Churchill Downs pausing renovations due to Trump tariffs ahead of 2025 KY Derby

Churchill Downs on Wednesday announced that the Kentucky racetrack, soon to host the annual Kentucky Derby, is pausing a major expansion due to President Trump’s tariffs and overall economic uncertainty.

The Louisville-based gambling and racing company made the announcement as it released first-quarter earnings, which were overall positive with record net revenue.

But the company said it would pause capital projects released earlier this year “due to the current economic environment.”

In February, Churchill Downs announced plans for a nearly $1 billion expansion, its largest ever, to begin later this year and extend through 2028. The projects were to revamp the existing Skye Terrace into more premium hospitality experiences; create permanent premium seating in the infield; and add infield structures for the General Admission area as well.

Now, Churchill says, those will be delayed.

“The decision to delay these construction projects is due to the increasing uncertainty surrounding construction costs related to tariff and trade disputes as well as current macro-economic conditions,” Churchill Downs said in a news release. “In the coming months, CDI will assess the evolving economic landscape and evaluate any changes to the timing and sequencing of these multi-year projects.”

The decision to pause the Skye Terrace and infield projects “was a difficult one for us to make because we do not want to disappoint our fans,” said Bill Carstanjen, chief executive officer of Churchill Downs Inc., in the release.

“However, we have a responsibility to be disciplined given the recent changes in the economic environment. We remain committed to growing our iconic flagship asset over the long term with projects that will provide new once-in-a lifetime experiences for our guests and deliver best-in-class shareholder returns.”

Churchill also announced two new projects with smaller price tags, geared toward deep-pocketed fans and bettors, that will continue: renovations of the existing Finish Line Suites and The Mansion. The total cost of those two new projects is a more modest $25 million to $30 million, according to the announcement.

“We are pleased to announce these new projects designed to significantly improve the Finish Line Suites and The Mansion, which are two of our most exclusive areas of the racetrack,” Carstanjen said.

Churchill Downs executives will hold a conference call with investors at 9 a.m. ET Thursday to discuss the quarter’s results, which do not include the upcoming Kentucky Derby on May 3.

This story was originally published April 23, 2025 at 4:30 PM with the headline "Churchill Downs pausing renovations due to Trump tariffs ahead of 2025 KY Derby."

Janet Patton

Lexington Herald-Leader

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Janet Patton covers restaurants, bars, food and bourbon for the Herald-Leader. She is an award-winning business reporter who also has covered agriculture, gambling, horses and hemp. Support my work with a digital subscription