Kentucky's Churchill Downs to acquire parent company of Colonial Downs, Rosie's

Churchill Downs Inc., the company behind the famed Kentucky Derby horse race, has agreed to a $2.485 billion acquisition of Peninsula Pacific Entertainment LLC, the parent company of Colonial Downs and Rosie's Gaming Emporiums in Virginia.

If approved by the necessary authorities, including the Virginia Gaming Commission, the merger would create one of the nation's largest providers of historical horse racing betting.

Historical horse racing, which is offered at the six Rosie's locations in Virginia, give the appearances of a Las Vegas-style slot machine, but the results are driven by past horse races.

Rosie's is currently in the process of building a $400 million resort in Dumfries, off of I-95.

According to a press release from Churchill Downs, the company would acquire Colonial Downs' stake in the proposed Urban One casino in Richmond if it returns to the ballot and is approved this fall.

Churchill Downs is one of many companies trying to get a foothold in the sports betting space as well.