Battle Over Horse Racing Bets Heats Up in Michigan

Legal documents and a gavel on a horse racing track

News Summary

TwinSpires, a leading advance-deposit wagering provider, has filed a lawsuit against the Michigan Gaming Control Board, contesting new rules that will severely restrict ADW operations. With the last operational harness track in the state closed down, there are concerns over the legality of Michigan’s licensing requirements. The lawsuit cites possible violations of federal interstate commerce laws and the Interstate Horseracing Act, raising critical questions about the future of horse racing bets in Michigan.

Battle Over Horse Racing Bets Heats Up in Michigan

Flint, Michigan – Things are getting intense in the world of horse racing, as TwinSpires, the well-known advance-deposit wagering (ADW) provider owned by Churchill Downs Inc., has filed a lawsuit to challenge the Michigan Gaming Control Board’s (MGCB) recent decision. The legal drama kicked off on January 12 in the U.S. District Court for the Western District of Michigan, marking yet another chapter in the saga surrounding betting on horse races.

What’s at Stake?

The lawsuit claims that a longstanding federal law, which governs interstate simulcasting, should take precedence over Michigan’s rules that are set to engulf ADW operations in a cloud of uncertainty. Effective from January 1, 2025, the MGCB has ordered TwinSpires and other ADW operators to stop taking bets from Michigan residents. Why? Because the state requires ADW to be linked directly to licensed Michigan tracks that are currently hosting live racing. The kicker here is that as it stands, there won’t be any licensed tracks in Michigan that fit this requirement by 2025.

In February 2024, Northville Downs, the last remaining operational harness track, threw in the towel, leaving the state’s horse racing landscape barren and devoid of any live events. In a stern move, the MGCB issued a summary suspension against TwinSpires on January 7, for not complying with their order to cease operations for Michigan residents. The board is now gearing up for potential penalties, which could include administrative, civil, and even criminal repercussions.

Challenging Michigan’s New Rules

This legal showdown hinges on a 2019 amendment to Michigan’s horse racing law, which imposed fresh licensing requirements that TwinSpires claims are unconstitutional. Their argument is largely centered around the Interstate Commerce Clause, suggesting it provides them the right to operate, regardless of state restrictions. They also leverage the Interstate Horseracing Act (IHA), which dates back to 1978 and they argue allows off-track platforms to accept interstate wagers if they secure consent from the necessary regulatory agencies.

TwinSpires contends that Michigan lacks authority in the IHA’s framework any time out-of-state tracks or wagers come into play. The lawsuit names the MGCB and its executive director, along with Michigan’s Attorney General as defendants, putting the state’s regulations right in the hot seat.