Churchill Downs Buys Youbet - 11-15-09 |
November 15 - In a deal that is worth $127 million, Churchill Downs, owners
of nine racetracks in Florida, Illinois and Kentucky, have acquired
Youbet.com.
The deal will see Churchill Downs control one half of the US online horse
betting market that is worth $1.4 billion.
This is the second online betting site to be purchased by Churchill Downs,
which already owns TwinSpires.com.
Churchill Downs owns the track where the world famous Kentucky Derby is held
each year.
The company said that the cash-and-stock deal would put Churchill Downs in
the forefront of the US horse betting industry. The President and Chief
Executive of the group, Bob Evans, believes that betting on this sport over the
internet will only increase over time.
In 2008, $14 billion was spent on horse racing in the United States and 10%
of that amount was wagered online.
Following the news of the deal, Youbet.com shares rose significantly by 8.6%
to $2.41 a share.
According to calculations, Youbet owns around 30% of the total market for
online horse wagering in the United States, while TwinSpires controls another
21%.
"Given the combination of Youbet's ADW platform with Churchill Downs-owned
TwinSpires, which has been the fastest growing ADW this year, they will have 50
percent of the US market and the best brand in horse racing," said a market
analyst, Mike Crawford.
It is believed that the deal will close in the first half of 2010.
Fair Online Gambling Related Articles:
>> Ladbrokes to Shut Down Call Center - 11-21-09
>> Dragonfish in New ePayment Deal - 11-19-09
>> Lottomatica Signs Multi Million Contract in Italy - 11-18-09
>> Paddy Power Enters French Sportsbetting Market - 11-17-09
>> Thanksgiving Freeroll Tournament This Weekend - 11-12-09
>> Mega Fortune Jackpot Win - 11-11-09
>> New Casino Targets US Market - 11-10-09
>> Microgaming Creates Slot Millionaire - 11-06-09
|
