Churchill Downs Incorporated has announced that it has entered into a deal with the New York Racing Association subsidiary.
US.- Churchill Downs Incorporated (CDI) has announced that it has entered into an agreement to sell 49 per cent of United Tote Company to NYRA Content Management Solutions, a subsidiary of the New York Racing Association (NYRA).
The transaction, which is expected to close by the end of 2022, is subject to usual and customary closing conditions, including applicable regulatory notices and approvals. The United Tote pari-mutuel settlements business will be excluded and will remain with CDI.
The companies said in a statement: “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.”
Currently, NYRA, which runs the three major New York tracks, do not use United Tote. However, under a separate agreement, Aqueduct Racetrack, Belmont Park in Elmont, and Saratoga Race Course will begin using United Tote in 2023.
In July, Churchill Downs Incorporated (CDI) released financial results for the second quarter of the year. It reported record net revenue of $582.5m and net income of $339.3m. Adjusted EBITDA for a quarter that saw the 148th Kentucky Derby was $291.2m compared to $233.3m in the second quarter of 2021.
CDI reported that it sold 15.7 acres of excess land near Calder Casino for $291m to Link Logistics, a Blackstone portfolio company. The Company received cash proceeds of $279m.
CDIs’ Queen of Terre Haute casino hosts groundbreaking ceremony
In June, Churchill Downs’ Queen of Terre Haute casino in Vigo County, Indiana, hosted a groundbreaking ceremony to launch construction work. The new gaming and entertainment resort on a 50-acre site at 4442 East Margaret Drive is scheduled to be finished in 18 months.
Churchill Downs plans to invest $250m in the Queen of Terre Haute. The facility will feature a 400,000-square-foot casino with 56,000 square feet of gaming space that includes 1,000 slots and 50 table games. There will also be a 125-room hotel. The project is expected to create 500 jobs and generate an annual economic impact of $190m.