Churchill Downs Incorporated has agreed to buy back the 49% of United Tote Company it sold to the New York Racing Association in April 2024, restoring full ownership of the pari-mutuel wagering technology business. The transaction is expected to close by 5 August.
The stake is being acquired from NYRA Content Management Solutions, LLC, a subsidiary of the New York Racing Association, Inc. (NYRA). Neither party disclosed a price. Churchill Downs (Nasdaq: CHDN) announced the agreement on 29 July, the same day it reported second-quarter results and opened a sale process covering nine regional gaming properties.
NYRA is not giving up the technology, only the equity. Alongside the share sale it agreed to extend its tote services contract with United Tote through 2035, keeping the supplier in place at Aqueduct Racetrack, Belmont Park and Saratoga Race Course for another decade.
What United Tote does
United Tote manufactures and operates the pari-mutuel wagering systems used by racetracks, off-track betting facilities (OTBs) and other wagering operators. Its totalisator systems accumulate wagers, calculate payoffs and display wagering data to bettors, the layer of infrastructure that makes a pool-based betting market function.
The customer base covers Churchill Downs’ own racing and gaming venues as well as third-party racetracks, OTBs and other pari-mutuel operators. United Tote is small next to the sector’s largest B2B gambling suppliers, but totalisator services sit close to a utility for North American racing: without one, no track takes a bet.
That dual role, supplying both its parent and its parent’s competitors, is why the ownership structure mattered. A 49% holder with its own racing and wagering operations had a say in where the platform invested.
A two-year round trip
NYRA bought into United Tote in April 2024 under a deal that also committed it to using the platform for its racetrack and gaming-related wagering systems. Two years on, the equity returns to Churchill Downs and the commercial agreement runs nine years longer than it otherwise would have.
NYRA is a not-for-profit franchised by New York State to conduct thoroughbred racing at its three tracks. It also owns NYRA Bets, the advance deposit wagering (ADW) platform launched in 2016 and now available to customers in 38 states. NYRA puts the annual statewide impact of New York racing at more than $3 billion, supporting 19,000 jobs.
Consolidating racing technology while casinos go up for sale
Churchill Downs said the buyback supports its strategy of owning and vertically integrating the technologies and services behind pari-mutuel wagering and horse racing, and strengthens its position as a B2B distributor of horse racing content.
The timing gives that claim weight. Minutes before the United Tote announcement, Churchill Downs said it had completed a review of its operational portfolio and long-term capital allocation priorities and was exploring the sale of nine gaming assets across eight states: Calder Casino, Terre Haute Casino Resort, Hard Rock Hotel & Casino in Iowa, Oxford Casino Hotel, Ocean Downs Casino and Racetrack, Harlow’s Casino Resort and Spa, Riverwalk Casino Hotel, del Lago Resort and Casino, and Presque Isle Downs and Casino. The company said it can give no assurance that the review will result in a transaction.
Suppliers and operators across racing and sports betting have moved the same way, taking full ownership of the data and technology their commercial products depend on. Genius Sports completed its $1.2bn acquisition of Legend in May.
The numbers behind the move
Churchill Downs reported record second-quarter net revenue of $980 million for the three months to 30 June 2026, up $46 million or 5% year on year. Net income attributable to CDI was $241 million, up $24 million or 11%. Adjusted EBITDA reached a record $477 million, up $26 million or 6%. Diluted earnings per share were $3.42, against $2.99 in the same quarter of 2025.
The company is among the largest listed gambling operators in the Americas by market capitalisation, and the second-quarter figures leave it able to fund a buyback of this size without straining the balance sheet.
What to watch after 5 August
Closing is subject to customary conditions and expected by 5 August. After that, the question is what full ownership buys: whether United Tote wins tote contracts outside the Churchill Downs estate now that a rival racing organisation no longer holds a stake, and whether tracks served by other totalisator providers view a wholly owned Churchill Downs subsidiary as a neutral supplier or as a competitor’s infrastructure.
The casino sale process carries no timetable and no guarantee. Read together with the United Tote buyback, it points to a company shifting its weight from regional casino cash flow toward racing content and the technology that distributes it. The next 12 months show whether that shift is real.
Source: Churchill Downs Incorporated
