DraftKings stock jumps after deal with Churchill Downs to launch horse race betting app …

Shares of DraftKings Inc. DKNG, -0.41% jumped 2.3% in premarket trading Tuesday, after the online sports betting and fantasy sports company and Churchill Downs Inc. CHDN, +0.33% announced a multi-year agreement that will bring betting on horse racing to DraftKings. Churchhill Downs’ stock was inactive in the premarket. DraftKings said it will launch “DK HORSE” in the coming months, a standalone app that will require customers to sign up and deposit funds separate from their “one account, one wallet” that is tied to DraftKings Sportsbook, Casino and fantasy sports apps. DK HORSE, which is expected to be available in 21 states to start, is scheduled to launch before the Kentucky Derby in May 2023. “”We are excited to collaborate with Churchill Downs Incorporated, not only to give our existing customers an opportunity to engage with pari-mutuel horse wagering, but also to acquire new customers efficiently during marquee horse racing moments,” said DraftKings Chief Executive Jason Robins. DraftKings’ stock has tumbled 47.2% year to date through Monday and Churchill Downs shares have lost 8.1%, while the S&P 500 SPX, -0.16% has shed 16.8%.
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