DraftKings enters multi-year agreement with Churchill Downs for pari-mutuel wagering

November 29, 2022 10:02 AM
Photo: Composite CDC Gaming Reports
  • Rege Behe, CDC Gaming Reports
November 29, 2022 10:02 AM
  • Rege Behe, CDC Gaming Reports

Placing bets on the Kentucky Derby just got a lot easier.

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Churchill Downs Tuesday announced that it has reached a multi-year agreement that will allow DraftKings’ patrons access to pari-mutuel wagering. The new venture, DK Horse, will feature advance deposit wagering technology provided by Churchill Downs subsidiary Twin Spires.

DK Horse is slated to be available before the 149th Kentucky Derby on May 6, 2023. Eligible customers will be able to bet on horse races through a standalone app.

“We are excited to collaborate with Churchill Downs Incorporated, not only to give our existing customers an opportunity to engage with pari-mutuel horse wagering, but also to acquire new customers efficiently during marquee horse racing moments,” said DraftKings CEO and Chairman of the Board Jason Robins in a statement. “Due to the structure of the agreement, we expect this new product offering to be immediately profitable.”

Per the agreement, Churchill Downs is providing DraftKings pari-mutuel wagering rights to horse racing content owned or controlled by Churchill Downs, including the Kentucky Oaks and Kentucky Derby. Churchill Downs will also secure supplementary horse racing wagering opportunities for use on DK Horse.

Initially, DK Horse will require customers to deposit funds in a separate account from DraftKings’ accounts used for the company’s sportsbook, casino, and daily fantasy sports apps. DK Horse accounts will be integrated into the DraftKings product suites at a later date.

“We believe the depth and quality of our online offering through TwinSpires is unmatched in horse racing,” said Churchill Downs CEO Bill Carstanjen. “We are excited to establish this relationship with DraftKings and to deliver a full end-to-end white label advance-deposit wagering solution that will introduce their significant base of sports betting customers to horse racing wagering.”

It’s expected that DK Horse will be available in 21 states, pending licensing and regulatory approvals.