Churchill Strikes Deal with Off Shore Business
Updated: Friday, May 18, 2001 11:07 PM
Posted: Friday, May 18, 2001 8:11 PM
Churchill Downs announced Friday that it will provide simulcast accounting services to Racing and Gaming Services, a company on the Caribbean island of St. Kitts that handles wagers on Thoroughbred, harness, and Greyhound races. The services will be provided through the Churchill Downs Simulcast Network.
"We have begun to consolidate our simulcast settlement operations throughout CDSN, and we are pleased to offer this account service to RGS as one of our simulcast customers," said John R. Long, Churchill Downs' executive vice president and chief operating officer.
RGS attracted the attention of racetrack operators last year as a suspected rebate shop, which is gambling business that lures high stakes players with cash rebates of up to 10 percent on their wagers. Rebating by offshore businesses is a concern because it diverts money away from racetracks that would otherwise go to purses.
Executives with RGS have said they do not pay rebates. Rather the business is owned by a group of investors who are also gamblers, and they share in the profits from the business. RGS also said it does not take telephone wagers from customers if they live in a market where a live meet is being conducted and RGS is taking that signal.
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