Churchill Downs filed a lawsuit Friday in the U.S. District Court of Western Michigan, claiming the state’s requirements for online betting providers violates federal law and the Constitution’s Commerce Clause. Churchill Downs is seeking to prevent Michigan from enforcing its suspension of TwinSpires, the company’s online betting site.
In late December, the Michigan Gaming Control Board (MGCB) instructed all licensed advance deposit wagering (ADW) providers to halt operations with Michigan residents by Jan. 1. Under Michigan’s Horse Racing Law of 1995, ADW and simulcast wagering must be associated with a licensed Michigan track. Currently, no racetracks in Michigan are fully licensed. While Northville Downs had received approval to host harness racing meets in 2024, it is not a fully licensed track.
Xpressbet, NYRAbets, and TVG Network complied with the MGCB’s instructions, but Churchill Downs refused. On Dec. 31, TwinSpires notified the MGCB that it would continue to offer wagering services in the state.
The MGCB announced on Thursday that it had issued a summary suspension order against Churchill Downs for its TwinSpires Racebook. Churchill Downs filed its lawsuit soon after. In its suit, Churchill Downs claims that Michigan law is in violation of the U.S. Interstate Horseracing Act (IHA) of 1978.
In its suit, Churchill Downs stated that per the IHA, “an off-track betting platform may accept interstate wagers on horseraces if it obtains three specific consents.” Approvals cited in the law include the host racing association, the host racing commission, and the off-track racing commission. The law, however, also maintains that “states should have the primary responsibility for determining what forms of gambling may legally take place within their borders.” So, the U.S. District Court will have plenty to ponder relative to state versus federal jurisdiction.
Should Churchill Downs fail to overturn its suspension, TwinSpires could face fines up to $10,000 per infraction if it continues to operate in the Great Lakes State.