Canterbury Park Holding Corporation (CPHC): Business Model Canvas [Apr-2026 Updated]

You're looking at the Business Model Canvas for Canterbury Park Holding Corporation (CPHC) and wondering how they manage to run a year-round, 24/7 card casino while simultaneously developing 140 acres of land-it's a dual-engine strategy that demands a close look. Honestly, the key is how the immediate cash flow from gaming, which accounted for 48.7% of Q3 2025 revenue from Casino Operations, directly fuels the long-term vision of the Canterbury Commons real estate project. With a solid financial footing-no debt and $17 million in cash as of Q2 2025, plus new $20 million in TIF receivables starting in Q4 2025-this model is about using today's entertainment to build tomorrow's property value. Dive into the nine building blocks below to see precisely how Canterbury Park Holding Corporation (CPHC) connects its partners, activities, and customer segments to make this complex structure work.

Canterbury Park Holding Corporation (CPHC) - Canvas Business Model: Key Partnerships

You're looking at the relationships Canterbury Park Holding Corporation (CPHC) relies on to execute its business, especially the real estate expansion alongside the core gaming and racing operations. These partnerships are critical for funding development and maintaining regulatory compliance, so you need to see the numbers behind them.

The real estate development component, which centers on the approximately 140 acres of underutilized land, heavily involves joint venture partners. CPHC recorded losses from its equity investments in joint ventures related to real estate development in the third quarter ended September 30, 2025. For context, one of CPHC's real estate ventures, the Doran Canterbury II joint venture, contributed to an increased loss for the three months ended June 30, 2025. Separately, a major real estate capital partner, Greystone Housing Impact Investors LP, advanced net funds to its market-rate joint venture equity investments totaling $3.1 million during the second quarter of 2025.

The relationship with the City of Shakopee is formalized through Tax Increment Financing (TIF) districts. CPHC's development is tied to TIF District No. 18, the Canterbury TIF District, which has a 26-year term and is classified as Redevelopment. The City utilizes TIF to fund public infrastructure, with reimbursement tied to the increase in property tax values post-development. The TIF financing structure involves a TIF Portion with eighteen principal payments designed for approximately even annual debt service. Furthermore, CPHC is in partnership with the City of Shakopee to conduct a market study with Hunden Partners to inform a new masterplan.

For the entertainment venue, CPHC has partnered with Live Nation, which was announced in January 2025 as the operating venue partner for the Amphitheater. This partnership includes working on a shared parking agreement.

Regulatory oversight comes from the Minnesota Racing Commission (MRC), which finances its basic operations entirely through industry fees. The MRC regulates wagering activities at Canterbury Park, covering Horse Racing (approximately $92 million annually) and Card Playing (approximately $82 million annually). The MRC also licenses and regulates Advance Deposit Wagering (ADW) platforms, which account for approximately $69 million annually in wagering. The MRC administers $1.2 million in the Minnesota Breeders Fund. In a direct cost-sharing matter related to federal regulation, the MRC approved a proposed increase to its contribution to the 2025 HISA assessment by an additional $200,000 in August 2025, bringing the total proposed contribution to $367,326. This followed a legislative update where the ADW Fee increase from 1% to 2% was included in the governor's budget recommendation, effective July 1st for wagers placed after that date.

You can see the structure of the MRC funding below:

Revenue Source/Activity	Associated 2025 Financial/Statistical Figure
Regulated Horse Racing Wagering (Annualized Estimate)	$92 million
Regulated Card Playing Wagering (Annualized Estimate)	$82 million
Regulated ADW Wagering (Annualized Estimate)	$69 million
Minnesota Breeders Fund Administered	$1.2 million
Additional Proposed 2025 HISA Assessment Contribution (Aug 2025 Approval)	$200,000
Total Proposed 2025 HISA Assessment Contribution	$367,326
ADW Fee Increase	1% to 2%

The reliance on real estate partners is also reflected in CPHC's overall performance, as Q3 2025 net revenues were $18.3 million, down from $19.3 million the previous year.

