Churchill Downs Continues to Invest in Online Gambling
In 2012 Churchill Downs purchased Bluff Media just in case “there is a liberalization of state or federal laws with respect to internet poker in the United States.” In the company’s most recent financial report, online gaming was highlighted as a future area of growth and CEO Bob Evans was explicit in his support for online gambling.
Investors expressed concern on the earnings with regards to internet gambling as it is seen as an investment that may not produce returns for many years. In response Evans said that the US market will grow and present a “significant opportunity for us and for others as well. We plan to be a significant player in that. We’ll continue to make investments at about the current rate, at least through the rest of this year, in building the technology platform”.
In each of the last two quarters the company spent $1.1 million on developing the platform Evans comment suggested that the same amount will be allocated throughout the rest of this year to developing a platform for online gambling.