Churchill Downs Expands Online Gambling to Pennsylvania and New Jersey
Louisville-based Churchill Downs Incorporated has been in the news for a while now, and there are good reasons for the same. The sports betting and online gaming giant recently proposed to acquire 62 percent stake of Rivers Casino in the northern Chicago for a whopping $402 million.
Bringing Pennsylvania and New Jersey into the loop
After Illinois, the gaming operator is betting big on Pennsylvania and New Jersey to fortify its gaming kingdom. A real-money online casino-and- sports-betting site from Churchill Downs called BetAmerica has already hit the New Jersey market, after the gaming operator entered into a partnership with Golden Nugget Casino Atlantic.
BetAmerica is a sportsbook and an online casino platform, allowing users to bet on major sports like the NFL, NBA, MLB, NHL and sporting events taking place globally. The company also offers early cash out options, in-game betting, and attractive products and bonuses.
Thanks to the slackening opposition to sports betting and online gambling in Pennsylvania and New Jersey that the gaming company is able to target this huge pool of players here.
CEO of Churchill Downs Bill Carstanjen expressed his hearty interest in expanding into the two neighboring markets. The operator has planned a modest investment on iGaming markets and sports betting in 2019 in these two states.
The factors molding Churchill Downs’ investment plans in New Jersey and Pennsylvania include the following:
- Sports seasonality
- Return on spend
- Regulatory Approvals
The company does not operate a land-based casino in New Jersey, but it has certainly gained access to the online market through BetAmerica. They also have an iOS app the launch of which is still pending owing to pending approvals from Apple.
A phase of king-sized deals
The launch of online gaming and sports betting in New Jersey comes took place after the company sealed its $178.9 million deal to acquire Presque Isle Downs & Casino in Eerie, Pennsylvania from Eldorado Resorts Incorporated. The acquisition certainly gives Churchill Downs a strong foothold in the Pennsylvanian gaming markets.
Talking about the acquisition of Rivers Casino in Illinois, the $402-million was quite a notable deal. It not only increased Churchill Down’s stake by 62 percent but also laid the foundation for future upside if gaming expansion bills see the light of the day.
The deal made it possible for the gaming company to invest in a premier property in a prime location. We can only look forward to a win-win situation for both the gaming company and the states in the future to come.
