Churchill Downs filed a federal lawsuit against Michigan gaming regulators on Friday (10 January), challenging the state’s authority to restrict its TwinSpires online horse race betting offering.
The lawsuit, filed in the US District Court for Western Michigan, alleges that Michigan’s licensing requirements for online betting platforms violate both federal law and the US Constitution’s Commerce Clause.
TwinSpires is seeking declaratory and injunctive relief to prevent Michigan from enforcing these requirements.
The dispute arose after the Michigan Gaming Control Board (MGCB) ordered TwinSpires to cease all wagering operations with Michigan account holders on 1 January 2025.
The lawsuit said: “If TwinSpires is forced to cease its interstate advance deposit wagering (ADW) offering in Michigan, which federal law clearly permits, then it stands to wrongfully lose millions of dollars in revenue for which TwinSpires would never be able to recover damages, because the state is immune from money damages.
“And since interstate pari-mutuel wagering is at the core of TwinSpires’s operations in Michigan, compliance with MGCB’s order would mean the shutdown of effectively its entire in-state ‘enterprise.’”
The order came after Northville Downs, Michigan’s only remaining horse racing track and TwinSpires’ mandatory in-state partner, failed to secure a track licence for its new location after closing its longtime facility.
Under Michigan law, online betting platforms must partner with licensed in-state racetracks to accept wagers from Michigan residents.
Is TwinSpires covered under federal law?
The operator argued this requirement conflicts with the federal Interstate Horseracing Act of 1978 (IHA), which established national standards for interstate horse race betting.
Churchill Down’s attorneys added: “Congress established a uniform federal framework for interstate wagering on horse racing decades ago.
“It determined in the IHA that ‘the federal government should prevent interference by one State with the gambling policies of another,’ and provided that an off-track betting platform may accept interstate wagers on horseraces if it obtains three, specific consents.”
TwinSpires, which has operated in Michigan for over a decade, faces potential criminal penalties and fines of up to $10,000 per violation if it continues accepting wagers without meeting state requirements.
The company claims these threats could cause irreparable harm to its business and customer relationships.
The lawsuit names the MGCB, its executive director Henry L. Williams Jr., and attorney general Dana Nessel as defendants.
TwinSpires argues that Michigan’s requirements amount to “forced and discriminatory subsidy for local industry” by requiring out-of-state companies to partner with in-state businesses.
TwinSpires has been the leading online horse race betting platform in Michigan, handling 62.1% of the state’s $35.8m in online horse racing bets in 2021.
The company seeks to continue operating under federal law without state-specific licensing requirements.
An MCGB spokesperson told NEXT.io its policy is not to comment on ongoing legal matters.