Churchill Downs Inks Account Wagering Dea

22 May 2001
Although it wasn't directly involved with a major deal that could have ramifications throughout the horseracing industry, Churchill Downs Incorporated (CDI) had a busy weekend.

The company announced Friday that it has entered into an agreement with Racing & Gaming Services Inc. (RGS), a telephone account wagering operation based in St. Kitts, West Indies, through which it will provide simulcast accounting services to RGS through the Churchill Downs Simulcast Network.

John R. Long, CDI's executive vice president and chief operating officer, says the agreement would help expand the company's simulcast efforts throughout the world.

"We have begun to consolidate our simulcast settlement operations throughout CDSN, and we are pleased to offer this accounting service to RGS as one of our simulcast customers," he said.

In addition to their agreement with RGS, CDI had to give its seal of approval to the recently announced agreement.

The two companies agreed to allow TVG to non-exclusively license its rights to telecast and accept wagers on races from most of its partner racetracks, including CDI racetracks, as well as certain patent rights to

To facilitate the agreement, CDI issued consent as one of TVG's founding members, giving the ability to offer simulcast wagering on races at CDI's racetracks. The consent is subject to certain required approvals.

Thomas H. Meeker, CDI's president and chief executive officer, says the agreement between TVG and is a positive development for the horse racing industry and for CDI.

"We are pleased that TVG has formed this relationship with, which should increase market penetration of our racing content," he said in a statement. "By joining forces, TVG and have set forth a strategy that should further develop the emerging in-home wagering market while maintaining an economic system that is positive for all aspects of the industry as well as CDI."

While he is supportive of the move, Meeker isn't predicting an increase in revenues for his firm.

"Although we are encouraged by this agreement and have identified in-home wagering as a future growth component for our company," he said, "we do not believe that this agreement will materially impact CDI's earnings in 2001."