Churchill Downs Achieves Another Legal Triumph in Michigan Betting Case

Background of the Legal Dispute

Churchill Downs Incorporated, which owns the TwinSpires betting platform, has secured a significant court win against the Michigan Gaming Control Board (MGCB). The Sixth Circuit Court of Appeals recently rejected the MGCB’s attempt to pause a lower court ruling that permits TwinSpires to keep operating within Michigan.

Conflict Between Federal Laws and State Regulations

The issue stems from the MGCB’s January decision to halt TwinSpires’ advance deposit wagering (ADW) services in Michigan. The regulator argued that TwinSpires violated the Horse Racing Law of 1995, which requires online horse betting to be linked to a licensed racetrack within the state. TwinSpires’ previous affiliate, Northville Downs, has relocated and has not yet obtained regulatory approval for a new racing venue.

In response, Churchill Downs filed a federal lawsuit on January 10 in the Western District of Michigan. The company challenged MGCB’s conditions, arguing they infringed upon interstate commerce rights and exceeded state authority. The lawsuit compared Michigan’s licensing demands to mandating that a company like Amazon partner with a local store before selling products in the state.

Churchill Downs further argued that these outdated regulations conflicted with the Commerce Clause of the U.S. Constitution, intensifying the legal conflict. In February, U.S. District Judge Hala Jarbou issued a preliminary injunction preventing the state from suspending TwinSpires’ operations, allowing the platform to continue while the case was ongoing. The MGCB appealed and requested the Sixth Circuit to stay this injunction.

Current Status: TwinSpires Continues Operating Amidst Legal Challenges

The Sixth Circuit Court denied the MGCB’s stay request, reinforcing TwinSpires’ right to operate during the legal proceedings. The court emphasized that federal law, specifically the Interstate Horseracing Act (IHA), takes precedence over conflicting state regulations. The court ruled that Michigan’s interpretation of the IHA contradicts the statute’s purpose of promoting cooperation between states.

“Defendants’ alternative interpretation flatly contradicts the IHA’s express intent to prevent interference by one State with the gambling policies of another, and to ensure states continue to cooperate.”

Sixth Circuit Court of Appeals statement

Churchill Downs welcomed the ruling as a vindication of its position that Michigan’s rules impose unnecessary barriers on lawful interstate commerce. Meanwhile, the MGCB insists that any ADW operator taking bets from Michigan residents must collaborate with a state-licensed racetrack.

Although Churchill Downs has won this round, the dispute is ongoing. Both sides are preparing for further oral arguments in the near future. For now, TwinSpires remains active in Michigan, marking a crucial victory for Churchill Downs in defending its digital wagering rights, in line with the broader shift toward online betting in the gambling industry.