$100 Million Investment Provides World-Class Entertainment While Supporting Purse Funding for Ellis Park

Churchill Downs Incorporated (“CDI” or “the Company”) (Nasdaq: CHDN) today announced the grand opening of Owensboro Racing & Gaming, the Company’s seventh premier historical horse racing entertainment venue in Kentucky. The $100 million gaming and entertainment venue in Owensboro, Kentucky, features 600 state-of-the-art historical racing machines (“HRM”), a retail sportsbook, simulcast wagering, and multiple food and beverage options. The new HRM entertainment venue will support purse funding for Ellis Park Racing & Gaming’s (“Ellis Park”) summer racing meet in Henderson, Kentucky.

“Today marks an exciting milestone for our company as we expand our footprint in western Kentucky and further strengthen our commonwealth’s signature horse racing industry,” said Bill Carstanjen, CEO of CDI. “Owensboro’s newest entertainment destination will drive new tourism, entertainment and economic opportunities in eastern Daviess County.”

Definitions

Certificate Application: The CGA may issue a certificate, for a period of up to three years, to natural persons or legal entities offering gaming-related services or goods to holders of a license. Categories of entities requiring certification will be issued separately by CGA in a Certification Policy.

Domain: The unique address used to identify a website on the internet. A policy regarding the acceptability of Mirror Domains and applicable fees in this regard will be issued separately by the CGA.

Gambling License: B2C Operating license

Listed UBO: a UBO which shares are publicly traded on an exchange.

Qualified Interest Holder: A natural person holding direct or indirect interest of at least ten percent of the subscribed share capital, or a similar interest, or the ability to directly or indirectly exercise at least ten percent of the voting rights, or similar control.

Supplier License: B2B platform/software license

UBO: A natural person who is the ultimate owner, or has ultimate control, of a legal entity, by directly or indirectly holding more than ten percent of the shares, voting rights, or ownership interests in that legal entity.

Application Fee

B2C Applications (Gaming license)

A non-refundable fee must be paid prior to a license application being processed by the CGA.

B2B Applications (Supplier license)

A non-refundable fee must be paid prior to a license application being processed by the CGA.

Annual Fees – B2C

First Invoice

Initial Annual Fees are calculated pro-rata for the year of issuance. These are required to be paid within 14 days of notification by the CGA to the local director of the company of the license grant.

Annual Fees

Annual Fees are for all subsequent years are payable in full by January 15^th on receipt of invoices by the CGA.

There will be two invoices simultaneously issued. One for the Curacao government (National Treasury) (the License Fee) and one for the CGA (the Supervisory Fee) each payable in full electronically in accordance with banking instructions specified on each invoice.

All fees are non-refundable.

Annual Fee – B2B

First Invoice

Initial Annual Fees are calculated pro-rata for the year of issuance. These are required to be paid within 14 days of notification by the CGA to the local director of the company of the license grant.

Annual Fees

Annual Fees for all subsequent years are payable in full by January 15^th on receipt of invoice by the CGA.

The fee is payable in full electronically in accordance with banking instructions specified on the invoice.

All fees are non-refundable.

Other Administrative Fees

Transition Period 2025

Under the NOOGH (the legislation prior to enactment of the LOK) there was only one single type of fee of ANG 120,000 for any issued license; which was charged by way of an initial fee, followed by monthly fees.

Under the LOK both B2C and B2B fees exist. To this end transition fees will apply to holders of licenses issued under the NOOGH.

1. No further invoices under NOOGH will be issued.
2. No further monthly invoices will be issued.

IRRESPECTIVE OF THE ABOVE POINTS 1 AND 2, ANY LICENSE HOLDER (B2C, B2B2C and B2B) WITH OUTSTANDING INVOICES THAT HAVE ALREADY BEEN ISSUED MUST BE PAID IN ACCORDANCE WITH THE TERMS OF THE INVOICE IN ORDER FOR CONTINUITY OF LICENSE HOLDERS OPERATIONS.

NOOGH B2C License Holders – Green Seal

For avoidance of doubt regarding this transition period a B2C license holder under NOOGH includes both B2C and B2B2C.

To facilitate the transition license holders at the point of LOK enactment (i.e. Green Seal holders) will be issued with four individual invoices over the course of 2025.

Each invoice must be paid in accordance with the terms of that invoice. For clarity, the separation of invoices in this manner (Payable for periods of 6 months) is for 2025 only in order to accommodate the transition period of LOK provisional licenses – which allows a period of 6 months to reach compliance with the LOK (followed by an additional 6 months as required and if permitted by the CGA). In July provisional license holders who are non-compliant and are not granted the further 6-month period to become complaint will not be issued with the second invoice and their license will be revoked.

NOOGH B2C Approved (No Green Seal yet)

An approved license holder is only formally granted the license and issued with the Green Seal on payment of their initial invoice. If the CGA approved a B2C operator in 2024 but their initial invoice was not paid prior to December 24^TH the following applies.

1. The license holder must pay the outstanding invoice (if they have not already)
2. The amount paid for that invoice will be credited against the first 2025 invoice to the National Treasury (i.e. The annual LOK license fee is EUR 24,490).
3. This operator will subsequently receive an invoice during 2025 for the amount outstanding to complete the whole amount of the LOK license fee. (the remaining balance of the License Fee to the National Treasury)
4. The operator will receive the invoices of the Supervisory Fee to the CGA. (i.e. The annual supervisory fee is EUR 22,960)

B2B License Holders

No further invoices will be issued under NOOGH fees in 2025. However, any invoices that have already been issued in 2024 with payment outstanding by should be paid by the license holder.

B2B license holders

Annual Supervisory fee to CGA

Jan – Jun: EUR 11,480 (Invoiced Feb 2025)

July – Dec: EUR 11,480 (Invoiced June 2025)

Each invoice must be paid in accordance with the terms of that invoice. For clarity, the separation of invoices in this manner (Payable for periods of 6 months) is for 2025 only in order to accommodate the transition period of LOK provisional licenses – which allows a period of 6 months to reach compliance with the LOK (followed by an additional 6 months as required and if permitted by the CGA). In July provisional licensed holders who are non-compliant and are not granted the further 6-month period to become complaint will not be issued with the second invoice and their license will be revoked.

Please note, the CGA is aware that due to fee reduction for B2B license holders under the LOK that some license holders will have overpaid during 2024. The CGA will inform the operator on a case-by-case basis about how the CGA and/ or the National Treasury will handle any overpayment done in 2024, by crediting future invoices.

Changing license type

Existing license holders who wish to change their license type (from B2C or B2B2C to a B2B) will be required to follow an administrative process once the CGA portal re-opens in mid-March. Further information on the administrative process and fees will be announced shortly.

Invoicing Process

The CGA will email the invoice to the email address provided by the local director and will also send a ticket in the online portal announcing that an invoice has been issued.

Notice

1. Please note that in the event of any discrepancies between this announcement and the LOK, the LOK will always take precedence.
2. The amounts mentioned in this document may be modified by national decree containing general measures.