Could legal Kentucky sports betting bring the TwinSpires brand back into the fray?
Last year, Churchill Downs Inc. announced it was shuttering the mobile sports betting app. But Kentucky sports betting legislation gave the state’s horse tracks the right to run sportsbooks.
As a result, it gives CDI the opportunity to revive the online sportsbook in a new market.
Kentucky Gov. Andy Beshear signed HB 551 into law on March 31. The legislation states that once the law goes into effect, regulators must launch operations within six months. But Beshear indicated he would like to have the industry up and running by the start of the NFL season.
If Beshear gets his way, and CDI wants to bring TwinSpires back, having the first crack at Kentucky NFL betting could go a long way for the operation.
CDI shut down its TwinSpires sportsbook and online gaming platform, TwinSpires Casino, last year. Following a $31 million loss in 2021, CEO Bill Carstanjen called the decision to close operations “the prudent next step.”
CDI’s DraftKings partnership spells trouble for TwinSpires resurgence
Boston-based DraftKings Inc. partnered with CDI in 2022 to create DraftKings Horse. The new platform provides online pari-mutuel wagering for horse racing.
DraftKings Horse, branded as DK Horse, is a standalone app that also streams races. It’s a separate app from DraftKings sportsbook, casino, and daily fantasy sports. DK Horse is available in more than a dozen states and plans to expand.
Per the partnership, CDI supplies pari-mutuel wagering rights for races it operates to DK Horse. That includes any Kentucky Derby betting.
Given its commitment to DK Horse, it’s possible that the relationship could lead to an online sports betting partnership. Conversely, it makes it less likely CDI will bring TwinSpires back.
But multiple partnerships give TwinSpires a chance
Kentucky sports betting legislation allows the state’s nine horse tracks and the Kentucky Speedway to operate a retail sportsbook. Each facility can partner with up to three companies to operate online sportsbooks.
Thus, as many as 30 online sportsbooks could be available in Kentucky for sports fans. CDI may partner to create DraftKings Sportsbook Kentucky and still decide to bring TwinSpires back.
The legislation legalizing sports betting in Kentucky is enacted after a 90-day assessment period. That period ends on June 28.
The law mandates that regulations and a sports wagering catalog must be finalized within six months of that date. This means Kentuckians could see online sportsbooks and KY sportsbook promo offers as soon as this fall or at least by the end of 2023. It’s possible that a launch date could leak into 2024, following a soft launch or trial period.
TwinSpires Sports Betting App Future Uncertain
During its quarterly earnings call on February 24, 2022, CDI CEO Bill Carstanjen said the company would phase out TwinSpires sportsbook and its casino product.
Carstanjen stated called the online sports betting and casino industry “highly competitive” and crowded. The trend led to CDI’s decision to close TwinSpires.
“Many [online sports betting operators] are pursuing market share in every state,” Carstanjen said, “with limited regard for short-term, or potentially even long-term, profitability. Because we do not see, for us, a path in which this business model delivers predictable and acceptable margins for at least several years, if ever, we have decided to exit the B2C online sports betting and iGaming space over the next six months.”
Despite that statement, CDI’s TwinSpires Sports mobile sportsbook is still operational in Arizona, Colorado, Indiana, Michigan, New Jersey, Pennsylvania, and Tennessee. According to its announcement in 2022, the app will eventually be unavailable in those states. TwinSpires Casino is still available in Michigan, New Jersey, and Pennsylvania.
The company has continued to focus on B2B relationships in the gaming industry. However, it focuses on what it knows best—horse racing.
CDI initially entered the online sports betting market in partnership with BetAmerica, which it acquired in 2017. In 2021, CDI rebranded the sports betting app to “TwinSpires Sports” and announced plans to compete nationally with FanDuel Sportsbook and other operators in sports beyond horse racing.
