When it comes to sports betting, Churchill Downs, which owns the Kentucky Derby, is modifying its tactics.

According to CNBC, CEO Bill Carstanjen said that the company is doubling down on horse race betting and shifting away from online sports betting and iGaming digital casino games.

“We saw a situation for our company where positive profits were not on the horizon.” So we changed our strategy and are now concentrating on running our horse racing business,” Carstanjen.

Churchill Downs entered the crowded and competitive field following a Supreme Court decision in 2018 that permitted states to authorise sports betting. According to Carstanjen, the company determined that the profit margins on online sports betting are unattractive. According to the CEO, expenses are too expensive, particularly the large costs for technical infrastructure and the costs to attract and retain participants. Other sports betting providers are having similar problems.

According to Carstanjen, Churchill Downs, the company behind the Twinspires racing app, is looking for suitable partners for its iGaming content and user information.

“Our strategy is to work with long-term winners who are willing to spend hundreds of millions of dollars to build out that business unprofitably in the near and medium,” he said.

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