Share 
Churchill Downs Incorporated (CDI) is exploring the sale of Pennsylvania property Presque Isle Downs in Erie, the company said during a Q2 2026 earnings call last week.
Recent financial troubles have put the long-term sustainability of the Erie venue in jeopardy. The Pennsylvania Gaming Control Board is monitoring the property under special conditions.
However, with the Pennsylvania Supreme Court having ruled skill games illegal, CDI CEO Bill Carstanjen told investors that Presque Isle Downs should benefit greatly.
Why CDI is selling Presque Isle
Carstanjen named Presque Isle Downs with eight other properties that CDI could sell in the near future. Some of the East Coast destinations include Ocean Downs in Maryland and del Lago in New York.
Carstanjen explained why the nine properties were placed under a strategic review.
“We believe that our recent share price performance has not reflected the quality, durability, and cash-generating characteristics of our properties. We certainly recognize that we must constantly analyze and adapt to our market environment and dynamics.”
Carstanjen noted that the sale of the properties “will most likely be individually or in small groups to maximize value for our shareholders.” Macquarie Capital is going to assist CDI in the sale process.
CDI is not selling HRM properties in Kentucky, Virginia, or New Hampshire.
Carstanjen ties skill games ruling to Presque Isle’s outlook
The skill games ruling the Supreme Court handed down in June was a huge win for Presque Isle Downs. Carstanjen estimated between 70,000 “to north of 100,000” machines have infiltrated the Keystone State.
The state has until Oct. 15 to either regulate and tax the games or else they will be subject to seizure. That is good news for Presque Isle Downs, Carstanjen said:
“It gives us confidence that while there can be bumps in the road and uncertainty for a while, eventually the states get it right and allow our business model to function as intended and achieve the public policy objectives that the state intended when they legalized gaming.
“I think it’s good news ahead for Presque Isle in Pennsylvania.”
Carstanjen argued that skill games “cannibalized” its business “very quickly.”
What happens if CDI sells Presque Isle?
Should CDI execute a sale of Presque Isle Downs, that would change the landscape among Pennsylvania retail casinos.
PGCB Communications Director Doug Harbach told PlayPennsylvania on Monday that any new owner would need to petition for a change of ownership, which would initiate an extensive background investigation.
That would also impact the online business as the Keystone State offers Pennsylvania online casinos and sports wagering, Harbach said.
“As for the online business, whether that is for casino games or sports wagering, that would likely also be something that a new owner would need to petition the board about if they choose to utilize a provider different from the current Presque Isle providers.”
The sale could create a domino effect in Pennsylvania, which could impact all the way to the online vertical. Presque Isle Downs is partnered with bet365 for iGaming and sports wagering operations.
