Churchill Downs Incorporated (CDI) has entered into an agreement to sell 49% of its subsidiary United Tote Company to the New York Racing Association (NYRA).
Financial terms of the transaction were not disclosed, but it was confirmed that the shares would be sold to NYRA’s subsidiary, NYRA Content Management Solutions.
United Tote provides totalizator systems, services and equipment, as well as various technical services for processing bets and payments, as well as pari-mutuel tote services.
Under the deal, CDI said it intends to work with NYRA to reach new customers by offering pari-mutuel solutions through United Tote and facilitating the expansion of horse racing betting into sports betting platforms. I was.
As part of the deal, it was also agreed that the United Tote pari-mutuel payments business would be excluded and remain with CDI.
Pending regulatory approval, the NYRA will transfer pari-mutuel wagering processing to United Tote in 2023 under a separate agreement.
NYRA is a non-profit corporation that operates three of New York’s largest Thoroughbred racetracks, including Aqueduct Racetrack at South Ozone Park in Queens. Belmont Park in Elmont. Saratoga Racecourse in Saratoga Springs.
The contract is expected to be completed by the end of 2022.
The deal follows CDI’s record earnings in the second quarter of 2022 last month, following a recovery in the live and historic racing segments, to pursue the acquisition with funds provided from a recent land sale. It will be done after you say you will.
The operator said the easing of Covid-19 restrictions has contributed to its racing business, and operations during the same period last year and in the second quarter of 2020 were affected by the precautionary measures put in place during the pandemic. received. .
This year, however, customers will not only be able to attend important racing events such as the Kentucky Derby at Churchill Downs, but also facilities at Oak Grove Racing, Gaming and Hotels, Derby City Gaming, Newport Racing & Gaming and Turfway Park. had unlimited access to. .
Additionally, CDI said its historic racing machine (HRM) property has benefited from the removal of capacity restrictions that were in place during the pandemic.
