Carstanjen: CDI/FanDuel Deal 'A Great Opportunity'

Speaking on a conference call with investment analysts to discuss Churchill Downs Inc.'s third-quarter financial returns, CDI CEO Bill Carstanjen said he sees "a great opportunity" for the company to expose sports gamblers to its racing product through its recently announced partnership with FanDuel.

The two gambling companies entered into a multi-year agreement last month, a deal meant to facilitate pari-mutuel wagering on FanDuel's popular racing and sports wagering platform. The partnership begins in January, and FanDuel ultimately will receive exclusive (non-Kentucky Derby, G1) television rights to racing content of all CDI racetracks, including Churchill Downs, once CDI's existing non-Derby media rights deal expires in 2023.

Though Carstanjen anticipates some cannibalization from its TwinSpires advance deposit wagering platform, he sees the FanDuel partnership as a meaningful investment. Earlier this year CDI abandoned its fledgling online sports wagering operation.

"We know there are a lot more casual fans out there than there are more serious fans, and the chance to reach those more casual fans is a much, much bigger sandbox to play in than the world we've been used to," he said.

Carstanjen provided limited plans related to CDI's purchase of Ellis Park in Henderson, Ky., beyond noting the company's initial emphasis will be on the development of Ellis Park's Owensboro, Ky., gaming facility. Capital improvements and a "gaming refresh" are needed at Ellis Park, he said.

He added that CDI's sale of Arlington International Racecourse in Illinois and its acquisition of Peninsula Pacific Entertainment assets, which includes Colonial Downs and its gaming facilities in Virginia, remain on track.