CHDN
Churchill Downs Incorporated
Is CHDN Halal?
Operator of pari-mutuel horse-race wagering, online sports betting, and casino gaming (host of the Kentucky Derby) — gambling is an explicit business-activity disqualifier.
What You Should Know
Churchill Downs operates live and historical horse-racing wagering, wagering services and casino gaming. Its March 31, 2026 Form 10-Q reports $7,485 million of assets, $4,928 million of interest-bearing debt, $200 million of cash, $99 million of receivables and $663 million of first-quarter revenue. Debt/assets is 65.84%, while liquidity/assets is 2.67% and receivables-plus-cash/assets is 3.99%. The filing identifies $297 million of racing revenue, $109 million of wagering-services revenue and $257 million of gaming revenue; gambling is the core business-activity disqualifier, independent of the financial ratios.
⚠️ Concerns
- •Churchill Downs's core business is gambling (maisir) — racing and wagering, online betting and casino gaming — and cannot be cured by financial ratios or purification
- •The filing reports $663 million of total first-quarter revenue across racing, wagering services and gaming; the full amount is used as a conservative prohibited-activity proxy
- •Debt/assets is 65.84%, above the examined asset-based limits
- •Casinos and racetracks also generate alcohol and other ancillary hospitality revenue
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
4,928 / 7,485
200 / 7,485
299 / 7,485
- Financial
- Fails
- Overall
- Fails
Debt/assets is 65.84%, above the 33.33% limit; liquidity/assets is 2.67% and receivables-plus-cash/assets is 3.99%. The business-activity screen independently fails on gambling.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 65.84%, above the examined MSCI total-assets limit; the core gambling activity also fails. This is not an index-membership claim.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 65.84%, above the examined Malaysia limit, and the core gambling activity fails; this is not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A licensed historical market-cap series is not stored; the business-activity screen already fails.
Business-activity disclosure
Churchill Downs operates live and historical horse-racing wagering, wagering services and casino gaming. Pari-mutuel wagering, online betting and casino gaming are gambling (maisir), an explicit business-activity disqualifier; the core activity fails independently of financial ratios.
Limitation: Revenue categories include wagering, gaming and related hospitality services, but the filing does not isolate every ancillary alcohol or hospitality component; the full revenue proxy is conservative.
Purification
Purification is not a remedy for a core gambling business; gross interest income is also unavailable in the filing.
Inputs, assumptions and primary sources
- Amounts are USD millions from Churchill Downs' March 31, 2026 Form 10-Q.
- Interest-bearing debt is current debt of $63 million plus noncurrent debt of $4,865 million; operating lease liabilities are excluded.
- Cash and cash equivalents are $200 million. Restricted cash of $91 million and equity-method investments are excluded from the interest-bearing-securities numerator.
- Accounts receivable, net is $99 million and first-quarter revenue is $663 million.
- The filing reports interest expense but does not separately disclose gross interest income, so the income numerator is unavailable.
- The filing reports $297 million of live and historical racing revenue, $109 million of wagering-services revenue and $257 million of gaming revenue; the full $663 million is used as a conservative prohibited-activity proxy because the core model is gambling.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
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