Churchill Downs Incorporated Partners with Bet365

By Matt Speakman,
Betting Expert at online-gambling.com

Matt Speakman Betting Expert at online-gambling.com

A die-hard fan of the Patriots, Matt Speakman is an expert on everything related to sports betting and DFS sites. Over the years, he has proven a valuable asset for our team at online-gambling.com. You can find Speakman's professional tips and tricks in any of his many articles on the website.

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Last updated: January 21, 2023

There is a new gaming partner for Churchill Downs Incorporated. The gaming company based in Louisville recently announced a multiyear agreement with bet365 that opens the Pennsylvania market to the British-based online gaming operator. With this deal, bet365 can now access iGaming and online sports betting in Pennsylvania, via Presque Isle Downs & Casino in Erie, which is a part of the Churchill Downs Incorporated family.

The news comes just a week after bet365 officially launched its app for sports betting in Ohio, where it had gained access to the market thanks to a collaboration with the Cleveland Guardians. A spokesperson for bet365 mentioned in a statement that once it goes live, bet365 will become accessible to sports fans in Pennsylvania and will offer awesome site features that include Same Game Parlay, Bet Boosts, Edit Bet, and Cash Out, on top of their market-leading sign-up offer.

The agreement between bet365 and Churchill is subject to approval from the PGCB (Pennsylvania Gaming Control Board). Despite being the biggest sports betting operator in the world, bet365 has a relatively small presence in the US. It has annual revenues of almost $4 billion, and a customer base of about 88 million across more than 160 countries.

Bet365 is not only present in Ohio but also in Colorado and New Jersey. Additionally, bet365 offers online casino games in New Jersey. The operator also has a license in Ontario for sports betting and iGaming. Bet365 signed an agreement with Raynham Park in November for rights to a Massachusetts sports betting license. This deal is subject to regulatory approvals.

Pennsylvania Is Big in Online Gaming

Sports betting and iGaming (sometimes referred to as online casino gaming), is big in Pennsylvania. Pennsylvania is the largest state that permits iGaming and has the fifth-highest population in the country (12.8 million). The online sports betting market in Pennsylvania is the second largest, second only to New York, which only launched online sports betting at the start of 2022.

Pennsylvania reported that sports betting handles approached $800 million in October and November, with over $730 million wagered online each month. The iGaming market in the state is also very lucrative. More than $4.7 billion was wagered by bettors on online slots and table games in November.

Churchill Plans to Exit the iGaming and Online Sports Betting Market

One of the final states where Churchill Downs provides online gaming via its TwinSpires brand is Pennsylvania. The other state is Arizona. In February 2022, Churchill Downs officials made known their plans to leave the iGaming and online sports betting markets.

Bill Carstanjen, the Chief Executive Officer of Churchill Downs Incorporated, mentioned that the company did not see a “safe road” to profitability in online gaming. He said this during a quarterly conference call with investment analysts. Carstanjen added that Churchill Downs’ decision was motivated by operators’ pursuit of the highest market share in each state with limited consideration for short or possibly even long-term profitability.

In a statement released recently, Carstanjen mentioned that they are happy to partner with bet365, a world leader in the online gaming industry. He continued by saying that they can maximize the value of their company’s iGaming and sports betting market access in Pennsylvania thanks to their partnership with bet365. Churchill Downs plans to stop operating iGaming and online sports betting, but it will keep running retail sportsbooks.