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Churchill Downs Inc. is ceasing its larger online sports betting, iGaming operation, and casino business, CEO William Carstanjen said.
The move ends the company’s foray into online betting, which it began in 2017 when it purchased BetAmerica.
“We had high hopes for the potential to build a profitable business in this space,” Carstanjen said. “However, the online sports betting and online casino space is highly competitive, with an ever-increasing number of participants that the states have licensed.”
The company will keep its horse-racing-specific sports betting program, TwinSpires, up and running, as well as sportsbooks in casinos.
The decision doesn’t reflect an overall financial shortfall, according to the company.
Despite the pivot, Churchill Downs still plans to spend $2.49 billion to purchase casinos in New York, Iowa, and Virginia.
The Cleveland Cavaliers are the latest professional sports team to strike a deal that would bring a sportsbook to its home venue.
A major advertising push and tax rates have been cited as potential reasons for the lack of profit, according to The New York Post.
DraftKings raised its revenue guidance for the financial year following the sportsbook’s latest earnings report on Friday, but its shares took a tumble due to concerns over profitability.
Despite stiff competition from the sports betting industry’s largest market, New Jersey broke its own state record with $143.7 million wagered on Super Bowl LVI.
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