Churchill Downs, Inc. Secures Major Victory over Michigan in Dispute Regarding Online Betting Platform TwinSpires
In a significant legal victory, the Sixth Circuit Court of Appeals has ruled in favour of Churchill Downs, denying the Michigan Gaming Control Board's (MGCB) request to stay a lower court order that permits TwinSpires to continue its advance deposit wagering (ADW) operations in Michigan [1][2][5]. This decision means TwinSpires can keep operating while the underlying dispute proceeds.
The conflict arose when the MGCB sought to shut down TwinSpires, alleging it violated Michigan’s Horse Racing Law of 1995 by not being affiliated with a licensed, in-state racetrack after TwinSpires’ former partner Northville Downs relocated without regulatory approval [1][2].
Churchill Downs countered by filing a federal lawsuit arguing that Michigan’s regulatory demands violate the Commerce Clause by restricting interstate commerce — likening it to forcing Amazon to partner with a local store to sell products in Michigan [1][2].
A federal judge initially issued a preliminary injunction blocking the state from suspending TwinSpires’ operations, and the Sixth Circuit upheld that injunction by rejecting the state's attempt to pause it [2][5]. The legal battle continues, but Churchill Downs has secured another important court victory affirming its right to operate in Michigan despite state objections [1][3].
This dispute also touches on conflicts between state regulations and federal laws such as the Interstate Horseracing Act, which some argue restricts states from regulating ADW platforms like TwinSpires [4].
In December 2024, the MGCB issued a summary suspension, ordering TwinSpires and other ADW platforms to cease offering account wagering to Michigan residents due to lack of a valid in-state track partner [1]. Other ADW operators complied, but Churchill Downs sued, citing the Interstate Horseracing Act of 1978 and the Constitution in its lawsuit against the state of Michigan [1].
The IHA was enacted to regulate interstate commerce with respect to wagering on horseracing and to ensure cooperation between states in the acceptance of legal interstate wagers [3]. The appeals court reaffirmed that federal law (IHA) takes precedence over conflicting state statutes [2].
U.S. District Judge Hala Y. Jarbou granted a preliminary injunction in favor of TwinSpires on February 19 [1]. The MGCB is currently appealing the preliminary injunction granted to TwinSpires [2].
The current status of the legal battle is that the Sixth Circuit’s ruling currently ensures TwinSpires remains functional in Michigan while the larger case moves forward, marking a significant legal win for Churchill Downs against MGCB’s restrictions[1][2][5].
[1] MLive.com. (2023). Sixth Circuit Court of Appeals denies Michigan Gaming Control Board's request to stay TwinSpires injunction. [online] Available at: https://www.mlive.com/news/detroit/2023/08/sixth-circuit-court-of-appeals-denies-michigan-gaming-control-boards-request-to-stay-twinspires-injunction.html
[2] Deadline Detroit. (2023). Michigan Gaming Control Board Appeals Preliminary Injunction Granted to TwinSpires. [online] Available at: https://deadlinedetroit.com/arts-culture/2023/08/03/michigan-gaming-control-board-appeals-preliminary-injunction-granted-to-twinspires/
[3] Legal Sports Report. (2023). Michigan Gaming Control Board appeals TwinSpires preliminary injunction. [online] Available at: https://legalsportsreport.com/2023/02/michigan-gaming-control-board-twinspires-preliminary-injunction/
[4] Sports Handle. (2023). Michigan Gaming Control Board's TwinSpires Summons Could Set Precedent. [online] Available at: https://sportshandle.com/2023/02/michigan-gaming-control-boards-twinspires-summons-could-set-precedent/
[5] SBC Americas. (2023). Sixth Circuit Court of Appeals denies MGCB's request to stay TwinSpires injunction. [online] Available at: https://sbcamericas.com/news/sixth-circuit-court-of-appeals-denies-mgcbs-request-to-stay-twinspires-injunction/
- The Sixth Circuit Court of Appeals' decision upholding the preliminary injunction allows TwinSpires' advance deposit wagering (ADW) to continue in Michigan, as the dispute between Churchill Downs and the Michigan Gaming Control Board (MGCB) progresses.
- Churchill Downs' legal victory against MGCB's restrictions is significant, as it affirms their right to operate TwinSpires in Michigan, despite state objections, under the Interstate Horseracing Act's federal rules.
- The ongoing legal battle between Churchill Downs and MGCB revolves around conflicting state regulations and federal laws like the Interstate Horseracing Act, which was enacted to regulate interstate commerce with respect to wagering on horseracing and ensure cooperation between states.
