Churchill Downs and VICI Properties Announce Major Share Repurchase Programs

Churchill Downs Incorporated and VICI Properties have each announced significant share buyback programs, coinciding with the release of their third-quarter financial results. The moves signal confidence from management in the value of their respective stocks amid a challenging year for casino equities.

Churchill Downs, the operator of the Kentucky Derby and several casinos, authorized a new share repurchase plan worth up to $1 billion. The company’s stock has declined roughly 20% year-to-date, making the buyback a strategic use of capital to support shareholder value.

VICI Properties, a real estate investment trust that owns many casino properties, unveiled a $1.5 billion share buyback authorization. The firm’s shares have also faced pressure in 2023, falling about 10% over the same period. The repurchase program underscores VICI’s strong cash flow and commitment to returning capital to investors.

Both companies reported their quarterly earnings on the same day, with the buyback announcements serving as a key highlight. Industry analysts view the moves as a vote of confidence in the long-term prospects of the gaming sector, even as macroeconomic headwinds persist.

The buybacks come as many casino stocks trade near multi-year lows, prompting several operators to repurchase shares. Churchill Downs and VICI Properties join a growing list of gaming firms using buybacks to signal undervaluation and boost earnings per share.