Justice Dept. Wants More Info on Churchill Downs Deal
LOUISVILLE, Ky. (AP) - Churchill Downs Inc. said the Justice Department has asked for more information related to its proposed $126.8 million deal to buy online rival Youbet.com Inc.
The racetrack operator and Youbet.com said late Monday that they are currently gathering the information and will continue to work with the Justice Department on their review of the transaction.
The potential acquisition announced in November would give Churchill Downs, which counts the Kentucky Derby among its businesses, a bigger slice of the Internet wagering sector. The company is betting that online wagering will keep up a fast pace in an industry that has been sluggish during the recession as gamblers tighten their spending.
The acquisition is expected to close during the first half of the year.
Besides its namesake track in Louisville, Churchill Downs owns and runs three other tracks in Florida, Illinois, and Louisiana, along with off-track betting facilities. Youbet.com is the exclusive provider of live horse racing footage and racing results to ESPN.com and CBSSports.com.
