Kentucky Derby's $400,000 suites sell out in bigger luxury bet

Aysha Diallo, Bloomberg News on May 2, 2026

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This year’s Kentucky Derby will be the most luxurious ever — part of a nearly $1 billion investment plan to fortify horse racing’s marquee event as the sport faces declining interest.

Churchill Downs Inc., the publicly traded owner of the Derby and other racetracks, is offering ever more lavish experiences for deep-pocketed fans, including $400,000 suites at the finish line.

“The demand is extremely strong for our luxury and high-end segment,” said Sarah Contardo, senior vice president for sales and strategy at Churchill Downs.

The company aims to keep boosting that supply after announcing a strategy in early 2025 to add more premium experiences over the next few years. That includes a revamped five-story terraced structure on the first turn and adding suites on the home stretch. Even the infield, the general admission section known for drunken and mud-soaked partying, is getting upgraded with pricier amenities such as rooftop views.

The horse racing industry has been under pressure for years, facing increased competition for gambling spending with the legalizing of online sportsbooks. It’s also faced bad press after several high-profile horse injuries and fatalities. On top of that, the sport has an aging fan base.

Even the Derby, scheduled to start its 152nd running at about 7 p.m. New York time on Saturday, hasn’t been immune. Attendance fell about 6% to 147,000 last year. Churchill Downs stock hit an all-time high in 2023 and has declined by about a third since then.

To combat slowing growth, the company is pushing more into historic racing machines, which are on-site gaming similar to slot machines, and turning traditional seats and viewing areas at its racetracks to higher-priced options. The move upscale is a trend seen across the sports world, from pro tennis to Formula One.

Just one aspect of that at the Derby is the Mansion, a luxury viewing lounge with a private betting parlor and terraces for viewing the race from up high. The all-inclusive food and drinks package costs roughly $17,000 per ticket and includes made-to-order sushi, lobster tails and steak. Churchill Downs spent roughly $25 million upgrading the area’s southern-style design and nearby finish-line suites, which start at $405,000 and are sold out this year.

“Even though we’ve been around for over 152 years, and we have this historical facility, there’s still a lot of opportunity — both in terms of some open space and redoing existing older space,” Chief Executive Officer Bill Carstanjen said recently in an interview on Bloomberg’s Business of Sports podcast.

Despite the dip in attendance at last year’s Derby, Churchill Downs said television ratings hit a nearly 40-year high and profits from the event were just below a record from the prior year. The company projects Derby earnings before interest, taxes, depreciation and amortization to gain as much as $20 million this year.

Part of the plan to boost revenue from expanding the Derby, The company pitches “Derby Week,” with daily events starting the Saturday before the race. It drew 370,000 people last year for activities including a fashion show, live music and racing.

Analysts project Churchill Downs to increase sales 3.5% to $3 billion this year. That would be a record total, but also its worst performance since a big revenue decline during the COVID pandemic in 2020.

To accelerate growth, the company is opening new gaming facilities and recently reached a deal to acquire the intellectual property of the Preakness Stakes, underscoring a strategy built on consolidating marquee racing assets.

“They’ve become a much more diversified revenue-stream company,” said Brian Egger, a senior analyst for Bloomberg Intelligence.

Like many live sporting and entertainment events, pushing luxury options risks pricing out some fans. Kevin Barton, 57, has been attending the Derby’s infield since he was a teenager and paid about $150 for this year’s ticket. He’s wary of all the posh upgrades, but says: “How many businesses do you know that won’t take advantage and try to make more money?”

Annette Heston, 54, is spending roughly $1,200 for premium seating for multiple days this weekend as well as unlimited food and drinks. She also worries that the Derby is skewing too much to the high end, saying: “You’re going to lose a lot of regular people.”