Here are the key entities involved in CPHC's operations:

• Real estate joint venture partners (e.g., Doran Companies, Greystone Housing Impact Investors LP)
• City of Shakopee (TIF District #18, Masterplan consultation)
• Live Nation (Amphitheater operating venue partner)
• Minnesota Racing Commission (MRC) (Regulatory oversight)

Finance: draft 13-week cash view by Friday.

Canterbury Park Holding Corporation (CPHC) - Canvas Business Model: Key Activities

You're looking at the core engine of Canterbury Park Holding Corporation (CPHC) right now, which is a mix of established gaming/racing and significant, long-term real estate plays. The Key Activities section shows where the management team is spending its time and resources to keep the lights on and build future value, especially given the competitive pressures noted in the latest reports.

Operating the 24/7 Canterbury Card Casino with unbanked games remains the primary revenue driver, though it's facing headwinds. For the three months ending September 30, 2025, the Casino segment brought in $8,895,000 in revenue, which was a 9.7% drop compared to the same period last year. Over the first nine months of 2025, Casino revenue declined by 7.3% year-over-year. This activity is central to the business, but the lower hold and increased competition are definitely squeezing the take from the unbanked card games and table games.

Hosting live seasonal horse racing and year-round simulcast wagering is the other half of the core operation. The live racing season runs from May to September, but the Q3 2025 results were impacted by having four fewer live race days compared to the prior year. This directly affected the Pari-mutuel revenue stream, which totaled $3,272,000 in Q3 2025, a 2.7% decrease. For the nine-month period ending September 30, 2025, Pari-mutuel revenue was down 7.4%. Still, Canterbury Park Holding Corporation is the only venue in Minnesota offering live thoroughbred and quarter horse racing, so that exclusivity is a key operational factor.

The development of the 140-acre Canterbury Commons mixed-use project is a critical, forward-looking key activity. This is the long-term value play, aiming to transform underutilized land into a 'live, stay, work and play' destination. Management is actively pursuing leasing and construction milestones to unlock the value tied up in this land bank, which is expected to attract over $400 million in private investment. Here's a quick look at the leasing progress as of late 2025:

Development Component	Status Metric (as of late 2025)	Associated Financial Data
Triple Crown Residences Phase II	93% leased	Part of agreements representing approximately $200 million of total development for over 760 residential units
The Omry Apartments	98% leased	Part of agreements representing approximately $200 million of total development for over 760 residential units
Commercial Office Building (28,000 sq ft)	66% leased (as of Q2 2025)	Certificate of occupancy expected in Q3 2025
Tax Increment Financing (TIF) Receivable	Over $20 million expected	Payments anticipated to start late Q4 2025 or early 2026

Managing food, beverage, and special entertainment events is an area showing success, offsetting some of the gaming softness. The Food and Beverage segment posted Q3 2025 revenues of $3,474,000, a strong 13.1% increase year-over-year, thanks in part to a new point-of-sale system. For the nine months of 2025, Food and Beverage revenue was up 3.9%. This segment's growth is tied to overall attendance, including the live racing and other large-scale events Canterbury Park Holding Corporation is focused on expanding.

Finally, implementing new marketing programs to mitigate competitive pressure is a constant activity. The company noted an increase in Advertising and Marketing expense during the three months ending September 30, 2025, which was intended to drive patronage to the property. Management is focused on revenue optimization efforts, including expanding offerings of mid- and large-scale events, which had already seen record attendance year-to-date in 2025. The company also welcomed a new Vice President of Marketing and Entertainment to enhance customer attraction and retention strategies. It's defintely a reactive measure to the competitive environment impacting the core casino business.

The overall operational performance for the nine months ended September 30, 2025, saw total net revenues of $47,122,000, a 5.0% decline from the prior year. The key activities result in a complex picture:

• Casino revenue down 9.7% in Q3 2025.
• Pari-mutuel revenue down 2.7% in Q3 2025 due to fewer race days.
• Food & Beverage revenue up 13.1% in Q3 2025.
• Operating expenses for Q3 2025 were $17.3 million, a slight decrease of 0.6%.
• The company maintained a cash balance of $16,990,000 as of September 30, 2025, with no debt on the balance sheet.

