Churchill Downs Incorporated (CDI) announced that it has entered into a multi-year agreement with bet365. The UK-based operator will use CDI’s wholly-owned subsidiary Presque Isle Downs & Casino to launch in Pennsylvania after the necessary regulatory approvals. This mutually beneficial deal will allow CDI to focus on its primary horseracing mobile wagering business.
Bet365 Marches On with US Expansion Efforts
2022 was a turbulent year for Bet365 as the operator recorded a disastrous 95% slump in profits despite a marginal increase in revenue. The primary reason for these poor metrics is the company’s skyrocketing administrative expenses relating to its increased focus on international expansion. bet365 expanded its payroll with more than 500 new employees, putting a significant dent in operational profits.
Despite the unfavorable metrics, the extra expenditure is vital for securing a lasting presence in the American sports betting market. The operator has made steady progress, launching in Colorado, Ontario, and Argentina. Customer acquisition costs in the USA have been particularly steep. However, bet365’s efforts remain undeterred, as signified by the latest agreement with CDI.
Both Companies Will Benefit Substantially
Establishing a multi-year agreement is mutually beneficial to both parties. The deal paves the way for a relatively seamless expansion in Pennsylvania for bet365 while allowing CDI to monetize its sports betting and iGaming assets while focusing on its own objectives. A bet365 spokesperson lauded the deal, promising to bring the company’s best offerings to this new market.
The world’s favourite online sports betting brand will be available to sports fans in Pennsylvania, offering fantastic site features on top of our market-leading sign-up offer.
bet365 statement
CDI’s official press release regarding the agreement notes that the company will continue to focus on growing its TwinSpires online horseracing wagering segment. The deal with bet365 means that it will still profit from Presque Isle Downs & Casino’s iGaming and online sports betting business with as little costs and effort as possible. CDI CEO Bill Carstanjen was optimistic regarding the partnership, lauding bet365 for its international success.
Our relationship with bet365 enables us to maximize the value of our company’s sports betting and iGaming market access in Pennsylvania.
Bill Carstanjen, CEO of CDI
A successful Pennsylvania launch would be a significant boon to bet365’s US expansion efforts. Securing a market share in the Keystone State will grant the operator access to a booming gambling market capable of sustaining substantial profits. However, the area remains highly competitive, meaning bet365 will need to work extra hard to draw customers away from established operators.