Churchill Downs Incorporated (CDI), a US gaming company, wants its online betting platform TwinSpires to add to the horse racing industry following the announcement in the first quarter that CDI will withdraw from its online sports betting and casino business. Announced plans to provide B2B support for books.
CDI Chief Executive William Carstanjen outlined TwinSpires’ B2B horse racing strategy during the company’s second quarter earnings call to investors.
“We are a leading distributor of horse racing content under a B2B model that either converts directly to TwinSpires customers or enables us to distribute our horse racing content online to millions of new customers who have opened an online sports betting account. I’m going to become
Carstanjen pointed to the retail horse racing operator’s extensive institutional knowledge of pari-mutuel betting as a key USP for the business.
“Given the expertise and extensive knowledge of parimutuel betting in horse racing, technical expertise and access to racing content to seamlessly integrate parimutuel betting into existing third-party online sports betting platforms. , And have technology, “he said.
“We also provide user interfaces and ancillary services that may be required or desired by an online sports betting platform.”
Karstangen also discussed the synergies that the offer will bring to the Kentucky Derby and its extensive racetrack portfolio at Churchill Downs.
“This strategy also allows us to provide sports betting sponsorships for the Kentucky Derby and generate additional content fees for Churchill Downs and other racetracks.”
Carstanjen’s comment was the second record for CDI as the Covid era was lifted and boosted by a one-time $ 291 million (£ 239.4m / € 285m) land sale. This is due to the recording of quarterly profit.
The strategy was triggered by the failure of CDI to offer a wide range of sports betting and igaming, and decided to withdraw from Vertical in the previous quarter. In its earnings announcement last quarter, Karstangen cited sector competitiveness to explain why the new sector did not work as expected.
“When the US Supreme Court overturned the federal ban on sports gambling in May 2018, we were very excited about the potential to build a profitable business in this area,” Carstanjen said. Mr. says.
“But online sports betting and online casino spaces are very competitive as the number of state-licensed participants continues to grow.”
“Without seeing a path for this business model to provide predictable and acceptable margins for at least several years, we have decided to exit the B2C online sports betting and gaming space over the next six months.”
