(Bloomberg) — Churchill Downs Inc. said it would exit the online casino and sports betting business, while maintaining its Web-based horse wagering operation, known as TwinSpires.
Chief Executive Officer William Carstanjen announced the move on a conference call with investors Thursday. The divestiture will happen over the next six months. The company will continue to operate sportsbooks in its casinos.
“The online sports betting and online casino space is highly competitive with an ever-increasing number of participants that the states have licensed,” Carstanjen said. “Many are pursuing maximum market share in every state with limited regard for short-term or potentially even long-term profitability.”
The announcement comes one day after Churchill Downs said it would spend $2.49 billion to acquire casinos in Iowa, New York and Virginia.
Bloomberg News reported last year that the company — best known for hosting the Kentucky Derby — was mulling a sale of its online business.
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