Churchill Downs Explores Sale of TwinSpires Betting Platform

According to a Bloomberg article, Churchill Downs, the official wagering partner of the Kentucky Derby, is contemplating the divestiture of its digital gaming platform, TwinSpires. This revelation led to a surge in the company’s share price.

Insiders indicate that the Louisville-headquartered corporation is collaborating with a consultant to identify a suitable purchaser for the platform. Although Churchill Downs has not issued an official statement regarding the potential transaction, industry experts estimate the division could command a price exceeding $1.5 billion. It’s crucial to emphasize that no definitive determination has been reached, and Churchill Downs retains ownership of TwinSpires.

Subsequent to the announcement, Churchill Downs witnessed its stock price ascend to $236.26, elevating its market capitalization to $8.8 billion. This follows a robust performance by TwinSpires, with the company disclosing a 56% year-on-year surge in adjusted EBITDA for the third quarter of 2021, attaining $31.2 million. The platform has also experienced a 31% growth in wagering volume between the third quarter of 2019 and the third quarter of 2021.