Strategic Acquisition Targets Growing New England Market
Churchill Downs Incorporated (CDI), the renowned racing and gaming operator behind the Kentucky Derby, has entered into a definitive agreement to acquire a majority stake in Casino Salem, a new charitable gaming facility in Salem, New Hampshire. The deal strengthens CDI’s growing portfolio of Historical Racing Machine (HRM) venues, which have become a key driver of the company’s financial performance.
Casino Salem opened its doors on 9 July 2025 at The Mall at Rockingham Park. The current facility features 100 HRMs and 13 table games, with plans already in motion for a larger, rebranded expansion. The acquisition is part of a joint venture with local developers Joe Faro and Sal Lupoli, who will retain a minority stake.
The location, just 30 minutes from Boston, positions the property to draw from a densely populated and largely underserved region when it comes to regulated gaming.
Next Phase: Expansion and Rebranding
CDI plans to leverage its operational expertise to transform Casino Salem into a state-of-the-art entertainment destination, complete with an expanded gaming floor and multiple dining options. This approach mirrors the successful model used in other CDI HRM venues, including The Rose Gaming Resort in Virginia and Owensboro Racing and Gaming in Kentucky.
According to CEO Bill Carstanjen, the move into New Hampshire aligns with the company’s long-term strategic vision:
“New Hampshire is an exciting opportunity. We look forward to building an expanded, state-of-the-art gaming and entertainment facility in Salem and to support charitable organisations throughout the state.”
Pending approval from the New Hampshire Lottery Commission, the deal is expected to close in Q3 2025. The acquisition will be funded via CDI’s existing credit facility, underscoring the company’s strong liquidity position.
HRM Segment: A Pillar of Growth
CDI’s expansion into New Hampshire is part of a broader strategy to dominate the HRM gaming market. In Q1 2025, CDI reported $276.4 million in Live and Historical Racing revenue — an 11% year-on-year increase. That growth has been driven by new HRM venues and robust performance across existing properties.
The company’s 2024 full-year revenue reached $2.7 billion, its highest ever, with HRM operations contributing significantly to the bottom line. With states like New Hampshire allowing charitable gaming and HRM formats, CDI sees continued opportunity for market penetration without the heavy regulatory burden of full commercial casinos.
A Dual Presence in Salem
It’s worth noting that CDI will continue to operate Chasers Poker Room separately from Casino Salem, creating a dual presence in the Salem gaming market. This strategy allows CDI to cater to different player demographics while reinforcing brand visibility in the region.
As Churchill Downs deepens its investments in HRM-focused properties and charitable gaming, the Casino Salem acquisition not only marks a geographic expansion but reinforces the sustainability of HRM operations as a cornerstone of its evolving business model.
