Churchill Downs, DraftKings reach pari-mutuel wagering deal
Churchill Downs Inc. and DraftKings Inc. reached a multi-year agreement that will bring pari-mutuel wagering on horse racing to DraftKings.
CDI’s TwinSpires subsidiary, which operates a horse-racing wagering platform in the U.S., will provide advance deposit wagering technology to DraftKings.
DraftKings will launch DK Horse in the coming months, which will allow DraftKings’ eligible customers to bet on horse racing using a standalone branded app. The initial launch of DK Horse will require customers to sign up and deposit funds separate from that of their one account, one wallet tethered to the DraftKings Sportsbook, Casino and daily fantasy sports apps.
Plans to integrate DK Horse into the DraftKings product suite will be announced at a later date. DK Horse is expected to be available initially in 21 states, pending necessary licensing and regulatory approvals, and is scheduled to launch ahead of the 149th running of the Kentucky Derby in May.
“We are excited to collaborate with Churchill Downs Inc., not only to give our existing customers an opportunity to engage with pari-mutuel horse wagering, but also to acquire new customers efficiently during marquee horse racing moments,” said Jason Robins, CEO and chairman of the Board of DraftKings. “Due to the structure of the agreement, we expect this new product offering to be immediately profitable.”
Under the agreement, CDI will provide DraftKings pari-mutuel wagering rights to horse racing content owned or controlled by CDI, including the Kentucky Oaks and Kentucky Derby. CDI also will secure, on behalf of DraftKings, additional horse racing content for use on DK Horse.
“We believe the depth and quality of our online offering through TwinSpires is unmatched in horse racing,” said Bill Carstanjen, CEO of CDI. “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.”
Shares of both Churchill Downs and DraftKings opened higher, while the Nasdaq Composite Index was down slightly.