In Michigan, Churchill Downs wins another court battle over the territorial dispute concerning betting rights.

In a significant victory for digital wagering rights, Churchill Downs Incorporated has won a key legal battle that allows its TwinSpires advance deposit wagering (ADW) platform to continue operating in Michigan. The Sixth Circuit Court of Appeals rejected the Michigan Gaming Control Board's (MGCB) attempt to halt a lower court injunction that had prevented the state from shutting down TwinSpires' activities.

The legal dispute centers around Michigan’s 1995 Horse Racing Law, which requires online horse betting operators like TwinSpires to be affiliated with a licensed racetrack within Michigan. However, TwinSpires' former partner, Northville Downs, relocated and its new facility has not yet received regulatory approval from the MGCB, leaving TwinSpires without a compliant in-state track partner.

Churchill Downs challenged the MGCB’s stance by filing a federal lawsuit in January, arguing that Michigan’s law conflicts with the Interstate Commerce Clause of the U.S. Constitution and the Interstate Horseracing Act (IHA), which governs horse racing betting across state lines. Churchill Downs contends that Michigan’s requirement unfairly restricts interstate commerce by imposing state licensing conditions that resemble forcing a company like Amazon to partner locally before selling products, which exceeds the state's regulatory authority.

The courts have sided with Churchill Downs, holding that TwinSpires' operations are protected under the federal Interstate Horseracing Act, which authorizes advance deposit wagering across state lines under certain federal guidelines, and the broader protections of the Commerce Clause. This federal preemption implies that Michigan cannot block TwinSpires’ interstate wagering activities solely based on state licensing rules that are inconsistent with federal law.

The dispute escalated due to Churchill Downs' claim that the outdated regulations clash with the Commerce Clause of the US Constitution. In February, US District Judge Hala Jarbou issued a preliminary injunction that blocked the state's order to suspend TwinSpires' activities and allowed the company to continue operations while the lawsuit unfolds. The MGCB appealed the order and asked the Sixth Circuit to issue a stay, but their request was denied, allowing TwinSpires to remain live in Michigan.

As the case is far from over, both parties are set to offer additional oral arguments in the coming weeks. The current status of the legal dispute is that Churchill Downs has won a key legal battle allowing its TwinSpires ADW platform to continue operating in Michigan despite opposition from the MGCB. This victory marks a significant step forward for digital wagering rights and aligns with broader industry trends.

| Aspect | Status/Details | |--------------------------------|------------------------------------------------------------------------------------------------| | Legal dispute | Churchill Downs vs. Michigan Gaming Control Board over TwinSpires’ ADW operations | | Michigan regulation | Requires ADW operators to partner with licensed in-state racetracks (1995 Horse Racing Law) | | Problem | Northville Downs relocated, no approved new Michigan racetrack | | Churchill Downs lawsuit | Filed January 2025, claims state law violates Interstate Commerce Clause and Interstate Horseracing Act | | Court rulings | Sixth Circuit denied MGCB stay request; lower court injunction allows TwinSpires to operate | | Federal laws involved | Interstate Horseracing Act and Commerce Clause protect interstate ADW wagering |