Churchill Downs Incorporated (CDI), the prominent horse racing and gaming operator, has signed a multi-faceted agreement with FanDuel Group which involves television and media rights, parimutuel wagers and more.
According to the terms of the deal, CDI will provide the technology and services needed to allow FanDuel users to place parimutuel horse racing wagers on its ADW and sports betting platforms. FanDuel will also broadcast CDI-owned or managed horse racing content via its new platform FanDuel TV.
CDI’s parimutuel technology will be provided through its subsidiary United Tote Company (UTC). The horse racing giant also recently announced that it has agreed to sell a sizable portion of UTC shares to the New York Racing Association.
“With the launch of FanDuel TV last week and the upcoming integration of premier racing content into our market-leading sportsbook, we believe this is an inflection point in our ability to offer our customers a seamless wagering experience with a single wallet,” FanDuel CEO Amy Howe said in a statement.
She added: “We are especially pleased that we will be able to offer wagering on the most exciting two minutes in sports, the Kentucky Derby, and that we will have exclusive broadcast rights to the Churchill Downs Incorporated family of tracks on FanDuel TV. We look forward to creating new audiences for horse racing.”
Per the agreement, CDI will collect fees for wagers placed on its content, including its flagship Kentucky Derby race, for which FanDuel will now become a non-exclusive betting sponsor. FanDuel TV’s broadcast rights for CDI’s non-Derby content will become exclusive in 2023, once the current rights deal expires.
CDI CEO Bill Carstanjen said in a statement: “We are confident that FanDuel’s market approach teamed with our expertise and technology will seamlessly deliver horse racing content and pari-mutuel wagering solutions to a significant number of new fans.”
According to Dan Politzer, an analyst for Wells Fargo, the deal will likely result in a boost of $3 to $4 per share for CDI, representing between $10 million and $12 million in EBITDA.
