Churchill Downs to buy YouBet
US racecourse owner and betting operator Churchill Downs (CD) is to buy US online horse betting and wagering website YouBet.com in a deal worth almost $127m.
US RACECOURSE OWNER and betting operator Churchill Downs (CD) is to buy US online horse betting and wagering website YouBet.com.
CD will acquire all the outstanding shares of YouBet in a transaction valued at nearly US$127m, leaving Youbet shareholders owning around 16% of the racecourse owner and operator.
In addition to the Churchill Downs racetrack, which hosts the Kentucky Derby, CD owns and operates racetracks in the states of Florida, Illinois, Kentucky and Louisiana. It also owns off-track betting facilities and online betting companies including Twinspires, and 50% of Horse Racing TV, a digital television channel dedicated to horseracing.
Churchill Downs said the deal would enable it to benefit from growth in online betting on US thoroughbred racing, which it said currently accounted for less than 14% of all wagering activity.
A company statement read: “The level of advanced deposit wagering (ADW) activity has already increased significantly in recent years, while overall wagering activity has been relatively flat and, in recent years, down. If these recent trends continue as anticipated, we believe the combined business will be well positioned to compete for additional handle [total amounts waged] and revenue opportunities.”
YouBet, which in July announced it was looking for partners with which to launch an expansion programme in European markets, provides off-track betting services to a number of US and non-US race tracks, including Aqueduct, Belmont, Keeneland and Saratoga, as well as Churchill Downs. It also provides horse racing content to websites including CBSSports.com and ESPN.com, and reported handle of US$438m and revenue of $85.8m last year.
The deal between the two Nasdaq-listed companies is subject to regulatory and shareholder approval.
In other recent US racing news, Betfair, which entered the US market this year by acquiring racing television network and wagering operator TVG, signed ties with the New York Racing Association and the Breeders Cup allowing Betfair customers to bet direct into US tote pools.