Since taking over the Churchill Downs, Inc. helm, CEO Robert Evans has implemented a solid strategy of vertical integration. Recently CDI bought a 50% interest in HRTV from competitor Manga Entertainment, then launched their own wagering platform, twinspires.com. Now they have made perhaps the best acquisition of all, a provider of past performances data.
It was only a matter of time before the industry realized that the real money is in handle, not in selling data. As the price of data moves toward zero, handle will increase by a factor that will far outweigh the lost revenue.
How many times have you come home in the evening and wanted to play maybe one or two races for a couple of bucks, but weren't going to shell out $4.50 for a paper form, or $3.50 for online pps from drf.com? CDI appears to have seen the light and I would watch for a drastic decrease in the price of their data on their signals in the near term.
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