Quote:
Originally Posted by ScottJ
CDI has sold a 49% stake in United Tote to a NYRA Holding Company and used their remaining 51% majority position to open the United Tote infrastructure to FanDuel to adding horse racing to sports parlay tickets. Hence, CDI derisks their United Tote position while also creating a potential growth opportunity in the sports wagering market. (Example : Let me have a parlay of football team X, proposition bet Y, and horse Z.)
By making this move however, CDI flags us that their ownership and growth prospects for their Twin Spires ADW cannot possibly be as strong (and consumer sticky) as a TVG partnership would be.
Therefore, in the battle of the tracks needing to own their own ADWs to channel handle directly into their own pools, CDI is from my perspective throwing in the towel. As a result, the alignment with NYRA and the America's Day at the Races broadcasts no longer has direct value to CDI shareholders and those rights gained by FanDuel as a foundation element of the deal could unlock revenue.
We have to examine CDI for what it is : a publicly traded company driven by total shareholder return on capital invested. CDI is real estate rich and revenue/growth weak.
To that end, my view is that you are watching the second step in CDI's fragmented intent to wind down their holdings in horse racing (the first step being Arlington) with FanDuel being a wagering growth engine or a potential acquirer of racetrack assets as with Fairmount Park.
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well that explains it pretty well. You think they could develop a property like Churchill Downs into something else, would the City/State even let that happen?
I would imagine not all their properties are great real estate locations like Arlington.
