New York state, for reference, saw $1.3 billion in sports wagers just in September.ĭraftKings has a market cap of $6.5 billion as of Monday’s close, with the stock down 49% in the past 12 months. The handle for legal gambling on horse racing in America has stagnated recently around $11 billion per year. TwinSpires is an advance deposit wagering (ADW) platform, the online version of horse-racing gambling, which was long dominated by wagers placed at the track or off-track betting houses, known as OTBs. Fox Sports owns 25% of NYRA Bets with an option to eventually buy more Flutter, FanDuel’s parent, owns TVG. Other sportsbooks and media companies have also invested in horse racing betting. The partnership is a gradual step toward the combination of traditional sports betting and wagering on horse races-two similar endeavors that have been largely kept separate due to historical legal precedent, incumbent businesses and state-by-state regulation.Ĭhurchill Downs originally planned to bridge the gap in the other direction by adding sports betting and iGaming inside TwinSpires, but it abandoned that effort earlier this year after incurring tens of millions in losses. TwinSpires will continue as a standalone app but will also now be accessible as a part of the DraftKings network, which had 1.6 million unique paying users, as of its last quarterly earnings report. TwinSpires operates in 21 states-more than the DraftKings mobile sportsbook or iGaming product-and DK Horse will match that footprint, giving users in some states an opportunity to join the DraftKings system before the core product arrives.įor Churchill Downs, it’s an opportunity to scale its betting offerings. It also provides another entry into states that don’t allow online sportsbooks. DraftKings CEO Jason Robins said in a statement that due to the structure, he expects DK Horse to be “immediately profitable.” That will likely matter to DraftKings investors, as the public markets continue to sour on companies operating under heavy quarterly losses.įor DraftKings, the partnership is an opportunity to expand its offering-providing horse racing odds to existing customers, while potentially attracting new ones.

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