Churchill Downs Incorporated (NASDAQ: CHDN) announced a multi-year agreement with FanDuel Group that includes various aspects of FanDuel’s sports betting, deposit betting and television businesses.
CDI will provide certain technologies and services that enable FanDuel customers to place equal bets on horse racing through the FanDuel sports betting and ADW platforms.
CDI will also allow wagering on CDI-owned or controlled horse racing content through FanDuel platforms in the United States and will grant FanDuel certain television and media rights to broadcast CDI-owned racing content on FanDuel’s television networks. In addition, the Agreement grants FanDuel non-exclusive rights to sponsor the Kentucky Derby in the sports betting category.
Beginning in January 2023, FanDuel will pay for CDI technology and services provided by United Tote Company to facilitate reciprocal betting on FanDuel platforms in the United States, including FanDuel Sportsbook and TVG.
CDI has entered into an agreement to sell 49% of United Tote to New York Racing Association, Inc. as part of the deal, which is due to close by the end of 2022.
CDI will grant FanDuel the betting rights to content owned or controlled by CDI, including the Kentucky Derby, and will receive a customary content fee when FanDuel accepts bets on CDI-owned content.
FanDuel will also receive exclusive television rights to the racing content of all CDI thoroughbreds, including Churchill Downs Racetrack, after the existing non-Derby media rights deal expires in 2023. The agreement excludes certain specific racing content, including Kentucky Derby Week.
Shares of CHDN fell $2.85, or 1.4%, to $198.74.