A multi-year agreement between DraftKings and Churchill Downs Incorporated (CDI) is set to bring pari-mutuel wagering on horse racing to the Boston-based gaming operator, both companies announced today.
Pari-Mutuel Horse Wagering App
The agreement with CDI will see CDI’s subsidiary and supplier of online horse racing wagering platform, TwinSpires, provide advance deposit wagering (ADW) technology to DraftKings to power the launch of DraftKings’ DK HORSE standalone app in the coming months.
Bill Carstanjen, chief executive officer of CDI, pointed to the “depth and quality” of the TwinSpires’ offering as the features that position the online horse racing wagering brand way above competitors.
“We are excited to establish this relationship with DraftKings and to deliver a full end-to-end white label ADW solution that will introduce their significant base of sports betting customers to horse racing wagering,” Carstanjen added.
The initial launch of the standalone branded app DK HORSE which will allow eligible customers at DraftKings to wager on horse racing will not offer integration with the wallet integrated with DraftKings Sportsbook, Casino and daily fantasy sports apps. Integration with the DraftKings wallet will be announced at a later date.
Jason Robins, chief executive officer of DraftKings, spoke of the excitement to collaborate with CDI and offer DraftKings customers “an opportunity to engage with pari-mutuel horse wagering” while creating an additional channel of customer engagement for the business “during marquee horse racing moments.”
Targeting Kentucky Derby 149
DK HORSE is planned to go live in 21 states ahead of the 149th edition of the Kentucky Derby in May 2023, pending all necessary regulatory approvals. Kentucky Derby 148 this year set new records in terms of wagering, posting a double-digit increase on the previous year’s edition.
“Due to the structure of the agreement, we expect this new product offering to be immediately profitable,” Robins concluded.
The agreement stipulates that CDI will provide DraftKings with pari-mutuel wagering rights to horse racing content owned or controlled by the racing and wagering operator, including the Kentucky Oaks and Kentucky Derby.
To boost the app’s offering, CDI will also secure additional horse racing content for use on the app on behalf of DraftKings.
Days before Thanksgiving, DraftKings saw its share price tumble down by 11% after an announcement that some of its customer accounts were hacked and around $300,000 of customer funds withdrawn.
The operator noted the funds lost would be reimbursed and assured the public its systems were not compromised.