A division of 1/ST, the racing company that owns and operates Santa Anita Park and Gulfstream Park, has reached a deal with a major sports-betting company that will result in the launch of a new account-wagering service and various cross-promotions, the companies announced on Thursday. Under the five-year deal, 1/ST Technology, a division of the parent company, will provide racing content and pari-mutuel bet-processing services to PointsBet’s existing sports-betting businesses and to a new PointsBet advanced-deposit wagering company, using the back-end infrastructure the company already has in place through its existing XpressBet and 1/ST Bet operations. PointsBet will provide a cut of its horse-race wagering revenues to 1/ST, according to an official with knowledge of the agreement. Also under the deal, customers of 1/ST’s ADW operations will be able to bet through PointsBet’s sports-wagering application in states where it is legal to do so, the companies said in an announcement. The PointsBet ADW is expected to launch early in 2023, the company said. In addition to Santa Anita and Gulfstream, 1/ST owns and operates Golden Gate Fields in Northern California and Laurel and Pimlico in Maryland. The company also owns a bet-processing company, AmTote, and it markets the simulcast rights to a dozen tracks through its Monarch Content Management. With the partnership, 1/ST is pursuing a similar strategy to other major racing companies who have agreed to provide their content to major sports-betting companies or reached deals to push sports-betting customers to racing ADWs. Churchill Downs Inc. recently reached an agreement with FanDuel that will give the company the exclusive content rights to its tracks beginning next year, while the New York Racing Association earlier this year partnered with Caesars Entertainment on a product that provides racing signals and tote services to customers of Caesars mobile app. Last week, 1/ST announced a management reorganization that was intended to improve its ability to react to the rapidly growing sports-betting marketplace. Most large racing companies are seeking partnerships with sports-betting companies to leverage the massive amounts of money the companies are spending to attract and retain fans. PointsBet, an Australian company, entered the U.S. market in 2019, shortly after the U.S. Supreme Court ruled that states could legalize sports betting without violating federal law. The company currently has sports-betting operations in 10 states, including Maryland, New York, New Jersey, and Pennsylvania. “1/ST Technology is excited to be partnering with the truly innovative team at PointsBet to bring the great sport of horse racing to a growing customer base across U.S. markets,” said Paul Williams, the chief executive of 1/ST Technology, in a statement. “We are uniquely aligned on a superior product vision as well as the value that this relationship brings to our collective organizations and horse racing stakeholders at large.” Later this year, voters in California will consider two referenda that would legalize sports betting if passed. One of the referenda would limit sports betting to racetrack licensees and Indian tribes in the state, while the other would open the state up to a multitude of operators. Advertising spending on the initiatives is expected to top $500 million. :: Want to learn more about handicapping and wagering? Check out DRF's Handicapping 101 and Wagering 101 pages.