers/directors. Character & fitness standards enforced.

Maintains operational licenses across 11+ states; mitigates regulatory risk through documented compliance.
Responsible Gambling & Consumer Protection Programs

Established programs to promote responsible gambling and inform patrons of help for problem gambling. Age-requirement enforcement across all gaming venues.

Consumer protection and harm-reduction aligned with gaming-law requirements.
Anti-Money Laundering & Reporting Compliance

Subject to federal currency-transaction reporting (>$10,000) and suspicious-activity reporting. Compliance with anti-money laundering regulations.

Financial crime prevention and regulatory adherence.

These are Missionomics' own editorial scores — directional signals built from disclosed facts under a published method, not certifications or definitive ratings of Churchill Downs Incorporated. Coverage and confidence vary by data point, and figures can lag real-world changes. Read the full Methodology for sourcing, scoring, and correction details — or open Churchill Downs Incorporated in the app for interactive charts and portfolio building.

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