Churchill Downs to Explore Sale of Betting Unit TwinSpires

(Bloomberg) -- Churchill Downs Inc. is exploring options including a sale of TwinSpires Racing, the official betting partner of the Kentucky Derby among other races, according to people with knowledge of the matter. The shares rose on the news.

The Louisville, Kentucky-based company is working with an adviser to solicit potential interest in the wagering platform, said the people, who requested anonymity discussing information that isn’t yet public. TwinSpires could fetch $1.5 billion in any transaction, one of the people said, cautioning that no final decision has been made and Churchill Downs could continue to own the platform.

A Churchill Downs representative declined to comment. 

Churchill Downs, led by Chief Executive Officer Bill Carstanjen, has a market value of $8.8 billion. Bets can be placed through the TwinSpires app as well as at retail locations and race tracks across the country, its website shows. 

The company’s shares rose to an intraday high of $236.26 after Bloomberg reported it was considering a sale of TwinSpires.

Sports betting has exploded in the U.S. since the Supreme Court ruled that states outside of Nevada can offer it. Now some 30 states allow such wagering, which has led to a surge in casino-industry mergers and stock values. DraftKings Inc., a leader in the business, has a market value of more than $12 billion.

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