Reports have emerged that Churchill Downs Inc. – the host company of the renowned Kentucky Derby horse race – is considering selling its wagering platform, TwinSpires Horse Racing, which serves as an official partner for many of its races.
The Louisville-based company has hired an advisor to solicit interest in TwinSpires, according to as-of-yet unconfirmed reports which emphasize that Churchill Downs has not yet made a final decision on the matter and may choose to continue owning the platform
Were the sale to occur, it is believed that the betting platform – itself based In Mountain View, California – could be worth as high as $1.5bn.
According to Bloomberg, people with knowledge of the potential sale have spoken on the condition of anonymity.
Upon the news leaking, Churchill Downs’ share price rose to a high yesterday of $236.26. The company has a market value of $8.8bn.
The potential for a sale reflects the growing status – and value – of betting companies in the United States. Since the Supreme Court allowed sports betting outside of Nevada, it has become an immensely popular pastime for Americans. Betting companies have proliferated as a result.
TwinSpires’ performance over the last few years has reflected this explosion in popularity. The company’s race handle grew 31% from Q3 2019 to Q3 2021, and its adjusted EBITDA increased 56% in that same period to $31.2m.
The platform which Churchill Downs would use for hosting bets in the event of selling TwinSpires is unclear.
