Churchill Downs Inc. (CDI) has agreed to sell nearly half of its wholly owned subsidiary United Tote.
CDI has agreed to sell 49% of the company to NYRA Content Management Solutions, a New York Racing Association subsidiary (NYRA). Churchill Downs, on the other hand, will retain control of the United Tote pari-mutuel settlements business.
The New York Racing Association (NYRA) is a non-profit organization that operates the three largest thoroughbred horseracing tracks in the Empire State: Aqueduct Racetrack, Belmont Park, and Saratoga Race Course.
In order to reach new customers, Churchill Downs and NYRA intend to “expand the seamless expansion of horseracing onto sports wagering platforms.”
To that end, under a separate agreement, the NYRA will transition its pari-mutuel wager processing to United Tote in 2023.
“CDI and NYRA intend to collaborate to create and provide an industry-leading pari-mutuel solution through United Tote,” Churchill Downs wrote.
The deal is expected to close by the end of 2022, subject to “usual and customary closing conditions” such as regulatory notices and approvals.
Furthermore, Churchill Downs’ decision to sell a 49% stake in United Tote to NYRA, as well as both parties’ broader goals, is consistent with comments made by Churchill Downs CEO Bill Carstanjen during the company’s Q2 earnings call last month.
“We fundamentally believe that horseracing content should and will become available over time on sports wagering platforms to reach every wagering customer in the United States,” he said.
This follows Caesars Sportsbook’s earlier this year partnership with NYRA Bets, the Association’s official wagering platform, to launch a new ‘Racebook’ app.
In early June, the app was launched in Florida and Ohio.