Pari-mutuel wagering on horseracing is coming to DraftKings via a partnership with Churchill Downs Incorporated (CDI). The two will team up to offer DraftKings users DK Horse, which will officially launch in the next few months.
Churchill Downs' subsidiary, TwinSpires, will provide advance deposit wagering technology to DraftKings during this multi-year agreement signed by the two companies.
Customers can bet on horseracing using the standalone branded DK Horse application. The initial launch will require customers to sign up and deposit funds separately from their DraftKings Sportsbook account.
The company has plans to integrate DK Horse into the DraftKings product suite at a later date and is expected to initially be available in 21 states.
The launch is scheduled ahead of the 149th running of the Kentucky Derby in May 2023, pending all necessary regulatory approvals.
DraftKings CEO and Chairman of the Board Jason Robins commented: "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."
The agreement will also see Churchill Downs offer additional horseracing content for use on DK Horse, and will provide DraftKings with wagering rights to horse racing content owned or controlled by Churchill Downs.
Churchill Downs CEO Bill Carstanjen 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."
Some less positive news for DraftKings is the recent investigation into securities fraud; for more on that click here.
