Via TD Thornton
Churchill Downs Inc. is reportedly exploring the sale of TwinSpires Racing, which the game company describes as “the leading online horse racing betting platform in the United States.”
Financial news site Bloomberg breaking news about CDI . for the first time at 3:40 p.m. ET on December 2, citing several sources who requested anonymity because they were sharing information that has not been disclosed by the publicly traded company. A CDI official declined to comment.
Bloomberg reports that CDI is “working with an advisor to spark potential interest in the staking platform.”
One of the sources estimated “TwinSpires could pull in $1.5 billion on any given trade.”
Bloomberg reports that CDI has a market value of $8.8 billion.
But one of the sources cited in that story also warned that “no final decision has been made,” noting that CDI could continue to own the platform.
During the Q3 earnings conference call on October 28, CDI president and chief executive officer, Bill Mudd, offered no hint of a sale of the staking platform before answering a question. investors about what will happen to TwinSpires in the near future.
“I mean, first of all, in the fourth quarter [of 2021], we’re entering a very stable period for TwinSpires,” said Mudd.
At another point during that earnings call, CDI chief executive Bill Carstanjen noted that TwinSpires racing grips grew 31% in the third quarter, driven by a 23% year-over-year increase in active users. 2019, resulting in an increase of $113 million.
And Carstanjen said CDI will dedicate resources to improving TwinSpires.
“Most of our Q4 maintenance capital [for 2021] is involved in the completion of Churchill Downs Racecourse’s new turf, new location purchases and ongoing improvements to our TwinSpires equestrian platform,” Carstanjen said on that call five weeks ago.
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