Finance: draft 13-week cash view by Friday.

Canterbury Park Holding Corporation (CPHC) - Canvas Business Model: Key Resources

You're looking at the core assets Canterbury Park Holding Corporation (CPHC) relies on to run its business and execute its growth strategy. These aren't just buildings; they are the exclusive rights, the physical footprint, and the financial cushion that underpins everything they do, especially the Canterbury Commons development.

The most tangible asset is the physical Racetrack and Card Casino facility in Shakopee, Minnesota. This is the operational hub where they generate immediate cash flow from live racing, simulcast wagering, and the Card Casino, which hosts unbanked card games 24 hours a day, seven days a week.

Then there's the land play. CPHC is pursuing value enhancement through the ongoing development of approximately 140 acres of underutilized land surrounding the Racetrack, branded as Canterbury Commons™. As of early 2025, about 50 acres were still available for future development, with 25 acres near the new amphitheater becoming available after road completion.

Financially, the balance sheet is a key resource because it allows them to pursue development without the drag of interest expense. As of the second quarter of 2025, Canterbury Park Holding Corporation reported having no debt. This clean structure is supported by significant liquidity:

• The company held nearly $17 million in cash and short-term investments at the end of the second quarter of 2025.
• They also possess nearly $20 million in Tax Increment Financing (TIF) receivables on the balance sheet at that time.
• Payments on these TIF receivables were expected to begin in the fourth quarter of 2025.

The regulatory framework is another critical, non-physical resource. Canterbury Park Holding Corporation holds the Minnesota Racing Commission license, which grants it the state-exclusive right to operate the only thoroughbred and quarter horse racing facility in Minnesota. The Card Casino operations are also regulated by this same commission.

Here's a look at the key financial and physical resource metrics, using the latest reported figures from the third quarter of 2025 where available, as these are the most current assets you should be tracking:

Key Resource Category	Specific Asset/Metric	Latest Reported Value (as of late 2025)
Physical Facility	Racetrack and Card Casino Location	Shakopee, Minnesota
Real Estate Holdings	Total Land for Canterbury Commons	Approximately 140 acres
Real Estate Holdings	Land Available for Future Development (as of Q3 2025)	Approximately 50 acres remaining
Financial Liquidity	Cash and Short-Term Investments (Q3 2025)	Nearly $17 million
Financial Assets	Tax Increment Financing (TIF) Receivables (Q3 2025)	Over $20 million
Financial Structure	Total Debt	No debt
Regulatory Asset	Racing License Jurisdiction	State-exclusive for thoroughbred and quarter horse racing in Minnesota

To be fair, the value of the land held for future development is recorded on a cost basis, meaning its true market value isn't fully reflected in the balance sheet figures, which is a key point for your valuation model. Also, the TIF receivables, while substantial at over $20 million as of Q3 2025, had an expected payment start date shifting slightly from Q4 2025 to 'later this quarter or very early in 2026.' Still, the debt-free status combined with this cash and receivable position gives Canterbury Park Holding Corporation significant operational flexibility.

Finance: draft 13-week cash view by Friday.

Canterbury Park Holding Corporation (CPHC) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Canterbury Park Holding Corporation (CPHC) over alternatives in the Twin Cities market. It's a mix of immediate entertainment and long-term real estate plays, so let's break down the hard numbers supporting those propositions as of late 2025.

Integrated regional entertainment destination (gaming, racing, dining, events).

Canterbury Park Holding Corporation provides a multi-faceted entertainment offering in Shakopee, Minnesota, combining card casino gaming, live and simulcast wagering, food and beverage service, and special events. The revenue mix for the third quarter ending September 30, 2025, shows how these elements combine to form the overall value proposition:

Revenue Segment	Q3 2025 Revenue (in millions)	Q3 2025 Contribution
Casino Operations	$8.895	48.7%
Food and Beverage	$3.474	19.2%
Pari-mutuel Wagering	$3.272	17.7%
Other Revenues	(Calculated Remainder)	14.4%

The total net revenue for the third quarter of 2025 was $18.3 million.

