EKB News

Recent statistics show less than 14% of thoroughbred wagering in the U.S. is done online. Citing recent trends toward online transactions in other industries, Louisville-based Churchill Downs Inc. and California-based Youbet.com Inc., an online horse racing betting site, say they expect the percentage of online wagering to grow. Churchill Downs, home of the Kentucky Derby, has agreed to buy Youbet.com for $126.8 million, meaning, if the transaction closed, Youbet shareholders would own some 16% of Churchill Downs stock. The acquisition would position Churchill at the front of the pack in online and phone betting. The deal was approved this week by Churchill and Youbet boards but still must clear regulatory review and win the approval of Youbet shareholders, but Churchill expects the deal to close in the first half of 2010.