Churchill Downs Incorporated (Nasdaq: CHDN) announced on Thursday that it has entered into an agreement to sell 49 percent of United Tote Company, a wholly-owned subsidiary of CDI, to NYRA Content Management Solutions, LLC, a subsidiary of the New York Racing Association, Inc.
NYRA is a not-for-profit corporation that operates the three largest Thoroughbred horse racing tracks in the state of New York – Aqueduct Racetrack in South Ozone Park, Queens; Belmont Park in Elmont; and Saratoga Race Course in Saratoga Springs.
The transaction is subject to usual and customary closing conditions, including applicable regulatory notices and approvals, and is expected to close by the end of 2022. As part of the agreement, the United Tote pari-mutuel settlements business will be excluded and will remain with CDI.
CDI and NYRA intend to work together to create and provide a comprehensive and efficient industry-leading pari-mutuel solution through United Tote that will expedite the expansion of horse racing seamlessly onto sports wagering platforms to reach new customers. Pending the appropriate regulatory approvals, NYRA will transition its pari-mutuel wager processing to United Tote in 2023 under a separate agreement.
About Churchill Downs Incorporated
Churchill Downs Incorporated is an industry-leading racing, online wagering and gaming entertainment company anchored by our iconic flagship event, the Kentucky Derby. It owns and operates three entertainment venues with approximately 3,050 historical horse racing machines in Kentucky. CDI also owns and operates TwinSpires, one of the largest and most profitable online wagering platforms for horse racing in the U.S. and eight retail sportsbooks. CDI has in brick-and-mortar casino gaming in eight states with approximately 11,000 slot machines and video lottery terminals and 200 table games. Additional information about Churchill Downs Incorporated can be found online at www.churchilldownsincorporated.com.
About United Tote
United Tote is a leading supplier of totalisator systems, services and equipment and also provides technology services to process wagers and payouts and pari-mutuel tote services to leading racing operations including Churchill Downs Racetrack. United Tote also currently designs, manufactures and operates pari-mutuel wagering systems for more than 150 racing companies and numerous OTB facilities in North America and around the world.
About NYRA Content Management Solutions (NCMS)
NYRA Content Management Solutions (NCMS) is a limited liability corporation established by NYRA in 2019 as a simulcast purchase and sales agent for Thoroughbred and Standardbred racetracks across the country. In addition to negotiating content agreements for its clients, NCMS provides a variety of strategic consulting services.
About the New York Racing Association, Inc. (NYRA)
The New York Racing Association, Inc. (NYRA) holds the exclusive franchise to conduct Thoroughbred racing at Aqueduct Racetrack, Belmont Park and Saratoga Race Course. NYRA tracks are the cornerstone of New York State's racing industry, which is responsible for 19,000 jobs and more than $3 billion in annual economic impact. For additional information, visit NYRA.com.
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