Year-round, 24/7 card casino gaming access in Minnesota.

The Canterbury Park Card Casino offers continuous access to its gaming floor, which is a key differentiator. The casino is open 24 hours year-round, with the exception of the Christmas Holiday Break, specifically from December 24 6 PM to December 25 6 PM.

• Casino admission fee: $0.
• Maximum table game wager limit: $300.
• Maximum Poker bet limit: $100.
• Casino revenue for Q3 2025 was $8.895 million, though this represented a 9.7% year-over-year decline.

The casino remains the largest single revenue contributor at 48.7% of Q3 2025 net revenue.

Long-term value creation via the Canterbury Commons mixed-use development.

This proposition centers on transforming underutilized land surrounding the racetrack into a mixed-use destination. The company is pursuing development opportunities on approximately 140 acres of this land. While this is a long-term play, it represents a critical component of shareholder value enhancement beyond the core gaming and racing business. The nine-month net revenue through September 30, 2025, was $47.1 million, with the company reporting a net loss of $139,000 for that same nine-month period, partly due to equity investment losses from joint ventures related to this development.

High-quality live horse racing product with enhanced horsemen facilities.

Canterbury Park Holding Corporation is the only venue in Minnesota offering live thoroughbred and quarter horse racing. The live racing season typically runs from mid-May through mid-September. Pari-mutuel revenue, which includes wagering on live and simulcast races, was $3.272 million in the third quarter of 2025.

• Live Racing Season: Mid-May through mid-September.
• Pari-mutuel Revenue Q3 2025: $3.272 million.
• Pari-mutuel Revenue Y/Y Change Q3 2025: Declined 2.7%.

A premier location to live, play, work, and stay in the Twin Cities area.

This value proposition is intrinsically linked to the Canterbury Commons development, aiming to establish the property as a comprehensive destination. The growth in the Food and Beverage segment supports the 'play' and 'stay' aspects, showing operational success in hospitality. Food and Beverage revenue grew by 13.1% in Q3 2025, reaching $3.474 million. This segment accounted for 19.2% of total Q3 2025 net revenue. The company also maintains significant liquidity, with a cash balance of $16,990,000 as of September 30, 2025, to support ongoing operations and development.

Canterbury Park Holding Corporation (CPHC) - Canvas Business Model: Customer Relationships

You're looking at how Canterbury Park Holding Corporation (CPHC) manages its connection with the people who use its facilities and properties. It's a mix of transactional speed and long-term partnership building.

Casino loyalty programs to attract and retain high-value guests.

CPHC is actively refocusing and expanding its marketing programs to address increased competition in its Casino operations, specifically targeting attracting and retaining new customers as of Q1 2025. While specific loyalty program metrics aren't detailed, the strategic focus is clear on customer retention amid market pressures.

• The company is re-focusing marketing programs to address increased competition in Casino operations.
• The goal of these programs is explicitly stated as attracting and retaining new customers.

Direct, transactional relationships for admissions, parking, and concessions.

These relationships are high-volume and rely on efficient, day-to-day service delivery for racing, gaming, and food/beverage. You see the direct impact of these transactions in the quarterly revenue figures. For instance, net revenues for the second quarter ending June 30, 2025, totaled $15.7 million, down slightly from the prior year. The first quarter ending March 31, 2025, saw net revenues of $13.1 million.

CPHC generates cash revenues directly from several sources:

• Receipt of reserved seating charges.
• Preferred and valet parking fees.
• Sales from numerous concession stands throughout the facility.
• Food and beverage sales in the card room during racing and events.

The performance of these transactional segments varies. In Q1 2025, Food and Beverage revenues saw a year-over-year decline of 8.2%, though Other revenues, which include admissions, increased by 9.3%.

Long-term, high-touch relationships with real estate tenants and buyers.

