Churchill Downs agrees broadbase FanDuel technology deal
Parimutuel technology supplier and US sportsbook market leader eye horseracing gains with sponsorship and tech agreement
Churchill Downs Incorporated (CDI) and US sportsbook market leader FanDuel have agreed a broadbase multiyear sponsorship-, technology-, and television-related deal.
Under the deal, CDI will provide certain technology and services aimed at enabling FanDuel customers to place pari-mutuel wagers on horseracing via FanDuel’s sports wagering and advanced deposit wagering (ADW) platforms.
CDI will also authorize wagering on CDI- owned or controlled horseracing content via FanDuel’s platforms, granting FanDuel certain television and media rights to broadcast CDI-owned racing content on FanDuel’s newly launched television network.
In addition, the agreement provides FanDuel with non-exclusive Kentucky Derby sponsorship rights for sports betting.
Beginning in January 2023, FanDuel will pay for CDI technology and services provided by its United Tote subsidiary to facilitate pari-mutuel wagering on FanDuel’s platforms in the United States, including FanDuel Sportsbook and TVG.
In August, CDI entered into an agreement to sell 49% of United Tote to the New York Racing Association, a transaction that is expected to close by the end of 2022.
CDI will provide FanDuel wagering rights to horseracing content owned or controlled by CDI, including the Kentucky Derby, and will receive customary content fees when FanDuel accepts wagers on CDI-owned content.
FanDuel will also receive exclusive television rights to the racing content of all CDI thoroughbred racetracks, including Churchill Downs Racetrack, once its existing non-Derby media rights deal expires in 2023.
The agreement excludes certain specified racing content, including Kentucky Derby Week.
As part of the agreement, FanDuel will also receive a non-exclusive sponsorship of the Kentucky Derby in the sports wagering category, beginning in 2023, in exchange for an annual sponsorship fee.
CDI CEO Bill Carstanjen welcomed the deal, coming just as CDI moves to a more content-delivery facing strategy from its previously more operator geared approach.
“We look forward to working with FanDuel to deliver premium horseracing content to their expansive base of sports wagering customers,” Carstanjen said.
“We are confident that FanDuel’s market approach teamed with our expertise and technology will seamlessly deliver horseracing content and pari-mutuel wagering solutions to a significant number of new fans,” he added.
FanDuel CEO Amy Howe highlighted the newly launched FanDuel TV as a key spoke in making the new partnership work.
“With the launch of FanDuel TV last week and the upcoming integration of premier racing content into our market-leading sportsbook, we believe this is an inflection point in our ability to offer our customers a seamless wagering experience with a single wallet,” Howe said.
“We are especially pleased that we will be able to offer wagering on the most exciting two minutes in sports, the Kentucky Derby, and that we will have exclusive broadcast rights to the Churchill Downs Incorporated family of tracks on FanDuel TV.
“We look forward to creating new audiences for horseracing,” Howe added.