Joe Stauff

Joe Stauff asked for an update on the process of shutting down illegal gaming machines in Virginia, whether it's still a 'whack-a-mole' situation, and if it's negatively affecting Churchill Downs' assets or providing a tailwind.

Answer

CEO Bill Carstanjen confirmed it remains a 'whack-a-mole' process due to manufacturers' attempts to introduce variations, but noted significant progress and strong enforcement. He stated that while vigilance is constant, illegal machines are not a material concern or a big driver for the company's current growth.

Asked about Powerball's pricing plans, the expected growth drivers for the U.S. and Canada lottery business excluding multistate games, and for an update on the timing of the gaming business sale.

Answer

Executives confirmed that Powerball has not announced a price change. Growth in the core U.S. and Canada lottery business is expected to come from continued portfolio management, new game launches, and expanding retail distribution and automation. The timeline for the gaming sale closing remains unchanged, targeted for the end of Q3 2025.

Asked for more specific timing on the Italian Lotto renewal and for an overview of the lottery business's competitive landscape and IGT's advantages.

Answer

The Italian Lotto tender is expected by year-end or early 2025, with a final outcome likely in Q2 2025. Competitively, IGT sees itself as unparalleled due to its global scale, B2B expertise, full product suite, and diversification, which should be recognized by investors once it's a pure-play company.