Churchill Downs, the iconic Louisville racetrack known for the Kentucky Derby, has announced the closure of its in-person sportsbook operations, pivoting away from retail betting in the face of overwhelming mobile wagering trends.

Darren Rogers, spokesperson for Churchill Downs, stated that the decision was driven by the negligible share of in-person betting in overall sports wagering volumes. “With 98% of sports betting made on mobile platforms such as FanDuel, there simply isn’t a profitable path forward for us to sustain profitability as a retail operator,” Rogers explained. This strategic shift underscores the evolving landscape of the betting industry, where digital platforms dominate consumer preferences.

Continuation of horse racing and simulcast betting:

Despite the cessation of sportsbook activities, Churchill Downs will continue to offer live and simulcast horse racing betting. The track reintroduced in-person sports betting in September 2023 following Kentucky’s legalization of sports betting, but it will now revert to its traditional betting offerings. The venue remains a hub for racing enthusiasts, especially with the upcoming 2025 Spring Meet, which includes the prestigious Kentucky Derby. Patrons can still place bets at mutuel-clerk windows or via self-service machines, and mobile wagering remains an option for avoiding lines.

The change will not affect other betting activities across the state or at other Churchill Downs Inc. properties. In-person wagering will still be available at locations such as Derby City Gaming Downtown and the Derby City Gaming and Hotel in Newburg. The broader availability of sports betting continues across Kentucky at various venues, ensuring that fans still have numerous options for engaging with their favorite sports.

The transition away from physical sportsbooks at Churchill Downs reflects broader market dynamics. According to the Courier Journal, between September 2023 and December 2024, Kentuckians wagered approximately $3.5 billion on sports, with a scant 3.5% emanating from in-person bets. This stark disparity highlights the challenges brick-and-mortar sportsbooks face in an increasingly digital marketplace.

Legal and economic considerations:

The legal landscape for betting in Kentucky supports a variety of betting modalities. Kentucky legalized sports betting in March 2023, with both retail and online options launching later that year. This regulatory environment has facilitated a rich ecosystem of betting platforms, with major players like BetMGM, Caesars, and FanDuel offering services statewide.

The shift at Churchill Downs is reflective of wider trends in the gaming and betting industries, where consumer habits and technological advancements dictate operational strategies. While the move away from in-person betting at this iconic venue marks the end of an era, it also signals the adaptation of the industry to new economic realities and consumer preferences.