Churchill Downs will exit online sports, casino wagering

Just three years after launching an online sports betting and casino business in New Jersey under its now-defunct BetAmerica brand, Churchill Downs Inc. CEO Bill Carstanjen said Thursday that the company is exiting the online sports and casino wagering space.

"We will exit the (business-to-consumer) online wagering space," Carstanjen told investors during a conference call. "This isn't the result we wanted, but it is the prudent next step."

In its 2021 earnings report, Churchill said it posted a loss of $31.9 million on sports but a steady increase in the overall TwinSpires business, which includes horse racing.

"We remain excited about TwinSpires horse racing," Carstanjen said. "Pre-COVID, we were about 40 percent of the horse racing market. That jumped to 60 percent in 2020 and then in 2021 saw a steady state of 50 percent market share, so this is a very successful business."

Carstanjen did not mention that TwinSpires had been reported as being for sale in 2021. A Wells Fargo investor on the call pressed that issue, and Carstanjen acknowledged the gaming market is interested in the success Churchill has had with online wagering on horse racing.

Indeed, TwinSpires earned $119 million, based on adjusted earnings before interest, taxes, depreciation and amortization.

Carstanjen also said the Turfway Park redevelopment as a historical horse racing and racetrack combination is "on budget" with a tentative grand opening scheduled for Sept. 1.