Churchill Downs Incorporated is currently contemplating the idea of selling TwinSpires Racing, according to knowledgeable sources who have chosen to remain anonymous, says Bloomberg. The information has not yet been shared with the public. According to the report, if the deal goes through, the company would cash in $1.5 billion. Churchill Downs Inc. owns and operates Churchill Downs, a popular thoroughbred horse racing racetrack based in Louisville, Kentucky.
Keeping Up with the Trends
Following the Supreme Court’s ruling to abolish Nevada’s monopoly of sports betting and legalize the activity in 30 other states, the instances of mergers and the value of stocks in the gambling industry have been going up.
Churchill Downs Inc. might decide to follow the trend and sell its own betting unit, TwinSpires. TwinSpires is also the official betting partner of the Kentucky Derby and a number of other important races.
The company has reportedly hired an adviser in order to solicit offers for its betting platform from interested parties, according to the same anonymous sources.
Should the deal go through, Bloomberg’s source expects Churchill Downs to collect $1.5 billion. A final decision remains to be made. Churchill Downs may also choose to remain the sole owner and operator of the platform still. The company’s policy does not allow it to comment on any rumors on the market or unsubstantiated speculations.
Churchill Downs’ stock went up 6.5% on Thursday soon after the anonymous sources disclosed the rumors about the company thinking about selling TwinSpires. The stock closed at $236.26, which is a historical 22% boost in its intraday stocks for 2022.
Why Are Sports Betting Acquisitions and Mergers Important?
Most of these deals are an effect of the fast growth of the sports betting industry in the US. Many companies are trying to constantly improve their platforms and services and reach the ever-growing pool of punters as fast as possible.
They are equally interested in providing them with the freshest technology innovations to keep up with the industry trends. Mergers and acquisitions allow them to mix up their current offers with more successful business models and reach their goals sooner. Here are a few examples of important acquisitions that have taken the sports betting industry by storm in the past few months:
Caesar’s Entertainment has acquired popular sportsbook William Hill. In another move, DraftKings has announced its plans to buy Golden Nugget Online Casino for $1.56 billion.
DraftKings has also recently made bid for $20 billion to purchase Entain PLC, popular English sports betting giant, but the deal eventually fell through. Penn National Gaming has expressed its interest in acquiring a digital sports media company as part of a $2 billion transaction, which is completed in October.