New York Racing Association buys part of United Tote

The New York Racing Association has acquired a 49 percent share in United Tote from Churchill Downs Inc., marking the first time NYRA owns a piece of a tote company and a move it hopes will expedite its presence onto sports-wagering platforms.

The deal, announced in a press release issued Thursday afternoon, is expected to close by the end of 2022, pending the usual regulatory approvals.

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The press release said that CDI and NYRA intend to work together to create and provide a comprehensive and efficient industry-leading pari-mutuel solution that will expedite the expansion of horse racing onto sports wagering platforms to reach new customers.

“If Draft Kings or any sportsbook who is going to accept parimutuel wagering they’re going to need two things, a parimutuel provider in terms of a tote company and content,” Dave O’Rourke, NYRA president and CEO, said Thursday afternoon in a phone interview with Daily Racing Form. “This is part of the ecosystem we haven’t had an investment in.

“We never had a tote company. We’re the only major player in the industry not have one. This is an opportunity to invest in one at a moment in time where we think the market is going to expand greatly.”

NYRA has an agreement with AmTote to process its parimutuel wagers that goes into fall of 2023. At that time, it is expected NYRA will transition its parimutuel processing to United Tote. That is subject to regulatory approvals, including that of the Franchise Oversight Board.