FanDuel Reinforces Their Horse Racing Position After Churchill Downs Deal

First turn Kentucky Derby Churchill Downs
The field rounds the first turn during the running of the 148th Kentucky Derby at Churchill Downs. Ezra Shaw/Getty Images/AFP.

Churchill Downs may have lost the race in online sports betting, but since they departed from the market, they’ve wasted no time in providing their business-to-business (B2B) horse racing products by inking a deal with FanDuel Group.

FanDuel and Churchill Downs Partnership

Last Thursday, Churchill Downs Inc. (CDI) revealed their newly established multi-year contract with FanDuel. This deal would include a pari-mutuel horse racing betting option for customers using the FanDuel Sportsbook app. CDI had previously mentioned the idea of selling their horse racing technology to a sportsbook, but it has finally come to fruition with FanDuel swopping in on the deal.

In addition to the pari-mutuel horse racing betting option, FanDuel will gain specific rights to Churchill Downs racing content. Beginning on January 2023, the leading United States sportsbook will pay for the services and technology that CDI offers.

“With the launch of FanDuel TV last week and the upcoming integration of premier racing content into our market-leading sportsbook, we believe this is an inflection point in our ability to offer our customers a seamless wagering experience with a single wallet,” commented Amy Howe, FanDuel CEO.

“We are especially pleased that we will be able to offer wagering on the most exciting two minutes in sports, the Kentucky Derby, and that we will have exclusive broadcast rights to the Churchill Downs Incorporated family of tracks on FanDuel TV.

“We look forward to creating new audiences for horse racing.”

What Should We Expect From This Deal?

Despite Churchill Downs and FanDuel’s holding company TVG being in direct competition within the advance deposit horse betting stratosphere, we should expect this rivalry to relax now, as FanDuel will supply horse racing bets through their app in the new partnership.

A holding company of Churchill Downs, United Tote Co, will provide the service. The New York Racing Association recently purchased a 49% stake in United Tote Co.

FanDuel will collect the rights to Churchill Downs racing content for their newly established TV networks. However, full details on the terms of this deal have yet to be disclosed.

“We look forward to working with FanDuel to deliver premier horse racing content to their expansive base of sport wagering customers,” commented Bill Carstanjen, Churchill Downs CEO. “We are confident that FanDuel’s market approach teamed with our expertise and technology will seamlessly deliver horse racing content and pari-mutuel wagering solutions to a significant number of new fans.”

About the Kentucky Derby

In addition to the services, technology, and content that FanDuel will receive from the partnership, the sportsbook will also become a sports betting partner of the Kentucky Derby.

We should note that this part of the deal presents an annual sponsorship fee, but the figure remains undisclosed.

Avid horse bettors wagered $179 million during the 2022 Kentucky Derby.