Churchill Downs Regains Full Control of United Tote with 49 Percent Stake Buyback

Churchill Downs Incorporated (CDI) is restructuring its corporate assets once again, regaining full authority over a pivotal technology provider. The Louisville, Kentucky-based gaming giant has entered into an agreement to buy back the 49 percent stake in United Tote from the New York Racing Association (NYRA). In doing so, the company is reversing a decision made as recently as April 2024, when it sold this minority interest to the NYRA. The deal is expected to close by August 5 and represents a strategic shift in the group’s technological focus.

The timing of this decision matches the company's strong fiscal performance. Churchill Downs is coming off an extremely successful 2024 fiscal year. In the first quarter of 2024 alone, the group reported record revenue of 590.9 million US dollars, a 5.6 percent increase over the same period the previous year. While the company is investing heavily in new projects like the Rose Gaming Resort, scheduled to open in late September 2024, it is now specifically strengthening its technical foundation through the full integration of United Tote.

Numbers and facts

United Tote is a well-known entity in the industry. Since 1959, the company has served as a provider of products and services for pari-mutuel wagering. CDI originally acquired the business in 2010. The current buyback of the 49 percent stake ensures that Churchill Downs maintains total control over the wagering technology. Concurrently, it was agreed that the NYRA would extend its tote services agreement with United Tote through 2035, providing long-term stability and planning security.

Financially, the group remains robust despite a 48 percent drop in net income to 80.4 million dollars in the first quarter of 2024. Adjusted EBITDA rose by 9 percent to a record 242.5 million dollars. The online betting platform TwinSpires was a particular highlight, showing 18 percent revenue growth.

„The acquisition supports our long-term strategy to own and vertically integrate key technologies and services related to pari-mutuel wagering and horse racing.“ - Spokesperson for Churchill Downs Incorporated

The company’s stock, listed on NASDAQ under the ticker CHDN, fluctuated following the publication of the Q2 2026 results. After a slight 0.77 percent decline in regular trading to 88.53 dollars, the share price rose 0.53 percent to 89.00 dollars in after-hours trading.

Background

Vertical integration is the keyword for CDI. By controlling the entire chain from racetrack operations to wagering technology and online distribution, they reduce reliance on third-party providers. United Tote plays a crucial role as a B2B distributor. The company provides not only the hardware for betting kiosks at racetracks but also the software solutions that process billions in global horse racing turnover.

Interestingly, the context of the US market shows shifting trends. While the gaming segment, consisting of traditional casino operations, saw a slight revenue decrease of 8.4 million dollars, Historical Racing Machines (HRM) are booming. These devices resemble slot machines but are based on the results of past horse races. Churchill Downs saw a 15 percent increase in revenue here. Full control of United Tote allows for further technological refinement of these hybrid wagering forms.

Why it matters for German players

For fans of horse racing and casino games in Germany, this news has indirect but significant implications. While Churchill Downs primarily operates in the American market, it sets technological standards that often influence the European market with a delay. German players who wish to participate in sports betting legally are bound by the State Treaty on Gambling 2021 (GlüStV 2021). This treaty only permits betting with providers listed on the official whitelist of the Gemeinsame Glücksspielbehörde der Länder (GGL).

In Germany, strict limits apply: a maximum of 1,000 euros deposit per month across all providers and a bet limit of 1 euro per spin on virtual slots. These rules serve player protection and are monitored via systems like LUGAS. Anyone wishing to bet with a US-based provider must ensure they hold a German license, which CDI currently does not. Nevertheless, the consolidation in the US shows that transparency and technical reliability, as demanded by the GGL, are becoming international standards for major corporations.

What it means for GGL-licensed casinos

GGL-licensed providers in Germany closely watch such acquisitions as they shift market power in the field of wagering technology. If a giant like Churchill Downs keeps its proprietary technology for itself or licenses it exclusively, European licensees might have to turn to alternative providers. Stability and compliance with regulatory requirements are paramount in Germany. GGL-licensed operators must ensure that their used technology, whether for horse racing or slots, meets high standards for player protection and data transmission to the authorities (OASIS and LUGAS).