Agreement will allow simulcasting to resume at Calder

Churchill Downs Inc. (CDI) and representatives of the Florida Horsemen's

Benevolent and Protective Association (FHBPA) have come to agreements on a 2008

purse contract at Calder Race Course and on a slots contract for when the track

begins those operations on a yet-to-be-determined date.

The agreements pave the way for Calder to resume distributing its signal to

the simulcast network throughout the country, including off-track betting (OTB)

facilities and racetracks, beginning on Thursday.

"As important as these agreements are for the Florida horsemen and Calder,

they are most important for our loyal customers who have been inconvenienced by

this issue," said Kevin Flanery, senior vice president of Churchill Downs Inc.,

Calder's parent company. "Today's announcement means that our customers

throughout the country will enjoy access to Calder's races through their local

racetrack or simulcast outlet effective Thursday, July 10. We hope that states

who have blocked their signals from entering Florida will re-evaluate those

decisions based on today's announcement. This is a good day for everyone

involved and an important step forward."

CDI and the FHBPA will continue to work toward a resolution of the remaining

outstanding issue, which concerns signal distribution to national account

wagering platforms.

"We are happy that our fans who wager through racetracks and OTBs will soon

be able to enjoy the Calder product, and we are committed to working with the

FHBPA to ensure that our customers will also have the opportunity to wager via

TwinSpires.com and other online wagering platforms as soon as possible," Flanery

added. "We appreciate the hard work put into these negotiations by the FHBPA on

the slots and purses issues and look forward to productive discussions moving

forward."

Under the terms of the slot agreement, Florida horsemen are guaranteed

$14.375 million for purses in the first three full years of the slots operation

and 6.75 percent of slot revenue for the remainder of the ten-year term.

Additional provisions provide for the horsemen to share in the upside should the

Calder slot facility generate specified slot revenue minimums in the second and

third full years of operations.

"Over the past few years, our company has invested millions in the various

efforts to approve alternative gaming in Florida, including $3.1 million for the

2008 referendum alone," Flanery said. "We will also invest tens of millions of

dollars in the construction and operation of a slots facility at Calder.

According to the terms announced today, we estimate at this time that horsemen

will benefit from CDI's investments to the tune of approximately $50 million,

potentially, over the term of the agreement. This underscores our company's

commitment to the horse racing industry."

CDI has also announced that it has agreed to dismiss without prejudice the

lawsuit filed on April 24 against the FHBPA and its officers. The suit, filed in

the United States District Court for the Western District of Kentucky, alleged

violations under the Sherman Antitrust Act and will continue against the

remaining parties, including the Thoroughbred Horsemen's Group.