One Kentucky sportsbook partnership down, and many more to come.
Caesars Entertainment became the first to secure a spot in the Kentucky online sports betting industry. The Las Vegas-based gaming giant partnered with Keeneland and Red Mile Gaming & Racing earlier this week. As part of the agreement, Caesars will operate a retail sportsbook at Red Mile and gain access to the state’s mobile market.
In other words, there will be a Caesars Sportsbook Kentucky product for those in the Bluegrass State. The Kentucky Horse Racing Commission still needs to approve the deal, but all signs point to a green light.
So what’s next?
It’s a given that the sports betting industry’s main players (FanDuel, DraftKings and BetMGM) will throw their hats in the ring somewhat soon.
But with more talks around the industry’s launch occurring by the start of the upcoming NFL season, one can assume operators will move quickly to acquire their respective licenses.
Existing racetrack relationships will play a factor
That’s where FanDuel and DraftKings may have the upper hand when it comes to the next domino to fall.
Both companies have horse racing partnerships with Churchill Downs. The track is the home of the historic Kentucky Derby and Kentucky’s largest horse racetrack. Thus, there’s a strong chance the track partners with one of the two.
Regardless, there will certainly be a FanDuel Kentucky and DraftKings Kentucky operation.
It’s worth noting that each horse racetrack can partner with up to three sports betting operators to grant a license. So, there’s a possibility Churchill Downs negotiates deals with both FanDuel and DraftKings.
But there’s also a real possibility of a bidding war for these sportsbooks. Churchill Downs may partner with just one of the two sportsbooks, meaning another track within Kentucky lines would go after the other. Given that each racetrack has a budget, it makes sense that each sportsbook operator would try to maximize its return.
FanDuel has stronger ties Churchill Downs than DraftKings does
Churchill Downs Inc. CEO Bill Carstanjen made on thing clear at the company’s first-quarter earnings call: Sportsbooks are a priority.
“We believe our retail sportsbooks help to drive additional traffic to our properties in other states and will further grow our (historical horse racing) properties across Kentucky,” he said.
Yes, both DraftKings and FanDuel are partnered with CDI for their horse betting platforms.
However, the FanDuel relaltionship runs deeper. FanDuel was the Kentucky Derby’s official sportsbook sponsor, which is no small indication where the sports betting operator falls in CDI’s hierarchy of relationships.
FanDuel’s interest in horse racing market might be a large factor, too
FanDuel made history this year before the Kentucky Derby, becoming the first sportsbook to integrate a pari-mutuel racebook on its traditional platform.
“So far, particularly FanDuel, I think they’re showing a lot of interest and appetite,” Carstanjen said. “And the thesis that we have here is that many of our customers will enjoy a bet on the Kentucky Derby or horse racing, but we never managed to reach those customers with our TwinSpires offering.”
FanDuel TV also acquired exclusive streaming rights to the Churchill Downs family of horse racetracks, meaning bettors nationwide can watch from wherever they’ve got cellular service.
It’s a move that FanDuel CEO Amy Howe said would “create new audiences for horse racing.”
And so far, that’s been the case. Churchill Downs believes the partnership was key in expanding its industry share.
“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,” Carstanjen said.
Carstanjen added that he’d discuss that reach in detail during the second quarter earnings call.
DraftKings or BetMGM are in play, but FanDuel appears to be on the right track
There’s no specific order for sportsbook operators to receive the next online sports betting license in Kentucky. BetMGM Kentucky will also surely launch, and a number of racetracks are in play for that operator.
But at this time, it looks as though FanDuel could be the next up.
Churchill Downs seems extremely bullish on its existing relationship with FanDuel. And given the company’s commanding presence in Kentucky, you can believe it will make a push to prioritize FanDuel, which owns 50% of the US sports betting market.
Plus, FanDuel’s horse racing push — something that should resonate deeply with the state of Kentucky — could be the deciding factor when it comes to priority.
And given the eagerness to expedite Kentucky’s sports betting launch, an announcement may come fairly soon.
Read further information on Legal Kentucky Horse Betting Sites and the Best KY Sportsbook Promos expected post-launch using the links provided.
