AP News, March 5th, 2007
Two of the largest racetrack owners in North America _ Churchill Downs Inc. and Magna Entertainment Corp. _ have joined forces in an attempt to reach more fans.
As part of the deal announced Monday, races at CDI-owned tracks will be shown on Horse Racing TV after CDI bought a 50 percent stake in the Magna-owned network, which reaches 13 million homes.
Churchill owns five tracks in the United States, including Churchill Downs, home of the Kentucky Derby. Magna is North America's largest owner and operator of horse tracks, and operates Pimlico, home of the Preakness Stakes.
The deal is the latest between the companies. Churchill and Magna are part of the Empire Racing group trying to acquire New York state's racing franchise. The New York Racing Association operates Aqueduct, Belmont and Saratoga until its contract expires at the end of the year.
Races at CDI tracks have been shown on Television Games Network (TVG), but contract talks broke down recently, forcing CDI to seek another avenue to have its races showcased on live television.
"We're making these changes because we've listened to our customers," CDI president Bob Evans said. "They want better wagering products, better racing television and a better online experience."
Racing at Churchill Downs will be seen on HRTV when the spring meet begins next month. Racing at the other CDI-owned tracks will switch to HRTV when their respective contracts with TVG ends. Magna president Michael Neuman said the group will approach other tracks about having their races shown on HRTV.
"We're giving HRTV a forklift upgrade in the value of its content," Neuman said. "It's going to increase demand for carriers who want to carry our channel."
The two companies will also form TrackNet Media, which will make racing content available through each company's distribution platforms. Evans said the group will monitor the companies that have access to the companies racing content to prevent piracy while also protecting the integrity of the wagering pools.
Churchill Downs is working on creating its own advance wagering system, http://www.twinspires.com. instead of relying on a third party to handle the advance wagering process at CDI-owned tracks. Magna's advance wagering system, http://www.xpressbet.com, is already operational.
