TwinSpires To End Sports Betting And iGaming Product Due To Continued Losses

by | Feb 25, 2022 1:01 pm | Sports Betting | 0 comments

TwinSpires To End Sports Betting And iGaming Product Due To Continued Losses

TwinSpires

  • TwinSpires is shutting down its online sports betting and casino gaming.
  • TwinSpires online sports betting was live in seven states.
  • The company saw -$1.6 million in adjusted gross receipts in three of four states that numbers are reported.

DETROIT – TwinSpires is predominantly known as one of the top horse race betting platforms in both online and retail locations. The gambling operator joined the online sports betting market in March of 2021, launching in seven states including Arizona, Colorado, Indiana, Michigan, New Jersey, Pennsylvania, and Tennessee.

Although TwinSpires is very successful in the horse racing space, that success did not translate into online sports betting and online casino gaming which launched in March also. With that, they have decided to temporarily shut down their online sports betting and casino gaming platforms.

“We had high hopes for the potential to build a profitable business in this space. … We have profitable retail sportsbooks in four of our casinos,” said William Carstanjen, the CEO of Churchill Downs on the company’s quarterly earnings call. “However, the online sports betting and online casino space is highly competitive, with an increasing number of participants that have been licensed by states.”

As mentioned in Carstanjen’s statement, both the online sports betting and casino markets are highly competitive and each of the seven states that they went live in already have established legal online sportsbooks.

Losing Revenue

One of TwinSpire’s main issues was gaining market share in the states that they were in. With that, the four states that report their handle and revenue numbers (Indiana, Arizona, Michigan, Pennsylvania) all saw a loss.

Combined they reported $5.9 million in gross receipts on an $84 million betting handle between both their online sports betting and casino gaming. TwinSpires sports betting though reported a $1.6 million loss in adjusted gross receipts in those states.

Looking at Michigan sports betting as an example, TwinSpires saw $22.2 million in bets placed since launch. Of that number, the company reported a gross income of -$1.1 million, and adjusted earnings of -$248,553.

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