Churchill Downs Incorporated and DraftKings announced Tuesday a multi-year agreement that will bring pari-mutuel wagering on horse racing to DraftKings. CDI’s subsidiary TwinSpires will provide advance deposit wagering technology to Draftkings.
DraftKings will launch DK Horse in the coming months, which will allow eligible customers to bet on horse racing using a standalone branded app. The initial launch of DK Horse will require customers to sign up and deposit funds separate from that of their one account, one wallet tethered to the DraftKings Sportsbook, Casino and daily fantasy apps.
Under the agreement, CDI will provide DraftKings pari-mutuel wagering rights to horse racing content owned or controlled by CDI, including the Kentucky Oaks and Kentucky Derby. CDI will also secure, on behalf of DraftKings, additional horse racing content for use on DK Horse.
Plans to integrate DK Horse into the DraftKings product suite will be announced at a later date. It is expected to be available initially in 21 states, pending all necessary licensing and regulatory approvals, and is scheduled to launch ahead of the 149th running of the Kentucky Derby in May 2023.
Jason Robins, CEO and Chairman of the Board of DraftKings, said: “We are excited to collaborate with Churchill Downs Incorporated, not only to give our existing customers an opportunity to engage with pari-mutuel horse wagering, but also to acquire new customers efficiently during marquee horse racing moments. Due to the structure of the agreement, we expect this new product offering to be immediately profitable.”
Bill Carstanjen, CEO of CDI, added: “We believe the depth and quality of our online offering through TwinSpires is unmatched in horse racing. We are excited to establish this relationship with DraftKings and to deliver a full end-to-end white label ADW solution that will introduce their significant base of sports betting customers to horse racing wagering.”
Earlier this month, Churchill Downs completed its purchase of substantially all of the assets of Peninsula Pacific Entertainment, for total consideration of $2.75 billion.
The P2E acquisition includes all of its assets and operations in Virginia, New York and Sioux City, Iowa; and follows receipt of customary licensing approvals from the Virginia Racing Commission, the New York State Gaming Commission and the Iowa Racing and Gaming Commission.