Churchill Downs Incorporated’s stock reportedly increased by 5.7 percent yesterday on rumors that it is considering selling its TwinSpires-branded online sports betting platform. 

Churchill Downs eyes sale of Twinspires online casino

According to persons familiar with the subject, Churchill Downs Inc. is considering many options, including the sale of TwinSpires Racing, the official betting partner of the Kentucky Derby, and other races. The stock price increased in response to the announcement. 

According to the sources, the Louisville, Kentucky-based startup is collaborating with an adviser to gauge demand in the wagering platform, who requested anonymity to discuss non-public information. 

TwinSpires may fetch $1.5 billion in any purchase, one of the sources said, adding that no final decision has been made, and Churchill Downs may retain ownership of the platform.

According to a Thursday Bloomberg news story, the Kentucky-based company collaborates with an unnamed advisor to elicit interest in the mobile-friendly sports betting service. 

Although no final decision has been made, the source indicated that Churchill Downs Incorporated could earn approximately $1.5 billion by selling its TwinSpires innovation, which launched in 1996 and currently offers various iGaming sports betting entertainment to punters in several American jurisdictions, including New Jersey and Pennsylvania.

Churchill Downs Incorporated, located in Louisville, is led by Chief Executive Officer Bill Carstanjen (pictured) and has a market capitalization of around $8.8 billion. 

Along with operating Churchill Downs, the Nasdaq-listed company is a partner in the 140,000-square-foot Rivers Casino Des Plaines in neighboring Illinois and has recently granted an Indiana Gaming Commission license for its under-construction Queen of Terre Haute Casino Resort.

Sports Betting explosion in the US

Bloomberg reports that the American sports betting market has ‘exploded’ following the Supreme Court’s 2018 repeal of the Professional and Amateur Sports Protection Act (PASPA), mainly restricting legal sports gambling to Nevada casinos.

Over 30 states have now authorized some kind of sports betting, with Boston-based DraftKings Incorporated reportedly leading the sector with a current market capitalization of around $12 billion.