Churchill Downs Scores Another Legal Victory in Michigan Betting Dispute

The court battle between the horse racing operator and the Michigan regulator shows no signs of subsiding, as both parties refuse to back downImage Source: Shutterstock.com

Churchill Downs Incorporated, parent company of the TwinSpires betting platform, scored another court win in its long-running legal dispute with theMichigan Gaming Control Board(MGCB). The Sixth Circuit Court of Appeals denied the regulator’s request to stay a lower court order that has allowed TwinSpires to continue operating in the state.

Interstate Laws Clash with Local Regulations

The dispute follows a January decision by MGCB to shut down TwinSpires’advance deposit wagering(ADW) activities in Michigan. According to the regulator, the company had breached theHorse Racing Law of 1995, tethering online horse betting to a licensed, in-state racetrack. TwinSpires’ former partner, Northville Downs, moved away from its original facility and has yet to secure regulatory approval for a new track.

Churchill Downs struck back swiftly. OnJanuary 10, the company filed a federal lawsuit in the Western District of Michigan, arguing that the MGCB’s requirements infringed on interstate commerce and overstepped state authority. The suit framed Michigan’s demands as economically equivalent to forcing Amazon to partner with a local store before offering merchandise in the state.

According to Churchill Downs, the outdated regulations clashed with the Commerce Clause of the US Constitution, further escalating the legal battle. In February, US District Judge Hala Jarbouissued a preliminary injunction that blocked the state’s order to suspend TwinSpires’ activities and allowed the company tocontinue operationswhile the lawsuit unfolds. The MGCB struck back, appealing the order and asking the Sixth Circuit to issue a stay.

TwinSpires Remains Live Despite Fierce Legal Wrangling

Despite the MGCB’s efforts, the Sixth Circuit court denied the request for a stay, reaffirming TwinSpires’ ability to operate as the legal action proceeds. The appeals court upheld the supremacy of federal law, namely the Interstate Horseracing Act(IHA), over conflicting state regulations. The court found that Michigan’s interpretation of the IHAdid not matchits intended purpose to foster 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 Downswelcomed the decision, seeing it as a validation of its arguments that Michigan’s approach imposesunnecessary restrictions on legitimate interstate commerce. The MGCB, however, maintains that any ADW operator accepting bets from Michigan residents must do so in partnershipwith a licensed track in the state.

Despite Churchill Downs’ recent win, the case isfar from over. The two parties will offer additional oral arguments in the coming weeks. In the meantime, TwinSpires remains live in Michigan, marking asignificant win for Churchill Downs in its fight for digital wagering rights. These efforts also align with broader industry trends, with wagering becoming increasingly digital.