Churchill Downs Incorporated (CDI) has secured a significant legal victory in Michigan, allowing its online betting platform TwinSpires to keep operating in the state while a federal lawsuit plays out.
Background to the Dispute
The MGCB oversees gambling in Michigan, including casinos and horse racing. At the center of this case is the state’s 1995 Horse Racing Law, which requires online horse wagering to be tied to a licensed in-state racetrack.
TwinSpires had previously partnered with Northville Downs, Michigan’s only active track. But when Northville moved and awaited approval for its new location, MGCB argued the platform no longer met the statutory requirement.
MGCB’s Enforcement Action
Without an active in-state track partner, MGCB suspended TwinSpires’ operations, citing the legal mandate. CDI pushed back, arguing that the rule is outdated and ill-suited to modern online wagering. Many Michigan customers feared losing access to their accounts during the suspension.
Churchill Downs Goes to Court
On January 10, 2025, Churchill Downs sued MGCB in federal court, claiming the state’s action violated the U.S. Constitution’s Commerce Clause. CDI compared the rule to forcing online retailers like Amazon to open a physical store in-state before doing business.
The company argued the restriction hampers interstate commerce and fails to reflect the realities of digital betting.
Initial Injunction in CDI’s Favor
In February, U.S. District Judge Hala Jarbou granted a preliminary injunction, allowing TwinSpires to resume operations in Michigan during litigation. MGCB appealed and sought a stay to suspend the platform again during the appellate process.
Appeals Court Rejects MGCB Request
The Sixth Circuit denied the stay, criticizing MGCB’s interpretation of the federal Interstate Horseracing Act (IHA). The court said the agency’s position contradicted the law’s clear intent — to prevent states from interfering with each other’s gambling policies.
“When state laws conflict, federal law — particularly the IHA — takes precedence,” the court wrote.
Industry Implications
With the ruling, TwinSpires remains open to Michigan bettors while both sides prepare for oral arguments. The outcome could influence how other states enforce similar wagering restrictions, prompting online betting operators nationwide to reassess compliance strategies.