This segment involves deeper, multi-year commitments, particularly with the Canterbury Commons development. The relationship here is less about a quick transaction and more about long-term asset management and partnership success. The company maintains a significant land bank for this, holding roughly 50 acres of land for future development as of mid-2025.

Progress in securing long-term tenants is evident in the residential sector:

Real Estate Component	Leasing Status (as of Q2 2025)	Financial Metric
Triple Crown Residences Phase II	95% leasing	N/A
The Omry	95% leasing	N/A
Tax Increment Financing (TIF) Receivables	Payments starting Q4 2025	$20 million

CPHC has contributed just over $16 million in land and cash to its real estate joint venture development projects, for which it shares the economics. Management believes the combined value of cash, TIF receivables, and real estate joint ventures is over $10 per share.

Community engagement through special events and family-friendly offerings.

Community connection is built through the racing calendar and large-scale entertainment venues. The 2025 live racing season was approved for 51 days, running from May 24 through September 20. The prior 54-day meet showed positive engagement, with a 13 percent increase in handle and a 13 percent increase in thoroughbred field size.

For future entertainment offerings, the scale is increasing:

• New amphitheater capacity: 7,000 seats.
• Existing venue capacity: 2,000 seats.

Furthermore, Canterbury Park Holding Corporation commits to giving back, stating they return up to 5% of profits back to the community annually. Events like the rodeo and comedy series drive admissions revenue, as noted by the increase in Other revenues in Q3 2024.

Finance: draft 13-week cash view by Friday.

Canterbury Park Holding Corporation (CPHC) - Canvas Business Model: Channels

The physical location of the Racetrack and Card Casino for Canterbury Park Holding Corporation is in Shakopee, MN.

The Canterbury Park Card Casino operates 24 hours a day, seven days a week. Under the Card Casino Legislation, Canterbury Park Holding Corporation is authorized to host up to 80 tables. Live horse racing operates on a seasonal basis, generally from May to September.

Simulcast wagering on out-of-state racetracks is conducted generally seven days per week. For the twelve months ended December 31, 2024, pari-mutuel wagering accounted for 13.4% of total net revenues, which were $61,562,000. For the three months ended September 30, 2025, Pari-mutuel revenue declined 2.7% year-over-year. For the three months ended December 31, 2024, pari-mutuel revenue declined 9.5%, primarily due to lower simulcasting handle.

The real estate development, Canterbury Commons, surrounds the Racetrack and involves approximately 140 acres of underutilized land. Canterbury Park Holding Corporation has agreements representing approximately $200 million of total development for more than 760 residential units. As of Q2 2025, there was 95% leasing at Triple Crown Residences Phase II. The company reports TIF receivables of $20 million with payments starting Q4 2025. A past transaction involved selling approximately 14 acres for total consideration of approximately $3.5 million.

Digital platforms support event ticketing and marketing efforts. Canterbury Park Holding Corporation implemented its expanded and revamped marketing initiatives in the 2025 first quarter.

Here's a look at the revenue contribution from the core operational channels based on the 2024 full-year results:

Channel Segment	2024 Net Revenue Percentage	2024 Net Revenue Amount (Approximate)
Casino Operations	63%	$38,775,060
Pari-mutuel Wagering	13.4%	$8,248,488
Food and Beverage	12.9%	$7,941,498
Other (Including Real Estate/Admissions)	10.7%	$6,596,954

The most recent quarterly net revenues for the channel segments as of Q3 2025 show the following year-over-year changes:

• Casino revenues declined 9.7% for the three months ended September 30, 2025.
• Pari-mutuel revenues declined 2.7% for the three months ended September 30, 2025.
• Food and Beverage revenues increased 13.1% for the three months ended September 30, 2025.
• Other revenues declined 11.1% for the three months ended September 30, 2025.

The Q3 2025 net revenue was $18,315,000.

Canterbury Park Holding Corporation (CPHC) - Canvas Business Model: Customer Segments

You're looking at the core groups that drive the top line for Canterbury Park Holding Corporation (CPHC) as of late 2025. The business model clearly leans heavily on its entertainment and gaming components, with real estate development serving as a long-term value layer.

