Churchill Downs Secures Another Legal Triumph in the Controversy over Michigan Wagering Matters
TwinSpires Continues Operating in Michigan Amid Ongoing Legal Dispute
In a significant development for digital wagering rights, TwinSpires, the advance deposit wagering (ADW) platform owned by Churchill Downs Incorporated (CDI), has been allowed to continue operating in Michigan despite opposition from the Michigan Gaming Control Board (MGCB).
The current status of the legal dispute is that TwinSpires remains operational for wagers accepted in Michigan, thanks to court injunctions. This situation arose due to the MGCB's attempt to shut down TwinSpires' ADW on the basis that TwinSpires was no longer partnered with a licensed Michigan racetrack—Northville Downs having moved and not yet obtaining approval for a new track—and Michigan’s Horse Racing Law of 1995 requires such a link.
CDI filed a federal lawsuit in January 2025, arguing that Michigan's demands violated the Commerce Clause by obstructing interstate commerce. The lawsuit framed Michigan's demands as economically equivalent to forcing Amazon to partner with a local store before selling in the state.
The court's decision validates Churchill Downs' arguments that Michigan's approach imposes unnecessary restrictions on legitimate interstate commerce. In February, US District Judge Hala Jarbou issued a preliminary injunction, blocking the state's order to suspend TwinSpires' activities and allowing the company to continue operations while the lawsuit unfolds.
The Sixth Circuit Court of Appeals has also supported CDI's position, denying the MGCB’s request to stay a lower court order, which blocked the regulator from shutting down TwinSpires' ADW activities in the state. The court upheld the Interstate Horseracing Act (IHA) over conflicting state regulations, finding that Michigan's interpretation of the IHA did not match its intended purpose.
Though TwinSpires remains operational, the legal battle is ongoing with "additional oral arguments" expected soon, indicating the case is not fully resolved. The decisions so far reflect a broader trend supporting digital wagering rights against restrictive state laws and affirm the primacy of federal interstate wagering regulations over conflicting state requirements.
The dispute between Churchill Downs Incorporated and the Michigan Gaming Control Board centers around the infringement of interstate commerce and the overstepping of state authority. The Michigan Gaming Control Board requested a stay from the Sixth Circuit Court of Appeals to halt a lower court order that has allowed TwinSpires to continue operating in the state. However, the Sixth Circuit Court of Appeals denied the MGCB's request, allowing TwinSpires to continue its ADW operations in Michigan.
This situation highlights ongoing tension between state regulators and federally licensed interstate wagering platforms like TwinSpires. Churchill Downs welcomed the decision as a significant win in its fight for digital wagering rights. The efforts align with broader industry trends, with wagering becoming increasingly digital.
[1] The Detroit News [2] Court House News [3] Bloomberg Law
- The advance deposit wagering (ADW) platform TwinSpires, owned by Churchill Downs Incorporated (CDI), continues to operate in Michigan amid a legal dispute with the Michigan Gaming Control Board (MGCB).
- TwinSpires' operations in Michigan stem from court injunctions, a result of the MGCB's effort to halt the ADW due to TwinSpires no longer being partnered with a licensed Michigan racetrack.
- CDI filed a federal lawsuit in January 2025, arguing that Michigan's demands violated the Commerce Clause by obstructing interstate commerce.
- The court's decision validates Churchill Downs' arguments that Michigan's approach imposes unnecessary restrictions on legitimate interstate commerce.
- In February, US District Judge Hala Jarbou issued a preliminary injunction, blocking the state's order to suspend TwinSpires' activities and allowing the company to continue operations.
- The Sixth Circuit Court of Appeals has supported CDI's position, denying the MGCB’s request to stay a lower court order.
- The court upheld the Interstate Horseracing Act (IHA) over conflicting state regulations, finding that Michigan's interpretation of the IHA did not match its intended purpose.
- The legal battle is ongoing with "additional oral arguments" expected soon, indicating the case is not yet resolved.
- This dispute serves as an example of ongoing tension between state regulators and federally licensed interstate wagering platforms like TwinSpires.
- Churchill Downs views this decision as a significant win in its fight for digital wagering rights.
- Wagering is becoming increasingly digital, aligning with broader industry trends.
- This situation has been covered by media outlets such as The Detroit News, Court House News, and Bloomberg Law.
- The industry term for the legal issue at hand is advance deposit wagering (ADW).
- This tug-of-war over digital wagering rights might impact the future dynamics of the finance and business sectors.
- Resolving the TwinSpires case may set a precedent for other interstate commerce disputes involving digital platforms.
- Interior design and lifestyle enthusiasts may find news about the TwinSpires case fascinating due to its implications for digital rights.
- Cooking aficionados can take some lessons from the TwinSpires case regarding the need for flexibility and adaptability in their business ventures.
- Cybersecurity professionals are crucial in ensuring the safety of digital platforms like TwinSpires during legal disputes and daily operations.
- This TwinSpires case might influence the family dynamics of those who stake their financial wellbeing on the outcome of the legal battle.
- Investors and wealth management experts will closely follow the updates on this case, as it involves key principles of investing and business strategies.
- Homeowners and home-improvement enthusiasts can learn from the TwinSpires case about standing firm against unnecessary restrictions in their personal and professional lives.
- Baking enthusiasts might empathize with the need for creative solutions and resilience in the face of obstacles, as portrayed by Churchill Downs in this case.
- Beverage connoisseurs and the food-and-drink industry can reflect on the impact of digital platforms on traditional industries, such as horseracing and ADW operations.
- Dining establishments around the world face similar challenges related to interstate commerce and digital rights, learning from the TwinSpires case on addressing such problems.
- Love and dating advice columns can discuss the parallels between personal relationships and the TwinSpires case, emphasizing the importance of standing up for one's rights while navigating complex situations.
- This TwinSpires case demonstrates the connection between the realms of business, finance, technology, and law, highlighting the role of responsible gambling and the need for data and cloud computing in custodial matters.