Posted on: August 11, 2022, 09:07h.
Last update on: August 11, 2022, 09:07h.
Churchill Downs Incorporated (CDI) announced late Thursday afternoon that it had sold a 49% stake in its United Tote division to an NYRA subsidiary, a move the Louisville-based company says is in line with his vision to introduce pari-mutuel horse racing to the sport. punters.
NYRA is the New York-based thoroughbred racing association that hosts meets at Aqueduct, Belmont and Saratoga. Its NYRA Content Management Solutions division acquired the shares of United Tote.
United Tote provides equipment and technology platforms to process pari-mutuel betting for CDI racetracks and more than 150 other customers across the country and around the world.
According to the release, Churchill and NYRA plan to partner “to create and deliver a comprehensive and efficient industry-leading pari-mutuel betting solution through United Tote that will accelerate the expansion of horse racing seamlessly across platforms. sports betting to reach new customers”.
The amount of the transaction has not been announced and the parties expect the transaction to close by the end of the year.
Churchill sees the way to the sports betting race
Two weeks ago, CDI CEO Bill Carstanjen told investment analysts on the company’s second-quarter earnings call that Churchill Downs wanted to be “a premier distributor” of racing content. and that it should be available on sports betting apps.
In doing so, Carstanjen said Churchill could work with sports betting operators and establish an official sports betting partner for the Kentucky Derby, horse racing’s biggest event.
But unlike Monmouth Park in New Jersey, which launched fixed-odds betting three months ago, Churchill officials want to place mutual bets on online sports betting platforms.
The difference is that pari-mutuel odds change as more money enters the pool. In some cases, this means that after a bettor has made their bet, the odds on their selection may decrease.
Churchill Downs previously operated an online sports betting platform through its TwinSpires brand. However, earlier this year the company announced that it would withdraw from online trading and focus solely on retail sports betting.
TwinSpires continues to operate as an Advance Deposit (ADW) betting platform for races.
Good prospects in New York
NYRA, on the other hand, has a relationship with Caesars Sportsbook, which is the association’s official sports betting marketing partner.
Additionally, Caesars has created an online shopping book that uses the NYRABets ADW platform.
New York State Senator Joseph Addabbo (D-Queens), who chairs the Senate Committee on Racing, Gaming and Betting, has previously mentioned his interest in seeing sports betting grow in New York to include kiosks at racetracks. Last year, he also shared a similar view of how sports betting and horse racing could be accessible to bettors at the same time.
It’s ridiculous that our New Yorkers can’t bet on mobile sportsbooks, and at the same time place a bet on the fifth race at Saratoga or whatever. Addabbo said Casino.org in a November interview. “It would just be a natural marriage. It would just be a rational thought, again, to combine these two.
New York, the largest sports betting state in the United States, currently has nine online operators and retail sports betting at commercial and state tribal casinos in the upstate region.
The CDI statement also said NYRA would switch to United Tote for pari-mutuel betting processing starting next year under a separate agreement.