On Thursday, FanDuel confirmed a Kentucky sports betting partnership with Churchill Downs Inc.
But based on how scant the details of the partnership are, as well as comments CDI’s CEO made in April, it appears CDI will have multiple partners in its home state.
A FanDuel spokesperson would only confirm with PlayKentucky there was an arrangement in place between the two parties. Nothing else. In other words, he only affirmed that a FanDuel Kentucky platform would be available to bettors.
Multiple requests for additional comment from CDI have gone unreturned.
FanDuel’s announcement is the polar opposite of Caesars-Keeneland
This starkly contrasts the news of the Caesars-Keeneland partnership in mid-May.
The announcement came with a statement from president of Caesars Digital, Eric Hession, and specific information regarding the partnership.
Caesars Sportsbook Kentucky will be available for online betting and any brick-and-mortar sportsbook at Keeneland or Red Mile will be Caesars-branded. Additionally, Caesars said that despite Kentucky law allowing 18-year-olds to wager, Caesars would implement a 21+ age requirement.
The following week, Caesars said it would open a brick-and-mortar book at Red Mile. Then, it hired Gabe Prewitt to run its sportsbook operations in Kentucky.
Why didn’t FanDuel release similar details? Well, one possibility is that the two parties are still hammering those out.
Churchill Downs CEO hints that sports betting could mirror its horse racing partnerships
In April, CDI CEO Bill Carstanjen told WDRB.com the company was entering into multiple agreements with online operators.
“We have entered into contracts to provide certain online wagering platforms including FanDuel access to the Kentucky market in connection with which we receive a revenue stream,” Carstanjen said in April.
Notice how the word “contracts” is plural?
FanDuel could be slow to release details because the deal isn’t finished yet. Multiple parties could still be negotiating, but FanDuel wanted to confirm that it will be available in Kentucky.
CDI is the largest horse racing company in the state. Kentucky has nine horse tracks, all eligible for a Kentucky sportsbook. CDI owns four of them, including Churchill Downs, home to the Kentucky Derby. The other three CDI-owned tracks are Ellis Park, Turfway Park and Oak Grove.
Per the Kentucky sports betting legislation, each track can partner with up to three online operators. CDI could theoretically partner with up to 12 online sports betting operators. But it’s incredibly unlikely that will happen.
The company has been at the forefront of Kentucky horse racing for years. It has partnerships with FanDuel and DraftKings to allow those companies’ online racebooks to serve the Kentucky market.
There’s no reason to think a similar arrangement couldn’t be in place for sports betting. Especially given Carstanjen’s comments. Perhaps CDI pairs its smaller tracks with smaller sportsbooks, as it would likely be able to negotiate a higher revenue share percentage with those operators.
Which operator will get to brand the Derby City Gaming sportsbook?
One of the few things we know about Churchill Downs’ sports betting plans is where its brick-and-mortar sportsbook will be.
Earlier this month, the company opened a new hotel and restaurant and expanded its gaming floor at Derby City Gaming, CDI’s historical horse racing machine facility down the street from Churchill Downs.
In the press release, CDI said these renovations were made in anticipation of the upcoming sports betting market. Derby City Gaming will be home to a “state-of-the-art sports bar to facilitate sports wagering.” Stated differently, Derby City Gaming will be the retail sportsbook location for Churchill Downs.
Louisville is the largest city in Kentucky and CDI is the largest gaming company. Therefore, Derby City could easily be the highest-grossing retail sportsbook in the state.
The added revenue makes Derby City a valuable asset for any sports betting partnership. But only one of the potentially several CDI online partners could brand that sportsbook in their name.
It could be a key reason why the officials from FanDuel and CDI haven’t released more details about the deal.
