CDI to Offer Horse Racing to DraftKings
Author:
Megan Butler
Major race track and gaming business operator Churchill Downs Incorporated (CDI) has announced that it has entered into a coveted multi-year agreement with DraftKings. The deal will involve CDI developing DK Horse for the sports betting giant – an exclusive parimutuel wagering horse racing product. CDI’s B2B horse racing subsidiary TwinSpires will build the platform for DraftKings.
Churchill Downs Incorporated (CDI) has revealed that it has stepped into a multi-year agreement with DraftKings in which it will develop a dedicated horse racing betting platform for the operator. ?godponders/Pixabay
Churchill Downs Will Also Provide Parimutuel Wagering Rights of Businesses that It Owns
The highly established race track and gaming business operator Churchill Downs Incorporated (CDI) has revealed that it has entered into a multi-year agreement with sports betting giant DraftKings with the intention of developing DK Horse, which will be a parimutuel wagering horse racing product designed specifically for the sports betting operator.
In terms of actual development, it will be CDI’s B2B horse racing subsidiary TwinSpires who will actually develop the white-label solution for DraftKings. This will entail handing over the company’s advanced deposit wagering technology to DraftKings.
TwinSpires first started off as Churchill Downs’ B2C online betting and casino platform, before making the decision to pivot to become a B2B provider after experiencing daunting market competition in 2021.
The terms of the deal specify that CDI will also furnish over the parimutuel wagering rights to content that the business owns or controls, such as the Kentucky Oaks and Kentucky Derby. It will also give over additional horse racing content on the operator’s behalf. Jason Robins, CEO and chairman of the board of DraftKings, revealed that the operator is looking forward to working with CDI, but more so to the new horse racing fans it will win over as as result of the partnership:
“We are excited to collaborate with Churchill Downs Incorporated, not only to give our existing customers an opportunity to engage with parimutuel horse wagering, but also to acquire new customers efficiently during marquee horse racing moments. Due to the structure of the agreement, we expect this new product offering to be immediately profitable.”– Jason Robins, CEO and Chairman of the Board, DraftKings, Press Release
Rollout of DK Horse Is Expected to Come in the ‘Coming Months”
Horse racing fans won’t have to wait long to enjoy DraftKings’ upcoming dedicated horse racing platform, seeing as the operator has already stated that it intends to launch DK Horse in the ‘coming months’.
As of writing, the horse racing betting product is expected to launch on a standalone branded app that will force existing customers to sign up and deposit funds with a separate account. The company clarified that there are plans to integrate the offering with DraftKings’ other products in the near future.
Given that it receives all necessary regulatory approvals, DK Horse plans to launch in 21 states, arriving just in time for the 149th running of the Kentucky Derby in May 2023. Churchill Downs CEO Bill Carstanjen said the race track operator was pleased to be collaborating together with DraftKings, promising customers a premium experience:
“We believe the depth and quality of our online offering through TwinSpires is unmatched in horse racing,” said CDI CEO. “We are excited to establish this relationship with DraftKings and to deliver a full end-to-end white label ADW solution that will introduce their significant base of sports betting customers to horse racing wagering.”– Bill Carstanjen, CEO, Churchill Downs Incorporated (CDI), Press Release
Churchill Downs Purchased Ellis Park in September 2022
In other recent Churchill Downs Incorporated (CDI) news, in September 2022 the race track operator announced that it had acquired the Ellis Park racetrack and gaming facility in Kentucky for a grant total of $79 million, after previously announcing its desire to take over the facility earlier in the month.
Ellis Park is a large horse racing track and sports betting complex, located in Henderson, Kentucky and offering fans a state of the art horse racing track, as well as a gaming facility venue hosting up to 300 historical racing machines (HRMs).
The deal also means that Churchill Downs will assume Ellis Park’s responsibility to build a track extension facility at Owensboro’s Towne Square Mall. The project is tentatively called the Owensboro Racing & Gaming site and will boast an extensive entertainment venue hosting a whopping 600 historical racing machines (HRMs), a simulcast wagering center, and multiple food and beverage offerings.
CDI chief executive Bill Carstanjen revealed that construction on the racetrack was already underway upon the announcement of the news in September 2022:
“Our team is already hard at work in both Henderson and Owensboro. In the coming days, we look forward to sharing more about our plans to invest in the racing infrastructure at Ellis Park and to drive significant purse improvement through the Owensboro historical racing opportunity.”
CDI and FanDuel Joined Forces Also in September 2022
DraftKings isn’t the first major sports betting operator Churchill Downs Incorporated (CDI) has partnered up with, having also signed an exclusive multi-year content and sponsorship agreement with Flutter-owned FanDuel in September 2022.
The deal spans many different aspects of FanDuel’s vast sports betting empire, namely its sports wagering, advance deposits wagering (ADW) and television verticals. Churchill Downs Incorporation (CDI) is expected to provide B2B technology and services to FanDuel’s sportsbook’s pari-mutuel wagers on horse racing.
FanDuel CEO Amy Howe celebrated the news, seeing great potential in the prospect of bringing aboard CDI’s offering, as well as the plethora of new fans that will accompany it:
“With the launch of FanDuel TV last week and the upcoming integration of premier racing content into our market-leading sports book, we believe this is an inflection point in our ability to offer our customers a seamless wagering experience with a single wallet. We are especially pleased that we will be able to offer wagering on the most exciting two minutes in sports, the Kentucky Derby, and that we will have exclusive broadcast rights to the Churchill Downs Incorporated family of tracks on FanDuel TV. We look forward to creating new audiences for horse racing.”
