Louisville-based Churchill Downs Inc. (NASDAQ: CHDN) and Saratoga Harness Racing Inc. have completed the first part of a deal to acquire a 25 percent membership interest in Saratoga Casino Holdings LLC, which closed at $24.8 million.

Saratoga Casino Holdings is a fairly new entity that includes Saratoga Casino and Raceway in Saratoga Springs, N.Y.; Saratoga Casino Black Hawk in Black Hawk, Colo.; and a 50 percent interest in a joint venture with Delaware North Companies to manage the Gideon Putnam Hotel and Resort in Saratoga Springs, N.Y., according to a news release.

Saratoga Casino and Raceway includes a $40 million hotel expansion, which is under development and slated to open in spring of 2016.