Local and regional card casino patrons (primary revenue source)

This group is the single largest contributor to the overall financial picture. For the third quarter of 2025, Casino Operations accounted for 48.7% of Canterbury Park Holding Corporation's net revenues for that period. However, the segment is facing headwinds; net revenues for the first quarter of 2025 reflected an 8.6% year-over-year decline in Casino revenue, and the second quarter saw a 3.6% decline in Casino revenue compared to the prior year period.

The overall pressure on gaming is reflected in the nine-month performance ending September 30, 2025, where net revenues for the company were down 5.0% to $47.1 million, driven in part by a 7.3% drop in Casino revenue year-to-date.

The card room also hosts scheduled events that draw this segment:

• The 2025 poker schedule included a $400 Monster Stack NLH event in January.
• The Spring Championship Series ran from April 23 through May 4.
• The Fall Poker Classic is scheduled for October 8 through 19.

Horse racing enthusiasts and pari-mutuel bettors (live and simulcast)

This segment supports the traditional racing aspect of the business. The 2025 live thoroughbred and quarter horse season was approved for 51 days, running from May 24 through September 20. This was three fewer dates than the 2024 season.

The financial contribution from this group is significant but also showing softness in 2025. Pari-mutuel Wagering represented 17.7% of net revenues in the third quarter of 2025. This compares to a year-over-year decline of 8.2% in Pari-mutuel revenue for the first quarter of 2025 and a larger drop of 12.9% for the second quarter of 2025.

To give you context on the betting side, the recently concluded 2024 race meet saw a 13 percent increase in handle, which management hoped to build upon in 2025.

For the live racing segment, general admission pricing for budget-conscious patrons on Wednesday and Thursday nights was set at $5.

Event attendees for concerts, festivals, and special attractions

This group is captured primarily within the Other Revenues category, which was 14.4% of third-quarter 2025 revenue. This segment is a key area for growth, as management noted an acceleration in mid- and large-scale events.

Specific event types attracting these customers include:

• Dog Race Days, with breed-specific races advancing to a final on Labor Day weekend.
• Taste of Canterbury events, such as BBQ & Bourbon on June 14.
• A rodeo event featuring barrel racers, pony rides, and a vendor market.
• Exotic animal races involving camels, ostriches, and zebras between horse races.

A new development supporting this segment, a joint venture project on 3.5 acres housing an approximately 16,000 square-foot restaurant and entertainment venue, was scheduled to open in June 2025.

Residential and commercial tenants/buyers in Canterbury Commons

This segment represents the long-term, mixed-use development customer base for Canterbury Commons. As of the first quarter of 2025, leasing progress on the residential component showed movement:

Residential Phase	Status as of Q1 2025
Triple Crown Residences Phase II	95% of available units leased
Triple Crown Residences Phase I	22% of units leased following January 2025 occupancy receipt

On the commercial side, development is also progressing. The new 28,000 square-foot commercial office building within the Winners Circle development had 50% of its space under lease as of the first quarter of 2025 report. The company owns approximately 260 acres of land in Shakopee, Minnesota, where this development is situated.

Historically, land sales to residential developers like Pulte Homes and Lifestyle Communities, LLC involved approximately 14 acres for total consideration of approximately $3.5 million to bring over 160 for-sale residential units.

Canterbury Park Holding Corporation (CPHC) - Canvas Business Model: Cost Structure

You're looking at the hard costs Canterbury Park Holding Corporation (CPHC) is facing as of late 2025. It's not just about running the casino floor; the fixed and variable costs across racing and development are material.

Significant operating expenses for gaming, racing, and F&B operations are the core of the day-to-day spend. For the nine months ended September 30, 2025, the company reported $45.0 million in total Operating Expenses against $47.1 million in Net Revenues. This is a key figure to watch, as it translates to a thin Operating Profit Margin of 4.5% based on those nine months.

