Gaming company and horse racing giant Churchill Downs Incorporated (CDI) announced Thursday an agreement to sell 49% of United Tote, a wholly-owned subsidiary of CDI, to NYRA Content Management Solutions, a subsidiary of the New York Racing Association (NYRA).
United Tote, which has been serving the racing industry since 1959, provides totalizator equipment and services for parimutuel wagering at racetracks. The company became part of Churchill Downs in 2010, when the firm acquired previous United Tote owner Youbet.com. Headquartered in Louisville, Kentucky, United Tote manufactures and operates systems for more than 150 racing companies and numerous off-track betting (OTB) facilities in North America and around the world.
The transaction is subject to usual and customary closing conditions, including applicable regulatory notices and approvals, and is expected to close by the end of 2022. As part of the agreement, the United Tote pari-mutuel settlements business will be excluded and will remain with CDI.
NYRA is a not-for-profit corporation that operates the three largest Thoroughbred horse racing tracks in the State of New York - Aqueduct Racetrack in South Ozone Park, Queens; Belmont Park in Elmont; and Saratoga Race Course in Saratoga Springs.
In a press release, Churchill Downs stated that "CDI and NYRA intend to work together to create and provide a comprehensive and efficient industry-leading pari-mutuel solution through United Tote that will expedite the expansion of horse racing seamlessly onto sports wagering platforms to reach new customers. Pending the appropriate regulatory approvals, NYRA will transition its pari-mutuel wager processing to United Tote in 2023 under a separate agreement.
Churchill Downs announced record net revenues for the second quarter of the year in late July. For the period, CDI posted $582.5 million, up from $515.1 million in Q2 2021; and a record net income of $339.3 million, more than triple the $108.3 million in the comparable quarter last year. Momentum was driven by the renowned Kentucky Derby at Churchill Downs Racetrack. Back in February, CDI said it is exiting the online casino and sports betting businesses.
In June, Caesars Entertainment announced the launch of the Caesars Racebook mobile app, in tandem with NYRA Bets —the official wagering platform of the New York Racing Association— in Florida and Ohio. The new product, first announced in March, provides bettors with pari-mutuel wagering on premier horse racing content from more than 250 tracks around the world.