LOUISVILLE, Ky. (AP) — Racetrack operator Churchill Downs Inc. is staking out a bigger share of the Internet wagering sector with its deal to buy online rival Youbet.com.
The owner of the Louisville track, where the Kentucky Derby is held each May, is betting that online wagering will keep up a fast pace in an otherwise sluggish industry.
The deal announced Wednesday was valued at about $126.8 million.
It would position Churchill clearly at the front of the pack in online and phone betting, called advance deposit wagers, by combining its own TwinSpires.com account-wagering site with Youbet.
Churchill officials say Internet wagering will account for nearly 14 percent of all betting on U.S. thoroughbred racing in 2009, up from about 10 percent last year.
