Churchill Downs Considers Selling Betting Arm

Churchill Downs, the home of the Kentucky Derby, is reportedly looking into a possible sale of its betting unit, TwinSpires. The entity has the potential to fetch $1.5 billion — roughly one-sixth of the company’s value.

TwinSpires allows betting through retail locations and racetracks across the country, as well as on its app. Churchill Downs, which has a market value of $8.8 billion, is working with an adviser to gain insight on potential interest in the division.

The reports come the same week Nevada’s racebooks received approval from Churchill Downs to offer wagers again on races from the Fair Grounds, Oaklawn, and Turfway Park.

• CDI, which owns the Fair Grounds and Turfway Park and holds a contract with Oaklawn Park, has withheld simulcast signals from Nevada since Oct. 27, 2019.
• The dispute started because Churchill Downs wanted to charge Nevada more for the signals. The new contracts do not resolve the issue but are “positive movement” toward a long-term agreement, according to executive director of pari-mutuel association Patty Jones.

Earlier this year, Churchill Downs announced $211 million in three capital improvement projects. The money will go toward more all-inclusive seats, renovations to the Homestretch Club, and construction of a hotel, gaming positions, and amenities at Derby City Gaming.