Churchill Downs gets in on online gaming with sports betting site deal

Justin Sayers
Courier Journal
Churchill Downs Inc. headquarters in Louisville.

Churchill Downs Inc. announced Wednesday that it has entered an agreement with Golden Nugget Atlantic City to get into the real-money online gaming and sports betting markets in New Jersey.

The announcement comes two days after the U.S. Supreme Court overturned a federal law that had effectively prohibited sports betting outside of Nevada. Both companies said the goal is to begin accepting legal wagers by the first quarter of 2019.

“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," said Churchill Downs CEO Bill Carstanjen in a press release.

The Louisville-based company also announced that it had entered an agreement with SBTech to provide Churchill Downs a platform for iGaming that includes a consumer website, mobile apps, and back-office systems.

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The iGaming and sports-betting products will be separate from TwinSpires.com, Churchill Downs' online race-betting operation, according to the release.

The agreements are contingent on sports wagering legislation and gaming license approval. But it would allow Churchill Downs to enter the Pennsylvania and New Jersey markets, where iGaming and sports betting are allowed, and Mississippi, where sports wagering is permitted.

Churchill Downs previously announced that it bought Presque Isle Downs & Casino in Erie, Pennyslvania. The company also owns two brick-and-mortar casinos in Mississippi.

Monday's Supreme Court decision cleared the way for states to legalize betting on college and professional sports. It remains to be seen what that means for Kentucky, the home of the Kentucky Derby and seven NCAA Division I institutions, as well as four minor league baseball teams, a professional soccer team and six horse racing tracks.

Gov. Matt Bevin said Tuesday that it's "too early to tell" what will happen in Kentucky, but that a decision will be made by the state legislature.

"Sports betting has happened since the dawn of time. People have always done it. It’s done – heck, we just came off a weekend in which it happened at a pretty prolific rate here in Kentucky," Bevin said, referring to the 2018 Kentucky Derby. "So ultimately, what it means to us as a state policy-wise, it’s way too early to tell."

In the hours immediately following the Monday ruling, Churchill Downs' stock price jumped from $278 per share to $294 in 1 1/2 hours.

The price closed at $297.70 on Tuesday. That price had already risen to $305.15 by 10:30 a.m. Wednesday.

Justin Sayers: 502-582-4252; jsayers@courierjournal.com; Twitter: @_JustinSayers. Support strong local journalism by subscribing today: www.courier-journal.com/justins.