Churchill Downs Incorporated, entered a partnership with bet365 Group Ltd to offer mobile sports betting and iGaming in Pennsylvania. Just a few months ago, Churchill Downs decided to shut down its sports betting unit and focus on the horse racing side of the business, but the plans have certainly changed.
Churchill and bet365 Agree to a Multi-Year Deal
Just a few months ago, sports betting and iGaming industry experts couldn’t have envisioned a deal like this taking place. Churchill Downs and many lesser-known brands in the sports betting space faced a harsh reality, as gaining market share throughout numerous states is very costly and challenging.
Across the industry, the markets are usually dominated by these four platforms. The four that generally make up the majority of lists are FanDuel, DraftKings, Caesars, and BetMGM. If done correctly, gaining market access in Pennsylvania will be a massive endeavor. The Keystone State is one of the few states that offer online casino gaming and continues to be a prominent market in the industry.
On the other hand, bet365 continues to thrive in the European aspect of its business. In spite of taking a huge pay cut, Bet365 boss Denise Coates earned more than £200 million last year. However, just like Churchill, bet365 has failed to be a stronger contender in the United States as companies like Betfred have done better.
Has Entering Ohio Changed Both Companies Game Plan
Before the New Year’s Day launch took place in Ohio, Bet365 only had market access in Colorado and New Jersey. The company was among the many that missed out on a bid in New York as nine sportsbook operators conduct business in the state.
However, gaining market access in Ohio is no small task as the Buckeye State is the seventh, most populous state in the United States. Bill Carstanjen, CEO of Churchill Downs stated,” We are pleased to partner with a global leader in the online gaming industry,…Our relationship with bet365 enables us to maximize the value of our company’s sports betting and iGaming market access in Pennsylvania.”
The two will be subject to regulatory approvals in the state. This may be a perfect match for both companies as CDI struggled more on the online sports wagering side, while bet365 needed help marketing the casino side of the business. Additionally, this will help CDI grow its TwinSpires online horse racing wagering business.
When the launch takes place, the companies will offer multiple features for those that sign up to use the platform. This will include Bet Boosts, Same Game Parlay, Cash Out, and Edit Bet, on top of our market-leading sign-up offer.
Pennsylvania continues to be a pivotal contributor to the industry, as it’s home to many professional franchises and collegiate programs. The Keystone is also a state that has a low barrier to entry, as bettors across the state have many options to choose from.