Churchill Downs

Churchill Downs has grown the digital footprint of its TwinSpires online casino and sports betting entity after going live in New Jersey, as rumours of a potential sale of the business unit swirl.

Bloomberg has reported that the company is exploring a divestment of the official betting partner of the Kentucky Derby, among other races, which it adds could be offloaded for approximately $1.5bn.

However, it is added that the company, which boasts a value of $8.8bn, is yet to make a final decision on any potential sale and could continue to own the platform.

This comes as the Garden State becomes the eighth jurisdiction within which the TwinSpires sportsbook has become available, with its igaming component going live in its third state.

In addition to New Jersey, TwinSpires sportsbooks are available in Arizona, Colorado, Indiana, Michigan, Mississippi, Pennsylvania, and Tennessee.

“As the official wagering partner of the Kentucky Derby, many sports fans in New Jersey will already be familiar with the TwinSpires brand and its long history with the greatest two minutes in sports,” said Ben Murr, Churchill Downs SVP and chief technology officer.

“We are excited to leverage nearly 150 years of wagering history within the United States to offer New Jerseyans our state-of-the-art online sports betting and igaming products, promotions and offers.”

Earlier this year, Churchill Downs reported that TwinSpires revenue through the year’s third quarter dropped 19.9 per cent to $102.2m (2020: $127.6m), primarily due to a $30.9m decrease from horse racing that was partially offset by $5.5m increase from sports and casino. The latter increased as a result of expansion in additional states and marketing and promotional activities.

Group-wide net gaming revenue through the period increased 16.3 per cent to $393m (2020: £337.8m), as net income recorded at 42.1 per cent uptick to $61.4m (2020: $43.2m), and adjusted EBITDA rose 28 per cent from $121.9m to $156.1m.