CDI and Bet365 Enter Pennsylvania
Author:
Megan Butler
Online casino and retail casino giant Bet365 is set to expand into Pennsylvania, after it revealed that it had secured an exclusive online sports betting and iGaming market access deal together with Churchill Downs Incorporated (CDI) – specifically its subsidiary Presque Isle Downs & Casino. The deal is part of CDI’s intention to step away from online sports and casino.
Bet365 will establish a presence Pennsylvania as the result of an exclusive online sports betting and iGaming market access deal together with Churchill Downs Incorporated’s (CDI) subsidiary Presque Isle Downs & Casino. ?12019/Pixabay
Churchill Downs is Looking to Sell its Online Sports Market Access Rights
Popular provider of online casino and retail casino offerings Bet365 is now on track to expand into the US state of Pennsylvania, as a result of having secured an online sports betting and igaming market access deal with the Churchill Downs Incorporated (CDI) subsidiary Presque Isle Downs & Casino.
Churchill Downs specified that the agreement is but one part of its strategy to gradually step away from the online sports and casino industry, with the operator also looking to begin selling off its online sports and igaming market access rights and instead focus on building its TwinSpires online horse racing wagering business.
Back in February 2022, CDI announced that it was planning to switch its strategy to focusing on operations in the online casino sector, yet it would still maintain its retail sportsbook operations within its retail casino properties. As of writing, the multi-year deal between Bet365 and Churchill Downs Incorporated (CDI) is still dependent on the necessary regulatory approvals in Pennsylvania.
Bet365 Launch in Pennsylvania Follows Operator’s Recent Launch in Ohio
Speaking on occasion of the news of Bet365 and Churchill Downs Incorporated’s partnership in the state of Pennsylvania, CDI chief executive Bill Carstanjen expressed the company’s excitement at the deal, claiming it would help the operator boost its overall sports betting operations:
“We are pleased to partner with a global leader in the online gaming industry. Our relationship with Bet365 enables us to maximize the value of our company’s sports betting and igaming market access in Pennsylvania.”– Bill Carstanjen, Chief Executive, Churchill Downs Incorporated (CDI), Press Release
Meanwhile, for its part, a Bet365 spokesperson reminded observers that the provider had just launched in the neighboring state of Ohio, going on to promise Pennsylvania sports betting fans a wealth of exciting offerings thanks to the partnership:
“Off the heels of our launch in Ohio, we are thrilled to announce our partnership with CDI. Once live, the world’s favorite online sports betting brand will be available to sports fans in Pennsylvania, offering fantastic site features, including bet boosts, same-game parlay, cash out and edit bet, on top of our market-leading sign-up offer.”– Spokesperson, Bet365, Press Release
Earlier this month in January 2023, Bet365 disclosed that its revenue increased slightly up to an impressive ￡2.85 billion in 2021-22, as its growth in the gaming sector helped offset a marginal decline in sports betting. Increased customer acquisition costs in new markets, however, caused almost 90% drop in profit. It is still worth noting that its US operations remain relatively limited, with the operator having only gone live in a select few states as of now.
CDI Announced That It Will Begin Offering Horse Racing Services to DraftKings in December 2022
Just recently in December 2022, Churchill Downs Incorporated (CDI) dropped the news that it had established a multi-year agreement with sports betting titan DraftKings, with ultimate end goal of developing DK Horse – a parimutuel wagering horse racing product designed exclusively for the sports betting giant.
It will actually be TwinSpires who will build the white-label solution for DraftKings, which means that CDI will need to hand over the company’s advanced deposit wagering technology to DraftKings. TwinSpires first pivoted to becoming a B2B provider after facing tough market competition in 2021.
Jason Robins, CEO and chairman of the board of DraftKings, claimed that the operator was excited to be working together with CDI, and even more looking forward to the new horse racing fans it will likely gain thanks to the new collaboration with Churchill Downs:
“We are excited to collaborate with Churchill Downs Incorporated, not only to give our existing customers an opportunity to engage with parimutuel 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.”– Jason Robins, Chief Executive Officer and Chairman of the Board, DraftKings, Press Release
Churchill Downs Incorporated Joined Forces with FanDuel in September 2022
In other Churchill Downs news, the horse racing and casino supplier partnered up with another major sports betting operator, FanDuel, back in September 2022. The multi-year agreement spans several different facets of FanDuel’s business, namely its sports wagering, advance deposits wagering (ADW) and television verticals.
FanDuel fans physically present in the US can now place bets on the ponies, as well as plenty of other horse racing content, at a Churchill Downs Incorporated (CDI) retail location. FanDuel CEO Amy Howe warmly welcomed the news of the partnership, putting a spotlight on the Kentucky Derby in particular:
“With the launch of FanDuel TV last week and the upcoming integration of premier racing content into our market-leading sports book, we believe this is an inflection point in our ability to offer our customers a seamless wagering experience with a single wallet. We are especially pleased that we will be able to offer wagering on the most exciting two minutes in sports, the Kentucky Derby, and that we will have exclusive broadcast rights to the Churchill Downs Incorporated family of tracks on FanDuel TV. We look forward to creating new audiences for horse racing.”
