LOUISVILLE, Ky. — The sports betting lounge at Churchill Downs has closed its doors fewer than two years after opening.

Kentucky legalized the form of betting in late 2023. So far, close to $3.5 billion has been bet, with nearly all of it being through betting apps and not in-person wagering.

“With 98% of sports betting made on mobile platforms such as FanDuel, there simply isn’t a profitable path forward for us to sustain profitability as a retail operator," a Churchill Downs spokesperson said in a statement provided to Spectrum News 1. "We’re going to focus our time and resources elsewhere.”

While in-person sports betting will not continue at the track, bettors can still cash in winning wagers for the next few weeks. Churchill Downs will continue offering sports betting at other racetracks it owns and at its Derby City Gaming facilities in Louisville.

Drew Deener, ESPN Louisville Radio morning show host, said the overwhelming adoption of mobile betting was not something he saw coming.  

“I think I went once, and then it's like, no, you don't have to keep track of the ticket; you have to worry about cashing it; it's all right there,” Deener said. “You can bet on a game in progress in Europe right now if you wanted to, whereas having to drive to the sportsbook, get your car out, find your way in there, make the bet, it just don’t make any sense." 

State law requires online betting platforms partner with one of the state’s horse racing tracks to operate. Deener said he thinks betting has gotten more people into watching sports since it became legal. 

“You look at it; so many events ... these TV ratings are up," Deener said. "Yeah, of course they are; people are betting on it." 

Gov. Andy Beshear, D-Ky., placed the state’s first legal sports bet at Churchill Downs in Sept. 2023.