Churchill Downs Triumphs in Legal Dispute Over Michigan Online Horse Betting Restrictions
Federal Court Backs Churchill Downs Against Michigan Regulations
After a lengthy legal dispute, Churchill Downs has secured a significant victory in its fight against the Michigan gaming authorities. On January 6, a federal court ruled decisively in favor of the Louisville-based company, blocking Michigan’s efforts to shut down TwinSpires, Churchill Downs’ online horse wagering platform. This ruling represents a landmark moment for the online horse racing market within the United States.
Challenge Against Michigan’s Tethering Law
The court’s summary judgment concluded that there were no substantial factual disagreements needing a full trial, reinforcing an earlier injunction that had kept TwinSpires operational during the litigation. The decision underscores the primacy of federal law and constitutional protections over state licensing demands, potentially influencing similar cases nationwide.
The dispute began in early 2025 when the Michigan Gaming Control Board (MGCB) ordered TwinSpires to cease operations in the state. The regulator argued that TwinSpires violated the state’s Horse Racing Law of 1995, which mandates that online wagering providers be linked or “tethered” to a licensed racetrack located within Michigan. TwinSpires’ existing partnership with Northville Downs dissolved after the racetrack moved locations, leading to the suspension notice.
Instead of partnering with another local racetrack, Churchill Downs directly contested the tethering requirement. Within a week of the suspension, they filed a federal lawsuit claiming Michigan’s rule unlawfully restricted interstate commerce. Their argument likened the situation to forcing a national retailer to negotiate with a local store just to sell products within that state.
Court Supports Federal Interstate Horseracing Act
Churchill Downs based its case on the Interstate Horseracing Act (IHA), a federal law governing cross-state betting and promoting collaboration across racing jurisdictions. The company asserted that Michigan’s tethering policy exceeded the limits set by Congress, granting the state undue authority to block federally sanctioned wagering activities.
In February 2025, Judge Hala Y. Jarbou issued a temporary injunction favoring Churchill Downs, allowing TwinSpires to continue operating. Although Michigan appealed, their appeal was denied. By December, the Sixth Circuit Court of Appeals had ruled that the IHA preempted Michigan’s tethering law.
Judge Jarbou’s recent ruling affirmed this position, noting that Michigan’s licensing scheme imposed an unauthorized additional consent requirement conflicting with federal law. This ruling ensures Churchill Downs’ online presence remains intact in Michigan and clarifies that states cannot use outdated racing laws to block interstate wagering platforms that comply with federal regulations.
