In a strategic move aimed at bolstering its technological capabilities, the New York Racing Association (NYRA) through its subsidiary, NYRA Content Management Solutions, has acquired a significant stake in United Tote. The agreement, finalized in August 2022, enables NYRA to take control of an entity renowned for its provision of totalisator systems, equipment, and technology services essential for efficient bet processing and payouts. Although specific financial details remain undisclosed, this acquisition symbolizes a key advancement for NYRA in the pari-mutuel betting service sector.
United Tote has carved out a niche in the market with its comprehensive array of services designed to manage wagering activities, a vital component in the horse racing industry. This sale also carved out an agreement that CDI would collaborate with NYRA in deploying a pari-mutuel solution through United Tote’s systems, aiming to enhance customer reach. Notably, United Tote’s pari-mutuel settlements business is to remain with CDI, excluded from this transaction.
NYRA, recognized as a not-for-profit corporation, is at the forefront of managing the three dominant thoroughbred horse racing tracks in New York. Its stewardship extends to the iconic Aqueduct Racetrack in Queens, Belmont Park in Elmont, and the historic Saratoga Race Course in Saratoga Springs. With this strategic acquisition, NYRA is set to fortify its position in offering unparalleled racing experience complemented by robust betting technology.
The timing of the sale is significant, coinciding with CDI’s announcement of a record-breaking financial year. The year ending December 31, 2023, marked an impressive revenue milestone with figures soaring to $2.46 billion—an impressive 36% increase. This growth trajectory was observed across all of CDI’s business domains, but it was primarily led by its live and historical racing segment, which triumphed over its gaming business to become the chief revenue contributor.
While the soaring revenue was the highlight of the financial report, CDI also registered a new high in its adjusted EBITDA, which saw a 39% increase to reach $1.02 billion. Despite these gains, an escalation in expenses resulted in a 5% dip in net profit year-over-year, settling at $417.3 million.
Expanding beyond financial outcomes, CDI unveiled imminent plans to establish new facilities in Virginia and Kentucky. The Rose Gaming Resort in Virginia crossed its initial approval phase and is scheduled for a grand opening in September. Set to feature 1,650 historical racing machines, it aims to provide a luxury gaming and accommodation experience along with a selection of dining options. In tandem, Kentucky is on the horizon to welcome Owensboro Racing & Gaming in the first quarter of 2025. This new establishment will house 600 historical racing machines, offer a retail sportsbook, simulcast wagering and an assortment of food and beverage options.
With the NYRA’s move to acquire United Tote, the landscape of horse racing and betting is poised for a significant transformation. Combining NYRA’s prestigious reputation and United Tote’s technological prowess, this partnership is expected to propel the industry forward, delivering cutting-edge wagering solutions and services to racing enthusiasts. Meanwhile, CDI continues to leverage strong financials to expand its footprint, innovate its offerings, and bring fresh experiences to patrons within the historical racing sphere. This synergy of expansion and innovation both by NYRA and CDI underscores a period of exciting growth and evolution within the horse racing and gaming industries.
