In a surprising announcement during the fourth-quarter and year-end conference calls, Churchill Downs Inc. said the company would stop online sports betting and internet gaming.
The company will continue to operate the pre-staking staking platform, TwinSpires.com, which offers pari-mutuel staking. CDI will also continue to offer traditional, retail sportsbooks, which it notes remain profitable.
During a February 24 conference call with analysts and investors, the CEO of Churchill Downs Inc. Bill Carstanjen says the company’s ongoing efforts in online sports betting and iGaming make no economic sense as he sees little growth or profit opportunity for shareholders in the competitive market. high picture.
“This is not the outcome we wanted when we started our business at the end of 2018, but it is a prudent next step for our company,” said Carstanjen.
CDI originally launched sports betting under the name BetAmerica but moved operations under the TwinSpires banner in January 2021. The company will now cease its online sportsbook operations, which were operating in Arizona, Colorado, Indiana, Michigan, New Jersey, Pennsylvania and Tennessee.
“We have profitable retail sportsbooks at our four casinos, however, the online sportsbook and online casino space is highly competitive with the growing number of participants that the Many are pursuing maximum market share in every state with limits, Carstanjen said. “Because we didn’t see — to us — a path where this business model would turn a profit. predictable and tolerable for at least a few years — if at all — so we’ve decided to exit the B2C online sportsbook and iGaming space in the next six months. “
Carstanjen stressed that the changes do not apply to the company’s successful TwinSpires ADW operation.
“We remain fully committed and excited about TwinSpires,” said Carstanjen. “For profit, profit and profit it continues to prove that it is an exceptional form of online business with a unique, scalable and sustainable business model that delivers profitable growth today is the same as when we started this business over a decade ago.”
In other CDI news:
- Carstanjen said the renovation at Churchill Downs racetracks are scheduled for each of the next three years.
- In Lawn ParkThe historic racing stands and racing facility have faced a number of supply chain issues with roofing materials that have pushed the project back to its scheduled September 1 opening.
- In the sale of 197 million dollars Arlington International Racecourse property for the NFL’s Chicago Bears, CDI predicts that sale will close in the first half of 2023.
- About the recent agreement to purchase certain gaming assets in Peninsula Pacific Entertainment for $2.6 billion — a deal that includes Colony Downs and several historic game facilities in Virginia — Carstanjen said the company is particularly excited about the opportunity to improve and expand on historic racing games there.