The year-over-year increases in operating costs are notable. For the three months ended June 30, 2025, Operating Expenses were $15.2 million, up $154,000 or 1.0% from the prior year's comparable period. This increase was driven by a few things:

• Increased salaries and wages due to annual increases.
• Higher professional and contracted services, specifically noting increased costs for state vets and stewards.
• Increased advertising and marketing costs tied to revamped initiatives in the second quarter.

The drag from losses from equity investments in real estate joint ventures (e.g., Doran Canterbury II) is hitting the bottom line hard, even though it's mostly a non-cash item related to depreciation and interest. For the nine months year-to-date through Q3 2025, these equity method losses totaled $3,899,029. The increased loss for the three months ended June 30, 2025, compared to 2024, is directly attributed to the Doran Canterbury II joint venture opening in 2024. The total liability for investee losses stood at $7.3 million as of that same Q3 2025 point.

Horse racing costs include significant guaranteed purse commitments. Canterbury Park and the Minnesota Racing Commission are collaborating to cover the costs associated with the Horseracing Integrity and Safety Authority (HISA) regulatory fees for 2025, meaning those per-start fees aren't passed to horsepeople. Minnesota's total HISA assessment for 2025 is nearly $700,000. The overall purse commitment for the 2025 season is estimated at $9 million. Here's how the minimum guaranteed purse payments were tiered for every starter:

Purse Level	Guaranteed Purse Earnings
Up to $14,999	$175
$15,000 - $29,999	$250
$30,000 - $49,999	$400
$50,000 - $99,999	$650
$100,000 and Up	$1,250

You should note the substantial capital expenditures for ongoing development projects and facility renovations. Horse owners arriving for the 2025 season saw the completion of a $15 million racing infrastructure improvement project. This project included a 30-pad permanent RV park, new circulation roads, fencing, and landscaping, following earlier construction phases.

Finally, marketing and promotional costs are a clear component of the rising operating expenses. The company specifically noted higher advertising and marketing costs reflecting the implementation of expanded and revamped marketing initiatives in the 2025 first quarter and second quarter.

Canterbury Park Holding Corporation (CPHC) - Canvas Business Model: Revenue Streams

You need a clear picture of where Canterbury Park Holding Corporation (CPHC) makes its money and how those streams are changing. The direct takeaway is that CPHC's core gaming and racing revenues are under pressure in 2025, but other segments are showing strength.

For the three months ending September 30, 2025, Canterbury Park Holding Corporation reported total net revenues of $18,315,000.

Here's the quick math on the primary revenue sources for the third quarter of 2025:

Revenue Stream	Q3 2025 Dollar Amount (Approximate)	Percentage of Q3 2025 Revenue
Casino Operations	$8,895,000	48.7%
Food and Beverage Sales	$3,474,000	19.2%
Pari-mutuel Wagering	$3,272,000	17.7%
Other Revenues	$2,674,000 (Calculated from 14.4%)	14.4%

Casino Operations revenue, the largest segment, was $8,895,000 at 48.7% of Q3 2025 revenue, down from $9,849,000 in Q3 2024.

Pari-mutuel Wagering revenue (live and simulcast) contributed $3,272,000, representing 17.7% of Q3 2025 revenue, a decrease of $91,000 (or 2.7%) for the quarter.

Food and Beverage sales were $3,474,000, representing 19.2% of Q3 2025 revenue, which was a bright spot with an increase of $405,000 (or 13.1%) compared to the prior year period.

Other revenues from events, admissions, parking, and real estate-related activities accounted for the remaining 14.4% of Q3 2025 revenue, totaling approximately $2,674,000, though this segment saw an 11.1% decline for the quarter.

The long-term revenue strategy definitely includes proceeds from land sales and distributions from real estate joint ventures, such as the Doran Canterbury joint ventures, though specific Q3 2025 proceeds are not detailed as a standalone percentage of the $18.3 million total net revenue.

• For the nine months ended September 30, 2025, total net revenues were $47.1 million.
• The prior year's Q3 2024 net income included a $1.7 million gain on the transfer of land.
• The company maintains a strong cash balance, reported at $16,990,000 as of September 30, 2025.