Churchill Downs is the largest horse track in Kentucky. Furthermore, Churchill Downs Inc. owns four of the nine horse tracks eligible to operate a sportsbook.
However, none of the CDI-owned tracks, most notably its flagship venue, have announced a Kentucky sports betting partnership with an online or retail operator. While it is inevitable that a sports betting operator will partner with the giant, it might take a little longer than normal.
The Louisville track recently came under fire. In the lead-up to the Kentucky Derby, many horses suffered injuries on the track, and most died — 12, to be exact.
Churchill Downs is arguably the biggest name in Kentucky horse racing. This is why the latest scandal could be a public relations nightmare and hinder the track from securing a partnership — or at least announcing one any time soon.
Why is Churchill Downs under fire?
A total of 15 horses were euthanized due to injuries related to racing at the Kentucky Derby, Preakness Stakes and Belmont Stakes. The horses suffered injuries at Churchill Downs, Pimlico Race Course and Belmont Park.
In total, 12 of the 15 horses suffered their life-ending injuries at Churchill Downs. The track ended up suspending its racing operations. It also opted to move all of its live racing to Ellis Park in Henderson for the time being.
In turn, the track announced that it is adding new safety initiatives to protect horses in early June:
- A pause on trainer start bonuses and purse payout allocations to every race participant.
- New ineligibility standards for poor performances.
- Only four starts allowed per horse during a rolling eight-week period.
As a result of the horses’ deaths, Animal Wellness Action called out Mark Hennig, Bob Baffert and Churchill Downs. Two of Hennig’s horses died at Belmont Park.
The activist group’s issues lie mostly with the trainers.
“The trainers have the most control of the horses and they must assume responsibility when young, healthy horses die in competition,” the group said in a statement. “We should not accept that it’s part of the business of racing for hundreds of horses to die every year in American racing. Trainers who lose horses should face mandatory suspensions.”
The track hasn’t announced any sportsbook partnerships yet
Currently, Caesars is the only sportsbook to secure a Kentucky sports betting license. Caesars Sportsbook KY has partnered with Keeneland and Red Mile.
Kentucky can offer up to 40 licenses (10 retail, 30 online). Retail venues like Churchill Downs can secure deals with up to three mobile sports betting operators.
PlayKentucky has speculated that a FanDuel Kentucky platform could have the inside track to a sports betting deal and be one of the next operators to announce a partnership.
The Kentucky Derby named FanDuel as its official sportsbook sponsor. Churchill Downs Inc. CEO Bill Carstanjen seemed excited about further partnerships with FanDuel at the company’s earnings call earlier this year.
“These folks that are out there now with a broader sports wagering platform like FanDuel, they’ve attracted a lot more customers than we ever were able to with our very narrowly focused TwinSpires app, which we still think is the absolute best in the business for betting on horse racing,” he said.
With such a huge presence in the state, sportsbooks should be lining up to partner with the track. Despite the existing strong relationship with FanDuel, Churchill Downs will likely capture the attention of future in-state betting powerhouses like DraftKings Kentucky and BetMGM Kentucky.
However, no partnership is official. And it’s been quiet as to if any are in the works at the moment.
Why sportsbooks may want to wait to secure a deal with Churchill Downs
This comes down to optics.
Churchill Downs had the most horse deaths out of the three tracks. And clearly, people aren’t happy, even after the track announced three new measures.
Let’s be clear: Churchill Downs will eventually announce a partnership with a sportsbook operator. The horse deaths won’t change that.
What the deaths could impact, however, is the timing.
While the activist group does not call out the track specifically, it brings more light to the issues from earlier. And while changes have been made to help this from happening in the future, it’s still a hot issue.
At least one sportsbook will eventually announce a deal with Churchill Downs. But this controversy might delay things.
