US horseracing pay-television broadcaster TVG, a subsidiary of internet betting exchange Betfair, has acquired rival pay-television broadcaster HRTV from gambling and horse racing company the Stronach Group.
As a result of the acquisition, TVG has secured television rights to the racecourses owned and operated by the Stronach Group for a term of seven years. This includes all races from US racecourses Santa Anita, Gulfstream Park, Pimlico, Golden Gate Fields and Laurel Park.
The television operations of HRTV will be combined with TVG. Betfair will own 100 per cent of the equity in the unified television platform.
Betfair said purchasing HRTV and securing the long-term rights will strengthen TVG’s ability to drive incremental wagering on its advanced deposit wagering platform and is expected to lead to additional advertising and distribution opportunities.
Betfair will make an initial payment of $25m (€22m) under the terms of the deal and estimates that it will pay further consideration totalling $47.8m over the seven-year period, although the total consideration is dependent upon TVG's future handle.
In the last 12 months, under previous agreements, TVG paid $4.3m in television fees to HRTV related to television content, including the Stronach Group racetracks, for which HRTV has held exclusive rights. The transaction eliminates the need for TVG to pay these fees.
Betfair chief executive Breon Corcoran said: “This deal strengthens TVG's position as a significant player in the US horseracing industry, bringing together the US' leading racetracks under a single TV network for the first time.
“The enlarged TVG operation will now show the most exciting racing action globally whilst offering a world-class betting experience. We believe this is a very compelling proposition for our customers.”