Churchill Downs Incorporated Announces Entry into Real Money Online Gaming and Sports Betting Markets
May 16 2018 - 6:57AM
Churchill Downs Incorporated (“CDI”) (Nasdaq:CHDN) today announced
its entry into real money online gaming (“iGaming”) and sports
betting markets. It also announced a strategic partnership
agreement with SBTech to utilize their integrated technology
platform for CDI’s iGaming and sports betting operations.
SBTech will provide CDI with an iGaming platform, consisting
of the consumer website, mobile apps, and back office systems to
manage iGaming and sports wagering, where permitted, pursuant to
which CDI may offer branded products separate from TwinSpires.com
to its iGaming and sports betting customers.
The strategic partnership with SBTech initially is intended to
enable CDI to enter New Jersey and Pennsylvania, which have already
approved iGaming and sports betting. In addition, the
strategic partnership will enable CDI to enter Mississippi for
sports wagering. CDI and SBTech’s entry into these states is
subject to gaming license approvals and finalization of iGaming and
sports betting regulations.
- In New Jersey, CDI has announced an agreement with Golden
Nugget to enter the New Jersey iGaming and sports betting
markets.
- In Pennsylvania, CDI previously announced the acquisition of
Presque Isle Downs & Casino (“Presque Isle”) in Erie,
Pennsylvania from Eldorado Resorts, Inc. (“Eldorado”). The
definitive purchase agreement between CDI and Eldorado for the
acquisition of Presque Isle requires Eldorado to apply for certain
iGaming licenses, subject to reimbursement by CDI at closing, if
the exclusive time periods to acquire Pennsylvania iGaming licenses
are expected to expire prior to the closing of the Presque Isle
acquisition.
- In Mississippi, CDI has two existing brick-and-mortar casinos
that will be utilized to offer on-property sports betting
products.
“We are confident that our strategic partnership with SBTech
provides us with an industry leading platform to offer innovative
and exciting, integrated iGaming and sports betting products,” said
Bill Carstanjen, CEO of Churchill Downs. “We have the unique
opportunity to leverage our knowledge and experience operating the
largest legal online horse racing wagering business in the U.S. as
we enter the iGaming and sports betting markets.”
“We are thrilled to be partnering with Churchill Downs and
to introduce our award-winning iGaming and sports betting platforms
in the U.S.,” said Richard Carter, Chief Executive Officer of
SBTech. “We both share a deep commitment to technological
innovation and excellence, and we look forward to working with them
during this exciting time in the history of the U.S. gaming
market.”
About SBTech
SBTech is a global leader in omni-channel sports betting and
gaming, with over 1,000 employees in 11 locations worldwide. Since
2007, SBTech has developed the industry’s most powerful online
sports betting and casino platform, serving more than 50 licensees
in over 14 regulated markets. SBTech’s clients include many
of the world’s premier betting and gaming operators, state
lotteries, land-based casino and horse racing companies, and
iGaming start-ups.
About Churchill Downs Incorporated
Churchill Downs Incorporated (CDI) (Nasdaq:CHDN), headquartered
in Louisville, Kentucky, is an industry-leading racing, gaming and
online entertainment company anchored by our iconic flagship event
- The Kentucky Derby. We are the largest legal online account
wagering platform for horseracing in the U.S., through our
ownership of TwinSpires.com and have announced our plans to enter
the U.S. real money online gaming and sports betting
markets. We are also a leader in brick-and-mortar
casino gaming with approximately 10,000 gaming positions in eight
states. Additional information about CDI can be found online
at www.churchilldownsincorporated.com.
Information set forth in this press release contains various
“forward-looking statements” within the meaning of Section 27A of
the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. The Private Securities Litigation Reform Act
of 1995 (the “Act”) provides certain “safe harbor” provisions for
forward-looking statements. All forward-looking statements made in
this press release are made pursuant to the Act.
The reader is cautioned that such forward-looking statements are
based on information available at the time and/or management’s good
faith belief with respect to future events, and are subject to
risks and uncertainties that could cause actual performance or
results to differ materially from those expressed in the
statements. Forward-looking statements speak only as of the date
the statement was made. We assume no obligation to update
forward-looking information to reflect actual results, changes in
assumptions or changes in other factors affecting forward-looking
information. Forward-looking statements are typically identified by
the use of terms such as “anticipate,” “believe,” “could,”
“estimate,” “expect,” “intend,” “may,” “might,” “plan,” “predict,”
“project,” “seek,” “should,” “will,” and similar words, although
some forward-looking statements are expressed differently.
Although we believe that the expectations reflected in such
forward-looking statements are reasonable, we can give no assurance
that such expectations will prove to be correct. Important factors
that could cause actual results to differ materially from
expectations include the following: the effect of economic
conditions on our consumers' confidence and discretionary spending
or our access to credit; additional or increased taxes and fees;
the effect of changes in tax laws on CDI or an investment in our
shares, including as a result of changes made pursuant to recently
enacted U.S. tax legislation; public perceptions or lack of
confidence in the integrity of our business; loss of key or highly
skilled personnel; restrictions in our debt facilities limiting our
flexibility to operate our business; general risks related to real
estate ownership, including fluctuations in market values and
environmental regulations; catastrophic events and system failures
disrupting our operations, including the impact of natural and
other disasters on our operations and our ability to obtain
insurance recoveries in respect of such losses; inability to
identify and complete acquisition, expansion or divestiture
projects, on time, on budget or as planned; difficulty in
integrating recent or future acquisitions into our operations;
legalization of online real money gaming in the United States, and
our ability to capitalize on and predict such legalization; the
number of people attending and wagering on live horse races;
inability to respond to rapid technological changes in a timely
manner; inadvertent infringement of the intellectual property of
others; inability to protect our own intellectual property rights;
security breaches and other security risks related to our
technology, personal information, source code and other proprietary
information, including failure to comply with regulations and other
legal obligations relating to receiving, processing, storing and
using personal information; payment- related risks, such as
chargebacks for fraudulent credit card use; compliance with the
Foreign Corrupt Practices Act or applicable money-laundering
regulations; work stoppages and labor issues; difficulty in
attracting a sufficient number of horses and trainers for full
field horseraces; inability to negotiate agreements with industry
constituents, including horsemen and other racetracks; personal
injury litigation related to injuries occurring at our racetracks;
the inability of our totalisator company, United Tote, to maintain
its processes accurately, keep its technology current or maintain
its significant customers; weather conditions affecting our ability
to conduct live racing; increased competition in the horseracing
business; changes in the regulatory environment of our racing
operations; declining popularity in horseracing; seasonal
fluctuations in our horseracing business due to geographic
concentration of our operations; increased competition in our
casino business; changes in regulatory environment of our casino
business; development and expansion of casinos is costly and
susceptible to delays, cost overruns and other uncertainties;
concentration and evolution of slot machine manufacturing and other
technology conditions that could impose additional costs; impact of
further legislation prohibiting tobacco smoking; geographic
concentration of our casino business; changes in regulatory
environment for our advanced deposit wagering business; increase in
competition in the advanced deposit wagering business; inability to
retain current customers or attract new customers to our advanced
deposit wagering business; uncertainty and changes in the legal
landscape relating to our advanced deposit wagering business; and
failure to comply with laws requiring us to block access to certain
individuals could result in penalties or impairment in our ability
to offer advanced deposit wagering.
Contact: Nick Zangari(502) 394-1157Nick.Zangari@kyderby.com
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